Prestige Consumer Healthcare (PBH) Q2 2027 earnings summary

Executive summary

• Q2 revenue rose 22.7% YoY to $336.3M, driven primarily by the Breathe Right and LaCorium acquisitions; organic revenue declined 1.6%, while H1 organic growth was 0.7%.

• Q2 adjusted diluted EPS increased to $1.13 from $1.07; GAAP net income fell to $25.3M from $42.2M amid lower GAAP gross margin and higher interest expense.

• Clear Eyes supply constraints at Pillar5 led to lower FY27 guidance; debt reduction remains a priority.

Financial highlights

• Q2 adjusted EBITDA was $113.0M, up 30.1% YoY, with a 33.6% margin; adjusted operating income was $102.9M, up 29.1%.

• H1 revenue increased 15.0% to $602.0M; adjusted diluted EPS was $2.11, up 4.5%, and adjusted net income was $100.3M versus $99.9M.

• H1 adjusted free cash flow was $123.0M versus $133.6M, down 8% due to working-capital timing; operating cash flow was $108.7M versus $136.5M.

• Q2 interest expense rose to $30.0M from $10.0M; H1 interest expense increased to $44.0M from $20.2M, reflecting higher average debt and borrowing costs.

Outlook and guidance

• FY27 revenue guidance was lowered to $1.280B–$1.290B from $1.290B–$1.315B; organic revenue is expected to be flat, or ~2% growth excluding Clear Eyes.

• FY27 adjusted diluted EPS guidance was reduced to $4.48–$4.55 from $4.55–$4.65; adjusted free cash flow guidance is at least $265M versus at least $270M.

• Clear Eyes production variability is expected to constrain H2 availability and sales; Breathe Right and LaCorium FY27 revenue remains expected at ~$190M.

• FY27 adjusted gross margin is expected just above 57%; medium-term targets remain ~10% annual revenue growth, ~8% annual EPS growth and nearly $900M of aggregate free cash flow over three years.