Prestige Consumer Healthcare (PBH) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue was $1,089 billion, down 4.3% year-over-year, with Q4 particularly challenging due to eye care supply issues, global conflict, and consumer headwinds.

• Adjusted gross margin held steady at 55.6%, while adjusted diluted EPS declined to $4.38 from $4.52.

• Free cash flow for fiscal 2026 was $246.4 million, supporting $156 million in share repurchases and ending leverage at 2.6x.

• Strategic investments included the acquisition of Pillar5 to enhance eye care supply chain and pending acquisitions of Breathe Right and LaCorium Health, both expected to be accretive.

• E-commerce penetration reached 18% with double-digit consumption growth, reflecting successful channel investments.

Financial highlights

• Q4 revenue was $281.6 million, down 5% year-over-year (6.4% excluding FX), mainly due to eye and ear care supply constraints and Middle East shipping disruptions.

• Fiscal 2026 adjusted EBITDA was $353.8 million (32.5% margin), down from $374.5 million (32.9% margin) in the prior year.

• Adjusted operating income for FY26 was $322.3 million, with a margin of 29.6%.

• Fiscal 2026 net income was $190.3 million, with diluted EPS of $3.91; adjusted net income was $213.3 million and adjusted diluted EPS was $4.38.

• Fiscal 2026 GAAP gross margin was 54.7%; adjusted gross margin was 55.6%.

Outlook and guidance

• Fiscal 2027 revenue forecast is $1.1–$1.121 billion, with organic growth of 1%-3%.

• Adjusted EPS expected at $4.42–$4.51, with gross margin consistent with fiscal 2026.

• Free cash flow projected at $250 million or more, supporting accelerated debt reduction post-acquisitions.

• Guidance does not yet include Breathe Right or LaCorium Health acquisitions.

• Medium-term outlook targets 10% annual revenue CAGR, 8% EPS CAGR, and $900 million cumulative free cash flow over three years.