Spectrum Brands (SPB) Q4 2026 earnings summary

Executive summary

• FY26 net sales rose 1.5% to $2,852.4M; organic sales declined 0.3%, while Global Pet Care and Home & Garden returned to growth.

• Adjusted EBITDA reached $374.8M; excluding $57.4M of tariff refunds, it was $317.4M, up $28.3M or 9.8%.

• FY27 priorities include organic growth and share gains, operational efficiency, targeted investment, and disciplined financial stewardship.

Financial highlights

• FY26 continuing-operations net income was $58.0M versus $100.2M; diluted EPS from continuing operations was $2.20 versus $3.85.

• Q4 net sales fell 2.8% to $713.2M; organic sales declined 3.1%.

• Q4 adjusted EBITDA was $69.9M versus $63.4M; excluding $3.2M of tariff-refund-related costs, it was $73.1M, up 15.3%.

• Q4 gross margin rose 260 bps to 37.6%; operating income was $24.4M, down $5M year over year.

• FY26 adjusted free cash flow was $247.3M, or $188.2M excluding $59.1M of tariff refunds; operating cash flow from continuing operations was $291.0M.

Outlook and guidance

• FY27 net sales and adjusted EBITDA are expected to grow flat to low single digits; the EBITDA comparison normalizes for FY26 tariff refunds.

• FY27 adjusted free cash flow target is ~50% of adjusted EBITDA; D&A is expected at $120M–$130M, capex at $40M–$50M, and cash taxes at $30M–$40M.

• FY27 input cost inflation is expected at ~$80M; pricing, lower tariff rates, and cost actions are expected to offset pressure while supporting investment.

• Global Pet Care and Home & Garden are expected to grow, while Home and Personal Care sales are expected to be relatively flat amid soft demand and competition.

• Home and Garden retailer inventory overhang is expected to largely clear in H1, though elevated levels may weigh on first-half comparisons.