Spectrum Brands Holdings Reports Fiscal 2026 Third Quarter Results

• Third Quarter Net Sales Increased 7.7% and Organic Net Sales Excluding Favorable Foreign Exchange Increased 6.6%
• Third Quarter Net Loss From Continuing Operations of $20.3 Million, a Decrease of $40.8 Million, Including a One-time Non-cash Impairment Charge on our HPC Business Related to the Recent Oaktree Investment
• Adjusted EBITDA of $158.3 Million, Increased $81.7 Million
• Excluding $60.6 Million of IEEPA Tariff Refunds, Adjusted EBITDA was $97.7 Million, an Increase of $21.1 Million or 27.5%
• Ended Third Quarter with Net Debt Leverage of 1.02x Adjusted EBITDA
• Given the Strong Year-To-Date Performance, Updating Fiscal 2026 Framework
  • Continuing to Expect Net Sales to be Flat to Up Low Single Digits
  • Raising Adjusted EBITDA Expectation, Excluding Tariff Refunds, to be Up Mid Single Digits
  • Continuing to Expect Approximately 50% Conversion of Adjusted EBITDA to Adjusted Free Cash Flow, Excluding Favorable Tariff Refunds

MIDDLETON, Wis.–(BUSINESS WIRE)–Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or the “Company”), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, today reported results from continuing operations for the third quarter of fiscal 2026 ended June 28, 2026.

“We are pleased with our results this quarter, with all three businesses delivering top-line growth, highlighted by a record-setting quarter in our Home & Garden business. Across both Global Pet Care and Home & Garden, our categories benefited from solid underlying demand, and our key brands continued to outperform the market. In Home & Personal Care, while results remain impacted by soft consumer demand, we are seeing encouraging signs of stabilization in North America, and our key brands in Latin America continue to perform well. Our focus on profitability is reflected in our results, with each segment delivering Adjusted EBITDA growth. Importantly, the strength of our earnings performance was driven by operational execution and business fundamentals, independent of the benefit from IEEPA tariff refunds. These tariff refunds represent a recovery of prior losses which will allow us to invest back into our businesses for overall long term health. Given our strong year-to-date performance and continued operating momentum, we are updating our earnings framework and increasing our Adjusted EBITDA expectation, excluding the impact of tariff refunds, to mid single digit growth while maintaining our net sales expectation of flat to low single digit growth in fiscal 2026,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

Mr. Maura continued, “On the operational front, we recently achieved another meaningful milestone in our ERP transformation, completing our first SAP S/4 HANA deployment within the Home & Personal Care business, while also completing implementation across the remaining Global Pet Care and Home & Garden entities. We expect to complete the remaining implementation for HPC EMEA later this year, at which point Spectrum Brands will operate on one unified ERP platform across the entire company.”

Fiscal 2026 Third Quarter Highlights

• Net sales increased 7.7% with an increase in organic net sales of 6.6%, which excludes the impact of $7.5 million of favorable foreign exchange rates. Net sales increased across all three businesses, led by Home and Garden with market share gains across key brands and favorable weather conditions early in the quarter driving point-of-sale consumption.
• Gross profit and margin increased driven by a one-time tariff refund, higher sales volume, pricing, lower trade spend, favorable mix, and cost improvement actions partially offset by higher tariff cost. Excluding tariff refunds of $60.6 million, gross profit increased $45.7 million and gross margins increased by 330 basis points.
• Operating income decreased due to higher operating expenses partially offset by the increase in gross profit.
• Net loss from continuing operations and diluted earnings per share decreased driven by lower operating income and higher income tax expense. Diluted earnings per share benefited from a lower share count.
• Adjusted EBITDA increased 106.7% and adjusted EBITDA margin increased 1,010 basis points. Excluding tariff refunds, adjusted EBITDA increased 27.5% and adjusted EBITDA margin increased 200 basis points, driven by improved gross margins and increased volumes partially offset by higher investment spend.
• Adjusted diluted EPS increased to $2.79, driven by higher adjusted EBITDA and a reduction to shares outstanding. Tariff refunds contributed $1.90 net of tax effect to adjusted diluted EPS. Excluding tariff refunds, adjusted diluted EPS decreased to $0.89.

Fiscal 2026 Third Quarter Segment Level Data

Global Pet Care (GPC)

Net sales increased 3.3%. Excluding favorable foreign currency impacts, organic net sales increased 2.9%. Reported net sales in Companion Animal increased mid single digits while sales in Aquatics decreased mid single digits. North American net sales increased, led by Companion Animal with modest category growth and continued market share gains across key brands. Organic net sales in EMEA decreased across both categories despite brand strength and expanded distribution, impacted by a strategic acceleration of orders into the second quarter by certain retailers in advance of the SAP S4/HANA ERP implementation.

Excluding tariff refunds, adjusted EBITDA was $51.9 million, an increase of $7.9 million versus the prior year and adjusted EBITDA margin of 19.7%, an improvement of 250 basis points. Excluding this one-time benefit, the increase is due to pricing, favorable mix and cost improvement actions partially offset by higher tariff cost and investment spend.

Home & Garden (H&G)

Net sales increased 19.0% and organic net sales increased 19.1% due to favorable weather conditions in April positively impacting POS and retailer replenishment order patterns, with above-market growth across key brands.

Excluding tariff refunds, adjusted EBITDA was $48.4 million, an increase of $9.8 million versus the prior year and adjusted EBITDA margin of 21.5%, an improvement of 110 basis points. Excluding this one-time benefit, the increase is primarily due to higher sales volume and productivity improvements partially offset by higher trade spend and inflation.

Home & Personal Care (HPC)

Net sales increased 3.6%. Excluding favorable foreign currency impacts, organic net sales increased 1.1%. Reported net sales in Personal Care increased in the mid teens while net sales in Home Appliances were down mid single digits. Excluding the favorable impact of foreign currency, organic net sales in EMEA increased in both Home Appliances and Personal Care. Sales across both categories benefitted from a one-time reduction in trade spend. Performance in both categories continues to be impacted by increased competition. North American net sales declined in the mid single digits primarily driven by lower sales in Home Appliances, reflecting softness across certain brands and exiting the DRTV business.

Excluding tariff refunds, adjusted EBITDA was $14.4 million, an increase of $7.4 million versus the prior year and adjusted EBITDA margin of 5.4%, an improvement of 270 basis points. Excluding this one-time benefit, the increase was primarily driven by pricing, cost improvement initiatives and favorable foreign exchange partially offset by lower volumes and higher tariff costs.

Liquidity and Debt

As of the end of the quarter, the Company had a cash balance of $258.9 million and total liquidity of $753.7 million, including undrawn capacity on its cash flow revolver of $494.8 million. The Company also had $633.0 million of debt outstanding, with no outstanding borrowings on the revolver, senior unsecured notes of $496.1 million, a term loan of $60.0 million within our HPC business, and finance leases of $76.9 million. The Company ended the quarter with net debt of $374.1 million.

Fiscal 2026 Earnings Framework

The Company continues to expect flat to low single digit growth in reported net sales in fiscal 2026. Reflecting strong year-to-date results, Spectrum Brands now expects Fiscal 2026 adjusted EBITDA to increase by mid single digits. Adjusted free cash flow framework remains unchanged, and is expected to be approximately 50% of adjusted EBITDA. The framework for adjusted EBITDA and adjusted free cash flow excludes the impact of tariff refunds.

The Company continues to target a long-term net leverage ratio of 2.0 – 2.5 times.

Conference Call/Webcast Scheduled for 9:00 A.M. Eastern Time Today

Spectrum Brands will host an earnings conference call and webcast at 9:00 a.m. Eastern Time today, August 7, 2026. The live webcast and related presentation slides will be available by visiting the Event Calendar page in the Investor Relations section of Spectrum Brands’ website at www.spectrumbrands.com. Participants may register here. Instructions will be provided to ensure the necessary audio applications are downloaded and installed. Users can obtain these at no charge.

A replay of the live broadcast will be accessible through the Event Calendar page in the Investor Relations section of the Company’s website.

About Spectrum Brands Holdings, Inc.

Spectrum Brands is a home-essentials company with a mission to make living better at home. We focus on delivering innovative products and solutions to consumers for use in and around the home through our trusted brands. We are a leading supplier of specialty pet supplies, lawn and garden and home pest control products, personal insect repellents, shaving and grooming products, personal care products, and small household appliances. Helping to meet the needs of consumers worldwide, we offer a broad portfolio of market-leading, well-known and widely trusted brands including Tetra®, DreamBone®, SmartBones®, Nature’s Miracle®, 8-in-1®, FURminator®, Healthy-Hide®, Good Boy®, Meowee!®, OmegaOne®, Spectracide®, Cutter®, Repel®, Hot Shot®, Rejuvenate®, Black Flag®, Liquid Fence®, Remington®, George Foreman®, Russell Hobbs®, Black + Decker®, PowerXL®, Emeril Lagasse®, and Copper Chef®. For more information, please visit www.spectrumbrands.com. Spectrum Brands – A Home Essentials Company™

Non-GAAP Measurements

Our consolidated results contain non-GAAP metrics such as organic net sales, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow. While we believe these non-GAAP measures are useful supplemental information, such adjusted results are not intended to replace our financial results in accordance with Accounting Principles Generally Accepted in the United States (“GAAP”) and should be read in conjunction with those GAAP results.

Organic Net Sales – We define organic net sales as net sales excluding the effect of changes in foreign currency exchange rates and impact from acquisitions (where applicable). We believe this non-GAAP measure provides useful information to investors because it reflects regional and operating segment performance from our activities without the effect of changes in currency exchange rates and acquisitions. We use organic net sales as one measure to monitor and evaluate our regional and segment performance. Organic growth is calculated by comparing organic net sales to net sales in the prior year. The effect of changes in currency exchange rates is determined by translating the current period net sales using the currency exchange rates that were in effect during the prior comparative period. Net sales are attributed to the geographic regions based on the country of destination. We exclude net sales from acquired businesses in the current year for which there are no comparable sales in the prior period.

Adjusted EBITDA and Adjusted EBITDA Margin – Adjusted EBITDA and adjusted EBITDA margin are non-GAAP metrics used by management, which we believe are useful to investors to measure the operational strength and performance of our business. These metrics provide investors additional information about our operating profitability for certain non-cash items, non-routine items we do not expect to continue at the same level in the future, as well as other items not core to our continuing operations. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives, as securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. They facilitate comparisons between peer companies since interest, taxes, depreciation, and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA is also used for determining compliance with the Company’s debt covenants. EBITDA is calculated by excluding the Company’s income tax expense, interest expense, depreciation expense and amortization expense (from intangible assets) from net income from continuing operations. Adjusted EBITDA also excludes certain non-cash adjustments including share based compensation; impairment charges on property, plant and equipment, right of use lease assets, and goodwill and other intangible assets; gain or loss from the early extinguishment of debt; and purchase accounting adjustments recognized in income subsequent to an acquisition attributable to the step-up in value on assets acquired. Additionally, the Company will further recognize adjustments from adjusted EBITDA for other costs, gains and losses that are considered significant, non-recurring, or otherwise not supporting the continuing operations and revenue generating activity of the segment or Company, including but not limited to, exit and disposal activities, or incremental costs associated with strategic transactions, restructuring and optimization initiatives such as the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure the Company and its operations. Adjusted EBITDA margin is adjusted EBITDA as a percentage of reported net sales.

Adjusted EPS – Management uses adjusted EPS as one means of analyzing the Company’s current and future financial performance and identifying trends in its financial condition and results of operations. Management believes that adjusted EPS is a useful measure for providing further insight into our operating performance because it eliminates the effects of certain items that are not comparable from one period to the next. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives, as securities analysts and other interested parties use such calculations as a measure of financial performance, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. Adjusted EPS is calculated by excluding the effect of certain adjustments from diluted EPS, including non-cash adjustments including impairment charges on property, plant and equipment, operating and finance lease assets, and goodwill and other intangible assets; gain or loss from the early extinguishment of debt; and purchase accounting adjustments recognized in income subsequent to an acquisition attributable to the step-up in value on assets acquired. Additionally, the Company will further recognize adjustments from diluted EPS for other costs, gains and losses that are considered significant, non-recurring, or otherwise not supporting the continuing operations and revenue generating activity of the segment or Company, including but not limited to, exit and disposal activities, or incremental costs associated with strategic transactions, restructuring and optimization initiatives such as the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure the Company and its operations. Net income attributable to redeemable noncontrolling interest is also excluded from Adjusted EPS as it is reflective of contingent liquidation rights of a minority preferred ownership interest of the Company’s HPC business, which continues to be consolidated and reported as a segment, and is not attributable to the consolidated financial performance and operating results of the Company. Adjusted EPS is further impacted by the effect on the income tax provision from pre-tax adjustments made to reported diluted EPS.

Adjusted Free Cash Flow – Management uses adjusted free cash flow as a means of analyzing the Company’s operating results and evaluating cash flow generation from its revenue generating activities, excluding certain cash flow activity associated with strategic transactions and other costs and receipts attributable to non-recurring events. Management believes that adjusted free cash flow is a useful measure in understanding cash flow conversion associated with the Company’s operations that is available for acquisitions and other investments, service of debt, dividends and share repurchases and meetings its working capital requirements. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business, as well as assisting investors in evaluating how well we are generating cash flow from operations, as securities analysts and other interested parties use such calculations as a measure of financial performance, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. Free cash flow is calculated by excluding capital expenditures from cash flow provided (used) by operating activities and further adjusted for non-operating strategic transaction costs and other non-recurring or unusual cash flow activity that would otherwise be considered operating cash flow under US GAAP. Cash flow conversion is adjusted free cash flow as a percentage of adjusted EBITDA.

The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results. Other Supplemental Information has been provided to demonstrate reconciliation of non-GAAP measurements discussed above to most relevant GAAP financial measurements.

Forward-Looking Statements

We have made or implied certain forward-looking statements in this document. Statements or expectations regarding our business and M&A strategy, macroeconomic headwinds, U.S. trade policy, our use of share repurchase plans, ERP platform transformation and productivity expectations, evaluating acquisition targets and entering into strategic partnerships, earnings framework, future operations and operating model, financial condition, estimated revenues, projected costs, inventory management, supply chain and supply chain relocation efforts, earnings power, project synergies, prospects, plans and strategic objectives of management, the geopolitical environment, and information concerning expected actions of third parties are forward-looking statements. When used in this report, the words future, anticipate, pro forma, seek, intend, plan, envision, estimate, believe, belief, expect, project, forecast, outlook, earnings framework, goal, target, could, would, will, can, should, may and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

Because these forward-looking statements are based upon our current expectations of future events and projections and are subject to a number of risks and uncertainties, many of which are beyond our control and some of which may change rapidly, actual results or outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance on these statements. Important factors that could cause our actual results to differ materially from those expressed or implied herein include, without limitation: (1) the economic, social and political conditions, civil unrest, terrorist attacks, acts of war, natural disasters or other public health concerns in the U.S. or the international markets that impact our business, customers, employees (including our ability to retain and attract key personnel), manufacturing facilities, suppliers, capital markets or financial condition and results of operations, which may amplify the other risks and uncertainties we face; (2) the number of local, regional and global uncertainties could negatively impact our business; (3) the negative effect of the Russia-Ukraine war, the Israel-Hamas war, and the U.

Contacts

Investor/Media Contact:

Jen Schultz 314-253-5923

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