Edgewell Personal Care Announces Third Quarter Fiscal 2026 Results
Rhea-AI Summary
Edgewell Personal Care (NYSE: EPC) reported fiscal 3Q 2026 net sales of $570.1 million, up 1.7% year over year, with organic net sales up 1.1% as North America returned to 3.0% organic growth. GAAP diluted EPS from continuing operations was $0.26 versus $0.46, while adjusted EPS was flat at $0.72, exceeding company expectations along with adjusted EBITDA of $78.9 million. Gross margin declined 210 bps to 42.5%, and adjusted operating margin fell to 9.3% from 11.3%.
The company ended the quarter with $397.1 million in cash and access to $418.8 million under its U.S. revolver, and paid $7.0 million in dividends. The Board declared a quarterly dividend of $0.15 per share. For fiscal 2026, Edgewell tightened its outlook, now expecting reported net sales growth of 1.3%–1.8%, organic sales from flat to 0.5%, adjusted EPS of $1.80–$2.00, and adjusted EBITDA of $250–$260 million, while maintaining unchanged mid-points for adjusted EPS and adjusted EBITDA and planning about $92 million in restructuring and related charges.
Positive
- Net sales growth +1.7% to $570.1 million in 3Q 2026
- Organic net sales returned to growth at +1.1%, led by North America +3.0%
- Adjusted EPS held at $0.72 and exceeded internal expectations
- Adjusted EBITDA of $78.9 million, with favorable $2.1 million currency impact
- Sun and Skin Care segment organic net sales +5.0% in the quarter
- Fiscal 2026 outlook for adjusted EPS $1.80–$2.00 and EBITDA $250–$260 million reaffirmed at mid-points
Negative
- Gross margin down 210 bps to 42.5%; adjusted gross margin down 30 bps
- GAAP EPS from continuing operations fell to $0.26 from $0.46
- Adjusted operating margin declined to 9.3% from 11.3% in 3Q 2025
- Wet Shave organic net sales -1.9% and organic segment profit -24.7%
- International organic sales declined 1.4% in the quarter
- Planned restructuring charges for fiscal 2026 increased to about $92 million
News Explained
At June 30, cash was $397.1 million versus $299.7 million at March 31; the declared dividend is payable October 8.
At
The Board declared a
Market Reaction – EPC
Following this news, EPC has gained 3.82%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $29.62.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 09 | Earnings webcast notice | Neutral | +2.0% | Scheduled the third-quarter fiscal 2026 results webcast for August 5 |
| Jun 30 | Sustainability report | Positive | -3.3% | Released fiscal 2025 sustainability report covering environmental and workplace initiatives |
| May 13 | Brand campaign launch | Positive | -5.5% | Launched Hawaiian Tropic summer campaign featuring Alix Earle and Sports Illustrated Swimsuit |
| May 06 | 2Q26 earnings report | Negative | -1.9% | Reported weaker profitability alongside restructuring and lower adjusted earnings |
| Apr 29 | Brand campaign launch | Positive | -4.6% | Introduced Schick skin-focused shaving campaign featuring Nick Jonas |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Three prior positive or promotional releases were followed by negative 24-hour reactions, while the prior earnings release also had a negative reaction.
Key Terms
adjusted ebitda financial
discontinued operations financial
revolving credit facility financial
net debt leverage ratio financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Organic Net Sales Returned to Growth; North America Performance Improved Meaningfully
Adjusted EPS and Adjusted EBITDA Exceeded Expectations
Full Year Outlook Narrowed; Mid-points for Adjusted EPS and Adjusted EBITDA Remain Unchanged
Executive Summary
- Third quarter net sales were
$570.1 million 1.7% compared to the prior year quarter. - Organic net sales increased
1.1% . (Organic basis excludes the impact from currency movements.) - GAAP Diluted net Earnings Per Share ("EPS") were
$0.26 $0.46 - Adjusted EPS were
$0.72 $0.72 - Ended the third quarter with
$397.1 million $418.8 million U.S . revolving credit facility available. - Returned
$7.0 million - The Board of Directors declared a cash dividend of
$0.15
"Our third quarter results represent an important step forward in our fiscal 2026 progression, with organic net sales returning to growth, meaningful improvement in
Unless otherwise noted, reported results in this release are based on continuing operations and exclude the Feminine Care business which is treated as discontinued operations. The Company reports and forecasts results on a GAAP and non-GAAP basis and has reconciled non-GAAP results and outlook to the most directly comparable GAAP measures later in this release. See non-GAAP Financial Measures for a more detailed explanation, including definitions of various non-GAAP terms used in this release. All comparisons used in this release are for the same period in the prior fiscal year unless otherwise stated.
Fiscal 3Q 2026 Operating Results (Unaudited)
Net sales were
Gross profit was
Advertising and sales promotion expense ("A&P") was
Selling, general and administrative expense ("SG&A") was
The Company recorded pre-tax restructuring and related costs in support of cost efficiency and effectiveness programs of
Operating income was
Interest expense associated with debt was
Other (income) expense, net was income of
The effective tax rate for the first nine months of fiscal 2026 was (17.0)% compared to
GAAP net earnings from continuing operations was income of
Net cash provided by operating activities on a consolidated basis, inclusive of continuing and discontinued operations was
Capital Allocation
On August 5, 2026, the Board of Directors declared a quarterly cash dividend of
Fiscal 3Q 2026 Operating Segment Results (Unaudited)
Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)
Net sales decreased
Sun and Skin Care (Sun Care, Men's and Women's Grooming Products, and Wet Ones)
Net sales increased
Full Fiscal Year 2026 Financial Outlook
The Company is providing the following outlook assumptions for fiscal 2026. Unless otherwise stated, this outlook is presented on a continuing-operations basis and excludes the results of the Feminine Care business, which is reported as discontinued operations.
The Company's underlying expectations for fiscal 2026 remain intact, including stronger fourth quarter performance and adjusted EPS and adjusted EBITDA that are in line with prior expectations.
- Reported net sales are now expected to increase in the range of approximately
1.3% to1.8% (previously increase0.8% to3.8% )- Includes an estimated 130-basis point positive impact from foreign currency changes (previously 180-basis point positive impact)
- Organic net sales are expected to be in the range of a flat to
0.5% (previously in the range of1.0% decrease to a2.0% increase) - GAAP EPS is expected to be in the range of flat to
$0.20 $0.40 - Includes: Restructuring and related costs*, Sun Care reformulation, Legal matters, and Other costs
- Adjusted EPS is expected to be in the range of
$1.80 $2.00 $1.70 $2.10 - Adjusted gross margin is expected to increase approximately 20-basis points (previously increase 50-basis points). Adjusted operating margin is expected to decrease approximately 80-basis points (previously decrease 60-basis points), reflecting 70-basis points from higher A&P investment and 30-basis points from increased SG&A expense
- Adjusted EBITDA is expected to be in the range of
$250 $260 million $245 $265 million - Other income/expense, net is expected to be approximately
$26 million $21 million - Interest expense associated with debt is expected to be approximately
$70 million - Adjusted effective tax rate is expected to be approximately
22% to23% - Capital expenditures are expected to be in the range of approximately
3.0% to3.5% of net sales - Adjusted free cash flow is expected to be approximately
$80 $110 million - Adjusted net debt leverage is expected to be approximately in the range of 3.3x to 3.4x at fiscal year end (previously in the range of 3.3x to 3.5x)
As previously discussed, in fiscal 2026, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the further consolidation of Wet Shave operations. As a result of these actions, the Company expects to incur pre-tax charges of approximately
Webcast Information
In conjunction with this announcement, the Company will hold an investor conference call beginning at 8:00 a.m. Eastern Time today, August 5, 2026. All interested parties may access a live webcast of this conference call at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link: http://ir.edgewell.com/news-and-events/events
Refer to Supplemental Slides for fiscal year 2025 quarterly recast adjusted EBITDA reconciliation for continuing operations at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link http://ir.edgewell.com/news-and-events/events for historical financial information related to Company's divestiture of its Feminine Care business consistent with the continuing operations structure.
For those unable to participate during the live webcast, a re-play will be available on www.edgewell.com, under the "Investors," "Financial Reports," and "Quarterly Earnings" tabs. This release includes references to the Company's website and references to additional information and materials found on its website. The Company's website and such information and materials are not incorporated by reference in, and are not part of, this release.
About Edgewell
Edgewell is a leading pure-play consumer products company with an attractive, diversified portfolio of established brand names such as Schick®, Wilkinson Sword® and Billie® men's and women's shaving systems and disposable razors; Edge and Skintimate® shave preparations; Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack Black®, and CREMO® sun and skin care products; and Wet Ones® products. The Company has a broad global footprint and operates in more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K. and Australia, with approximately 6,200 employees worldwide.
Forward-Looking Statements. This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding our future results of operations and financial condition; including business trajectory and performance improvement; future growth and value creation; our capital allocation plans; impacts from the divestiture of our Feminine Care segment; the effects of macroeconomic factors such as changes in tariffs and inflationary pressures; and conflicts or acts of war (such as the conflict in the Middle East). Additional forward-looking statements can generally be identified by the use of words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "will," "should," "forecast," "outlook," or other similar words or phrases. These statements are not based on historical facts, but instead reflect the Company's expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of Edgewell or any of its businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause the Company's actual results to differ materially from those indicated by those statements. The Company cannot assure you that any of its expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.
Factors that could cause fluctuations in our actual results include, but are not limited to, the following: our ability to compete in products and prices, as well as costs, in an intensely competitive industry; the loss of any of our principal customers or changes in the policies of our principal customers; our inability to design and execute a successful omnichannel strategy; our ability to attract, retain and develop key personnel; fluctuations in the price and supply of raw materials and costs of labor, warehousing and transportation; the impact of seasonal volatility on our sales, financial performance, working capital requirements and cash flow; the ability to successfully manage evolving global financial risks, including tariffs, foreign currency fluctuations, currency exchange or pricing controls and localized volatility; the ability to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war (such as the conflict in the Middle East), terrorism or disease outbreaks; impacts from any loss of our principal customers or changes in the policies or strategies of our customers; our level of indebtedness and the various covenants related thereto, and to generate sufficient income and cash flow to allow the Company to effect expected share repurchases and dividend payments; our failure to maintain our brands' reputation and successfully respond to changing consumer habits; and perceptions of certain ingredients, negative perceptions of packaging, lack of recyclability or other environmental attributes; our access to capital markets and borrowing capacity; impairment of our goodwill and other intangible assets; the ability to successfully manage the financial, legal, reputational and operational risks associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; risks associated with our international operations; our ability to effectively integrate acquired companies and successfully manage divestiture activities; our ability to successfully implement our cost savings initiatives, including rationalization or restructuring efforts; the ability to rely on and maintain key Company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; the ability to successfully achieve, maintain or adjust our environmental or sustainability goals and priorities; the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws and regulations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity and data protection, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; the ability to adequately protect our intellectual property rights; product quality and safety issues, including recalls and product liability; losses or increased funding and expenses related to our pension plans; and the other important factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 ("2025 Annual Report") under Part I. Item 1A. "Risk Factors," and in our other filings with the Securities and Exchange Commission ("SEC"). In addition, other risks and uncertainties not presently known to the Company or that it presently considers immaterial could significantly affect the accuracy of any such forward-looking statements. Risks and uncertainties include those detailed from time to time in the Company's publicly filed documents, including in Item 1A. Risk Factors of Part I of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on November 18, 2025.
Non-GAAP Financial Measures. While the Company reports financial results in accordance with generally accepted accounting principles ("GAAP") in the U.S., this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as "adjusted" or "organic" and exclude items which are considered by the Company as unusual or non-recurring and which
may have a disproportionate positive or negative impact on the Company's financial results in any particular period. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2026 financial outlook, are included within the Notes to Condensed Consolidated Financial Statements included with this release.
This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The Company uses this non-GAAP information internally to make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is a component in determining management's incentive compensation. Finally, the Company believes this information provides a higher degree of transparency. The following provides additional detail on the Company's non-GAAP measures:
- The Company utilizes "adjusted" non-GAAP measures including gross margin, SG&A, operating income, operating margin, effective tax rate, net earnings, earnings per share, EBITDA, and other (income) expense to internally make operating decisions.
- Constant currency measures are calculated by removing the impact of translational and transactional foreign currencies changes, net of foreign currency hedges compared to the prior year. Transactional foreign currency changes are driven by foreign legal entities' transactions not denominated in local currency.
- The Company analyzes its net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency.
- Segment profit is impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management's best estimate.
- The Company presents certain metrics on a consolidated and continuing operations basis to help with comparability.
- Free cash flow is defined as net cash from operating activities, less capital expenditures plus collections of deferred purchase price of accounts receivable sold and proceeds from sales of fixed assets. Adjusted free cash flow is defined as free cash flow, adjusted for the following: the one-time operating cash flow impacts associated directly with Feminine Care divestiture including tax, working capital, and deal related fees and expenses.
- Net debt is defined as Gross debt less cash and cash equivalents. Net debt leverage ratio is defined as net debt divided by trailing twelve month adjusted EBITDA. Adjusted net debt leverage ratio is defined as net debt divided by continuing operations trailing twelve month adjusted EBITDA, which includes Transition Services Agreement income realized in fiscal Q2 and Q3 (five months), plus
$15 million of pro forma Transition Services Agreement income (seven months). Refer to Supplemental Slides for fiscal year 2025 quarterly recast adjusted EBITDA reconciliation for continuing operations filed on February 9, 2026.
Basis of Presentation. In accordance with applicable accounting guidance, the results of the Feminine Care segment are presented as discontinued operations in the Condensed Consolidated Statements of Earnings and Comprehensive Income and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company reclassified the assets and liabilities of the Feminine Care disposal group as assets and liabilities held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2025. The Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis with both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Edgewell unless otherwise noted.
Please refer to the Form 10-Q filed with the SEC on August 5, 2026.
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data) | |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net sales | $ 570.1 | $ 560.4 | $ 1,512.4 | $ 1,492.1 | |||
Cost of products sold | 327.6 | 310.3 | 892.0 | 832.7 | |||
Gross profit | 242.5 | 250.1 | 620.4 | 659.4 | |||
Selling, general and administrative expense | 108.3 | 100.7 | 321.7 | 303.1 | |||
Advertising and sales promotion expense | 83.2 | 76.0 | 187.4 | 182.0 | |||
Research and development expense | 13.3 | 13.5 | 42.0 | 40.2 | |||
Restructuring charges | 12.7 | 14.9 | 44.8 | 30.9 | |||
Operating income | 25.0 | 45.0 | 24.5 | 103.2 | |||
Interest expense associated with debt | 16.7 | 19.4 | 53.9 | 58.4 | |||
Other income, net | (9.7) | (2.9) | (18.4) | (2.3) | |||
Earnings (loss) from continuing operations before income taxes | 18.0 | 28.5 | (11.0) | 47.1 | |||
Income tax provision on continuing operations | 5.7 | 7.0 | 1.9 | 15.0 | |||
Net earnings (loss) from continuing operations | 12.3 | 21.5 | (12.9) | 32.1 | |||
Earnings (loss) from discontinued operations, net of tax | 1.4 | 7.6 | (49.7) | 23.9 | |||
Net earnings (loss) | $ 13.7 | $ 29.1 | $ (62.6) | $ 56.0 | |||
Basic earnings (loss) per share | |||||||
Continuing operations | $ 0.27 | $ 0.46 | $ (0.28) | $ 0.67 | |||
Discontinued operations | 0.03 | 0.16 | (1.07) | 0.50 | |||
Basic earnings (loss) per share | $ 0.30 | $ 0.62 | $ (1.35) | $ 1.17 | |||
Diluted earnings (loss) per share | |||||||
Continuing operations | $ 0.26 | $ 0.46 | $ (0.28) | $ 0.67 | |||
Discontinued operations | 0.03 | 0.16 | (1.07) | 0.50 | |||
Diluted earnings (loss) per share | $ 0.29 | $ 0.62 | $ (1.35) | $ 1.17 | |||
Weighted-average shares outstanding: | |||||||
Basic | 46.1 | 46.8 | 46.4 | 47.8 | |||
Diluted | 46.6 | 47.0 | 46.4 | 48.0 | |||
See Accompanying Notes. | |||||||
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions) | |||
June 30, 2026 | September 30, | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 397.1 | $ 225.7 | |
Trade receivables, less allowance for doubtful accounts | 119.4 | 137.8 | |
Inventories | 433.0 | 433.8 | |
Other current assets | 162.5 | 138.6 | |
Current assets held for sale | — | 59.6 | |
Total current assets | 1,112.0 | 995.5 | |
Property, plant and equipment, net | 292.7 | 295.0 | |
Goodwill | 1,134.0 | 1,137.1 | |
Other intangible assets, net | 806.4 | 828.2 | |
Other assets | 190.3 | 178.7 | |
Non-current assets held for sale | — | 321.8 | |
Total assets | $ 3,535.4 | $ 3,756.3 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Notes payable | $ 34.2 | $ 29.5 | |
Accounts payable | 230.7 | 219.7 | |
Other current liabilities | 338.7 | 311.1 | |
Current liabilities held for sale | — | 5.2 | |
Total current liabilities | 603.6 | 565.5 | |
Long-term debt | 1,245.0 | 1,383.3 | |
Deferred income tax liabilities | 79.6 | 118.8 | |
Other liabilities | 147.3 | 135.6 | |
Total liabilities | 2,075.5 | 2,203.2 | |
Shareholders' equity | |||
Common shares | 0.7 | 0.7 | |
Additional paid-in capital | 1,569.7 | 1,578.8 | |
Retained earnings | 1,002.1 | 1,086.7 | |
Common shares in treasury at cost | (997.5) | (1,003.3) | |
Accumulated other comprehensive loss | (115.1) | (109.8) | |
Total shareholders' equity | 1,459.9 | 1,553.1 | |
Total liabilities and shareholders' equity | $ 3,535.4 | $ 3,756.3 | |
See Accompanying Notes. | |||
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) | |||
Nine Months Ended June 30, | |||
2026 | 2025 | ||
Cash Flow from Operating Activities | |||
Net (loss) earnings | $ (62.6) | $ 56.0 | |
Depreciation and amortization | 59.0 | 65.6 | |
Share-based compensation expense | 14.7 | 18.8 | |
Loss on sale of assets | 1.4 | 1.7 | |
Impairment charges | 37.4 | — | |
Loss on assets held for sale | 2.2 | — | |
Deferred compensation payments | (2.3) | (2.4) | |
Deferred income taxes | (39.8) | (0.5) | |
Other, net | 8.3 | (12.2) | |
Changes in operating assets and liabilities | 28.8 | (82.7) | |
Net cash provided by operating activities | 47.1 | 44.3 | |
Cash Flow from Investing Activities | |||
Proceeds from sale of business | 338.9 | — | |
Capital expenditures | (41.2) | (49.4) | |
Collection of deferred purchase price on accounts receivable sold | 3.3 | 5.6 | |
Other, net | — | (1.5) | |
Net cash provided by (used in) investing activities | 301.0 | (45.3) | |
Cash Flow from Financing Activities | |||
Cash proceeds from debt with original maturities greater than 90 days | 398.0 | 774.0 | |
Cash payments on debt with original maturities greater than 90 days | (538.0) | (678.0) | |
Net proceeds from (payment of) debt with original maturities of 90 days or less | 3.1 | (0.8) | |
Repurchase of shares | (15.8) | (90.2) | |
Dividends to common shareholders | (21.5) | (22.4) | |
Employee shares withheld for taxes | (2.9) | (7.4) | |
Net financing inflow from the Accounts Receivable Facility | 2.7 | 14.2 | |
Other, net | (0.3) | (0.3) | |
Net cash used in financing activities | (174.7) | (10.9) | |
Effect of exchange rate changes on cash | (2.0) | 2.4 | |
Net increase (decrease) in cash and cash equivalents | 171.4 | (9.5) | |
Cash and cash equivalents, beginning of period | 225.7 | 209.1 | |
Cash and cash equivalents, end of period | $ 397.1 | $ 199.6 | |
See Accompanying Notes. | |||
EDGEWELL PERSONAL CARE COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except per share data)
Note 1 — Segments
The Company conducts its business in the following two segments: Wet Shave and Sun and Skin Care (collectively, the "Segments," and each individually, a "Segment"). Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, items which are considered by the Company to be unusual or non-recurring and which may have a disproportionate positive or negative impact on the Company's financial results in any particular period and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management's view on how it evaluates segment performance.
Segment net sales and profitability are presented below:
Three Months Ended | Nine Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net sales | |||||||
Wet Shave | $ 312.8 | $ 317.0 | $ 898.2 | $ 897.0 | |||
Sun and Skin Care | 257.3 | 243.4 | 614.2 | 595.1 | |||
Total net sales | $ 570.1 | $ 560.4 | $ 1,512.4 | $ 1,492.1 | |||
Segment Profit | |||||||
Wet Shave | $ 34.9 | $ 44.1 | $ 106.0 | $ 137.3 | |||
Sun and Skin Care | 46.2 | 46.0 | 89.5 | 93.4 | |||
Total segment profit | 81.1 | 90.1 | 195.5 | 230.7 | |||
General corporate and other expenses | (21.9) | (19.9) | (66.0) | (65.9) | |||
Amortization of intangibles | (6.2) | (6.4) | (19.0) | (19.2) | |||
Interest and other expense, net | (7.0) | (19.3) | (37.7) | (58.6) | |||
Restructuring and related costs | (24.5) | (16.8) | (71.9) | (32.7) | |||
Acquisition and integration costs | — | — | — | (0.5) | |||
Sun Care reformulation costs | (0.7) | (0.5) | (3.4) | (2.2) | |||
Legal matters | — | — | (5.7) | — | |||
Gain on investment | — | — | 1.5 | 0.9 | |||
Commercial realignment | 0.2 | 0.1 | 0.2 | (3.0) | |||
Other project and related costs | (3.0) | 1.2 | (4.5) | (2.4) | |||
Total earnings (loss) before income taxes | $ 18.0 | $ 28.5 | $ (11.0) | $ 47.1 | |||
Refer to Note 2 - GAAP to Non-GAAP Reconciliations below for the income statement location of non-GAAP adjustments to earnings before income taxes. |
Note 2 — GAAP to Non-GAAP Reconciliations
The following tables provide a GAAP to Non-GAAP reconciliation of certain line items from the Condensed Consolidated Statement of Earnings:
Three Months Ended June 30, 2026 | |||||||||||||
Gross Profit | SG&A | Operating | EBIT (Loss) | Income Tax | Net (Loss) | Diluted EPS | |||||||
GAAP — Reported | $ 242.5 | $ 108.3 | $ 25.0 | $ 18.0 | $ 5.7 | $ 12.3 | $ 0.26 | ||||||
Restructuring and related costs | 11.2 | (0.6) | 24.5 | 24.5 | 6.0 | 18.5 | 0.40 | ||||||
Sun Care reformulation costs | — | — | 0.7 | 0.7 | 0.1 | 0.6 | 0.01 | ||||||
Commercial realignment | (0.2) | — | (0.2) | (0.2) | (0.1) | (0.1) | — | ||||||
Other project and related costs | 0.1 | (2.9) | 3.0 | 3.0 | 0.8 | 2.2 | 0.05 | ||||||
Total Adjusted Non-GAAP | $ 253.6 | $ 104.8 | $ 53.0 | $ 46.0 | $ 12.5 | $ 33.5 | $ 0.72 | ||||||
Adjusted Non-GAAP Constant Currency | 0.68 | ||||||||||||
GAAP as a percent of net sales | 42.5 % | 19.0 % | 4.4 % | GAAP effective tax rate | 31.5 % | ||||||||
Adjusted as a percent of net sales | 44.5 % | 18.4 % | 9.3 % | Adjusted effective tax rate | 27.2 % | ||||||||
Adjusted Constant Currency as a percent of net | 44.1 % | 8.9 % | |||||||||||
(1) EBIT is defined as Earnings before Income taxes. | |||||||||||||
Three Months Ended June 30, 2025 | |||||||||||||
Gross Profit | SG&A | Operating | EBIT (Loss) | Income Tax | Net (Loss) | Diluted EPS | |||||||
GAAP — Reported | $ 250.1 | $ 100.7 | $ 45.0 | $ 28.5 | $ 7.0 | $ 21.5 | $ 0.46 | ||||||
Restructuring and related costs | 1.2 | (0.6) | 16.7 | 16.7 | 4.1 | 12.6 | 0.27 | ||||||
Sun Care reformulation costs | — | — | 0.5 | 0.5 | 0.1 | 0.4 | 0.01 | ||||||
Commercial realignment | (0.1) | — | (0.1) | (0.1) | — | (0.1) | — | ||||||
Other project and related costs | — | (1.5) | 1.5 | (1.2) | (0.4) | (0.8) | (0.02) | ||||||
Total Adjusted Non-GAAP | $ 251.2 | $ 98.6 | $ 63.6 | $ 44.4 | $ 10.8 | $ 33.6 | $ 0.72 | ||||||
GAAP as a percent of net sales | 44.6 % | 18.0 % | 8.0 % | GAAP effective tax rate | 24.5 % | ||||||||
Adjusted as a percent of net sales | 44.8 % | 17.6 % | 11.3 % | Adjusted effective tax rate | 24.3 % | ||||||||
(1) EBIT is defined as Earnings before Income taxes. | |||||||||||||
Nine Months Ended June 30, 2026 | |||||||||||||
Gross Profit | SG&A | Operating | EBIT (Loss) | Income Tax | Net (Loss) | Diluted EPS | |||||||
GAAP — Reported | $ 620.4 | $ 321.7 | $ 24.5 | $ (11.0) | $ 1.9 | $ (12.9) | $ (0.28) | ||||||
Restructuring and related costs | 25.7 | (1.4) | 71.9 | 71.9 | 17.7 | 54.2 | 1.17 | ||||||
Sun Care reformulation costs | — | — | 3.4 | 3.4 | 0.8 | 2.6 | 0.06 | ||||||
Legal matters | — | (5.7) | 5.7 | 5.7 | 1.4 | 4.3 | 0.09 | ||||||
Gain on investment | — | — | — | (1.5) | (0.3) | (1.2) | (0.03) | ||||||
Commercial realignment | (0.2) | — | (0.2) | (0.2) | (0.1) | (0.1) | — | ||||||
Other project and related costs | 0.1 | (5.1) | 5.2 | 4.5 | 1.1 | 3.4 | 0.07 | ||||||
Tax shortfall on equity compensation | — | — | — | — | (3.4) | 3.4 | 0.07 | ||||||
Total Adjusted Non-GAAP | $ 646.0 | $ 309.5 | $ 110.5 | $ 72.8 | $ 19.1 | $ 53.7 | $ 1.15 | ||||||
Adjusted Non-GAAP Constant Currency | 1.07 | ||||||||||||
GAAP as a percent of net sales | 41.0 % | 21.3 % | 1.6 % | GAAP effective tax rate | (17.0) % | ||||||||
Adjusted as a percent of net sales | 42.7 % | 20.5 % | 7.3 % | Adjusted effective tax rate | 26.3 % | ||||||||
Adjusted Constant Currency as a percent of net | 42.5 % | 6.9 % | |||||||||||
(1) EBIT is defined as Earnings (Loss) before Income taxes. | |||||||||||||
Nine Months Ended June 30, 2025 | |||||||||||||
Gross Profit | SG&A | Operating | EBIT (Loss) | Income Tax | Net (Loss) | Diluted EPS | |||||||
GAAP — Reported | $ 659.4 | $ 303.1 | $ 103.2 | $ 47.1 | $ 15.0 | $ 32.1 | $ 0.67 | ||||||
Restructuring and related costs | 1.2 | (0.6) | 32.7 | 32.7 | 8.0 | 24.7 | 0.50 | ||||||
Acquisition and integration costs | — | (0.5) | 0.5 | 0.5 | 0.1 | 0.4 | 0.01 | ||||||
Sun Care reformulation costs | — | — | 2.2 | 2.2 | 0.5 | 1.7 | 0.04 | ||||||
Gain on investment | — | — | — | (0.9) | — | (0.9) | (0.02) | ||||||
Commercial realignment | 3.0 | — | 3.0 | 3.0 | 0.9 | 2.1 | 0.04 | ||||||
Other project and related costs | — | (3.9) | 3.9 | 2.4 | 0.6 | 1.8 | 0.04 | ||||||
Total Adjusted Non-GAAP | $ 663.6 | $ 298.1 | $ 145.5 | $ 87.0 | $ 25.1 | $ 61.9 | $ 1.28 | ||||||
GAAP as a percent of net sales | 44.2 % | 20.3 % | 6.9 % | GAAP effective tax rate | 31.7 % | ||||||||
Adjusted as a percent of net sales | 44.5 % | 20.0 % | 9.8 % | Adjusted effective tax rate | 28.8 % | ||||||||
(1) EBIT is defined as Earnings before Income taxes. | |||||||||||||
Note 3 - Net Sales and Profit (Loss) by Segment
Operations for the Company are reported via two segments. The following tables present changes in net sales and segment profit for the three and nine months ended June 30, 2026, as compared to the corresponding period in the prior year quarter.
Net Sales | |||||||||||
Quarter Ended June 30, 2026 | Wet Shave | Sun and Skin Care | Total | ||||||||
Net sales - Q3 2025 | $ 317.0 | $ 243.4 | $ 560.4 | ||||||||
Organic | (6.1) | (1.9) % | 12.2 | 5.0 % | 6.1 | 1.1 % | |||||
Impact of currency | 1.9 | 0.6 % | 1.7 | 0.7 % | 3.6 | 0.6 % | |||||
Net sales - Q3 2026 | $ 312.8 | (1.3) % | $ 257.3 | 5.7 % | $ 570.1 | 1.7 % | |||||
Segment Profit | |||||||||||
Quarter Ended June 30, 2026 | Wet Shave | Sun and Skin Care | Total | ||||||||
Segment profit - Q3 2025 | $ 44.1 | $ 46.0 | $ 90.1 | ||||||||
Organic | (10.9) | (24.7) % | (0.7) | (1.6) % | (11.6) | (12.9) % | |||||
Impact of currency | 1.7 | 3.8 % | 0.9 | 2.0 % | 2.6 | 2.9 % | |||||
Segment profit - Q3 2026 | $ 34.9 | (20.9) % | $ 46.2 | 0.4 % | $ 81.1 | (10.0) % | |||||
Net Sales | |||||||||||
Nine Months Ended June 30, 2026 | Wet Shave | Sun and Skin Care | Total | ||||||||
Net sales - Q3 2025 | $ 897.0 | $ 595.1 | $ 1,492.1 | ||||||||
Organic | (19.8) | (2.2) % | 11.4 | 1.9 % | (8.4) | (0.6) % | |||||
Impact of currency | 21.0 | 2.3 % | 7.7 | 1.3 % | 28.7 | 2.0 % | |||||
Net sales - Q3 2026 | $ 898.2 | 0.1 % | $ 614.2 | 3.2 % | $ 1,512.4 | 1.4 % | |||||
Segment Profit | |||||||||||
Nine Months Ended June 30, 2026 | Wet Shave | Sun and Skin Care | Total | ||||||||
Segment profit - Q3 2025 | $ 137.3 | $ 93.4 | $ 230.7 | ||||||||
Organic | (36.4) | (26.5) % | (6.3) | (6.8) % | (42.7) | (18.5) % | |||||
Impact of currency | 5.1 | 3.7 % | 2.4 | 2.6 % | 7.5 | 3.2 % | |||||
Segment profit - Q3 2026 | $ 106.0 | (22.8) % | $ 89.5 | (4.2) % | $ 195.5 | (15.3) % | |||||
For all tables, the impact of currency to segment profit includes both the translational and transactional currency changes during the quarter. |
Note 4 - Net Debt and EBITDA
The Company reports financial results on a GAAP and adjusted basis. The tables below are used to reconcile Net Debt and Net earnings to EBITDA and Adjusted EBITDA, which are non-GAAP measures, to improve comparability of results between periods.
June 30, | September 30, | ||
Notes payable | $ 34.2 | $ 29.5 | |
Long-term debt | 1,245.0 | 1,383.3 | |
Gross debt | 1,279.2 | 1,412.8 | |
Less: Cash and cash equivalents | 397.1 | 225.7 | |
Net debt | $ 882.1 | $ 1,187.1 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Earnings | $ 12.3 | $ 21.5 | $ (12.9) | $ 32.1 | |||
Income tax provision | 5.7 | 7.0 | 1.9 | 15.0 | |||
Interest expense, net | 14.8 | 19.0 | 50.7 | 56.9 | |||
Depreciation and amortization | 18.6 | 18.3 | 57.7 | 54.0 | |||
EBITDA | 51.4 | 65.7 | 97.4 | 158.0 | |||
Restructuring and related costs (1) | 24.0 | 16.3 | 68.4 | 31.5 | |||
Acquisition and integration costs | — | — | — | 0.5 | |||
Sun Care reformulation costs | 0.7 | 0.5 | 3.4 | 2.2 | |||
Legal matters | — | — | 5.7 | — | |||
(Gain) loss on investment | — | — | (1.5) | (0.9) | |||
Commercial realignment | (0.2) | (0.1) | (0.2) | 3.0 | |||
Other project and related costs | 3.0 | (1.2) | 4.5 | 2.4 | |||
Adjusted EBITDA | $ 78.9 | $ 81.2 | $ 177.7 | $ 196.7 | |||
(1) | Excludes |
Note 5 - Outlook for Continuing Operations
The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within the Company's projected fiscal 2026 outlook for continuing operations. The below outlook reflects management's approximate expectations and are subject to rounding adjustments. As a result, the sum of individual amounts may not precisely equal the totals presented.
Adjusted EPS Outlook | ||
Fiscal 2026 GAAP EPS | approx. | |
Restructuring and related costs | approx. | 1.96 |
Sun Care reformulation costs | approx. | 0.11 |
Legal Matter | approx. | 0.12 |
Gain on Investment | approx. | (0.03) |
Other costs | approx. | 0.13 |
Income taxes(1) | approx. | (0.49) |
Fiscal 2026 Adjusted EPS Outlook (Non-GAAP) | approx. |
(1) | Income tax effect of the adjustments to Fiscal 2026 GAAP EPS noted above. | |
Adjusted EBITDA Outlook | ||
Fiscal 2026 GAAP Net Income | approx. | |
Income tax provision | approx. | 4 |
Interest expense, net of | approx. | 65 |
Depreciation and amortization | approx. | 77 |
EBITDA | approx. | |
Restructuring and related costs (2) | approx. | 88 |
Sun Care reformulation costs | approx. | 5 |
Legal Matter | approx. | 6 |
Gain on Investment | approx. | (1) |
Other costs | approx. | 6 |
Fiscal 2026 Adjusted EBITDA | approx. |
(2) | Excludes accelerated depreciation, which is included within Depreciation and amortization. | |
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SOURCE Edgewell Personal Care Company