Spectrum Brands (NYSE: SPB) lifts Q2 profit and updates 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Spectrum Brands Holdings, Inc. reported a stronger fiscal 2026 second quarter, with net sales of $708.9 million, up 4.9% year over year and 1.5% on an organic basis. Net income from continuing operations rose to $22.5 million, and diluted EPS from continuing operations increased to $0.96. Adjusted EBITDA from continuing operations grew 17.8% to $84.0 million, lifting the adjusted EBITDA margin to 11.8%.
Global Pet Care and Home & Garden delivered double‑digit net sales growth and margin expansion, while Home & Personal Care net sales declined 5.5% but improved profitability. The company ended the quarter with net debt of $474.6 million and a net debt leverage ratio of 1.66x adjusted EBITDA, supported by total liquidity of $595.9 million.
Following quarter close, Spectrum Brands agreed to a strategic partnership with Oaktree Capital Management in its Home & Personal Care business, featuring a $127 million preferred equity and debt investment, with Spectrum retaining approximately 73% ownership. The company reaffirmed expectations for flat to low single‑digit net sales growth in fiscal 2026, now expecting adjusted EBITDA to increase by low to mid single digits and adjusted free cash flow to be about 50% of adjusted EBITDA.
Positive
- Strong profitability improvement: Q2 adjusted EBITDA from continuing operations increased 17.8% to $84.0 million, with margin expanding 120 basis points to 11.8%.
- Earnings leverage and EPS growth: Diluted EPS from continuing operations rose to $0.96, while adjusted EPS climbed to $1.25, an 83.8% year-over-year increase.
- Healthy balance sheet: The company ended the quarter with net debt of $474.6 million and a net debt leverage ratio of 1.66x adjusted EBITDA, alongside total liquidity of $595.9 million.
- Strategic HPC partnership: A $127 million preferred equity and debt investment from Oaktree Capital in Home & Personal Care, with Spectrum retaining ~73% ownership, advances the stated separation strategy.
Negative
- None.
Insights
Q2 shows broad margin improvement, stronger cash generation and a strategic HPC partnership.
Spectrum Brands delivered Q2 2026 net sales of $708.9 million, up 4.9%, with organic growth of 1.5%. Profitability improved sharply: adjusted EBITDA rose 17.8% to $84.0 million and margin expanded 120 bps to 11.8%, while diluted EPS from continuing operations increased to $0.96 and adjusted EPS nearly doubled to $1.25.
Segment results highlight strength in Global Pet Care and Home & Garden, both growing net sales by about 11% and expanding margins, offsetting weaker Home & Personal Care sales. Cash generation improved, with six‑month operating cash flow from continuing operations at $77.9 million versus a prior‑year use of cash, and net debt leverage at 1.66x adjusted EBITDA.
The announced $127 million preferred equity and debt investment from Oaktree Capital into the Home & Personal Care business, with Spectrum retaining roughly 73% ownership, supports the strategy to separate HPC and create a pure‑play Pet and Home & Garden platform. For fiscal 2026, management guides to flat to low single‑digit net sales growth, low single‑digit adjusted EBITDA growth, and adjusted free cash flow at about 50% of adjusted EBITDA. The combination of margin gains, healthier leverage and a defined portfolio strategy is a constructive development for the equity story.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q2 2026: $708.9 million
Organic net sales growth: 1.5%
Adjusted EBITDA Q2 2026: $84.0 million
+5 more
8 metrics
Net sales Q2 2026
$708.9 million
Fiscal 2026 second quarter, up 4.9% year over year
Organic net sales growth
1.5%
Q2 2026 vs Q2 2025, excluding $22.9M FX benefit
Adjusted EBITDA Q2 2026
$84.0 million
From continuing operations, up 17.8% year over year
Adjusted EPS Q2 2026
$1.25
From continuing operations, up 83.8% vs prior year
Net debt leverage
1.66x
Net debt to adjusted EBITDA at Q2 2026 quarter end
Oaktree investment in HPC
$127 million
Preferred equity and debt in Home & Personal Care partnership
GPC net sales Q2 2026
$299.3 million
Global Pet Care, up 11.2% year over year
H&G net sales Q2 2026
$169.5 million
Home & Garden, up 11.3% year over year
Key Terms
Adjusted EBITDA, organic net sales, net debt leverage, preferred equity, +2 more
6 terms
Adjusted EBITDA financial
"Second Quarter Net Income From Continuing Operations of $22.5 Million and Adjusted EBITDA of $84.0 Million Increased"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic net sales financial
"Net sales increased 4.9% with an increase in organic net sales of 1.5%"
Organic net sales represent the revenue generated from a company's core business activities, excluding the effects of acquisitions, divestments, or currency changes. It shows how well the company is growing through its existing products and services, similar to tracking how a plant grows from its own roots rather than by adding new plants. Investors use this measure to assess the true growth and health of a company's ongoing operations.
net debt leverage financial
"Ended Second Quarter with Net Debt Leverage of 1.66x Adjusted EBITDA"
Net debt leverage measures how many years it would take a company to pay off its debt using its normal operating earnings after subtracting cash on hand; mathematically it's the company’s total debt minus cash divided by its annual operating cash profit. Think of it like comparing a household’s mortgage balance (after savings) to its yearly take-home pay — higher numbers mean more financial strain and greater risk to investors, while lower numbers suggest more capacity to weather trouble or borrow for growth.
preferred equity financial
"a strategic $127 million cash investment from Oaktree Capital in the form of preferred equity and debt"
Preferred equity is a type of investment that sits between common stock and debt in a company's financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company's success.
unrestricted subsidiaries financial
"the HPC subsidiaries will be designated as unrestricted subsidiaries with their own capital structure"
A company’s unrestricted subsidiaries are units that the parent treats as legally separate and does not bind to its debt covenants or other lender-imposed rules. Think of them as rooms in a house the owner can renovate or rent out without asking mortgage lenders; that freedom can let the parent pursue opportunities but can also shift risk away from creditors and change the parent’s reported leverage, so investors watch them for hidden liabilities and impacts on credit protection.
adjusted free cash flow financial
"Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Earnings Snapshot
Net sales: $708.9 million · Guidance included
Q2 2026
Net sales
$708.9 million
+4.9% YoY
Net income from continuing operations
$22.5 million
up from $1.8 million YoY
Diluted EPS from continuing operations
$0.96
up from $0.06 YoY
Adjusted EBITDA
$84.0 million
+17.8% YoY
Adjusted EPS from continuing operations
$1.25
+83.8% YoY
Guidance
For fiscal 2026, the company expects flat to low single-digit reported net sales growth, low single-digit adjusted EBITDA growth, and adjusted free cash flow at approximately 50% of adjusted EBITDA.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices)
(608 ) 275-3340
(Registrant’s telephone number, including area code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of Each Class | Trading Symbol | Name of Exchange On Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
The following information, including the Exhibit 99.1 referenced in this Item 2.02 to the extent the Exhibit discusses financial results of Spectrum Brands Holdings, Inc. (the “Company”) for the fiscal second quarter ended March 29, 2026 is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On May 7, 2026, the Company issued a press release (the “Earnings Press Release”) discussing, among other things, its financial results for its fiscal second quarter ended March 29, 2026. A copy of the Earnings Press Release is furnished as Exhibit 99.1 to this report.
Forward Looking Information
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, 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.S.-Iran war and their impact on those regions and surrounding regions, including the Middle East and disruptions to international trade, supply chain and shipping routes and pricing, and on our operations and those operations of our customers, suppliers and other stakeholders; (4) our reliance on third-party partners, suppliers and distributors that are outside our control to achieve our business objectives; (5) the impact of government intervention with or influence on the operations of our suppliers, including in China; (6) the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring and optimization activities, including changes in inventory and distribution center changes which are complicated and involve coordination among a number of stakeholders, including our suppliers and transportation and logistics handlers; (7) the impact of our indebtedness and financial leverage position on our business, financial condition and results of operations; (8) the impact of restrictions in our debt instruments on our ability to operate our business, finance our capital needs or pursue or expand business strategies; (9) any failure to comply with financial covenants and other provisions and restrictions of our debt instruments; (10) the effects of interest rate fluctuations or general economic conditions, including the impact of, uncertainty around and changes to, tariffs and trade policies, including the tariffs and trade agreements announced by the Trump Administration in 2025, the tariff refunds announced in 2026 and any further changes that may be announced in the future, tariff mitigation efforts (including supply chain relocation efforts), inflation, recession or fears of a recession, depression or fears of a depression, labor costs and stock market volatility or monetary or fiscal policies in the countries where we do business; (11) the impact of fluctuations in transportation and shipment costs, fuel costs, commodity prices, costs or availability of raw materials or terms and conditions available from suppliers, including suppliers’ willingness to advance credit; (12) changes in foreign currency exchange rates that may impact our purchasing power, pricing and margin realization within international jurisdictions; (13) the loss of, significant reduction in, or dependence upon, sales to any significant retail customer(s), including their changes in retail inventory levels and management thereof; (14) competitive promotional activity or spending by competitors, or price reductions by competitors; (15) the introduction of new product features or technological developments by competitors and/or the development of new competitors or competitive brands, including via private label manufacturers; (16) changes in consumer spending preferences, shopping trends, and demand for our products, particularly in light of economic stress; (17) our ability to develop and successfully introduce new products, protect intellectual property and avoid infringing the intellectual property of third parties; (18) our ability to successfully identify, implement, achieve and sustain productivity improvements, cost efficiencies (including at our manufacturing and distribution operations) and cost savings; (19) the seasonal nature of sales of certain of our products; (20) the impact weather conditions may have on the sales of certain of our products; (21) our ability to respond to unusual weather activity, natural disasters and pandemics; (22) the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection
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regulations); (23) our ability to use social media platforms as effective marketing tools and to manage negative commentary regarding us, and the impact of rules governing the use of e-commerce and social media; (24) public perception regarding the safety of products that we manufacture and sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties; (25) the impact of existing, pending or threatened litigation, government regulation or other requirements or operating standards applicable to our business; (26) the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data, including our failure to comply with new and increasingly complex global data privacy regulations; (27) changes in accounting policies applicable to our business; (28) our discretion to adopt, conduct, suspend or discontinue any share repurchase program or conduct any debt repayments, redemptions, repurchases or refinancing transactions (including our discretion to conduct purchases or repurchases, if any, in a variety of manners including open-market purchases, privately negotiated transactions, tender offers, redemptions, or otherwise); (29) our ability to utilize net operating loss carry-forwards to offset tax liabilities; (30) our ability to separate the Company’s Home and Personal Care (“HPC”) business and create an independent Global Appliances business on expected terms, and within the anticipated time period, or at all, and to realize the potential benefits of such business; (31) our ability to create a pure play consumer products company composed of our Global Pet Care (“GPC”) and Home & Garden ("H&G") businesses and to realize the expected benefits of such creation, and within the anticipated time period, or at all; (32) our ability to successfully implement and realize the benefits of acquisitions or dispositions and the impact of any such transactions on our financial performance; (33) the impact of actions taken by significant shareholders; (34) the unanticipated loss of key members of senior management and the transition of new members of our management teams to their new roles; and (35) the other risk factors set forth in Spectrum Brands Holdings, Inc. 2025 Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and the other filings within the U.S. Securities and Exchange Commission (the "SEC").
Some of the above-mentioned factors are described in further detail in the sections entitled Risk Factors in our annual and quarterly reports (including this report), as applicable. You should assume the information appearing in this report is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since that date. Except as required by applicable law, including the securities laws of the U.S. and the rules and regulations of the SEC, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.
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Item 9.01 Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
The following exhibits are being filed with this Current Report on Form 8-K.
| Exhibit No. | Description | ||||||||||
| 99.1 | Earnings Press Release, dated May 7, 2026 | ||||||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) | ||||||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 7, 2026 | ||||||||
| SPECTRUM BRANDS HOLDINGS, INC. | ||||||||
| By: | /s/ Faisal Qadir | |||||||
| Name: Faisal Qadir | ||||||||
| Title: Executive Vice President and Chief Financial Officer | ||||||||
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Exhibit 99.1
3001 Deming Way Middleton, WI 53562-1431 P.O. Box 620992 Middleton, WI 53562-0992 (608) 275-3340 |  | ||||
| For Immediate Release | Investor/Media Contact: Jen Schultz 314-253-5923 | ||||
Spectrum Brands Holdings Reports Fiscal 2026 Second Quarter Results
•Second Quarter Net Sales Increased 4.9% and Organic Net Sales Excluding Foreign Exchange Increased 1.5%
•Second Quarter Net Income From Continuing Operations of $22.5 Million and Adjusted EBITDA of $84.0 Million Increased by $20.7 Million and $12.7 Million, Respectively
•Ended Second Quarter with Net Debt Leverage of 1.66x Adjusted EBITDA
•Executed a Strategic Partnership in the Home and Personal Care Segment, Designed to Accelerate Long Term Growth of the Business
•Updating Fiscal 2026 Framework, Continue to Expect Net Sales to be Flat to Up Low Single Digits and Approximately 50% Conversion of Adjusted EBITDA to Adjusted Free Cash Flow; Adjusted EBITDA is Now Expected to be Up Low to Mid Single Digits
Middleton, WI, May 7, 2026 - 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 second quarter of fiscal 2026 ended March 29, 2026.
"We are pleased with our results this quarter, where we returned to top-line growth for the first time since first quarter of fiscal 2025. Our key brands across Global Pet Care and Home & Garden continue to outperform the market driven by strong innovation and distribution gains. In Home & Personal Care, while net sales declined, adjusted EBITDA increased, demonstrating the positive impact of the actions taken over the past year. These results continue to reinforce the effectiveness of our strategic initiatives and the strength of our team. Looking forward, while we remain focused on the dynamic macroeconomic environment, our first half results represent meaningful progress for the full fiscal year. We are updating our earnings framework and increasing our Adjusted EBITDA expectation to low to mid single digit growth while maintaining our net sales expectation of flat to low single digit growth in fiscal 26,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.
Mr. Maura continued, “on the strategic front, following quarter close, we entered into a partnership with Oaktree Capital Management on our Home & Personal Care business. The transaction includes a strategic $127 million cash investment from Oaktree Capital in the form of preferred equity and debt, and we will continue to own approximately 73% of the Appliances business. Upon closing, which is expected to occur later this month, the HPC subsidiaries will be designated as unrestricted subsidiaries with their own capital structure that is non-recourse to Spectrum Brands Holdings. We believe that a partnership with Oaktree Capital, who has a strong track record in disciplined capital allocation, validates our vision for creating value in our Appliances business through both organic and inorganic growth initiatives. Importantly, this transaction represents a meaningful step in our previously announced strategy of separating the HPC business from our Pet and Home & Garden businesses.”
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Fiscal 2026 Second Quarter Highlights
| Three Month Periods Ended | ||||||||||||||||||||||||||
| (in millions, except per share and %) | March 29, 2026 | March 30, 2025 | Variance | |||||||||||||||||||||||
| Net sales | $ | 708.9 | $ | 675.7 | $ | 33.2 | 4.9 | % | ||||||||||||||||||
| Gross profit | 270.3 | 253.4 | 16.9 | 6.7 | % | |||||||||||||||||||||
| Gross profit margin | 38.1 | % | 37.5 | % | 60 | bps | ||||||||||||||||||||
| Operating income | 43.5 | 19.5 | 24.0 | 123.1 | % | |||||||||||||||||||||
| Net income from continuing operations | 22.5 | 1.8 | 20.7 | n/m | ||||||||||||||||||||||
| Net income from continuing operations margin | 3.2 | % | 0.3 | % | 290 | bps | ||||||||||||||||||||
| Diluted earnings per share from continuing operations | $ | 0.96 | $ | 0.06 | $ | 0.90 | n/m | |||||||||||||||||||
| Non-GAAP Operating Metrics | ||||||||||||||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 84.0 | $ | 71.3 | 12.7 | 17.8 | % | |||||||||||||||||||
| Adjusted EBITDA margin | 11.8 | % | 10.6 | % | 120 | bps | ||||||||||||||||||||
| Adjusted EPS from continuing operations | $ | 1.25 | $ | 0.68 | $ | 0.57 | 83.8 | % | ||||||||||||||||||
•Net sales increased 4.9% with an increase in organic net sales of 1.5%, which excludes the impact of $22.9 million of favorable foreign exchange rates. The net sales increase was primarily due to strong performance in Global Pet Care and Home and Garden with market share gains across key brands. External factors including favorable weather and strategic order accelerations by certain retailers also contributed. This was partially offset by consumer demand softness in Home and Personal Care across both North America and Europe.
•Gross profit and margin increased driven by pricing, cost improvement actions, and favorable foreign exchange partially offset by higher trade spend and higher tariff cost.
•Operating income increased due to the increase in gross profit and lower operating expenses.
•Net income from continuing operations and diluted earnings per share increased driven by higher operating income. Diluted earnings per share also benefited from a lower share count.
•Adjusted EBITDA increased 17.8% and adjusted EBITDA margin increased 120 basis points driven by improved gross margins.
•Adjusted diluted EPS increased to $1.25 due to higher adjusted EBITDA and a reduction to shares outstanding.
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Fiscal 2026 Second Quarter Segment Level Data
Global Pet Care (GPC)
| Three Month Periods Ended | ||||||||||||||||||||||||||
(in millions, except %) | March 29, 2026 | March 30, 2025 | Variance | |||||||||||||||||||||||
| Net sales | $ | 299.3 | $ | 269.2 | $ | 30.1 | 11.2 | % | ||||||||||||||||||
| Adjusted EBITDA | 56.8 | 50.0 | 6.8 | 13.6 | % | |||||||||||||||||||||
| Adjusted EBITDA margin | 19.0 | % | 18.6 | % | 40 | bps | ||||||||||||||||||||
Net sales increased 11.2%. Excluding favorable foreign currency impacts, organic net sales increased 7.6%. Reported net sales in Companion Animal increased low double digits while sales in Aquatics increased mid single digits. North American net sales increased primarily driven by market share gains across Companion Animal brands and E-commerce channel strength. Organic net sales in EMEA increased across both categories due to continued brand strength and expanded distribution as well as a strategic acceleration of orders by certain retailers in advance of the SAP S4/HANA ERP implementation.
Adjusted EBITDA of $56.8 million increased from $50.0 million in the prior year, and adjusted EBITDA margins were 19.0% compared to 18.6% in the prior year. The increase in adjusted EBITDA and margin is due to higher sales volume, pricing and cost improvement actions partially offset by higher tariff cost and additional trade and investment spend.
Home & Garden (H&G)
| Three Month Periods Ended | ||||||||||||||||||||||||||
(in millions, except %) | March 29, 2026 | March 30, 2025 | Variance | |||||||||||||||||||||||
| Net sales | $ | 169.5 | $ | 152.3 | $ | 17.2 | 11.3 | % | ||||||||||||||||||
Adjusted EBITDA | 34.8 | 26.7 | 8.1 | 30.3 | % | |||||||||||||||||||||
| Adjusted EBITDA margin | 20.5 | % | 17.5 | % | 300 | bps | ||||||||||||||||||||
Net sales increased 11.3% and organic net sales increased 11.2% due to favorable weather conditions positively impacting POS and retailer order patterns, with above-market growth across key brands.
Adjusted EBITDA of $34.8 million increased from $26.7 million in the prior year and adjusted EBITDA margins of 20.5% increased from 17.5% in the prior year primarily due to higher sales volume, productivity improvements and operational efficiencies partially offset by higher trade spend and unfavorable mix.
3
Home & Personal Care (HPC)
| Three Month Periods Ended | ||||||||||||||||||||||||||
| (in millions, except %) | March 29, 2026 | March 30, 2025 | Variance | |||||||||||||||||||||||
| Net sales | $ | 240.1 | $ | 254.2 | $ | (14.1) | (5.5) | % | ||||||||||||||||||
| Adjusted EBITDA | 8.1 | 7.3 | 0.8 | 11.0 | % | |||||||||||||||||||||
| Adjusted EBITDA margin | 3.4 | % | 2.9 | % | 50 | bps | ||||||||||||||||||||
Net sales decreased 5.5%. Excluding favorable foreign currency impacts, organic net sales decreased 10.7%. Reported net sales in Personal Care were down low single digits and net sales in Home Appliances were down high single digits. Excluding the favorable impact of foreign currency, organic net sales in EMEA declined across both Home Appliances and Personal Care, impacted by elevated levels of inventory at a key retailer following soft consumer demand amid increased competition. LATAM organic net sales increased mid single digits due to sustained growth in Personal Care. North American net sales percent declined in the mid teens, primarily driven by lower volumes in light of increased product cost from higher tariffs and customer inventory management actions to address pockets of excess inventory.
Adjusted EBITDA was $8.1 million compared to $7.3 million in the prior year, and adjusted EBITDA margins increased to 3.4% compared to 2.9% last year, driven by pricing, reduced investment spend, 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 $125.1 million and total liquidity of $595.9 million, including undrawn capacity on its cash flow revolver of $470.8 million. The Company also had $599.7 million of debt outstanding, with $24.0 million of outstanding borrowings on the revolver, senior unsecured notes of $496.1 million and finance leases of $79.6 million. The Company ended the quarter with net debt of $474.6 million.
Fiscal 2026 Earnings Framework
The Company expects to deliver flat to low single digit growth in reported net sales in fiscal 2026. Fiscal 2026 adjusted EBITDA is expected to increase by low single digits. Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA.
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, May 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.
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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 organic net sales and adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow 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
5
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. Adjusted EPS is further impacted by the effect on the income tax provision from 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
6
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.S.-Iran war and their impact on those regions and surrounding regions, including the Middle East and disruptions to international trade, supply chain and shipping routes and pricing, and on our operations and those operations of our customers, suppliers and other stakeholders; (4) our reliance on third-party partners, suppliers and distributors that are outside our control to achieve our business objectives; (5) the impact of government intervention with or influence on the operations of our suppliers, including in China; (6) the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring and optimization activities, including changes in inventory and distribution center changes which are complicated and involve
7
coordination among a number of stakeholders, including our suppliers and transportation and logistics handlers; (7) the impact of our indebtedness and financial leverage position on our business, financial condition and results of operations; (8) the impact of restrictions in our debt instruments on our ability to operate our business, finance our capital needs or pursue or expand business strategies; (9) any failure to comply with financial covenants and other provisions and restrictions of our debt instruments; (10) the effects of interest rate fluctuations or general economic conditions, including the impact of, uncertainty around and changes to, tariffs and trade policies, including the tariffs and trade agreements announced by the Trump Administration in 2025, the tariff refunds announced in 2026 and any further changes and that may be announced in the future, tariff mitigation efforts (including supply chain relocation efforts), inflation, recession or fears of a recession, depression or fears of a depression, labor costs and stock market volatility or monetary or fiscal policies in the countries where we do business; (11) the impact of fluctuations in transportation and shipment costs, fuel costs, commodity prices, costs or availability of raw materials or terms and conditions available from suppliers, including suppliers’ willingness to advance credit; (12) changes in foreign currency exchange rates that may impact our purchasing power, pricing and margin realization within international jurisdictions; (13) the loss of, significant reduction in, or dependence upon, sales to any significant retail customer(s), including their changes in retail inventory levels and management thereof; (14) competitive promotional activity or spending by competitors, or price reductions by competitors; (15) the introduction of new product features or technological developments by competitors and/or the development of new competitors or competitive brands, including via private label manufacturers; (16) changes in consumer spending preferences, shopping trends, and demand for our products, particularly in light of economic stress; (17) our ability to develop and successfully introduce new products, protect intellectual property and avoid infringing the intellectual property of third parties; (18) our ability to successfully identify, implement, achieve and sustain productivity improvements, cost efficiencies (including at our manufacturing and distribution operations) and cost savings; (19) the seasonal nature of sales of certain of our products; (20) the impact weather conditions may have on the sales of certain of our products; (21) our ability to respond to unusual weather activity, natural disasters and pandemics; (22) the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection regulations); (23) our ability to use social media platforms as effective marketing tools and to manage negative commentary regarding us, and the impact of rules governing the use of e-commerce and social media; (24) public perception regarding the safety of products that we manufacture and sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties; (25) the impact of existing, pending or threatened litigation, government regulation or other requirements or operating standards applicable to our business; (26) the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data, including our failure to comply with new and increasingly complex global data privacy regulations; (27) changes in accounting policies applicable to our business; (28) our discretion to adopt, conduct, suspend or discontinue any share repurchase program or conduct any debt repayments, redemptions, repurchases or refinancing transactions (including our discretion to conduct purchases or repurchases, if any, in a variety of manners including open-market purchases, privately negotiated transactions, tender offers, redemptions, or otherwise); (29) our ability to utilize net operating loss carry-forwards to offset tax liabilities; (30) our ability to separate the Company’s HPC business and create an independent Global Appliances business on expected terms, and within the anticipated time period, or at all, and to realize the potential benefits of such business; (31) our ability to create a pure play consumer products company composed of our GPC and H&G businesses and to realize the expected benefits of such creation, and within the anticipated time period, or at all; (32) our ability to successfully implement and realize the benefits of acquisitions or dispositions and the impact of any such transactions
8
on our financial performance; (33) the impact of actions taken by significant shareholders; (34) the unanticipated loss of key members of senior management and the transition of new members of our management teams to their new roles; and (35) the other risk factors set forth in Spectrum Brands Holdings, Inc. 2025 Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and the other filings within the U.S. Securities and Exchange Commission (the "SEC").
Some of the above-mentioned factors are described in further detail in the sections entitled Risk Factors in our annual and quarterly reports (including this report), as applicable. You should assume the information appearing in this report is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since that date. Except as required by applicable law, including the securities laws of the U.S. and the rules and regulations of the SEC, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.
# # #
9
SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| Three Month Periods Ended | Six Month Periods Ended | |||||||||||||||||||||||||
| (in millions, except per share amounts) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| Net sales | $ | 708.9 | $ | 675.7 | $ | 1,385.9 | $ | 1,375.9 | ||||||||||||||||||
| Cost of goods sold | 438.6 | 422.3 | 874.0 | 864.7 | ||||||||||||||||||||||
| Gross profit | 270.3 | 253.4 | 511.9 | 511.2 | ||||||||||||||||||||||
| Selling, general & administrative | 226.8 | 218.2 | 441.3 | 431.3 | ||||||||||||||||||||||
| Impairment of intangible assets | — | 15.7 | — | 15.7 | ||||||||||||||||||||||
| Total operating expenses | 226.8 | 233.9 | 441.3 | 447.0 | ||||||||||||||||||||||
| Operating income | 43.5 | 19.5 | 70.6 | 64.2 | ||||||||||||||||||||||
| Interest expense | 7.3 | 7.5 | 14.1 | 13.7 | ||||||||||||||||||||||
| Interest income | (0.5) | (0.4) | (1.1) | (3.0) | ||||||||||||||||||||||
| Other non-operating (income) expense, net | (0.1) | 1.0 | 0.3 | 5.7 | ||||||||||||||||||||||
| Income from continuing operations before income taxes | 36.8 | 11.4 | 57.3 | 47.8 | ||||||||||||||||||||||
| Income tax expense | 14.3 | 9.6 | 5.4 | 21.4 | ||||||||||||||||||||||
| Net income from continuing operations | 22.5 | 1.8 | 51.9 | 26.4 | ||||||||||||||||||||||
| Loss from discontinued operations, net of tax | (0.4) | (0.6) | (1.4) | (1.4) | ||||||||||||||||||||||
| Net income | 22.1 | 1.2 | 50.5 | 25.0 | ||||||||||||||||||||||
| Net income from continuing operations attributable to non-controlling interest | — | 0.3 | — | 0.6 | ||||||||||||||||||||||
| Net income attributable to controlling interest | $ | 22.1 | $ | 0.9 | $ | 50.5 | $ | 24.4 | ||||||||||||||||||
| Amounts attributable to controlling interest | ||||||||||||||||||||||||||
| Net income from continuing operations attributable to controlling interest | $ | 22.5 | $ | 1.5 | $ | 51.9 | $ | 25.8 | ||||||||||||||||||
| Loss from discontinued operations attributable to controlling interest, net of tax | (0.4) | (0.6) | (1.4) | (1.4) | ||||||||||||||||||||||
| Net income attributable to controlling interest | $ | 22.1 | $ | 0.9 | $ | 50.5 | $ | 24.4 | ||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||
| Basic earnings per share from continuing operations | $ | 0.97 | $ | 0.06 | $ | 2.22 | $ | 0.96 | ||||||||||||||||||
| Basic earnings per share from discontinued operations | (0.02) | (0.03) | (0.06) | (0.06) | ||||||||||||||||||||||
| Basic earnings per share | $ | 0.95 | $ | 0.03 | $ | 2.16 | $ | 0.90 | ||||||||||||||||||
| Diluted earnings per share from continuing operations | $ | 0.96 | $ | 0.06 | $ | 2.22 | $ | 0.95 | ||||||||||||||||||
| Diluted earnings per share from discontinued operations | (0.02) | (0.03) | (0.06) | (0.05) | ||||||||||||||||||||||
| Diluted earnings per share | $ | 0.94 | $ | 0.03 | $ | 2.16 | $ | 0.90 | ||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||
| Basic | 23.2 | 26.1 | 23.3 | 27.0 | ||||||||||||||||||||||
| Diluted | 23.3 | 26.2 | 23.4 | 27.1 | ||||||||||||||||||||||
10
SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
| Six Month Periods Ended | ||||||||||||||
| (in millions) | March 29, 2026 | March 30, 2025 | ||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net cash provided (used) by operating activities from continuing operations | $ | 77.9 | $ | (48.6) | ||||||||||
| Net cash used by operating activities from discontinued operations | (0.3) | (0.7) | ||||||||||||
Net cash provided (used) by operating activities | 77.6 | (49.3) | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Purchases of property, plant and equipment | (17.4) | (15.1) | ||||||||||||
| Other investing activity | — | (0.1) | ||||||||||||
| Net cash used by investing activities | (17.4) | (15.2) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Payment of debt and debt premium | (6.2) | (5.1) | ||||||||||||
| Proceeds from issuance of debt | 24.0 | 83.0 | ||||||||||||
| Payment of debt issuance costs | — | (0.1) | ||||||||||||
| Dividends paid to shareholders | (21.8) | (25.3) | ||||||||||||
| Dividends paid by subsidiary to non-controlling interest | — | (0.7) | ||||||||||||
| Treasury stock purchases | (42.3) | (232.8) | ||||||||||||
| Excise tax paid on net share repurchases | (3.2) | (9.7) | ||||||||||||
| Share based award tax withholding payments, net of proceeds upon vesting | (8.5) | (4.4) | ||||||||||||
| Other financing activity | — | 0.1 | ||||||||||||
| Net cash used by financing activities | (58.0) | (195.0) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (0.8) | (12.8) | ||||||||||||
| Net change in cash, cash equivalents and restricted cash | 1.4 | (272.3) | ||||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 127.2 | 370.5 | ||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 128.6 | $ | 98.2 | ||||||||||
11
SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
| (in millions) | March 29, 2026 | September 30, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 125.1 | $ | 123.6 | ||||||||||
| Trade receivables, net | 560.5 | 521.7 | ||||||||||||
| Other receivables | 58.9 | 50.9 | ||||||||||||
| Inventories | 487.1 | 446.1 | ||||||||||||
| Prepaid expenses and other current assets | 40.3 | 41.9 | ||||||||||||
| Total current assets | 1,271.9 | 1,184.2 | ||||||||||||
| Property, plant and equipment, net | 242.5 | 255.0 | ||||||||||||
| Operating lease assets | 118.6 | 73.5 | ||||||||||||
| Deferred charges and other | 61.2 | 62.5 | ||||||||||||
| Goodwill | 865.4 | 866.8 | ||||||||||||
| Intangible assets, net | 914.3 | 937.6 | ||||||||||||
| Total assets | $ | 3,473.9 | $ | 3,379.6 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Current portion of long-term debt | $ | 12.0 | $ | 11.7 | ||||||||||
| Accounts payable | 348.7 | 283.7 | ||||||||||||
| Accrued wages and salaries | 42.8 | 50.2 | ||||||||||||
| Accrued interest | 4.9 | 4.5 | ||||||||||||
| Income tax payable | 17.2 | 21.2 | ||||||||||||
| Short-term operating lease liabilities | 20.9 | 31.8 | ||||||||||||
| Other current liabilities | 107.8 | 120.1 | ||||||||||||
| Total current liabilities | 554.3 | 523.2 | ||||||||||||
| Long-term debt, net of current portion | 575.9 | 556.2 | ||||||||||||
| Long-term operating lease liabilities | 116.7 | 54.5 | ||||||||||||
| Deferred income taxes | 136.8 | 136.6 | ||||||||||||
| Uncertain tax benefit obligation | 171.9 | 180.3 | ||||||||||||
| Other long-term liabilities | 17.6 | 19.1 | ||||||||||||
| Total liabilities | 1,573.2 | 1,469.9 | ||||||||||||
| Shareholders' equity | 1,900.7 | 1,909.7 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 3,473.9 | $ | 3,379.6 | ||||||||||
12
SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
NET SALES AND ORGANIC NET SALES
The following is a summary of net sales by segment for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
| (in millions, except %) | Three Month Periods Ended | Six Month Periods Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | Variance | March 29, 2026 | March 30, 2025 | Variance | |||||||||||||||||||||||||||||||||||||||||||||
| GPC | $ | 299.3 | $ | 269.2 | $ | 30.1 | 11.2 | % | $ | 580.9 | $ | 529.2 | $ | 51.7 | 9.8 | % | ||||||||||||||||||||||||||||||||||
| H&G | 169.5 | 152.3 | 17.2 | 11.3 | % | 243.4 | 244.4 | (1.0) | (0.4) | % | ||||||||||||||||||||||||||||||||||||||||
| HPC | 240.1 | 254.2 | (14.1) | (5.5) | % | 561.6 | 602.3 | (40.7) | (6.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Net Sales | $ | 708.9 | $ | 675.7 | 33.2 | 4.9 | % | $ | 1,385.9 | $ | 1,375.9 | 10.0 | 0.7 | % | ||||||||||||||||||||||||||||||||||||
The following is a reconciliation of reported sales to organic sales for the three and six month periods ended March 29, 2026 compared to reported net sales for the three and six month periods ended March 30, 2025, respectively.
March 29, 2026 | Net Sales March 30, 2025 | |||||||||||||||||||||||||||||||||||||
Three Month Periods Ended (in millions, except %) | Net Sales | Effect of Changes in Foreign Currency | Organic Net Sales | Variance | ||||||||||||||||||||||||||||||||||
| GPC | $ | 299.3 | $ | (9.7) | $ | 289.6 | $ | 269.2 | $ | 20.4 | 7.6 | % | ||||||||||||||||||||||||||
| H&G | 169.5 | (0.1) | 169.4 | 152.3 | 17.1 | 11.2 | % | |||||||||||||||||||||||||||||||
| HPC | 240.1 | (13.1) | 227.0 | 254.2 | (27.2) | (10.7) | % | |||||||||||||||||||||||||||||||
| Total | $ | 708.9 | $ | (22.9) | $ | 686.0 | $ | 675.7 | 10.3 | 1.5 | % | |||||||||||||||||||||||||||
March 29, 2026 | Net Sales March 30, 2025 | |||||||||||||||||||||||||||||||||||||
Six Month Periods Ended (in millions, except %) | Net Sales | Effect of Changes in Foreign Currency | Organic Net Sales | Variance | ||||||||||||||||||||||||||||||||||
| GPC | $ | 580.9 | $ | (16.1) | $ | 564.8 | $ | 529.2 | $ | 35.6 | 6.7 | % | ||||||||||||||||||||||||||
| H&G | 243.4 | (0.1) | 243.3 | 244.4 | (1.1) | (0.5) | % | |||||||||||||||||||||||||||||||
| HPC | 561.6 | (25.2) | 536.4 | 602.3 | (65.9) | (10.9) | % | |||||||||||||||||||||||||||||||
| Total | $ | 1,385.9 | $ | (41.4) | $ | 1,344.5 | $ | 1,375.9 | (31.4) | (2.3) | % | |||||||||||||||||||||||||||
13
SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
The following is a reconciliation of reported net income from continuing operations to adjusted EBITDA and adjusted EBITDA margin for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
| Three Month Periods Ended | Six Month Periods Ended | |||||||||||||||||||||||||
| (in millions, except %) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| Net income from continuing operations | $ | 22.5 | $ | 1.8 | 51.9 | 26.4 | ||||||||||||||||||||
| Income tax expense | 14.3 | 9.6 | 5.4 | 21.4 | ||||||||||||||||||||||
| Interest expense | 7.3 | 7.5 | 14.1 | 13.7 | ||||||||||||||||||||||
| Depreciation | 13.9 | 14.0 | 29.5 | 28.0 | ||||||||||||||||||||||
| Amortization | 10.3 | 10.5 | 20.5 | 21.0 | ||||||||||||||||||||||
| Share based compensation | 6.0 | 5.2 | 10.3 | 9.9 | ||||||||||||||||||||||
| Non-cash impairment charges | — | 15.7 | 0.5 | 15.7 | ||||||||||||||||||||||
| Exit and disposal costs | 3.8 | 3.5 | 4.9 | 4.0 | ||||||||||||||||||||||
Global ERP transformation1 | 2.4 | 2.3 | 4.8 | 4.8 | ||||||||||||||||||||||
Litigation costs2 | 0.7 | 0.8 | 1.6 | 1.6 | ||||||||||||||||||||||
Other3 | 2.8 | 0.4 | 3.1 | 2.6 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 84.0 | $ | 71.3 | $ | 146.6 | $ | 149.1 | ||||||||||||||||||
| Net sales | $ | 708.9 | $ | 675.7 | $ | 1,385.9 | $ | 1,375.9 | ||||||||||||||||||
| Net income from continuing operations margin | 3.2 | % | 0.3 | % | 3.7 | % | 1.9 | % | ||||||||||||||||||
| Adjusted EBITDA margin | 11.8 | % | 10.6 | % | 10.6 | % | 10.8 | % | ||||||||||||||||||
________________________________________
1 Costs attributable to a multi-year transformation project to upgrade and implement our enterprise-wide operating systems to SAP S/4 HANA on a global basis, including project management and professional services for planning, design, and business process review that do not qualify as software configuration and implementation costs recognized as capital expenditures or deferred costs under applicable accounting principles. The Company had recently extended the project to include its HPC segment and anticipates costs to be incurred through further deployments through calendar year 2026.
2 Litigation costs are associated with the Company's cost to facilitate various ongoing litigation matters associated with the Tristar Business acquisition in Fiscal 2023, previously disclosed in our 2025 Annual Report. Such costs are anticipated to be incurred until such litigation matters have been resolved.
3 Other is attributable to other project costs associated with previous strategic separation initiatives and distribution center transitions, plus certain non-recurring key executive severance costs in the prior year.
14
SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED DILUTED EPS
The following is a reconciliation of reported diluted EPS from continuing operations to adjusted diluted EPS from continuing operations for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
| Three Month Periods Ended | Six Month Periods Ended | |||||||||||||||||||||||||
| (per share amounts) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| Diluted EPS from continuing operations | $ | 0.96 | $ | 0.06 | $ | 2.22 | $ | 0.95 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Non-cash impairment charges | — | 0.60 | 0.02 | 0.58 | ||||||||||||||||||||||
| Exit and disposal costs | 0.16 | 0.14 | 0.21 | 0.15 | ||||||||||||||||||||||
Global ERP transformation1 | 0.11 | 0.09 | 0.20 | 0.18 | ||||||||||||||||||||||
Litigation costs2 | 0.03 | 0.03 | 0.07 | 0.05 | ||||||||||||||||||||||
Other3 | 0.11 | 0.01 | 0.13 | 0.10 | ||||||||||||||||||||||
| Pre-tax adjustments | 0.41 | 0.87 | 0.63 | 1.06 | ||||||||||||||||||||||
Tax impact of adjustments4 | (0.12) | (0.25) | (0.20) | (0.30) | ||||||||||||||||||||||
| Net adjustments | 0.29 | 0.62 | 0.43 | 0.76 | ||||||||||||||||||||||
| Diluted EPS from continuing operations, as adjusted | $ | 1.25 | $ | 0.68 | $ | 2.65 | $ | 1.71 | ||||||||||||||||||
1 Costs attributable to a multi-year transformation project to upgrade and implement our enterprise-wide operating systems to SAP S/4 HANA on a global basis, including project management and professional services for planning, design, and business process review that do not qualify as software configuration and implementation costs recognized as capital expenditures or deferred costs under applicable accounting principles. The Company had recently extended the project to include its HPC segment and anticipates costs to be incurred through further deployments through calendar year 2026.
2 Litigation costs are associated with the Company's cost to facilitate various ongoing litigation matters associated with the Tristar Business acquisition in Fiscal 2023, previously disclosed in our 2025 Annual Report. Such costs are anticipated to be incurred until such litigation matters have been resolved.
3 Other is attributable to other project costs associated with previous strategic separation initiatives and distribution center transitions, plus certain non-recurring key executive severance costs in the prior year.
4 Income tax adjustment reflects the impact on the income tax provision from the adjustments to diluted EPS.
15
SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED FREE CASH FLOW
The following is a reconciliation of reported operating cash flow from continuing operations to adjusted free cash flow for the six month periods ended March 29, 2026 and March 30, 2025, respectively.
| Six Month Periods Ended | ||||||||||||||
| (in millions) | March 29, 2026 | March 30, 2025 | ||||||||||||
| Net cash provided by operating activities from continuing operations | $ | 77.9 | $ | (48.6) | ||||||||||
| Purchases of property, plant and equipment | (17.4) | (15.1) | ||||||||||||
| Free cash flow | 60.5 | (63.7) | ||||||||||||
Deal transaction costs1 | — | 5.9 | ||||||||||||
Other2 | 0.1 | (0.6) | ||||||||||||
| Adjusted free cash flow | $ | 60.6 | $ | (58.4) | ||||||||||
1 Incremental cash flow attributable to certain strategic transactions including previous separation initiatives.
2 Other is attributable to restricted cash balances which are considered a component of operating cash flow under US GAAP.
16
FAQ
How did Spectrum Brands (SPB) perform in Q2 fiscal 2026?
Spectrum Brands posted stronger Q2 2026 results, with net sales of $708.9 million, up 4.9% year over year. Net income from continuing operations reached $22.5 million, and adjusted EBITDA rose 17.8% to $84.0 million, reflecting improved margins across key segments.
What were Spectrum Brands’ key earnings metrics and EPS for Q2 2026?
In Q2 2026, Spectrum Brands generated $22.5 million in net income from continuing operations and diluted EPS of $0.96. Adjusted EBITDA was $84.0 million with an 11.8% margin, and adjusted EPS from continuing operations increased to $1.25, up 83.8% year over year.
How did Spectrum Brands’ segments perform in Q2 2026?
Global Pet Care net sales grew 11.2% to $299.3 million and Home & Garden rose 11.3% to $169.5 million, both expanding margins. Home & Personal Care net sales declined 5.5% to $240.1 million, but its adjusted EBITDA margin improved to 3.4%.
What strategic transaction did Spectrum Brands announce for its Home & Personal Care business?
Spectrum Brands entered a partnership with Oaktree Capital Management involving a $127 million investment in preferred equity and debt. The company expects to continue owning approximately 73% of the Appliances business, with HPC subsidiaries becoming unrestricted and non-recourse to Spectrum Brands Holdings.
What is Spectrum Brands’ fiscal 2026 outlook and earnings framework?
For fiscal 2026, Spectrum Brands expects reported net sales to be flat to up low single digits. Adjusted EBITDA is expected to increase by low to mid single digits, and adjusted free cash flow is projected at approximately 50% of adjusted EBITDA, supporting its long-term leverage targets.
What is Spectrum Brands’ liquidity and debt position after Q2 2026?
At quarter end, Spectrum Brands held $125.1 million of cash and total liquidity of $595.9 million, including $470.8 million of undrawn revolver capacity. Total debt was $599.7 million, resulting in net debt of $474.6 million and net debt leverage of 1.66x adjusted EBITDA.