Spectrum Brands Holdings, Inc. (NYSE:SPB) posted a stronger-than-expected finish to its fiscal year on Thursday, delivering a major earnings beat despite a drop in quarterly sales tied to softer category demand and lingering supply chain friction.
The company reported adjusted EPS of $2.61, far outpacing analysts’ expectations of $0.90. Quarterly revenue totaled $733.5 million, missing the $743.14 million consensus and falling 5.2% from the $773.7 million posted a year earlier. On an organic basis, net sales fell 6.6%, once favorable currency movements were excluded.
“Despite these headwinds, the actions we proactively and decisively took reduced our risk significantly and protected our long-term financial health,” said David Maura, Chairman and Chief Executive Officer. “We delivered adjusted free cash flow of over $170 million, exceeding by $10 million our previously communicated goal of $160 million.”
Management said the top-line decline was driven by supply limitations after the company paused China-sourced imports because of tariff uncertainty, as well as softer demand in both its Global Pet Care and Home and Personal Care divisions.
Looking ahead to fiscal 2026, Spectrum Brands is projecting flat to low single-digit net sales growth and low single-digit adjusted EBITDA growth, supported by an expected rebound in the Global Pet Care and Home & Garden units.
The company ended the quarter with $123.6 million in cash and total liquidity of $615.9 million, while net debt leverage remained solid at 1.58x adjusted EBITDA, comfortably below its long-term target range of 2.0 to 2.5 times.