Spectrum Brands Holdings Inc. (NYSE:SPB) reported fiscal second-quarter 2026 results on Thursday that came in ahead of Wall Street forecasts, supported by strong performance in its pet care and home and garden businesses.
The company posted adjusted earnings of $1.25 per share, exceeding the analyst consensus estimate of $1.07 by $0.18.
Revenue returns to growth
Quarterly revenue totaled $708.9 million, topping analyst expectations of $676.61 million and increasing 4.9% from $675.7 million recorded during the same period last year.
Organic net sales, excluding foreign exchange effects, rose 1.5%.
Spectrum Brands said revenue growth was fueled by market share gains in its Global Pet Care segment as well as favorable weather conditions that benefited the Home & Garden business.
“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,” said David Maura, Chairman and Chief Executive Officer.
Profitability improves significantly
Net income from continuing operations increased to $22.5 million, or $0.96 per diluted share, compared with $1.8 million, or $0.06 per diluted share, in the prior-year quarter.
Adjusted EBITDA climbed 17.8% year-over-year to $84.0 million from $71.3 million, while adjusted EBITDA margin expanded by 120 basis points to 11.8%.
Pet care and home & garden segments lead growth
The Global Pet Care business generated net sales of $299.3 million, representing an 11.2% increase from a year earlier, with organic growth of 7.6%.
Revenue in the Home & Garden segment rose 11.3% to $169.5 million.
Meanwhile, the Home & Personal Care division posted a 5.5% decline in sales to $240.1 million, as weaker consumer demand and elevated retailer inventory levels weighed on performance.
Company announces partnership with Oaktree
Following the quarter’s close, Spectrum Brands revealed a strategic partnership involving its Home & Personal Care segment with Oaktree Capital Management.
The agreement includes a $127 million investment tied to the business.
Outlook updated for fiscal 2026
Spectrum Brands updated its fiscal 2026 outlook and now expects adjusted EBITDA growth in the low-to-mid single-digit percentage range.
The company maintained its forecast for net sales growth of flat to low single digits for the full year.
More about Spectrum Brands
Spectrum Brands is a consumer products company with businesses spanning pet care, home and garden products, personal care appliances, and household solutions. Its portfolio includes a range of brands sold through retailers globally, serving both consumer and specialty markets.