Spectrum Brands Holdings, Inc. (NYSE:SPB) delivered better-than-expected fiscal third-quarter results, with earnings comfortably surpassing Wall Street forecasts as revenue and profitability improved across all business segments. The company also raised its full-year EBITDA outlook, although the shares were little changed in pre-market trading.
Earnings and Revenue Top Expectations
Spectrum Brands reported adjusted earnings of $2.79 per share for the third quarter of fiscal 2026, beating analysts’ consensus estimate of $1.47 by a wide margin.
Net sales increased 7.7% year over year to $753.3 million, exceeding both last year’s $699.6 million and the market forecast of $735.05 million.
The stronger performance reflected broad-based growth across the company’s operating divisions.
Profitability Improves Across Business Segments
Adjusted EBITDA rose to $158.3 million, an increase of $81.7 million from the prior-year period.
Excluding $60.6 million in refunds related to International Emergency Economic Powers Act (IEEPA) tariffs, adjusted EBITDA totalled $97.7 million, representing a 27.5% year-over-year increase.
Chairman and Chief Executive Officer David Maura said, “We are pleased with our results this quarter, with all three businesses delivering top-line growth, highlighted by a record-setting quarter in our Home & Garden business.”
He added, “Our focus on profitability is reflected in our results, with each segment delivering adjusted EBITDA growth.”
One-Off Charge Results in Net Loss
Despite the strong operating performance, Spectrum Brands reported a net loss from continuing operations of $20.3 million.
The loss primarily reflected a one-time, non-cash impairment charge of $104 million relating to the HPC business.
In the comparable quarter last year, the company recorded net income from continuing operations of $20.5 million.
Organic net sales, excluding favourable foreign exchange movements, increased 6.6% during the quarter.
Full-Year EBITDA Guidance Raised
Management increased its fiscal 2026 adjusted EBITDA outlook and now expects mid-single-digit growth, excluding the benefit of tariff refunds.
The company maintained its expectation for net sales growth of between flat and low single digits for the full year.
Spectrum Brands also reaffirmed its target of converting approximately 50% of adjusted EBITDA into adjusted free cash flow, excluding favourable tariff refunds.
Strong Balance Sheet Supports Outlook
At the end of the quarter, the company reported net debt leverage of just 1.02 times adjusted EBITDA and total available liquidity of $753.7 million.
The combination of stronger profitability, solid cash generation and a healthy balance sheet positions Spectrum Brands to continue executing its operational strategy through the remainder of fiscal 2026.