Spectrum Brands Q1 EPS Rises 37% to $1.40, Sales Top Estimates at $677M
Spectrum Brands reported adjusted Q1 earnings of $1.40 per share, up from $1.02 year-ago and beating the 77-cent estimate, while net sales declined 3.3% to $677 million, topping the $666 million consensus. Gross margin contracted 110 basis points to 35.7% due to soft volumes, higher tariffs and trade spending despite pricing actions and cost improvements.
1. Q1 Financial Results
Spectrum Brands delivered adjusted earnings of $1.40 per share, a 37% increase from $1.02 in Q1 2025, surpassing the 77-cent estimate. Net sales fell 3.3% year-over-year to $677 million, outperforming the $666 million consensus as favorable foreign currency added $18.5 million.
2. Segment Performance
Home & Personal Care sales dropped 26.6% to $321.5 million, Global Pet Care rose 21.6% to $281.6 million, and Home & Garden fell 18.2% to $73.9 million. Adjusted EBITDA margins contracted across segments due to tariff costs, softer volumes and increased trade spending, partially offset by pricing actions and cost-improvement initiatives.
3. Balance Sheet and Liquidity
As of Dec. 28, 2025, the company held $126.6 million in cash against $578.9 million of debt, including $496.1 million in senior unsecured notes. Total liquidity stood at $618.8 million, with $492.2 million available on the revolver and net long-term debt of $554.3 million.