Spectrum Brands Holdings Inc

Latest Results (08.10.2025):

Spectrum Brands Holdings Inc reported its Fiscal 2025 Third Quarter results, highlighting a decrease in net sales and adjusted EBITDA, alongside an increase in net income from continuing operations. The company faced challenges such as stop shipments, tariff-related supply constraints, and soft demand in key segments, while also continuing its share repurchase program and reaffirming its free cash flow expectations.

Net Sales Decline

Net sales decreased by 10.2%, with organic net sales down 11.1%. The decline was primarily driven by stop shipments to certain retailers during price negotiations, tariff-related supply constraints, softening demand in Global Pet Care and Home & Personal Care segments, and unfavorable weather delaying replenishment orders in the Home and Garden category.

Net Income Growth

Net income from continuing operations increased by $1.4 million to $20.5 million, reflecting lower interest costs, reduced taxes, and a lower share count. Diluted earnings per share from continuing operations rose by 25.8% to $0.83.

Adjusted EBITDA Reduction

Adjusted EBITDA decreased by $29.7 million, a 27.9% drop, resulting in an adjusted EBITDA margin decline of 270 basis points to 10.9%. This reduction was attributed to lower operating income and investment income.

Share Repurchases

The company repurchased 0.9 million shares in Q3 for $54.4 million and a total of 17.1 million shares since the close of the HHI divestiture, amounting to $1.3 billion. This action has led to 24.2 million shares outstanding as of today.

Free Cash Flow and Earnings Framework

Spectrum Brands Holdings Inc reaffirmed its expectation of generating approximately $160 million in free cash flow for Fiscal 2025 while continuing to suspend the Fiscal 2025 earnings framework.

Segment Performance

In the Global Pet Care segment, net sales decreased by 9.6%, and Adjusted EBITDA dropped by 22.4% to $44.0 million. The Home & Garden segment saw net sales decline by 10.3% with Adjusted EBITDA decreasing by 10.9% to $38.6 million. The Home segment experienced a 10.8% decrease in net sales and a 40.7% reduction in Adjusted EBITDA to $7.0 million.