Spectrum Brands Fourth-Quarter Sales Reverse Prior Growth

The Tip Desk · November 12, 2026 · 3 min read

Net sales fell 2.8% to $713.2 million as Home & Garden reversed a record third quarter, while adjusted EBITDA rose 10.3% to $69.9 million.

Spectrum Brands Holdings (SPB), a global branded consumer products and home essentials company, reported fourth-quarter net sales of $713.2 million for the three months ended September 30, 2026, a 2.8% decline that reversed the 7.7% increase recorded in the third quarter.

Organic net sales excluding favorable foreign exchange decreased 3.1%. The company said the sales decline was primarily driven by Home & Garden, where unfavorable weather and elevated retailer inventory levels reduced replenishment orders. Global Pet Care and Home & Personal Care sales also declined, reflecting softness in Aquatics and Home Appliances, respectively.

Adjusted EBITDA from continuing operations increased 10.3% to $69.9 million, with the margin rising 120 basis points to 9.8%. Excluding $3.2 million of costs directly related to tariff refunds, adjusted EBITDA was $73.1 million, an increase of $9.7 million or 15.3%. Gross profit margin expanded 260 basis points to 37.6%, which the company attributed to pricing, lower trade spend, reduced tariff rates, and cost improvement actions, partially offset by lower volume.

Net income from continuing operations fell 50.5% to $26.4 million, and diluted earnings per share from continuing operations declined 50.7% to $1.08. The company said the earnings drop was driven by lower operating income and a reduced income tax benefit. Adjusted EPS from continuing operations was $1.39.

Home & Garden net sales decreased 9.3% to $126.3 million, reversing a record-setting third quarter. Adjusted EBITDA in the segment fell 21.3% to $13.3 million, with the margin down 160 basis points to 10.5%. The company said the EBITDA decline was primarily due to lower sales volume, partially offset by productivity improvements and general expense management.

Global Pet Care net sales decreased 1.5% to $293.5 million. Adjusted EBITDA declined 7.7% to $45.8 million, with the margin down 100 basis points to 15.6%. Reported Companion Animal sales increased low single digits while Aquatics decreased low double digits. North American net sales increased low single digits, led by Companion Animal share gains. Organic net sales in EMEA decreased across both categories. Excluding tariff-refund-related impacts, Global Pet Care adjusted EBITDA was $48.2 million.

Home & Personal Care net sales decreased 0.9% to $293.4 million. Adjusted EBITDA increased 58.6% to $24.9 million, with the margin up 320 basis points to 8.5%. Personal Care sales were flat and Home Appliances sales were down low single digits. North American net sales declined in the low double digits following distribution losses in Home Appliances and increased competitive pressure in Personal Care. Excluding tariff-refund-related impacts, Home & Personal Care adjusted EBITDA was $25.7 million.

The company ended the quarter with cash of $339.9 million, total liquidity of $836.2 million, and net debt of $289.9 million. Net debt leverage was 0.77 times adjusted EBITDA for the full year. Fiscal 2026 operating cash flow from continuing operations was $291.0 million and adjusted free cash flow was $247.3 million. Full-year net sales increased 1.5%, with organic net sales down 0.3%. Full-year net income from continuing operations was $58.0 million. Adjusted EBITDA was $374.8 million; excluding $57.4 million of net IEEPA tariff refunds, it was $317.4 million.

For fiscal 2027, Spectrum Brands expects flat to low single digit growth in reported net sales and flat to low single digit adjusted EBITDA growth after normalizing for the one-time benefit of tariff refunds in fiscal 2026. It is targeting approximately 50% conversion of adjusted EBITDA to adjusted free cash flow. Chairman and Chief Executive Officer David Maura said the company is entering fiscal 2027 with momentum and that the completion of the S/4 HANA ERP deployment across the entire organization marks a pivotal milestone.