ENR · Energizer Holdings, Inc.

Energizer's fiscal Q2 2026 results reflect a mixed quarter with revenue declining but margins expanding sharply. Net sales fell 3.0% to $643.3 million, with organic sales down 5.5% due to a 6.1% volume decline driven by timing of battery orders related to plastic-free packaging conversion, a slower auto care season, and modest Middle East conflict impact. Price increases of 0.6% partially offset. The APS acquisition contributed $2.1 million. Gross margin on a reported basis improved to 40.2% from 39.1%, but adjusted gross margin surged 360 bps to 44.4%, benefiting from a $47.6 million tariff refund (IEEPA) and $11.7 million in production tax credits, partially offset by input cost inflation and unfavorable mix. SG&A as a percentage of sales rose to 19.8% from 18.8%, driven by APS and digital investments, partly offset by Project Momentum savings. A&P spending declined. GAAP net income fell to $10.1 million ($0.15 per share) from $28.3 million ($0.39), impacted by a $26.1 million non-cash settlement loss on the U.K. pension plan termination. Adjusted net income rose to $65.1 million ($0.94 per share) from $49.4 million ($0.67), a 40% increase. Adjusted EBITDA grew 13% to $158.6 million. Management highlighted progress on strategic priorities: restoring growth, rebuilding margins, and returning to historical cash flow. For fiscal 2026, the company now expects net sales up low single digits, organic sales roughly flat, adjusted gross margin between 40% and 41%, and adjusted EPS and adjusted EBITDA at the high end of prior ranges ($3.30-$3.60 and $580-$610 million, respectively). For Q3, they anticipate low single-digit organic growth and adjusted EPS of $0.75-$0.85. Free cash flow year-to-date was $105.9 million, with over $100 million in debt paydown. Separately, the company announced the departure of EVP Michael Lampman, effective September 30, 2026, with Ryan Sedlak succeeding him on October 1. Lampman will receive aggregate payments of approximately $1.1 million for waiving bonus and RSUs, plus severance of about $1.21 million. The filing also included an earnings presentation (Exhibit 99.2) furnished under Item 7.01.