EPC · Edgewell Personal Care Company

Edgewell Personal Care reported fiscal second quarter 2026 results that exceeded expectations for sales, adjusted EPS, and EBITDA. Net sales of $519.5 million increased 0.6% year-over-year, including a $15.5 million favorable currency impact, while organic net sales declined 2.4% due to a 4.8% drop in North America, partially offset by 1.0% growth in International markets. Gross margin contracted 410 basis points to 41.8% on a GAAP basis, and adjusted gross margin fell 310 basis points to 43.4%, as productivity savings of 220 basis points were more than offset by 420 basis points of core inflation and tariffs, 70 basis points of unfavorable mix and promotions, and 40 basis points of currency headwinds. Operating income declined to $18.4 million from $49.0 million, reflecting higher restructuring charges of $23.0 million. Adjusted operating income was $49.4 million, down from $66.0 million. GAAP diluted EPS fell to $0.09 from $0.43, while adjusted EPS of $0.60 compared to $0.69 in the prior year quarter. Adjusted EBITDA was $73.8 million versus $84.7 million. Management highlighted improved execution and innovation momentum in brands like Cremo, Hawaiian Tropic, and Billie. The company reaffirmed its full-year outlook for organic net sales (down 1% to up 2%), adjusted EPS ($1.70-$2.10), and adjusted EBITDA ($245-$265 million), while raising reported net sales growth guidance to 0.8%-3.8% due to favorable currency. The board declared a $0.15 quarterly dividend and the company repurchased $15.8 million in shares during the quarter.