SPB · Spectrum Brands Holdings, Inc.

Spectrum Brands Holdings delivered strong Q2 fiscal 2026 results with net sales of $708.9 million, up 4.9% year-over-year, and organic growth of 1.5% excluding favorable FX impacts of $22.9 million. Growth was propelled by robust performances in Global Pet Care (11.2% sales increase, 7.6% organic, driven by Companion Animal and E-commerce strength) and Home & Garden (11.3% organic growth from favorable weather and market share gains in key brands). Home & Personal Care saw a 5.5% sales decline (10.7% organic), due to soft consumer demand, elevated retailer inventory, and tariff pressures, though Adjusted EBITDA margins improved to 3.4% via pricing and cost actions. Gross margins expanded 60 bps to 38.1% from pricing, cost improvements, and FX tailwinds, offsetting higher trade spend and tariffs. Operating income surged 123.1% to $43.5 million, boosting net income to $22.5 million and Adjusted EBITDA 17.8% to $84.0 million. CEO David Maura highlighted return to top-line growth since Q1 FY2025, brand outperformance, and strategic progress. Post-quarter, the company announced a pivotal HPC partnership with Oaktree Capital: $127 million cash infusion via preferred equity and debt, retaining 73% ownership, with HPC subsidiaries becoming unrestricted and non-recourse. This advances the HPC separation strategy, enabling focused growth in Appliances via organic/inorganic initiatives. Updated FY2026 outlook raises Adjusted EBITDA to low-mid single-digit growth while holding net sales flat to low single digits, with 50% EBITDA-to-FCF conversion. Balance sheet remains solid at 1.66x net leverage, $125.1 million cash, and $595.9 million liquidity, supporting ongoing capital allocation flexibility amid macroeconomic and geopolitical risks.