PBH · Prestige Consumer Healthcare Inc.

Prestige Consumer Healthcare Inc. disclosed fiscal 2026 results reflecting revenue of $1,088.7 million, a 4.3% decline from the prior year, primarily driven by supply constraints in the Eye & Ear Care category, particularly limited production of Clear Eyes, compounded by accelerated order timing in the prior year's Q4 and shipping disruptions in the Middle East for international sales. North American OTC revenues fell to $913.6 million from $960.0 million, while International OTC was $175.1 million versus $177.8 million. Despite top-line pressure, adjusted gross margin held steady at 55.6%, with adjusted diluted EPS of $4.38 versus $4.52 prior year, supported by operational efficiencies. Free cash flow strengthened to $246.4 million, enabling $156 million in share repurchases of 2.3 million shares, maintaining net leverage at 2.6x on $0.9 billion net debt. Concurrently, on May 10, 2026, the Company entered the Sale and Purchase Deed to acquire leading Australian therapeutic skin care brands under LaCorium Health for ~$150 million cash, targeting closure in Q2 FY2027. LaCorium's $40 million TTM revenue and projected $12 million EBITDA post-synergies align with Prestige's strategy to bolster its international portfolio, leveraging 75% Australia sales dominance in lip and foot care, with expansion potential across 20 countries. Fiscal 2027 guidance projects 1-3% organic revenue growth to $1,100-$1,121 million and adjusted EPS of $4.42-$4.51, excluding pending acquisitions like Breathe Right and LaCorium, with free cash flow at $250 million+, emphasizing deleveraging and brand investments amid eye care recovery via Pillar5 integration.