Overview

• Spectrum Brands fiscal Q4 net sales fell 5.2%, missing analyst expectations

• Adjusted EBITDA for fiscal Q4 decreased 8%, reflecting supply constraints and category softness

• Adjusted EPS rose significantly due to lower taxes and reduced share count

Outlook

• Spectrum Brands expects flat to low single-digit net sales growth in fiscal 2026

• Company anticipates low single-digit adjusted EBITDA growth in fiscal 2026

• Spectrum Brands targets 50% conversion of adjusted EBITDA to adjusted free cash flow

Result Drivers

• IMPORT HALT - Co halted imports from China for U.S. market, causing supply constraints and impacting sales in GPC and HPC

• SEASONAL SHIFT - Delayed start to season drove growth in H&G sales, offsetting declines in other segments

• CATEGORY SOFTNESS - GPC and HPC faced declines due to ongoing category softness and supply chain issues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the appliances, tools & housewares peer group is "buy"

• Wall Street's median 12-month price target for Spectrum Brands Holdings Inc is $76.50, about 30.4% above its November 12 closing price of $53.24

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw5pRg8ya

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)