Spectrum Brands Holdings, Inc. Revenue & Financials

Spectrum Brands reported FY2025 net sales of $2,809.0 million, a 5.2% decrease from $2,963.9 million in FY2024, driven by organic sales declines of 6.6% across all three segments, partially offset by $10.5 million in favorable foreign exchange impacts. The Global Pet Care segment declined 6.0% to $1,082.5 million with organic sales down 6.8%. The Home & Personal Care segment declined 6.5% to $1,153.7 million with organic sales down 8.3%. The Home & Garden segment declined 1.0% to $572.8 million with organic sales flat. Gross profit was $1,031.9 million, down 7.0% from $1,109.3 million in FY2024, with gross margin declining 70 basis points to 36.7% from 37.4%. The margin compression reflected lower volume, unfavorable product mix, inflation, and tariffs, partially offset by pricing actions, cost improvement initiatives, and operational efficiencies. Selling, general, and administrative expenses were $882.6 million, down 7.4% from $953.4 million in FY2024, representing 31.4% of net sales compared to 32.2% in FY2024. The company recorded $24.4 million in non-cash impairment charges in FY2025, down from $50.3 million in FY2024, including $16.6 million in intangible asset impairments and $7.8 million in property, plant, and equipment impairments. Operating income was $124.9 million, down 26.8% from $170.6 million in FY2024, with operating margin declining to 4.4% from 5.8%. Interest expense was $30.0 million, down 48.7% from $58.5 million in FY2024, reflecting the dramatic debt reduction from HHI sale proceeds. Interest income was $4.2 million, down from $57.5 million in FY2024, which had benefited from higher cash balances following the HHI sale. The company recorded a gain from early extinguishment of debt of $2.6 million in FY2024 but no such gain in FY2025. Income from continuing operations before income taxes was $87.2 million, down 46.7% from $163.6 million in FY2024. Income tax benefit was $13.0 million in FY2025 compared to income tax expense of $64.3 million in FY2024, reflecting a one-time tax benefit recognized in Q4 FY2025. Net income from continuing operations was $100.2 million, up 0.9% from $99.3 million in FY2024. Net income attributable to controlling interest was $100.4 million, including $0.2 million from discontinued operations. Diluted EPS from continuing operations was $4.11 compared to $4.12 in FY2024. Adjusted EBITDA was $336.7 million in FY2025, down from $371.8 million in FY2024, with adjusted EBITDA margin declining to 12.0% from 12.5%. Cash provided by operating activities was approximately $204.1 million on a trailing twelve-month basis. Capital expenditures were approximately $38.3 million. Free cash flow was approximately $165.8 million. The balance sheet as of September 30, 2025, showed total assets of $3,379.6 million, total liabilities of $1,469.9 million, and shareholders' equity of $1,909.7 million. Total debt was approximately $654.2 million, with a net debt position of approximately $529.1 million after deducting $125.1 million in cash. The debt-to-equity ratio was 38.17%. The company's market capitalization as of mid-2026 was approximately $1.89 billion, with a stock price of $81.40 per share, a P/E ratio of 15.90 on a trailing basis, and a forward P/E of approximately 14.68. The stock trades at a discount to the S&P 500 consumer staples sector, reflecting investor concerns about HPC segment profitability and the uncertainty around the planned separation of HPC from the remaining business. The company's dividend yield of 2.31% and payout ratio of 35.36% provide income support, with the annual dividend increased from $1.68 to $1.88 in calendar 2026. Revenue per employee in FY2025 was approximately $906,000, reflecting the asset-light nature of the company's brand management and outsourced manufacturing model.