Spectrum Brands Q3 sales beat on home, garden segment growth

Spectrum Brands Holdings

07/08/2026 11:40

Overview
U.S. home essentials supplier's fiscal Q3 net sales rose 7.7%, beating analyst expectations
Adjusted EBITDA more than doubled, aided by a one-time $60.6 mln tariff refund
Company posted net loss from continuing operations due to non-cash impairment charge

Outlook
Spectrum Brands expects fiscal 2026 net sales to be flat to up low single digits
Company raises fiscal 2026 adjusted EBITDA expectation, excluding tariff refunds, to up mid single digits
Company expects adjusted free cash flow to be about 50% of adjusted EBITDA, excluding tariff refunds

Result Drivers
HOME & GARDEN GROWTH - Segment sales rose 19% on favorable weather and market share gains, driving above-market growth across key brands
GROSS MARGIN IMPROVEMENT - Higher sales volume, pricing, lower trade spend, favorable mix and cost improvement actions lifted gross profit and margin, partly offset by higher tariff cost
ERP IMPLEMENTATION IMPACT - Timing of retailer orders in EMEA Pet Care segment affected by accelerated purchases ahead of SAP S/4 HANA rollout

Company press release: ID:nBw1QbxGGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$753.30 mln
$735.50 mln (7 Analysts)
Q3 Adjusted EBITDA continuing operations
 
$158.30 mln
 
Q3 Adjusted EPS continuing operations
 
$2.79
 
Q3 EPS continuing operations
 
-$1.11
 
Q3 Gross Profit
 
$370.40 mln
 
Q3 Operating Income
 
$15.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the appliances, tools & housewares peer group is "hold."
Wall Street's median 12-month price target for Spectrum Brands Holdings, Inc. is $85.00, about 3.7% below its August 6 closing price of $88.26
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Aug 5 - Central Garden & Pet Q3 sales miss estimates on exit of pet distribution; lifts FY forecast
Aug 6 - Lifetime Brands Q2 net sales rise 7.4%, beat estimates
Aug 6 - Kenvue misses quarterly estimates as inflation, tariffs squeeze margins

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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.)