Spectrum Brands Holdings, a global branded consumer products and home essentials company, has reported its fiscal 2025 fourth quarter results, showing a 5.2% decrease in net sales compared to the previous year. The company's fourth quarter net income from continuing operations was $53.3 million, a substantial increase from the previous year. Adjusted EBITDA for the same period was $63.4 million, reflecting a decrease of 8.0% from the prior year.
For the full fiscal year 2025, net sales decreased by 5.2%, with organic net sales decreasing by 5.3%. The net income from continuing operations for the full year was $100.2 million, with adjusted EBITDA amounting to $289.1 million. The company also reported operating cash flow from continuing operations of $204.1 million and adjusted free cash flow of $170.7 million for fiscal 2025.
In terms of shareholder returns, Spectrum Brands reported returning $374.6 million to shareholders through share repurchases and dividends in fiscal 2025. The company ended the year with a net debt leverage of 1.58x adjusted EBITDA.
Looking ahead to fiscal 2026, Spectrum Brands expects to deliver flat to low single-digit net sales growth and low single-digit adjusted EBITDA growth, driven by a return to growth in its global pet care and home & garden businesses.
Breaking down the performance by segment, the Global Pet Care (GPC) segment saw a 1.5% decrease in net sales, with adjusted EBITDA increasing by 12.0% and adjusted EBITDA margins improving by 200 basis points. The Home & Garden (H&G) segment experienced a 3.2% increase in net sales, while adjusted EBITDA decreased by 11.1% with adjusted EBITDA margins declining by 200 basis points. The Home & Personal Care (HPC) segment recorded an 11.9% decrease in net sales, with adjusted EBITDA declining by 17.4% and adjusted EBITDA margins decreasing by 30 basis points.
The company's liquidity and debt position at the end of the quarter showed a cash balance of $123.6 million and total liquidity of $615.9 million. Spectrum Brands had $581.4 million of debt outstanding, ending the quarter with a net debt of $457.8 million.
Spectrum Brands also provided its fiscal 2026 earnings framework, expecting flat to low single-digit growth in reported net sales, low single-digit growth in adjusted EBITDA, and an adjusted free cash flow of approximately 50% of adjusted EBITDA. The company continues to target a long-term net leverage ratio of 2.0 * 2.5 times.
Today the company's shares have moved 3.22% to a price of $53.24. Check out the company's full 8-K submission here.
