Spectrum Brands Holdings, Inc. SPB delivered strong third-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate and improved year over year.
SPB reported adjusted earnings from continuing operations of $2.79 per share, increasing 125% from $1.24 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.49. The earnings improvement was primarily buoyed by lower outstanding shares and increased adjusted EBITDA.
Net sales increased 7.7% year over year to $753.3 million and surpassed the Zacks Consensus Estimate of $732 million. Growth across all three businesses, led by Home & Garden, supported higher profitability, while adjusted EBITDA rose 106.7% to $158.3 million. Excluding $60.6 million of tariff refunds, adjusted EBITDA still grew 27.5% to $97.7 million, reflecting operational improvements.
Following the earnings release, SPB’s shares jumped more than 8% during the trading session. In the past three months, the stock has gained 9% compared with the industry’s 16.8% growth.
Spectrum Brands Holdings Inc. Price, Consensus and EPS Surprise
Spectrum Brands Holdings Inc. price-consensus-eps-surprise-chart | Spectrum Brands Holdings Inc. Quote
SPB Benefits From Broad-Based Growth
Spectrum Brands’ net sales improved across all three businesses, with organic net sales excluding favorable foreign exchange increasing 6.6%. The company said growth was driven by market share gains, favorable weather conditions and stronger retailer ordering patterns.
Gross profit increased 40.2% year over year to $370.4 million, while the gross margin expanded substantially to 49.2%. Higher sales volume, pricing, reduced trade spend, favorable mix and cost-improvement efforts contributed to the improvement, partly offset by higher tariff costs.
The company’s adjusted EBITDA margin expanded substantially to 21% from 10.9% in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA margin improved 200 basis points, reflecting stronger gross margins and higher volumes despite increased investment spending.
Spectrum Brands’ Global Pet Care Segment Performance
Global Pet Care sales rose 3.3% year over year to $263.7 million, with organic net sales increasing 2.9%. The segment’s sales lagged the Zacks Consensus Estimate of $266 million.
Companion Animal sales increased in the mid-single digits, while Aquatics sales declined in the mid-single digits. North American growth was supported by Companion Animal with modest category growth and market share gains across key brands. In EMEA, organic sales declined as retailers accelerated orders into the second quarter ahead of the SAP S/4HANA ERP implementation.
Global Pet Care adjusted EBITDA increased 91.8% to $84.4 million, and adjusted EBITDA margin expanded substantially to 32% from 17.2%. Excluding tariff refunds, adjusted EBITDA was $51.9 million, up $7.9 million year over year, driven by pricing, favorable mix and cost-improvement efforts.
SPB’s Home & Garden Delivers Record Quarter
Home & Garden generated the strongest top-line performance among SPB’s segments, with sales increasing 19% year over year to $225.2 million. Organic net sales rose 19.1%, supported by favorable weather conditions improving point-of-sale trends and retailer replenishment order patterns. The segment’s sales exceeded the Zacks Consensus Estimate of $211 million.
The segment also benefited from above-market growth in key brands. Adjusted EBITDA increased 30.6% to $50.4 million, while the adjusted EBITDA margin expanded 200 basis points to 22.4%.
Excluding tariff refunds, Home & Garden adjusted EBITDA increased to $48.4 million, up $9.8 million from the prior-year quarter. Higher sales and better productivity were key contributors, partially offset by higher trade spend and inflation.
Spectrum Brands Navigates HPC Challenges
Home & Personal Care sales increased 3.6% year over year to $264.4 million, while organic net sales excluding foreign exchange rose 1.1%. Personal Care sales increased in the mid-teens, while Home Appliances sales declined in the mid-single digits. The segment’s sales exceeded the Zacks Consensus Estimate of $253 million.
EMEA sales improved across both Home Appliances and Personal Care, helped by a one-time decline in trade spend, though competition continued to pressure performance. North American sales declined in the mid-single digits, primarily due to weakness in Home Appliances and the exit from the DRTV business.
HPC adjusted EBITDA increased substantially to $40.6 million from $7.0 million in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA rose to $14.4 million, supported by pricing, cost improvement and positive foreign exchange, partly offset by soft volumes and higher tariff costs.
Spectrum Brands’ Other Financials
As of June 28, 2026, SPB had a cash balance of $258.9 million. It had an outstanding debt of $633 million, with no outstanding borrowings on the revolver, $496.1 million of senior unsecured notes and $60 million of a term loan within its HPC business.
The company had a total liquidity of $753.7 million, comprising the undrawn capacity on its cash flow revolver of $494.8 million. This Zacks Rank #4 (Sell) company exited the quarter with a net long-term debt, net of current portion, of $603.6 million.
SPB Raises Fiscal 2026 EBITDA Outlook
The company maintained its fiscal 2026 net sales outlook for flat to low single-digit growth. Based on strong year-to-date performance, SPB increased its adjusted EBITDA expectation, excluding tariff refunds, to mid-single-digit growth. It continues to expect adjusted free cash flow of approximately 50% of adjusted EBITDA, excluding tariff refunds.
Management also highlighted progress on its ERP transformation, completing the first SAP S/4 HANA deployment within Home & Personal Care and implementing the system across remaining Global Pet Care and Home & Garden entities. The company expects the remaining HPC EMEA implementation to be completed later in the year.
Key Picks in the Consumer Discretionary Space
Duluth Holdings Inc. DLTH sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. At present, DLTH sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 9.6% and 267%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.
Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.
Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 7.2% and 34.1%, respectively. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average.
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