Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Sept. 02, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Spectrum Brands Holdings, Inc. (“Spectrum” or “the Company”) (NYSE: SPB) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Spectrum investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to cont ...

Key Takeaways Spectrum Brands Holdings Inc. (SPB) has reported dismal third-quarter fiscal 2025 results, wherein the top and bottom lines missed the Zacks Consensus Estimate. While the company's earnings improved year over year, sales declined. SPB reported adjusted earnings of $1.24 per share, increasing 9.7% from the year-ago quarter and missing the Zacks Consensus Estimate of $1.25. The earnings improvement was primarily driven by lower interest expenses, reduced tax liabilities and a lower share count. ...

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2025 OR | Commission File No. | Name of Registrant, State of Incorporation, Address of Principal Offices, and Telephone No. | IRS Employer Ident ...

Financial Data and Key Metrics Changes - The company reported a net sales decline of 10.2% in Q3, with organic sales decreasing by 11.1% when excluding foreign currency benefits [20][34] - Adjusted EBITDA was $76.6 million, a decrease of $29.7 million year-over-year, primarily due to lower sales volumes and reduced gross margins [35][36] - Gross margins contracted by 110 basis points to 37.8%, driven by unfavorable mix, tariffs, and inflation [21][35] Business Line Data and Key Metrics Changes - Global Pet Care reported a net sales decrease of 9.6%, with organic sales down 11.4%, primarily due to targeted stop shipments during tariff-related pricing negotiations [38][39] - Home and Garden net sales decreased by 10.3%, negatively impacted by a cold and wet start to the season [46] - Home and Personal Care saw a reported net sales decline of 10.8%, with organic sales also down 11.4%, driven by softness in personal care and home appliance categories [52][53] Market Data and Key Metrics Changes - The overall North American Companion Animal category declined in the low single digits, while European consumer sentiment weakened, impacting sales [40][45] - In Latin America, organic net sales grew in the low double digits, predominantly in the chews category [41] - The Home and Garden category experienced lower total sales, but Spectracide gained market share in pest control products [47] Company Strategy and Development Direction - The company is focused on protecting its balance sheet and maintaining a nimble stance during volatile times, with a target of approximately $160 million in free cash flow for the fiscal year [26][60] - There is an ongoing effort to diversify the supplier base and develop non-Chinese sourcing alternatives to mitigate tariff impacts [16][17] - The company is actively pursuing M&A opportunities to accelerate growth in its pet and home and garden businesses, while maintaining a disciplined approach to capital allocation [29][83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming near-term tariff-related volatility and emphasized the importance of making difficult decisions for long-term health [19][66] - There are signs of improving macroeconomic conditions, with expectations for consumer confidence to stabilize as geopolitical tensions subside [65][66] - The company anticipates a strong start to Q4, with improved sales performance and positive momentum in the Home and Garden division [23][66] Other Important Information - The company executed cost reduction activities, expecting to reduce costs by over $50 million in fiscal 2025 [15] - Share repurchases totaled approximately 900,000 shares during Q3, with a total of about 4 million shares repurchased since the HHI transaction [31] - The company is streamlining its global business and reducing fixed costs while diversifying its sourcing footprint [59] Q&A Session Summary Question: How much sales were left on the table by stopping shipments in Q2, and what impact lingers into Q4? - The estimated sales left on the table in Q3 is around $30 million, with a significantly lower impact expected in Q4 [72] Question: Why is guidance still difficult despite improved clarity on tariffs? - The company emphasized the complexity of the situation, noting that Q3 results were distorted due to significant operational changes and tariff impacts, making it challenging to provide accurate guidance [75][76] Question: Can you discuss your capital allocation strategy in a soft consumer environment? - The company believes the market is undervalued and plans to continue share repurchases while pursuing M&A opportunities to grow its pet and home and garden businesses [82][83]

Fiscal 2025 Third Quarter Earnings Call August 7, 2025 Hex: #CAE8FA RGB: 202-232-250 Hex: #565656 RGB: 86-86-86 Hex: #192D53 RGB: 25-45-83 Hex: #67AE3E RGB: 103-174-62 Hex: #0066B3 RGB: 0-102-179 Hex: #BCBEC0 RGB: 188-190-192 Hex: #808285 RGB: 128-130-133 Hex: #333333 RGB: 51-51-51 Hex: #00C0F3 RGB: 0-192-243 RGB: 0-192-243 • Introduction – Joanne Chomiak Senior Vice President, Tax and Treasury • CEO Overview – David Maura Chairman and Chief Executive Officer Hex: #CAE8FA RGB: 202-232-250 Hex: #565656 RGB: ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Q3 FY2025 net sales declined 10.2% due to tariffs and soft demand, with increased net income and reaffirmed free cash flow - The company's Q3 results were significantly impacted by a **145% tariff** on Chinese imports, which led to a temporary halt in purchases from China and stop shipments to retailers during price negotiations[3](index=3&type=chunk) - Management has taken corrective actions, including diversifying the supply base, implementing initial pricing adjustments to counter tariffs, and achieving over **$50 million** in cost reductions in fiscal 2025[3](index=3&type=chunk)[5](index=5&type=chunk) Q3 FY2025 Key Performance Indicators (in millions) | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Sales | $699.6 | -10.2% | | Organic Net Sales | - | -11.1% | | Net Income from Continuing Operations | $20.5 | +$1.4 | | Adjusted EBITDA | $76.6 | -$29.7 | | Free Cash Flow Guidance (FY25) | ~$160 | Reaffirmed | | Shares Repurchased (Q3) | 0.9M shares ($54.4) | - | - The company repurchased **17.1 million** shares for **$1.3 billion** since the HHI divestiture, reducing shares outstanding to **24.2 million**[4](index=4&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Q3 FY2025 consolidated net sales declined 10.2% and Adjusted EBITDA fell 27.9%, with net income from continuing operations increasing Q3 FY2025 Consolidated Financial Results (vs. Q3 FY2024) (in millions) | Metric | Q3 FY2025 | Q3 FY2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $699.6 | $779.4 | ($79.8) | (10.2)% | | Gross Profit | $264.1 | $302.8 | ($38.7) | (12.8)% | | Gross Margin | 37.8% | 38.9% | (110) bps | - | | Operating Income | $31.3 | $47.7 | ($16.4) | (34.4)% | | Net Income (Continuing Ops) | $20.5 | $19.1 | $1.4 | 7.3% | | Adjusted EBITDA | $76.6 | $106.3 | ($29.7) | (27.9)% | | Adjusted EBITDA Margin | 10.9% | 13.6% | (270) bps | - | | Adjusted EPS (Continuing Ops) | $1.24 | $1.13 | $0.11 | 9.7% | - The net sales decline was primarily attributed to stop shipments during price negotiations, tariff-related supply constraints, and category softness in Global Pet Care and Home & Personal Care[7](index=7&type=chunk) - Adjusted diluted EPS increased to **$1.24**, driven by lower income tax, reduced interest expense, and a reduction in outstanding shares, which offset the impact of lower adjusted EBITDA[12](index=12&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) All three segments saw Q3 FY2025 net sales decline, with GPC and HPC impacted by supply issues and H&G by weather [Global Pet Care (GPC)](index=3&type=section&id=Global%20Pet%20Care%20%28GPC%29) GPC Q3 FY2025 Performance (vs. Q3 FY2024) (in millions) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $255.2 | $282.2 | (9.6)% | | Organic Net Sales | - | - | (11.4)% | | Adjusted EBITDA | $44.0 | $56.7 | (22.4)% | | Adjusted EBITDA Margin | 17.2% | 20.1% | (290) bps | - The sales decline was driven by low double-digit drops in both Companion Animal and Aquatics categories. North American sales were hurt by stop shipments, supply constraints from pausing Chinese purchases, and overall category weakness[8](index=8&type=chunk) [Home & Garden (H&G)](index=3&type=section&id=Home%20%26%20Garden%20%28H%26G%29) H&G Q3 FY2025 Performance (vs. Q3 FY2024) (in millions) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $189.2 | $211.0 | (10.3)% | | Adjusted EBITDA | $38.6 | $43.3 | (10.9)% | | Adjusted EBITDA Margin | 20.4% | 20.5% | (10) bps | - The 10.3% net sales decrease was primarily caused by unfavorable seasonal weather compared to the prior year, which delayed replenishment orders[10](index=10&type=chunk) [Home & Personal Care (HPC)](index=4&type=section&id=Home%20%26%20Personal%20Care%20%28HPC%29) HPC Q3 FY2025 Performance (vs. Q3 FY2024) (in millions) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $255.2 | $286.2 | (10.8)% | | Organic Net Sales | - | - | (11.4)% | | Adjusted EBITDA | $7.0 | $11.8 | (40.7)% | | Adjusted EBITDA Margin | 2.7% | 4.1% | (140) bps | - Sales were negatively impacted by weak consumer sentiment in the US and EMEA, stop shipments during tariff negotiations, and supply constraints. However, LATAM organic net sales grew by low double-digits[13](index=13&type=chunk) [Financial Position and Outlook](index=4&type=section&id=Liquidity%20and%20Debt) Spectrum Brands maintained $510.5 million liquidity and $559.1 million net debt, reaffirmed FY2025 free cash flow, but suspended earnings framework Liquidity and Debt Position (as of June 29, 2025) | Item | Amount (in millions) | | :--- | :--- | | Cash Balance | $122.0 | | Revolver Capacity (undrawn) | $388.5 | | **Total Liquidity** | **$510.5** | | Total Debt Outstanding | $681.1 | | **Net Debt** | **$559.1** | - The company reaffirmed its expectation to generate approximately **$160 million** of free cash flow in Fiscal 2025[16](index=16&type=chunk) - Due to uncertainty from global trade conditions, tariffs, and soft consumer demand, the company is not providing a Fiscal 2025 earnings framework[16](index=16&type=chunk) - The company continues to target a long-term net leverage ratio of **2.0 - 2.5 times**[16](index=16&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) Unaudited financial statements show lower Q3 revenue and operating income but higher net income from continuing operations, with reduced cash from operations and lower total assets [Condensed Consolidated Statements of Income](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Income Statement Summary - Three Months Ended | (in millions) | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net sales | $699.6 | $779.4 | | Gross profit | $264.1 | $302.8 | | Operating income | $31.3 | $47.7 | | Net income from continuing operations | $20.5 | $19.1 | | Net income | $19.7 | $6.0 | [Condensed Consolidated Statements of Cash Flow](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Cash Flow Summary - Nine Months Ended | (in millions) | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32.5 | $81.9 | | Net cash (used) provided by investing activities | ($25.2) | $885.0 | | Net cash used by financing activities | ($245.0) | ($1,563.9) | | Net change in cash | ($245.0) | ($596.2) | [Condensed Consolidated Statements of Financial Position](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Balance Sheet Summary | (in millions) | June 29, 2025 | Sept 30, 2024 | | :--- | :--- | :--- | | Total current assets | $1,338.9 | $1,578.6 | | Total assets | $3,542.3 | $3,842.3 | | Total current liabilities | $553.1 | $687.1 | | Total liabilities | $1,648.5 | $1,700.6 | | Total equity | $1,893.8 | $2,141.7 | [Supplemental Information (Non-GAAP Reconciliations)](index=14&type=section&id=Supplemental%20Information%20%28Non-GAAP%20Reconciliations%29) This section provides GAAP to non-GAAP reconciliations for organic net sales, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Free Cash Flow, enhancing insight into core operational performance [Net Sales and Organic Net Sales](index=14&type=section&id=Net%20Sales%20and%20Organic%20Net%20Sales) Q3 FY2025 Net Sales to Organic Net Sales Reconciliation | (in millions) | Net Sales | FX Effect | Organic Net Sales | YoY Organic Change | | :--- | :--- | :--- | :--- | :--- | | GPC | $255.2 | ($5.3) | $249.9 | (11.4)% | | H&G | $189.2 | $0.1 | $189.3 | (10.3)% | | HPC | $255.2 | ($1.6) | $253.6 | (11.4)% | | **Total** | **$699.6** | **($6.8)** | **$692.8** | **(11.1)%** | [Adjusted EBITDA and Adjusted EBITDA Margin](index=15&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Q3 FY2025 Net Income to Adjusted EBITDA Reconciliation | (in millions) | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net income from continuing operations | $20.5 | $19.1 | | Adjustments (Taxes, Interest, D&A, etc.) | $49.8 | $67.8 | | Other Adjustments (Impairment, Restructuring, etc.) | $6.3 | $19.4 | | **Adjusted EBITDA** | **$76.6** | **$106.3** | [Adjusted Diluted EPS](index=16&type=section&id=Adjusted%20Diluted%20EPS) Q3 FY2025 Diluted EPS to Adjusted Diluted EPS Reconciliation | (per share amounts) | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Diluted EPS from continuing operations | $0.83 | $0.66 | | Pre-tax adjustments | $0.65 | $0.68 | | Tax impact of adjustments | ($0.24) | ($0.21) | | **Adjusted Diluted EPS** | **$1.24** | **$1.13** | [Adjusted Free Cash Flow](index=17&type=section&id=Adjusted%20Free%20Cash%20Flow) YTD FY2025 Operating Cash Flow to Adjusted Free Cash Flow | (in millions) | Nine Months Ended June 29, 2025 | | :--- | :--- | | Net cash provided by operating activities | $33.1 | | Purchases of property, plant and equipment | ($25.1) | | **Free cash flow** | **$8.0** | | Adjustments (Deal costs, etc.) | $4.6 | | **Adjusted free cash flow** | **$12.6** | [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements and risks, including geopolitical and economic conditions, supplier reliance, tariffs, consumer spending, and supply chain complexities - The report identifies significant risks that could impact future performance, including[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Economic, social, and political conditions, including the Russia-Ukraine and Israel-Hamas wars - Reliance on third-party suppliers and distributors, especially with government intervention in China - The impact of tariffs, trade policies, inflation, and potential recession on the business - Fluctuations in transportation, fuel, and commodity costs - Loss of or reduced sales to any significant retail customer[29](index=29&type=chunk)[30](index=30&type=chunk)

The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Zacks Consensus Estimate This holding company is expect ...

Core Insights - Spectrum Brands Holdings Inc. (SPB) is focusing on brand equity, digital channels, and innovations to ensure long-term success and demand resilience, particularly in pet care, home & garden, and grooming categories [1][3] Investment Strategy - The company is increasing brand-focused investments across its businesses, with a $3 million year-over-year increase in Q2 fiscal 2025 [3][10] - Certain marketing and advertising expenditures for the Home & Personal Care appliance business have been temporarily paused during the transition period [2][10] - SPB is actively seeking alternative supply sources outside of China to manage disruptions [2][10] Product Development and Innovation - Management emphasizes that innovation remains a strategic priority, with sustained investment in product development [3][4] - The company is targeting growth in a more sustainable, consumable pet category [3] Financial Performance - SPB's shares have decreased by 35.7% year to date, compared to a 9.5% drop in the industry [5] - The forward price-to-earnings ratio for SPB is 11.84X, slightly below the industry average of 11.87X [6] - The Zacks Consensus Estimate indicates an 8.4% year-over-year drop in fiscal 2025 earnings, while fiscal 2026 EPS is expected to grow by 29.5% [7]

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Core Viewpoint - Spectrum Brands Holdings Inc. (SPB) reported disappointing second-quarter fiscal 2025 results, with both revenue and earnings falling short of expectations and declining year over year due to a challenging macroeconomic environment and global trade pressures [1][3][14] Financial Performance - Adjusted earnings were 68 cents per share, missing the Zacks Consensus Estimate of $1.35 per share, and down 51.4% from $1.40 per share in the prior year [3] - Net sales decreased by 6% year over year to $675.7 million, missing the Zacks Consensus Estimate of $695 million, with organic sales down 4.6% [3] - Gross profit fell 7.3% year over year to $253.4 million, with a gross margin contraction of 60 basis points to 37.5% [4] - Adjusted EBITDA from continuing operations decreased 36.5% year over year to $71.3 million, with the adjusted EBITDA margin contracting 500 basis points to 10.6% [5] Segment Performance - Home & Personal Care segment sales declined 5.1% year over year to $254.2 million, with adjusted EBITDA down to $7.3 million and a margin contraction of 370 basis points to 2.9% [6][7] - Global Pet Care segment sales fell 7.1% year over year, with adjusted EBITDA dropping 19.7% to $50 million and a margin contraction of 290 basis points to 18.6% [8][9] - Home & Garden segment sales decreased 5.2% year over year to $152.3 million, with adjusted EBITDA falling to $26.7 million and a margin contraction of 70 basis points to 17.5% [10][11] Financial Position - As of March 30, 2025, the company had a cash balance of $96 million and outstanding debt of $656.9 million, resulting in a net debt of approximately $560.9 million [12] - The company repurchased 2 million shares for $159.9 million during the quarter, totaling $1.28 billion in repurchases since the close of HHI [13] Outlook - Spectrum Brands has suspended its fiscal 2025 earnings framework due to increased uncertainty from global trade conditions and softening consumer demand, while maintaining a long-term financial strategy targeting a net leverage ratio of 2.0 to 2.5 times [14]