[Executive Summary & Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Outlook) Spectrum Brands reported a challenging Q2 FY2025 with declining sales and profitability, leading to a strategic pivot focused on cash flow, supply chain shifts, and pet category acquisitions - Net sales decreased **6.0%** and organic sales decreased **4.6%**, driven by soft demand in Global Pet Care and North American Appliances, and timing of retailer inventory purchases in Home & Garden[3](index=3&type=chunk) - The company repurchased **2.0 million** shares in Q2 for **$159.9 million**, totaling **16.3 million** shares for **$1.28 billion** since the HHI divestiture[3](index=3&type=chunk) - In response to tariff pressures and weakening demand, the company has pivoted its strategy to maximize cash, expecting to generate approximately **$160 million** of free cash flow in FY2025 and suspending its earnings framework[3](index=3&type=chunk)[9](index=9&type=chunk) - The company is accelerating efforts to move its supply base out of China for the U.S. market, with a primary focus on the Home & Personal Care (HPC) business[3](index=3&type=chunk)[8](index=8&type=chunk) - The company aims to strengthen its portfolio with acquisitions, particularly in the pet categories, with a vision to at least double the size of its pet asset organically and through M&A[7](index=7&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Consolidated Q2 FY2025 net sales decreased 6.0% to $675.7 million, with net income and Adjusted EBITDA also significantly declining due to lower volumes and tariffs Q2 FY2025 Financial Highlights (vs. Q2 FY2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales ($ millions) | $675.7 | $718.5 | (6.0)% | | Gross Profit ($ millions) | $253.4 | $273.4 | (7.3)% | | Gross Profit Margin | 37.5% | 38.1% | (60) bps | | Net Income from Continuing Operations ($ millions) | $1.8 | $49.9 | (96.4)% | | Diluted EPS from Continuing Operations | $0.06 | $1.65 | (96.4)% | | Adjusted EBITDA ($ millions) | $71.3 | $112.3 | (36.5)% | | Adjusted EBITDA Margin | 10.6% | 15.6% | (500) bps | | Adjusted EPS from Continuing Operations | $0.68 | $1.40 | (51.4)% | - The decrease in net sales was primarily due to category softness in North American markets for Global Pet Care and Home & Personal Care, along with the timing of retailer inventory builds in Home & Garden[11](index=11&type=chunk) - Gross margin decreased due to lower volume, higher trade promotions, unfavorable mix, inflation, and higher tariffs, partially offset by cost improvement actions[11](index=11&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) All three segments experienced declines in Q2 FY2025 net sales and Adjusted EBITDA, driven by North American market softness, retailer inventory timing, and lower category demand [Global Pet Care (GPC)](index=4&type=section&id=Global%20Pet%20Care%20(GPC)) Global Pet Care net sales decreased 7.1% to $269.2 million, with Adjusted EBITDA falling 19.7% due to North American softness and increased investments GPC Q2 FY2025 Performance (vs. Q2 FY2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales ($ millions) | $269.2 | $289.9 | (7.1)% | | Adjusted EBITDA ($ millions) | $50.0 | $62.3 | (19.7)% | | Adjusted EBITDA Margin | 18.6% | 21.5% | (290) bps | - Companion Animal sales declined mid-single digits, driven by low double-digit declines in North America, while EMEA organic sales grew mid-single digits. Global Aquatics sales declined due to continued category softness[12](index=12&type=chunk) [Home & Garden (H&G)](index=4&type=section&id=Home%20%26%20Garden%20(H%26G)) Home & Garden net sales decreased 5.2% to $152.3 million, with Adjusted EBITDA down 8.6%, primarily due to the timing of retailer inventory builds H&G Q2 FY2025 Performance (vs. Q2 FY2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales ($ millions) | $152.3 | $160.7 | (5.2)% | | Adjusted EBITDA ($ millions) | $26.7 | $29.2 | (8.6)% | | Adjusted EBITDA Margin | 17.5% | 18.2% | (70) bps | - The sales decrease was due to the phasing of seasonal inventory builds at retailers, which pulled sales forward into Q1[14](index=14&type=chunk) [Home & Personal Care (HPC)](index=4&type=section&id=Home%20%26%20Personal%20Care%20(HPC)) Home & Personal Care net sales fell 5.1% to $254.2 million, with Adjusted EBITDA significantly declining 59.0% due to lower North American demand and tariffs HPC Q2 FY2025 Performance (vs. Q2 FY2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales ($ millions) | $254.2 | $267.9 | (5.1)% | | Adjusted EBITDA ($ millions) | $7.3 | $17.8 | (59.0)% | | Adjusted EBITDA Margin | 2.9% | 6.6% | (370) bps | - North American sales declined high single digits, while LATAM organic sales increased low double-digits. EMEA organic net sales were relatively flat[16](index=16&type=chunk) - Adjusted EBITDA margin declined sharply to **2.9%** from **6.6%** last year, driven by lower volumes, higher trade spend, unfavorable mix, and incremental tariffs[17](index=17&type=chunk) [Liquidity and Debt](index=5&type=section&id=Liquidity%20and%20Debt) As of March 30, 2025, the company reported total liquidity of $504.6 million and net debt of approximately $560.9 million Liquidity and Debt Position (as of March 30, 2025) | Item | Amount (in millions) | | :--- | :--- | | Cash Balance | $96.0 | | Total Liquidity | $504.6 | | Total Debt Outstanding | $656.9 | | Net Debt | $560.9 | [Fiscal 2025 Outlook](index=5&type=section&id=Fiscal%202025%20Outlook) The company suspended its Fiscal 2025 earnings framework due to global trade uncertainties and softening consumer demand, while maintaining its long-term net leverage target - The company suspended its Fiscal 2025 earnings framework due to uncertainty caused by global trade conditions, tariffs, and softening global consumer demand[19](index=19&type=chunk)[9](index=9&type=chunk) - The company continues to target a long-term net leverage ratio of **2.0 - 2.5 times**[19](index=19&type=chunk) [Appendix: Financial Statements](index=11&type=section&id=Appendix%3A%20Financial%20Statements) This appendix presents the unaudited condensed consolidated financial statements, including Statements of Income, Cash Flow, and Financial Position, for the specified periods [Condensed Consolidated Statements of Income](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 30, 2025, net sales were $675.7 million, with net income from continuing operations significantly decreasing to $1.8 million Condensed Consolidated Statements of Income (Three Months Ended) | (in millions) | March 30, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net sales | $675.7 | $718.5 | | Gross profit | $253.4 | $273.4 | | Operating income | $19.5 | $75.9 | | Net income from continuing operations | $1.8 | $49.9 | [Condensed Consolidated Statements of Cash Flow](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) For the six months ended March 30, 2025, net cash used by operating activities from continuing operations was $48.6 million, a reversal from the prior year Condensed Consolidated Statements of Cash Flow (Six Months Ended) | (in millions) | March 30, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net cash (used) provided by operating activities from continuing operations | $(48.6) | $80.7 | | Net cash used by financing activities | $(195.0) | $(553.8) | | Net change in cash, cash equivalents and restricted cash | $(272.3) | $(8.2) | [Condensed Consolidated Statements of Financial Position](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of March 30, 2025, total assets were $3,537.0 million and total liabilities were $1,651.7 million, with cash and equivalents at $96.0 million Condensed Consolidated Statements of Financial Position | (in millions) | March 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total current assets | $1,342.8 | $1,578.6 | | Total assets | $3,537.0 | $3,842.3 | | Total current liabilities | $573.1 | $687.1 | | Total liabilities | $1,651.7 | $1,700.6 | | Total equity | $1,885.3 | $2,141.7 | [Appendix: Non-GAAP Reconciliations](index=14&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) This appendix provides definitions and reconciliations for key non-GAAP financial measures, including Organic Net Sales, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Free Cash Flow [Net Sales and Organic Net Sales Reconciliation](index=14&type=section&id=Net%20Sales%20and%20Organic%20Net%20Sales%20Reconciliation) For Q2 FY2025, reported net sales were $675.7 million, with organic net sales of $685.8 million after adjusting for foreign currency impact Reconciliation of Reported Net Sales to Organic Net Sales (Q2 FY2025) | (in millions) | Net Sales | Effect of FX | Organic Net Sales | Organic Change (%) | | :--- | :--- | :--- | :--- | :--- | | GPC | $269.2 | $2.4 | $271.6 | (6.3)% | | H&G | $152.3 | $0.0 | $152.3 | (5.2)% | | HPC | $254.2 | $7.7 | $261.9 | (2.2)% | | **Total** | **$675.7** | **$10.1** | **$685.8** | **(4.6)%** | [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 FY2025 was $71.3 million, reconciled from net income of $1.8 million, with key adjustments including non-cash impairment charges Reconciliation of Net Income to Adjusted EBITDA (Q2) | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income from continuing operations | $1.8 | $49.9 | | Income tax expense | $9.6 | $25.5 | | Interest expense | $7.5 | $16.9 | | Depreciation & Amortization | $24.5 | $25.4 | | Non-cash impairment charges | $15.7 | $39.5 | | Representation and warranty insurance proceeds | — | $(65.0) | | Other Adjustments | $12.2 | $19.9 | | **Adjusted EBITDA** | **$71.3** | **$112.3** | [Adjusted Diluted EPS Reconciliation](index=16&type=section&id=Adjusted%20Diluted%20EPS%20Reconciliation) Adjusted diluted EPS from continuing operations for Q2 FY2025 was $0.68, reconciled from a reported diluted EPS of $0.06, primarily due to non-cash impairment charges Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q2) | (per share amounts) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted EPS from continuing operations | $0.06 | $1.65 | | Pre-tax adjustments | $0.87 | $(0.32) | | Tax impact of adjustments | $(0.25) | $0.07 | | **Adjusted Diluted EPS** | **$0.68** | **$1.40** | [Adjusted Free Cash Flow Reconciliation](index=17&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) For the six months ended March 30, 2025, adjusted free cash flow was a use of $58.4 million, reconciled from net cash used by operating activities Reconciliation to Adjusted Free Cash Flow (Six Months Ended) | (in millions) | March 30, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities from continuing operations | $(48.6) | $80.7 | | Purchases of property, plant and equipment | $(15.1) | $(20.9) | | Free cash flow | $(63.7) | $59.8 | | Adjustments | $5.3 | $(44.9) | | **Adjusted free cash flow** | **$(58.4)** | **$14.9** | [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and details numerous risks, including economic conditions, geopolitical conflicts, supply chain disruptions, and tariffs, that could impact future results - The report contains forward-looking statements regarding business strategy, future free cash flows, tariffs, and supply chain efforts, which are subject to numerous risks and uncertainties[30](index=30&type=chunk)[31](index=31&type=chunk) - Key risk factors include economic conditions, tariffs and trade policies, supply chain disruptions (including relocation efforts), inflation, recession fears, changes in consumer spending preferences, and geopolitical instability such as the Russia-Ukraine and Israel-Hamas wars[32](index=32&type=chunk)[33](index=33&type=chunk)

Fiscal 2025 Second Quarter Earnings Call May 8, 2025 We have made or implied certain forward-looking statements in this document. Statements or expectations regarding our business strategy, future free cash flows, tariffs, tariff impact and tariff mitigation efforts, future operations and operating model, financial condition, estimated revenues, projected costs, inventory management, supply chain and supply chain relocation efforts, earnings power, project synergies, prospects, plans and strategic objective ...

Core Viewpoint - Spectrum Brands Holdings, Inc. (SPB) is anticipated to report a decline in both revenue and earnings for the second quarter of fiscal 2025, with revenues expected at $694.9 million, a decrease of 3.3% year-over-year, and earnings per share (EPS) projected at $1.35, down 16.7% from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for SPB's fiscal second-quarter revenues is $694.9 million, reflecting a 3.3% decline from the same quarter last year [1]. - The EPS estimate is $1.35, indicating a 16.7% decrease compared to the year-ago quarter, with a 9.4% downward revision in the last 30 days [2]. - In the last reported quarter, SPB achieved an earnings surprise of 12.1%, averaging a 52.5% earnings surprise over the trailing four quarters [2]. Earnings Prediction Model - The current model does not predict an earnings beat for SPB, as it holds an Earnings ESP of +3.70% and a Zacks Rank of 5 (Strong Sell) [3]. Strategic Initiatives - SPB's second-quarter results are expected to reflect the impacts of its aggressive investment strategy focused on long-term value creation, including enhancing brand equity, expanding e-commerce, and modernizing the supply chain [4]. - The expiration of tariff exemptions and new tariffs, particularly affecting the Home & Personal Care (HPC) segment, are anticipated to increase costs and pressure margins [5]. - Ongoing efforts to divest or restructure the HPC segment may face challenges due to geopolitical uncertainties and operational complexities, potentially delaying strategic transactions [6]. Market Conditions - Soft consumer demand in discretionary categories, especially in the HPC segment and small kitchen appliances, may negatively impact overall sales amid macroeconomic pressures like inflation and high interest rates [7]. - The Zacks Consensus Estimate for the HPC segment's sales is $261 million, slightly up from $260 million year-over-year, while the Global Pet Care segment is expected to see revenues of $278 million, down from $291 million [8]. Valuation and Stock Performance - SPB is trading at a forward 12-month price-to-earnings ratio of 12.79X, higher than the industry average of 11.34X [9]. - SPB's shares have declined by 22% over the past three months, compared to a 9.9% decline in the industry [10].

Company Overview - Spectrum Brands (SPB) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.35, reflecting a decrease of 16.7% compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $694.91 million, down 3.3% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 8, 2025, and the stock price may react positively if actual results exceed expectations [2] - Conversely, if the results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has been revised down by 6.16% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Spectrum is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.70% [10][11] Historical Performance - In the last reported quarter, Spectrum had an earnings surprise of +12.09%, with actual earnings of $1.02 per share compared to an expected $0.91 [12] - Over the past four quarters, Spectrum has beaten consensus EPS estimates two times [13] Industry Context - Another company in the same industry, Central Garden (CENT), is expected to report earnings of $0.94 per share, reflecting a year-over-year decline of 5.1% [17] - Central Garden's revenues are projected to be $875.2 million, down 2.8% from the previous year [17]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, assigning ratings from A to F based on value, growth, and momentum characteristics [2][9] - The Value Style Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Style Score focuses on a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow to identify sustainable growth stocks [4] - The Momentum Style Score assists investors in capitalizing on price trends by evaluating short-term price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Group 2 - The Zacks Rank is a proprietary stock-rating model that simplifies portfolio building by utilizing earnings estimate revisions [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B, ensuring a higher probability of success [9][10] Group 3 - Spectrum Brands Holdings, Inc. is a global consumer products company with a diverse portfolio, including residential locksets, grooming products, and pet supplies [11] - Spectrum Brands holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 12.04, making it attractive to value investors [12] - For fiscal 2025, the Zacks Consensus Estimate for Spectrum Brands' earnings has increased to $5.06 per share, with an average earnings surprise of 52.5% [12]

Core Viewpoint - Spectrum Brands Holdings Inc. (SPB) has experienced a significant decline in its stock price, dropping 17.1% over the past three months, underperforming both the industry and broader market indices [1][14]. Performance Overview - The stock closed at $69.81, nearing its 52-week low of $68.74 reached on March 21 [1]. - The company's stock performance has lagged behind the Zacks Consumer Discretionary sector, which rose by 3.6%, and the S&P 500, which dipped by 3.8% [1]. Factors Affecting Performance - Spectrum Brands is investing heavily in brand improvement, online sales, and supply chain enhancements, which is currently straining its finances [4]. - Increased costs from new trade tariffs, particularly affecting the Home & Personal Care (HPC) segment, are expected to hurt profits until cost-cutting measures are implemented [5]. - The company is restructuring its HPC business by divesting certain parts, but delays or unfavorable outcomes could hinder financial expectations [6]. - A strong U.S. dollar is negatively impacting international sales, particularly in Europe, despite the company's strategies to mitigate currency effects [7]. Growth Strategies - Despite challenges, Spectrum Brands' growth initiatives, particularly in e-commerce, are anticipated to improve stock performance [8]. - E-commerce sales contributed over 30% to global HPC revenues and mid-20% to Global Pet Care (GPC) revenues in the first quarter of fiscal 2025 [8]. - The company is expanding inventory, improving fill rates, and launching new products to sustain e-commerce growth [10]. Financial Performance - In the first quarter of fiscal 2025, gross profit increased by 5.3% year over year, supported by higher sales and cost-saving measures [12]. - Gross margin expanded by 140 basis points to 36.8%, indicating improved profitability [12]. - The company expects a slight increase in net sales and mid-to-high single-digit growth in adjusted EBITDA for fiscal 2025, driven by sales growth and cost improvements [13]. Outlook - Spectrum Brands is facing short-term challenges from rising costs and financial pressures due to significant investments in brand-building and e-commerce [14]. - Management remains optimistic about modest sales and EBITDA growth in fiscal 2025 as growth initiatives take effect [15].

Core Viewpoint - Spectrum Brands Holdings Inc. (SPB) is currently facing significant technical resistance, trading below key moving averages, indicating a bearish trend and potential sustained downward movement in stock price [1][2]. Stock Performance - SPB shares have declined by 22.7% over the past three months, significantly underperforming the industry decline of 4.7% and the broader Consumer Discretionary sector's drop of 4.2% [3][4]. Current Pressures - The company is experiencing financial challenges due to heavy investments in brand-building, e-commerce, and supply chain improvements, which are currently straining finances [5]. - New trade tariffs, particularly affecting the Home & Personal Care (HPC) segment, are expected to increase costs and reduce profits, especially as many products are sourced from China [6]. - Spectrum Brands is also facing foreign exchange issues due to a strong U.S. dollar, complicating sales growth in international markets [8]. Strategic Initiatives - Despite challenges, SPB's growth initiatives, particularly in e-commerce, are expected to play a crucial role in reversing stock performance, with online sales contributing over 30% to global HPC revenues [9]. - The company is benefiting from higher prices, cost savings, and a better product mix, which have helped improve profit margins [10]. - Looking ahead, SPB anticipates a small increase in net sales and a mid-to-high single-digit rise in adjusted EBITDA for fiscal 2025, driven by sales growth and cost improvements [11]. Revised Estimates - The Zacks Consensus Estimate for SPB's fiscal 2025 sales and EPS indicates year-over-year growth of 0.4% and 24.6%, respectively, with further growth expected in fiscal 2026 [12]. Final Assessment - SPB is currently under pressure from rising costs, tariffs, and financial constraints due to heavy investments, while also trading below key moving averages [13]. However, e-commerce momentum and cost-saving initiatives are supporting margin expansion, with management expecting modest growth in fiscal 2025 [13].

Core Viewpoint - Spectrum Brands Inc. has shown a 2.8% increase in stock price since reporting its first-quarter fiscal 2025 results, outperforming its industry peers and the broader market despite mixed investor sentiments following the earnings release [1][2]. Financial Performance - In the first quarter of fiscal 2025, Spectrum Brands exceeded the Zacks Consensus Estimate for earnings per share (EPS), with a year-over-year revenue increase of 1.2% and a significant EPS growth of 61.9% [2][6]. - Organic revenues improved by 1.9% during the reported quarter, indicating a positive trend in sales performance [2]. Growth Drivers - The company's revenue growth is attributed to brand-focused investments and e-commerce expansion, with the Home and Personal Care (HPC) division experiencing one of its best first quarters in recent history due to a strong holiday season [3][4]. - E-commerce sales contributed over 30% to global HPC revenues, with expectations for continued growth in digital sales outpacing brick-and-mortar sales throughout fiscal 2025 [4][6]. Cost Management and Pricing Strategy - Spectrum Brands is benefiting from pricing actions, cost efficiencies, and a favorable product mix, which have supported margin growth [5]. - The company has implemented cost-cutting measures, including workforce reductions and lower advertising spending, while managing new U.S. tariffs on imports from China [5][10]. Future Outlook - For fiscal 2025, Spectrum Brands anticipates low-single-digit net sales growth and a mid to high-single-digit rise in adjusted EBITDA, supported by ongoing cost improvements and strategic investments [6][13]. - The Zacks Consensus Estimate for fiscal 2025 implies a 0.5% growth in sales and a 24.6% increase in EPS year-over-year [13]. Stock Performance and Valuation - Despite recent gains, Spectrum Brands' stock has underperformed over the past year, losing 8.7% compared to industry gains of 15.1% and S&P 500 growth of 21.3% [7][9]. - Currently priced at $78.53, the stock is trading at an 18.8% discount from its 52-week high of $96.74 and below its 50-day and 200-day moving averages, indicating bearish sentiment [9][16]. - The stock's forward 12-month P/E ratio of 14.98X is below its five-year median of 17.82X and the S&P 500's average of 22.45X, suggesting potential for upside [16].

Core Viewpoint - Spectrum Brands Holdings Inc. reported a mixed performance in Q1 fiscal 2025, with revenue growth year over year but missing consensus estimates, while earnings exceeded expectations and showed significant year-over-year improvement [1][5]. Financial Performance - Adjusted earnings per share were $1.02, surpassing the Zacks Consensus Estimate of 91 cents, and increased by 61.9% from $0.63 in the same quarter last year [5]. - Net sales grew by 1.2% year over year to $700.2 million, missing the consensus estimate of $702 million, driven by a 1.9% increase in organic net sales [6]. - Gross profit increased by 5.3% year over year to $257.8 million, with a gross margin expansion of 140 basis points to 36.8% [7]. Segment Performance - Home & Personal Care segment sales rose by 1.4% year over year to $348.1 million, with organic sales growth of 3.1% [9]. - Global Pet Care segment sales declined by 6.1% year over year to $260 million, impacted by a strategic pull-forward of $10 million in sales [11]. - Home & Garden segment sales surged by 27.9% year over year to $92.1 million, supported by seasonal inventory builds and an extended fall selling season [13]. Adjusted EBITDA - Adjusted EBITDA from continuing operations decreased by 7.7% year over year to $77.8 million, with a margin contraction of 110 basis points to 11.1% [8]. - Home & Personal Care segment's adjusted EBITDA was flat at $26.7 million, while the adjusted EBITDA margin declined by 10 basis points to 7.7% [10]. - Global Pet Care segment's adjusted EBITDA dropped by 2.3% to $51.5 million, but the adjusted EBITDA margin expanded by 80 basis points to 19.8% [12]. - Home & Garden segment's adjusted EBITDA improved to $9.3 million from a loss of $0.7 million, with a margin expansion of 1110 basis points to 10.1% [14]. Other Financials - As of December 29, 2024, the company had a cash balance of $179.9 million and outstanding debt of $575.1 million, resulting in a net debt of approximately $395.2 million [15]. - In Q1 fiscal 2025, the company repurchased 0.8 million shares for $72.9 million, totaling $1.2 billion in repurchases to date [16]. Future Outlook - For fiscal 2025, the company anticipates low single-digit growth in reported net sales and mid to high single-digit growth in adjusted EBITDA, with adjusted free cash flow expected to be roughly 50% of adjusted EBITDA [17].

Company Overview - Spectrum Brands Holdings, Inc. (NYSE: SPB) is a diversified consumer goods company that has a presence in many households through its products [1]. Business Focus - The company operates in three broad categories, although specific categories are not detailed in the provided text [1]. Research Principles - Grassroots Trading emphasizes providing objective, unbiased, and balanced research, focusing on small- to mid-cap companies while also identifying opportunities in larger companies [1].