Spectrum Brands(SPB) - 2026 Q1 - Quarterly Report

Financial Performance - Net sales for the three-month period ended December 28, 2025, were $677.0 million, a decrease of 3.4% compared to $700.2 million for the same period in 2024[14] - Gross profit for the same period was $241.6 million, down from $257.8 million, reflecting a gross margin of approximately 35.7%[14] - Operating income decreased to $27.1 million from $44.7 million, indicating a decline of 39.5% year-over-year[14] - Net income for the three-month period was $28.4 million, compared to $23.8 million in the prior year, representing an increase of 19.3%[14] - Basic earnings per share from continuing operations rose to $1.25, up from $0.87, marking a significant increase of 43.7%[14] - Net income from continuing operations for the three months ended December 28, 2025, was $29.4 million, compared to $24.6 million for the same period in 2024, representing a 31.2% increase[22] - Segment Adjusted EBITDA for the three months ended December 28, 2025, is $74.2 million, down from $87.5 million in the prior year[92] - The company reported a net income attributable to controlling interest of $28.4 million for Q4 2025, compared to $23.5 million in Q4 2024, an increase of 20.8%[99] Assets and Liabilities - Total assets increased to $3,422.9 million as of December 28, 2025, compared to $3,379.6 million at the end of September 2025[11] - Total liabilities rose to $1,523.6 million, up from $1,469.9 million, indicating a 3.6% increase[11] - Cash and cash equivalents increased to $126.6 million from $123.6 million, showing a slight growth of 2.4%[11] - Total cash provided by operating activities from continuing operations was $67.7 million for the three months ended December 28, 2025, compared to a cash used of $71.9 million in the same period of 2024[22] - Cash, cash equivalents, and restricted cash at the end of the period was $130.1 million, an increase from $182.0 million at the end of the same period in 2024[22] - The carrying value of the company's debt was $538.6 million as of December 28, 2025, down from $566.2 million on September 30, 2025[70] Shareholder Returns - The company declared dividends of $10.9 million for the three months ended December 28, 2025, compared to $13.2 million in the same period of 2024, reflecting a decrease of 17.4%[22] - The company repurchased $35.5 million in treasury stock during the three months ended December 28, 2025, down from $72.9 million in the same period of 2024, indicating a 51.3% reduction in repurchases[22] - The company has repurchased $80.8 million worth of shares under a rule 10b5-1 repurchase plan initiated in June 2025[74] Market and Operational Insights - The company plans to focus on new product development and market expansion strategies to enhance future growth prospects[5] - North America contributed $350.5 million to total revenue, representing 51.8% of total revenue, while EMEA contributed $247.2 million, accounting for 36.5%[33] - Significant customers accounted for 37.1% of net sales for the three-month period ended December 28, 2025, slightly down from 38.0% in the prior year[34] - The Company anticipates costs related to a multi-year transformation project to continue through calendar year 2026[92] Foreign Exchange and Taxation - The company reported a foreign currency translation gain of $11.5 million for the period, contrasting with a loss of $65.1 million in the previous year[16] - The effective tax rate for the three-month period ended December 28, 2025, was (43.7)%, significantly lower than the 32.5% rate for the same period in 2024[81] Other Financial Metrics - The allowance for doubtful accounts increased to $7.1 million as of December 28, 2025, compared to $6.3 million as of September 30, 2025[36] - Total inventories as of December 28, 2025, were $450.8 million, up from $446.1 million as of September 30, 2025[40] - Total debt as of December 28, 2025, was $578.9 million, a slight decrease from $581.4 million as of September 30, 2025[55] - Environmental remediation liability as of December 28, 2025, is $5.3 million, slightly down from $5.4 million on September 30, 2025[83] - Product liability recognized as of December 28, 2025, is $2.1 million, an increase from $2.0 million on September 30, 2025[83] Shareholder Equity - The total shareholders' equity as of December 28, 2025, was $1,899.3 million, a slight decrease from $2,028.5 million as of December 29, 2024[20]