Edgewell Personal Care(EPC) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2026 were $422.8 million, an increase of 1.9% compared to the prior year quarter[4] - Organic net sales decreased by 0.5%, with North America showing a growth of 0.7% while international markets declined by 1.6%[4] - GAAP diluted net loss per share was $(0.63), compared to $(0.21) in the prior year quarter[15] - Adjusted EBITDA from continuing operations was $25.0 million, down from $30.9 million in the prior year quarter[13] - The company reported a net loss of $65.7 million for the quarter, compared to a net loss of $2.1 million in the prior year, indicating a significant deterioration in financial performance[34] - Operating loss for the quarter was $18.9 million, a decline from an operating income of $9.3 million in the same quarter last year[34] - Basic loss per share for continuing operations was $0.63, compared to a loss of $0.21 in the previous year, indicating worsening earnings performance[34] - The company reported a net loss of $36.5 million from discontinued operations for Q1 2026, compared to a profit of $8.0 million in Q1 2025[48] - The company reported a net loss of $65.7 million for Q1 2026, with an EBITDA of $(37.3) million[57] Sales and Revenue - The company expects full-year net sales to increase by approximately 0.5% to 3.5%, with an estimated 150-basis point positive impact from foreign currency changes[19] - For the three months ended December 31, 2025, total net sales increased to $422.8 million, up 1.9% from $415.1 million in the same period of 2024[41] - Wet Shave segment sales decreased to $291.3 million, a decline of 1.1% from $294.5 million, while Sun and Skin Care segment sales increased by 9.0% to $131.5 million[44] - Net sales from discontinued operations for Q1 2026 were $64.0 million, reflecting a 1.1% increase from $63.3 million in Q1 2025[49] - The impact of currency fluctuations contributed $9.6 million to net sales in Q1 2026, accounting for a 2.1% increase[55] Costs and Expenses - The company incurred pre-tax restructuring charges of $24.4 million in Q1 2026, with total expected charges for the fiscal year now at approximately $65 million[8][21] - Interest expense associated with debt is expected to be approximately $70 million, as proceeds from the Feminine Care transaction will be used to pay down debt[25] - Research and development expenses increased slightly to $13.8 million from $13.4 million, reflecting ongoing investment in product innovation[34] - Restructuring and related charges amounted to $24.4 million, significantly higher than $4.1 million in the prior year[41] - Restructuring and related costs for Q1 2026 amounted to $22.7 million, significantly impacting the adjusted EBITDA[57] - The company expects to incur approximately $63 million in restructuring and related costs in fiscal 2026[60] Debt and Liabilities - The company ended the quarter with $223.3 million in cash and an adjusted net debt leverage ratio of 3.8x[14] - Long-term debt increased to $1,520.8 million from $1,383.3 million, highlighting a rise in leverage[36] - The company’s total liabilities reached $2,281.7 million, up from $2,203.2 million, reflecting increased financial obligations[36] - Net debt as of December 31, 2025, was $1,330.0 million, up from $1,187.1 million as of September 30, 2025[47] - The company’s gross debt increased to $1,553.3 million as of December 31, 2025, from $1,412.8 million in September 2025[47] Future Outlook - Adjusted EPS is projected to be in the range of $1.70 to $2.10, reflecting a $0.44 per share reduction due to the divestiture of the Feminine Care business[19] - Adjusted EBITDA for Q1 2026 is projected to be between $245 million and $265 million, reflecting a decrease from the previous outlook of $290 million to $310 million[60] - Fiscal 2026 adjusted EPS outlook is estimated to be between $1.70 and $2.10, down from the prior estimate of $2.15 to $2.55[59] - The fiscal 2026 GAAP EPS is projected to be approximately $0.55 to $0.95, indicating a cautious outlook[59] - The company is focusing on divesting its Feminine Care segment, which is expected to impact future financial results and operational strategy[30] Segment Performance - Total segment profit decreased to $38.6 million from $43.2 million, with Wet Shave segment profit at $42.2 million and Sun and Skin Care segment loss at $3.6 million[41] - Segment profit for Q1 2026 decreased to $38.6 million, a decline of 10.6% compared to Q1 2025[45] - The company is focusing on segment performance evaluation excluding unusual or non-recurring items, which may impact financial results disproportionately[40] - Organic sales growth for the Feminine Care segment was 1.1% in Q1 2026[49]