Company Adjusts Fiscal 2026 Outlook, Expects Adjusted EPS of $1.70 to $2.10
The Company is providing the following outlook assumptions for fiscal 2026. The previous outlook provided on November 13, 2025 was on a consolidated basis, including the Feminine Care business. The change from the prior outlook reflects the removal of the Feminine Care business. The revised full year outlook for continuing operations remains consistent with the prior outlook. Reported net sales are now expected to increase in the range of approximately 0.5% to 3.5%; Includes an estimated 150-basis point positive impact from foreign currency changes. Organic net sales are expected to be in the range of a 1.0% decrease to a 2% increase. GAAP EPS is expected to be in the range of $0.55 to $0.95, previously $1.10 to $1.50 on a consolidated basis, Includes: Restructuring and related costs, Sun Care reformulation, Other costs. Adjusted EPS is expected to be in the range of $1.70 to $2.10, previously $2.15 to $2.55 on a consolidated basis, Reflects a $0.44 per share reduction from classifying the Feminine Care business as discontinued operations. On an annualized basis, this impact would be approximately $0.20 per share, compared to the Company's prior annualized outlook in the range of a $0.40 to $0.50 per share impact. Adjusted gross margin is expected to increase approximately 60-basis points. Adjusted operating margin is expected to decrease approximately 50-basis points, reflecting 70-basis points from higher A&P investment in the current year and 30-basis points from increased SG&A expense reflecting lower incentive compensation in the prior year. Adjusted EBITDA is expected to be in the range of $245 to $265M, previously $290 to $310M on a consolidated basis, Reflects a $44M reduction from classifying the Feminine Care business as discontinued operations. On an annualized basis, this impact would be approximately $36M compared to the Company's prior annualized outlook in the range of a $35M to $45M impact. Other Income/Expense, net is expected to be approximately $20M, previously flat on a consolidated basis, inclusive of interest income of $5M, previously $2M on a consolidated basis, and Transition Services Income in the range of $15 to $19M. Interest expense associated with debt is now expected to be approximately $70M, previously $73M on a consolidated basis, as the proceeds from the Feminine Care transaction are expected to be used to pay down the balance of the Company's U.S. revolving credit facility. Adjusted effective tax rate is expected to be approximately 22% to 23%, previously 21% to 22% on a consolidated basis. Capital expenditures expected to be in the range of approximately 3.0% to 3.5% of net sales. Adjusted free cash flow is expected to be approximately $80 to $110M, previously $115 to $145M on a consolidated basis. As previously discussed, in fiscal 2026, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the further consolidation of Wet Shave operations. As a result of these actions, the Company expects to incur pre-tax charges of approximately $65M for the full fiscal year.
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Edgewell Personal Care Q1 2026 Earnings Call Insights
- Strategic Transformation Progress: Edgewell completed the sale of its Feminine Care business, calling it a pivotal step in its transformation journey, which sharpens focus on core categories like Shave, Sun, Skin Care, and Grooming, enhancing competitive advantages and market momentum.
- Strong North American Performance: While organic net sales decreased by 50 basis points overall, North America outperformed expectations, particularly with earlier-than-anticipated Sun Care orders, indicating strong growth potential in the region.
- Stable Financial Outlook: The company projects adjusted EPS for fiscal 2026 to be between $1.70 and $2.10, with organic net sales growth expected to range from down 1% to up 2%, reflecting confidence in future performance.
- Cost Control and Profitability: Despite a 210 basis point decline in adjusted gross margin rate, Edgewell offset some cost pressures with 240 basis points of productivity savings, demonstrating effective cost management strategies.
Edgewell (EPC) Q1 2026 Earnings Call Transcript
EDGEWELL PERSONAL CARE STOCK FALLS 7.7% FOLLOWING CUT IN ANNUAL PROFIT OUTLOOK
Personal Care Shares Decline: Personal care shares have dropped by 7.7% following recent cuts in forecasts.
Annual Profit Forecast Adjustments: The adjustments in profit forecasts have led to a reevaluation of the financial outlook for the sector.
Edgewell Declares Quarterly Dividend of $0.15 per Share
- Quarterly Dividend Declaration: Edgewell has declared a quarterly dividend of $0.15 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.89% reflects the company's attractiveness in the current market environment, potentially increasing investor interest in Edgewell's stock.
- Dividend Payment Dates: The dividend is payable on April 8, with a record date of March 6 and an ex-dividend date also on March 6, providing investors with a clear timeline for their investment decisions.
- Future Outlook: Edgewell's FY26 outlook projects organic net sales growth targets ranging from a decline of 1% to an increase of 2%, indicating a cautious approach in the face of market challenges while divesting feminine care products to optimize its business structure.
Edgewell Q1 Earnings Beat Expectations, Cautious Outlook Ahead
- Earnings Beat: Edgewell reported Q1 non-GAAP EPS of $0.03, exceeding expectations by $0.19, with revenue of $486.8 million reflecting a 1.8% year-over-year increase, surpassing estimates by $9.12 million, indicating resilience in a challenging market.
- Core Operations Performance: Continuing operations, excluding the Feminine Care business, generated net sales of $422.8 million, up 1.9% year-over-year, although organic net sales fell by 0.5%, highlighting external market pressures impacting sales.
- Cautious Outlook: The company expects reported net sales to grow between 0.5% and 3.5%, with organic net sales anticipated to range from a 1% decline to a 2% increase, reflecting uncertainty in future market conditions, particularly post-divestiture of the Feminine Care segment.
- Financial Metrics Adjustments: GAAP EPS is projected between $0.55 and $0.95, while adjusted EPS is expected to range from $1.70 to $2.10, reflecting significant impacts from the Feminine Care divestiture, with adjusted EBITDA forecasted between $245 million and $265 million, indicating challenges in cost management.
Edgewell Exceeds Q1 Expectations with Strategic Divestiture
- Performance Exceeds Expectations: Edgewell reported net sales of $422.8 million for Q1 2026, reflecting a 1.9% increase, bolstered by a favorable currency impact of $9.6 million, demonstrating strong execution in core business areas.
- Strategic Divestiture: The successful divestiture of the Feminine Care business for $340 million not only sharpens the company's portfolio focus but also strengthens its balance sheet, laying a solid foundation for future sustainable growth.
- Adjusted Financial Outlook: After adjusting for the divestiture's impact, Edgewell's full-year outlook for continuing operations remains unchanged, with expectations for sales, adjusted EPS, and free cash flow consistent with prior forecasts, indicating stability during the transformation process.
- Cost Efficiency Improvements: The company recorded $24.4 million in restructuring charges in Q1, aimed at enhancing operational efficiency and effectiveness, which is expected to positively influence future financial performance.
Edgewell Personal Care Q1 2026 Earnings Call Insights
- Strategic Transformation Progress: Edgewell completed the sale of its Feminine Care business, calling it a pivotal step in its transformation journey, which sharpens focus on core categories like Shave, Sun, Skin Care, and Grooming, enhancing competitive advantages and market momentum.
- Strong North American Performance: While organic net sales decreased by 50 basis points overall, North America outperformed expectations, particularly with earlier-than-anticipated Sun Care orders, indicating strong growth potential in the region.
- Stable Financial Outlook: The company projects adjusted EPS for fiscal 2026 to be between $1.70 and $2.10, with organic net sales growth expected to range from down 1% to up 2%, reflecting confidence in future performance.
- Cost Control and Profitability: Despite a 210 basis point decline in adjusted gross margin rate, Edgewell offset some cost pressures with 240 basis points of productivity savings, demonstrating effective cost management strategies.
Edgewell (EPC) Q1 2026 Earnings Call Transcript
EDGEWELL PERSONAL CARE STOCK FALLS 7.7% FOLLOWING CUT IN ANNUAL PROFIT OUTLOOK
Personal Care Shares Decline: Personal care shares have dropped by 7.7% following recent cuts in forecasts.
Annual Profit Forecast Adjustments: The adjustments in profit forecasts have led to a reevaluation of the financial outlook for the sector.
Edgewell Declares Quarterly Dividend of $0.15 per Share
- Quarterly Dividend Declaration: Edgewell has declared a quarterly dividend of $0.15 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.89% reflects the company's attractiveness in the current market environment, potentially increasing investor interest in Edgewell's stock.
- Dividend Payment Dates: The dividend is payable on April 8, with a record date of March 6 and an ex-dividend date also on March 6, providing investors with a clear timeline for their investment decisions.
- Future Outlook: Edgewell's FY26 outlook projects organic net sales growth targets ranging from a decline of 1% to an increase of 2%, indicating a cautious approach in the face of market challenges while divesting feminine care products to optimize its business structure.
Edgewell Q1 Earnings Beat Expectations, Cautious Outlook Ahead
- Earnings Beat: Edgewell reported Q1 non-GAAP EPS of $0.03, exceeding expectations by $0.19, with revenue of $486.8 million reflecting a 1.8% year-over-year increase, surpassing estimates by $9.12 million, indicating resilience in a challenging market.
- Core Operations Performance: Continuing operations, excluding the Feminine Care business, generated net sales of $422.8 million, up 1.9% year-over-year, although organic net sales fell by 0.5%, highlighting external market pressures impacting sales.
- Cautious Outlook: The company expects reported net sales to grow between 0.5% and 3.5%, with organic net sales anticipated to range from a 1% decline to a 2% increase, reflecting uncertainty in future market conditions, particularly post-divestiture of the Feminine Care segment.
- Financial Metrics Adjustments: GAAP EPS is projected between $0.55 and $0.95, while adjusted EPS is expected to range from $1.70 to $2.10, reflecting significant impacts from the Feminine Care divestiture, with adjusted EBITDA forecasted between $245 million and $265 million, indicating challenges in cost management.
Edgewell Exceeds Q1 Expectations with Strategic Divestiture
- Performance Exceeds Expectations: Edgewell reported net sales of $422.8 million for Q1 2026, reflecting a 1.9% increase, bolstered by a favorable currency impact of $9.6 million, demonstrating strong execution in core business areas.
- Strategic Divestiture: The successful divestiture of the Feminine Care business for $340 million not only sharpens the company's portfolio focus but also strengthens its balance sheet, laying a solid foundation for future sustainable growth.
- Adjusted Financial Outlook: After adjusting for the divestiture's impact, Edgewell's full-year outlook for continuing operations remains unchanged, with expectations for sales, adjusted EPS, and free cash flow consistent with prior forecasts, indicating stability during the transformation process.
- Cost Efficiency Improvements: The company recorded $24.4 million in restructuring charges in Q1, aimed at enhancing operational efficiency and effectiveness, which is expected to positively influence future financial performance.
