Spectrum Brands’ Q3 Earnings Beat, Home & Garden Unit Sales Up 19% Y/Y
Zacks Equity Research
Fri, August 7, 2026 at 9:09 PM GMT+5:30
6 min read
- SPB
+2.12% - RVLV
-1.46%
Spectrum Brands Holdings, Inc. SPB delivered strong third-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate and improved year over year.SPB reported adjusted earnings from continuing operations of $2.79 per share, increasing 125% from $1.24 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.49. The earnings improvement was primarily buoyed by lower outstanding shares and increased adjusted EBITDA.Net sales increased 7.7% year over year to $753.3 million and surpassed the Zacks Consensus Estimate of $732 million. Growth across all three businesses, led by Home & Garden, supported higher profitability, while adjusted EBITDA rose 106.7% to $158.3 million. Excluding $60.6 million of tariff refunds, adjusted EBITDA still grew 27.5% to $97.7 million, reflecting operational improvements.Following the earnings release, SPB’s shares jumped more than 8% during the trading session. In the past three months, the stock has gained 9% compared with the industry’s 16.8% growth.
Spectrum Brands Holdings Inc. Price, Consensus and EPS Surprise
Spectrum Brands Holdings Inc. price-consensus-eps-surprise-chart | Spectrum Brands Holdings Inc. Quote
SPB Benefits From Broad-Based Growth
Spectrum Brands’ net sales improved across all three businesses, with organic net sales excluding favorable foreign exchange increasing 6.6%. The company said growth was driven by market share gains, favorable weather conditions and stronger retailer ordering patterns.Gross profit increased 40.2% year over year to $370.4 million, while the gross margin expanded substantially to 49.2%. Higher sales volume, pricing, reduced trade spend, favorable mix and cost-improvement efforts contributed to the improvement, partly offset by higher tariff costs.The company’s adjusted EBITDA margin expanded substantially to 21% from 10.9% in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA margin improved 200 basis points, reflecting stronger gross margins and higher volumes despite increased investment spending.
Spectrum Brands’ Global Pet Care Segment Performance
Global Pet Care sales rose 3.3% year over year to $263.7 million, with organic net sales increasing 2.9%. The segment’s sales lagged the Zacks Consensus Estimate of $266 million.Companion Animal sales increased in the mid-single digits, while Aquatics sales declined in the mid-single digits. North American growth was supported by Companion Animal with modest category growth and market share gains across key brands. In EMEA, organic sales declined as retailers accelerated orders into the second quarter ahead of the SAP S/4HANA ERP implementation.Global Pet Care adjusted EBITDA increased 91.8% to $84.4 million, and adjusted EBITDA margin expanded substantially to 32% from 17.2%. Excluding tariff refunds, adjusted EBITDA was $51.9 million, up $7.9 million year over year, driven by pricing, favorable mix and cost-improvement efforts.
