Edgewell Personal Care Company (EPC) Q2 2026 earnings summary

Executive summary

• Q2 net sales reached $519.5 million, up 0.6% year-over-year, with organic net sales down 2.4% due to lower North America volumes.

• Adjusted EPS was $0.60, down from $0.69 in the prior year; GAAP EPS was $0.09, down from $0.43.

• Completed the divestiture of the Feminine Care business for $340 million in February, focusing on core personal care categories and simplifying the portfolio.

• Net income from continuing operations was $4.0 million, down from $20.8 million year-over-year; adjusted net income was $27.8 million.

• Delivered strong execution and market share gains, especially in the U.S. and key international markets.

Financial highlights

• Gross profit was $216.9 million, down from $236.9 million; gross margin fell 410 basis points to 41.8%.

• Adjusted gross margin decreased 310 basis points to 43.4%, impacted by inflation, tariffs, and mix.

• Adjusted operating income was $49.4 million (9.5% of sales), down from $66.0 million (12.8%).

• Adjusted EBITDA was $73.8 million, compared to $84.7 million a year ago.

• Interest expense dropped to $17.9 million from $20.2 million due to debt repayment from divestiture proceeds.

Outlook and guidance

• Full-year reported net sales expected to rise 0.8%–3.8%, with organic net sales between -1.0% and +2.0%.

• Adjusted EPS guidance reaffirmed at $1.70–$2.10; adjusted EBITDA outlook unchanged at $245–$265 million.

• Adjusted gross margin expected to increase by 50 basis points; adjusted operating margin to decrease by 60 basis points.

• Adjusted free cash flow forecasted at $80–$110 million; net debt leverage targeted at 3.3x–3.5x by year-end.

• Restructuring and supply chain consolidation expected to incur ~$90 million in pre-tax charges in fiscal 2026.