Edgewell Personal Care Company

In the third quarter, organic net sales increased 1.1%, with North America up 3% and international down 1.4%. Adjusted gross margin declined 30 basis points year over year; adjusted operating income was $53 million, or 9.3% of net sales, versus $63.6 million and 11.3% a year ago. GAAP diluted EPS from continuing operations was $0.26 versus $0.46 last year, while adjusted EPS was $0.72, flat year over year; adjusted EBITDA was $78.9 million versus $81.2 million. For the first nine months, net cash provided by operating activities was approximately $47 million versus approximately $44 million last year. Full-year fiscal 2026 guidance calls for organic net sales of flat to plus 50 basis points, adjusted EPS of $1.80 to $2.00, adjusted EBITDA of $250 million to $260 million, adjusted free cash flow of about $80 million to $110 million, and adjusted net debt leverage of 3.3x to 3.4x.

Rod Little framed the quarter as an important step forward in a planned second-half recovery, saying the company returned to organic sales growth and beat expectations on earnings. He emphasized four strategic pillars: better execution, a more focused portfolio after the Feminine Care divestiture, improving U.S. performance, and an operating model transformation that should lower costs and improve agility over time. His tone was confident but measured, repeatedly noting that the business is improving even though the environment remains dynamic and challenging.

Fran Weissman highlighted that organic net sales were up 1.1%, with North America up 3% and international down 1.4%, and that adjusted EPS was $0.72 while adjusted EBITDA came in at $78.9 million. She said adjusted gross margin declined 30 basis points, with higher inflation and input costs largely offset by productivity, tariff refunds, and favorable currency. She also noted A&P was 14.6% of sales versus 13.6% last year, adjusted SG&A was 18.4% versus 17.6%, and the company continued its quarterly dividend of $0.15 per share; full-year leverage is expected at 3.3x to 3.4x, including a 0.3x to 0.4x negative turn from Fem Care timing.

Analysts focused on why management is confident in a stronger Q4 and whether the company is exiting 2026 with a better growth profile than the Q3 numbers suggest. Management pointed to transitory private-label supply disruption, July trends that matched expectations, unchanged full-year A&P spend, and international returning to mid-single-digit growth in Q4 as key supports. Questions on gross margin and next year were met with commentary that the business should see year-over-year gross margin improvement in fiscal 2027, helped by productivity, mix, and healthier brand mix, though management declined to give formal 2027 guidance. On the unsolicited offer headlines, Rod Little said he could not comment on rumors but reiterated that the board is focused on maximizing organic value and would evaluate any inbound proposal through a fiduciary process.