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    Edgewell Personal Care Lowers FY2026 Adj EPS Guidance from $2.15-$2.55 to $1.70-$2.10 vs $2.34 Est; Reaffirms FY2026 Sales Guidance To $2.235B-$2.302B vs. $2.261B Est

    Benzinga·02/09/2026 11:06:30
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    Full Fiscal Year 2026 Financial Outlook

    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.  Unless otherwise stated, this outlook is presented on a continuing-operations basis and excludes the results of the Feminine Care business, which is reported as discontinued operations. Prior periods have been recast for comparability. Timing effects are as follows: Continuing operations reflect twelve months of stranded costs, while transition support services income which commenced upon closing is expected to be recognized for approximately eight months of the fiscal year. Refer to Note 8 for a reconciliation of previous consolidated outlook to continuing operations outlook.

    • Reported net sales are now expected to increase in the range of approximately 0.5% to 3.5% (no change to previous outlook)
      • 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 (no change to previous outlook)
    • 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 (no change to previous outlook). Adjusted operating margin is expected to decrease approximately 50-basis points (no change to previous outlook), 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 $265 million (previously $290 to $310 million on a consolidated basis)
      • Reflects a $44 million reduction from classifying the Feminine Care business as discontinued operations. On an annualized basis, this impact would be approximately $36 million, compared to the Company's prior annualized outlook in the range of a $35 million to $45 million impact
    • Other Income/Expense, net is expected to be approximately $20 million, (previously flat on a consolidated basis) inclusive of interest income of $5 million (previously $2 million on a consolidated basis), and Transition Services Income in the range of $15 to $19 million
    • Interest expense associated with debt is now expected to be approximately $70 million (previously $73 million 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 $110 million (previously $115 to $145 million 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 $65 million (previously $49 million) for the full fiscal year.