#United States #Edgewell #Shelton #Financials #2026 Outlook

Edgewell Personal Care Reports Fiscal 2025 Results

Edgewell Personal Care Company (NYSE: EPC) has reported its financial results for the fourth quarter and fiscal year ending September 30, 2025. This year has been marked by challenges and transformations within the company, but signs of positive momentum are developing.

Q4 Financial Highlights

In the fourth quarter, Edgewell saw net sales increase by 3.8%, reaching $537.2 million compared to the same period last year. The organic net sales also reflected a growth of 2.5%. However, when looking at the performance for the entire fiscal year, the company noted a 1.3% decrease in overall net sales, totaling $2.223 billion. This organic decline was primarily attributed to fluctuating market conditions in North America, where sales decreased by approximately 4.4%.

Despite these challenges, the company was able to achieve a diluted GAAP net income of $0.53 for the fiscal year, contrasting with a net loss recorded in the fourth quarter of $0.66 per share. The adjusted earnings per share (EPS) stood at $2.52 after accounting for unfavorable currency impacts.

Cash Flow and Shareholder Returns

Edgewell ended the quarter with $225.7 million in cash, alongside access to $279.5 million from its U.S. revolving credit facility. In fiscal 2025, the company returned a total of $120 million to shareholders through dividends and share repurchase activities, highlighting its commitment to maintaining shareholder value. Specifically, the Board of Directors declared a $0.15 dividend per common stock this quarter.

Business Segment Performance

Breaking down the performance by segments:

• - Wet Shave: Reported sales increased by 1.2% while organic sales saw a slight decrease. The segment managed to gain from international market growth even amidst North American volume drops.
• - Sun and Skin Care: This division saw impressive growth with 11.5% increased sales, driven largely by a combination of volume increases and strategic pricing maneuvers.
• - Feminine Care: Sales were stable with a minimal increase, though segment profits faced reductions.

Restructuring and Strategic Moves

Reflecting a clearer focus for the company's future, Edgewell announced the decision to divest its Feminine Care business to Essity, a decision amounting to $340 million. According to Rod Little, CEO of Edgewell, this is a strategic move aimed at streamlining operations and enhancing the company’s agility and consumer-centric approach.

Future Outlook for Fiscal 2026

Looking forward to fiscal year 2026, Edgewell aims to increase reported net sales by between 0.5% to 3.5%, bolstered by an anticipated 150-basis point impact from favorable currency changes. Expected scenarioe indicate organic sales may either experience a slight decline or a modest increase. Guidance for GAAP EPS is projected to fall between $1.10 and $1.50, while adjusted EPS is anticipated between $2.15 and $2.55. This long-range viewpoint stems from ongoing restructuring efforts alongside further innovations tailored to consumer demand.

Edgewell appears set on a path toward recovery and sustainable growth, with ambitious goals for notable increases in organic sales growth, especially anticipated in the latter half of 2026. In summation, the company's strength lies in its diversified brand portfolio and improved operational efficiencies that they seek to leverage moving forward.