Edgewell Personal Care (EPC) Q4 2026 Earnings Report

The call was predominantly positive. Management highlighted a return to organic sales growth, stronger fourth-quarter margins and earnings, improved North American and international momentum, broad share gains, strong performance from Cremo and Hawaiian Tropic, and a broad fiscal 2027 innovation and transformation plan. These positives were tempered by Wet Shave supply constraints, the delayed manufacturing consolidation savings, fiscal-year operating profit and cash flow declines, inflation and tariff pressures, the loss of TSA income, restructuring charges and near-term first-quarter pressure.

For fiscal '27, Edgewell expects organic net sales growth between 1% and 3%, with growth in both International and North America, International organic growth at mid-single-digit organic growth, and currency a 60 basis point headwind to reported net sales; Q1 organic net sales are expected to be flat to down approximately 1%. Adjusted gross margin is expected to expand approximately 60 basis points, adjusted SG&A to improve 90 basis points as a rate of sales, adjusted operating profit to grow by approximately 10%, and adjusted operating profit margin to increase approximately 70 basis points, while A&P is expected to rise about 80 basis points to approximately 13% of net sales, including approximately 14% of net sales in Q1. Adjusted EPS is expected to be $1.85 to $2.15 per share, growing approximately 3.5% at the midpoint, with approximately $0.20 of expected headwinds below operating profit, including $0.17 from the expiration of TSA income and $0.03 from a higher effective tax rate of approximately 24%, up about 1 point from fiscal '26; adjusted EBITDA is expected to be $250 million to $270 million, approximately 2% growth to prior year at the midpoint, absorbing approximately $11 million of TSA income, and adjusted free cash flow is expected to be $100 million to $120 million. The company expects 2/3 of adjusted EBITDA and approximately 80% of adjusted EPS in the second half, approximately 300 basis points of overall inflation, well over 250 basis points of productivity and volume absorption, and restructuring and related charges of approximately $55 million in fiscal '27.