Edgewell Personal Care Q4 2026: Margins Surge, Guidance Lifts Outlook

Edgewell Personal Care closed fiscal 2026 with a quarter defined by margin recovery. Adjusted gross margin expanded 510 basis points to 45.7%, a swing driven by productivity savings, favorable currency, and the absence of prior-year transitory costs. That improvement lifted adjusted EBITDA to $76.8 million from $43.0 million a year earlier, nearly doubling the year-ago figure.

On the top line, revenue of $484.1 million beat the $479.8 million consensus estimate, while adjusted EPS of $0.78 edged past the $0.77 estimate. Reported sales fell 9.9% year over year, a decline that reflects the divestiture of the Feminine Care business. Organic net sales grew 3.1%, with North America Grooming and Wet Shave leading the way and International returning to growth across all segments.

After missing expectations in Q4 2025 and posting a loss in Q1 2026, Edgewell has beaten expectations in each of the last three quarters, with the beat margin widening. The two reporting segments both contributed: Wet Shave revenue reached $325.8 million, up 1.2%, while Sun and Skin Care grew 7.0% to $158.3 million, with that segment's profit rising 294%.

Looking ahead, management guided fiscal 2027 adjusted EPS to $1.85 to $2.15, with organic net sales growth of 1% to 3% and adjusted EBITDA of $250 million to $270 million. Adjusted operating margin is expected to expand roughly 70 basis points, with gross margin improvement and lower SG&A partially offset by higher advertising and promotion spending. Restructuring charges of about $55 million are still expected as the company consolidates Wet Shave operations and pursues further global transformation actions.

The balance sheet reflects the year's activity: cash and equivalents rose 66.4% to $375.6 million, partly reflecting proceeds from the Feminine Care divestiture used to pay down the revolving credit facility. Net debt leverage stood at 3.4 times, and approximately $85 million remained available under the board's 2026 share repurchase authorization as of September 30, 2026. A quarterly dividend of $0.15 per share was declared on November 12, payable January 7, 2027.