Spectrum Brands Q4 2026: Big EPS Beat, Margin Gains, and a Bold M&A Move
As seen on the 24/7 Wall St. homepage on November 12, 2026.
Gross margin expanded 260 basis points to 37.6% even as revenue of $713.2 million missed expectations on a 9.3% drop in Home & Garden. CEO David Maura is publicly pressing Helen of Troy's board after it rejected the Empower Brands takeover offer.
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Spectrum Brands posted adjusted earnings per share of $1.39 for its fiscal fourth quarter, nearly 49% ahead of the $0.94 consensus estimate, marking the fourth consecutive quarter in which the company has topped Wall Street's EPS forecast. The beat was driven in part by gross margin expansion of 260 basis points to 37.6%, a result of better pricing, lower trade spend, and reduced tariff rates.
Revenue told a different story. The $713.2 million top line came in missing expectations and fell 2.8% year over year, with Home and Garden bearing most of the blame. That segment's sales dropped 9.3% in the quarter, as unfavorable weather and elevated retailer inventory levels dragged replenishment orders lower. Global Pet Care and Home and Personal Care also slipped modestly, though Home and Personal Care's adjusted EBITDA rose 58.6% on reduced tariff rates, operational efficiencies, and favorable foreign exchange.
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The quarter carries strategic weight beyond the income statement. Spectrum Brands' Empower Brands subsidiary, jointly owned with funds managed by Oaktree Capital Management, made a public proposal to acquire Helen of Troy (HELE), which Helen of Troy's board rejected. CEO David Maura addressed the situation directly: 'Now that our proposal has been made public, we look forward to Helen of Troy's Board and its shareholders giving full consideration to the compelling value it represents, and working toward a mutually acceptable agreement.'
Maura also pointed to a significant operational milestone, the completion of the company's S/4 HANA ERP deployment across the entire organization, calling it a pivotal step in a multi-year transformation that now has Spectrum Brands running on a single unified platform. Looking ahead, management guided for flat to low single-digit growth in both reported net sales and adjusted EBITDA for fiscal 2027, with the EBITDA outlook normalized to exclude the $57.4 million in IEEPA tariff refunds that benefited fiscal 2026 results.
Mentioned: SPB