Spectrum Brands (NYSE:SPB) Posts Earnings Results, Beats Estimates By $0.21 EPS

Key Points

• Spectrum Brands beat fiscal Q2 expectations, reporting adjusted EPS of $1.25 versus $1.04 expected on revenue of $708.9 million, with sales up 4.9% year over year.
• The company said growth was led by Global Pet Care and Home & Garden, while Home & Personal Care remained a weak spot with declining organic sales and ongoing pressure from tariffs and consumer demand.
• Spectrum Brands also unveiled a strategic Oaktree investment in its HPC business and raised its full-year outlook to low- to mid-single-digit adjusted EBITDA growth, while maintaining a solid balance sheet and continuing share repurchases.

Spectrum Brands (NYSE:SPB - Get Free Report) released its quarterly earnings results on Thursday. The company reported $1.25 earnings per share for the quarter, beating analysts' consensus estimates of $1.04 by $0.21, FiscalAI reports. Spectrum Brands had a net margin of 4.47% and a return on equity of 8.23%. The company had revenue of $708.90 million for the quarter, compared to analyst estimates of $676.45 million. During the same period last year, the firm earned $0.68 earnings per share. The firm's revenue was up 4.9% on a year-over-year basis.

Here are the key takeaways from Spectrum Brands' conference call:

• The company beat expectations in Q2 with net sales +4.9%, adjusted EBITDA +17.8% and adjusted EPS $1.25, and has raised its full‑year adjusted EBITDA outlook to low‑ to mid‑single‑digit growth.
• Global Pet Care and Home & Garden drove growth — GPC organic sales up 7.6% (reported +11.2%) and H&G sales +11.3% with meaningful margin expansion, fueled by product innovation and share gains.
• Spectrum entered a strategic partnership with Oaktree, who will invest $127 million (preferred equity plus a term loan) in the HPC business on a non‑recourse basis, creating a well‑capitalized standalone vehicle and clear separation/monetization optionality.
• Balance sheet and capital return remain strong with approximately $125M cash, net leverage at 1.66x, minimal revolver usage, ongoing buybacks (100k shares, ~$6.8M this quarter) and ~$300M repurchase authorization remaining.
• The Home & Personal Care segment remains weak — organic sales down ~10.7% (reported -5.5%), appliances particularly pressured in NA/EMEA and management expects HPC revenue to decline for the year despite modest EBITDA improvement and lingering tariff/consumer risks.

Spectrum Brands Stock Performance

SPB traded up $2.60 during midday trading on Friday, reaching $81.23. The company had a trading volume of 402,168 shares, compared to its average volume of 306,849. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.38 and a current ratio of 2.21. The stock has a market cap of $1.88 billion, a PE ratio of 15.50, a P/E/G ratio of 2.74 and a beta of 0.67. Spectrum Brands has a 12-month low of $49.99 and a 12-month high of $86.96. The business has a 50-day moving average price of $77.87 and a two-hundred day moving average price of $67.56.

Spectrum Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, May 26th will be paid a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, May 26th. Spectrum Brands's payout ratio is presently 43.42%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State of Wyoming purchased a new stake in shares of Spectrum Brands during the 4th quarter valued at approximately $218,000. CIBC Bancorp USA Inc. purchased a new stake in shares of Spectrum Brands during the 3rd quarter valued at approximately $239,000. Creative Planning purchased a new stake in shares of Spectrum Brands during the 3rd quarter valued at approximately $279,000. Quadrant Capital Group LLC purchased a new stake in shares of Spectrum Brands during the 3rd quarter valued at approximately $152,000. Finally, Cresset Asset Management LLC purchased a new stake in shares of Spectrum Brands during the 3rd quarter valued at approximately $274,000.

Key Headlines Impacting Spectrum Brands

Here are the key news stories impacting Spectrum Brands this week:

• Positive Sentiment: Spectrum Brands reported fiscal Q2 earnings of $1.25 per share, ahead of the $1.04 consensus estimate, on revenue of $708.9 million versus $676.45 million expected, with sales up 4.9% year over year. Spectrum Brands Holdings Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: The company said it returned to top-line growth and raised confidence in its operating momentum, with strength in Pet Care and Home & Garden helping drive the beat. Spectrum Brands Beats Q2 Earnings on Pet Care and H&G Strength
• Positive Sentiment: Spectrum Brands announced a strategic Oaktree investment in its Home and Personal Care unit, and said it now expects low- to mid-single-digit adjusted EBITDA growth, suggesting added financial flexibility and a clearer path to value creation. Spectrum Brands Announces Strategic Oaktree Investment in HPC Unit
• Neutral Sentiment: Management’s earnings call and post-earnings coverage largely reinforced the same message: better-than-expected results, improving trends, and an updated outlook, but no major new guidance beyond the Oaktree transaction. Spectrum Brands Holdings, Inc. (SPB) Q2 2026 Earnings Call Transcript

Analyst Upgrades and Downgrades

SPB has been the topic of a number of recent analyst reports. Royal Bank Of Canada set a $85.00 price target on shares of Spectrum Brands in a research report on Friday, February 6th. Weiss Ratings raised shares of Spectrum Brands from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $81.00 price target on shares of Spectrum Brands in a research report on Friday. Oppenheimer raised their target price on Spectrum Brands from $75.00 to $85.00 and gave the company an "outperform" rating in a research report on Friday, February 6th. Finally, Wells Fargo & Company lifted their target price on Spectrum Brands from $62.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Friday, February 6th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $86.17.

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc is a global consumer products company that develops and markets a diverse portfolio of branded household and personal care products. Organized into four principal business segments—Hardware & Home Improvement, Home & Garden, Pet, and Appliances & Personal Care—the company offers a broad range of items including security and plumbing solutions, small electric appliances, grooming tools, and pet care accessories. Its hardware division features well-known brands such as Kwikset, Baldwin and Pfister, while the home appliance segment is anchored by names like Russell Hobbs and Remington.

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