Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Q2 2025 Earnings Presentation
27 slides from Spectrum Brands's earnings presentation, May 8, 2025
Slide 1: Fiscal 2025 Second Quarter Earnings Call
Fiscal 2025 Second Quarter Earnings Call May 8, 2025
Slide 2: Introduction and speakers
• Introduction – Joanne Chomiak Senior Vice President, Tax and Treasury • CEO Overview – David Maura Chairman and Chief Executive Officer • Financial & Business Review – Jeremy Smeltser Chief Financial Officer • Q&A – David Maura and Jeremy Smeltser
Slide 3: Forward-looking Statements
Forward-looking Statements 3 We have made or implied certain forward-looking statements in this document. Statements or expectations regarding our business strategy, future free cash flows, tariffs, tariff impact and tariff mitigation efforts, future operations and operating model, financial conditi
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures 4 Our consolidated results contain non-GAAP metrics such as organic net sales, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow. While we believe organic net sales and adjusted EBITDA are useful supplemental information, such adjusted resu
Slide 5: CEO Overview
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ CEO Overview (pACKWOOn¢ . David Maura (Fie | ) SWEAT RESISTANT REPELS MosauITOES
Slide 6: Navigating Tariff and Consumer-Demand Uncertainty
Navigating Tariff and Consumer-Demand Uncertainty(1) 6 • Strong and strategically advantaged financial and operating positions • Diverse & recession resilient product mix • Investments in talent and leadership • Operating pivot and mitigation actions: - Focusing on Cash Flow for balance of the year:
Slide 7: Second Quarter 2025
Second Quarter 2025 7 Net Sales Adj. EBITDA -6.0% -36.5% Organic Sales -4.6% GAAP Net Income Decrease $48.1M
Slide 8: FY25 Priorities
WE MAKE LIVING BETTER AT HOME™ FY25 Priorities A Brands Transition Take Supply Outside Advantage of Lean into of China for US Opportunities Prepare for Supply Chain Strength Market Growth
Slide 9: Outstanding Shares & Share Repurchases
Outstanding Shares & Share Repurchases 9 Share Repurchases Repurchased Repurchased Total Purchased 16.3 11.0 Million Million 16.3 Million Shares ~24.9 Million* Total Shares Outstanding 41.0Million ~41.0 Million ~40% TotalShares Total SharesOutstanding Outstanding $1.3 Billion Reduction Spent Prior
Slide 10: FY25 Update
FY25 Update 10 Volatile macro-economic environment resulting in insufficient visibility to provide an earnings framework for FY25 Mitigating actions underway to offset tariff exposure, including cost reductions, pricing actions, and diversifying sourcing footprint Paused purchases of finished goods
Slide 11: Financial and Business Review
Financial and Business Review Jeremy Smeltser
Slide 12: Second Quarter 2025
Second Quarter 2025 12 KEY TAKEAWAYS Net Sales Adj. EBITDA • Organic net sales decrease driven by category softness in North American -6.0% -36.5% markets for both Global Pet Care and Home and Personal Care businesses and retailer inventory build timing that accelerated sales into Q1 for Home & Gard
Slide 13: Second Quarter Financial Review
Second Quarter Financial Review 13 Interest Expense -$9.4 vs. LY $0.7B $0.1B Debt outstanding Cash and cash equivalents Revolver Usage(1) $91M $409M Cash strategic transactions, restructuring, and other unusual, non-recurring items -$0.2M vs. LY Ended the period at 1.73x net leverage (1) In use revo
Slide 14: Second Quarter 2025 Global Pet Care
Second Quarter 2025 Global Pet Care 14 Net Sales Adj. EBITDA KEY TAKEAWAYS -7.1% -19.7% • Organic net sales decreased due to North American category softness across all channels in Companion Animal and global category softness in Aquatics • Adjusted EBITDA decreased due to lower sales volume, inflat
Slide 15: Second Quarter 2025 Home & Garden
Second Quarter 2025 Home & Garden 15 Fourth Quarter 2023 N e t S a l e s Adj. EBITDA KEY TAKEAWAYS Home & Garden -5.2% -8.6% • Organic net sales decreased due to retailer inventory build timing and accelerated retailer orders in advance of S/4HANA ERP implementation that pulled forward sales into Q1
Slide 16: Second Quarter 2025 Home & Personal Care
Second Quarter 2025 Home & Personal Care 16 Net Sales Adj. EBITDA KEY TAKEAWAYS -5.1% -59.0% • Organic net sales decreased due to North America category softness in both Home Appliances and Personal Care • Adjusted EBITDA decreased due to lower sales volume, higher trade promotions, unfavorable mix,
Slide 17: FY25 Update
FY25 Update 17 Volatile macro-economic environment resulting in insufficient visibility to provide an earnings framework for FY25 Mitigating actions underway to offset tariff exposure, including cost reductions, pricing actions, and diversifying sourcing footprint Paused purchases of finished goods
Slide 18: CEO Takeaways
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ CEO Takeaways (pACKWOOn¢ . David Maura (Fie | ) SWEAT RESISTANT REPELS MosauITOES
Slide 19: CEO Key Takeaways
CEO Key Takeaways 19 S I G N I F I C A N T P R O G R E S S O N S T R AT E G I C T R A N S F O R M AT I O N • Deleverage balance sheet 1 • Improve Operations • I n v e s t i n L o n g - Te r m G r o w t h • Seeking accretive acquisitions in GPC and H&G TA K I N G A C T I O N T O C O M B AT H E A D W
Slide 20: Appendix
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ Appendix SWEAT ] RESISTANT REPELS MosauITOES
Slide 21: Condensed Consolidated Statements of Income
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ ‘SPECTRUM BRANDS HOLDINGS, INC. ‘CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) “Three Month Periods Ended ‘Sx Month Periods Ended {Govmilions, except per share amounts) ‘March30,2025 March 31,2024 _ March 30, 2025 _ March31, 2028 Net sales 3 o
Slide 22: Condensed Consolidated Statements of Cash Flow
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ SPECTRUM BRANDS HOLDINGS, INC. ‘CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Six Month Periods Ended {in millions) March 30,2025 _March 31, 2024 Cash flows from operating activities Net cash (used) provided by operating activities from con
Slide 23: Condensed Consolidated Statements of Financial Position
‘SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) {in mitions) ‘March 30,2025 September 30, 2024 “Assets CCash and cash equivalents $ 960 $ 368.9 Trade receivables, net 635.4 ‘Other receivables 707 Inventories 462.4 Prepaid expenses and other current
Slide 24: Net Sales and Organic Net Sales
Spectrum Brands WE MAKE LIVING BETTER AT HOME™ NET SALES AND ORGANIC NET SALES The following is a summary of net sales by segment for the three and six month periods ended March 30, 2025 and March 31, 2024: ‘Three Month Periods Ended Six Month Periods Ended March 30, March 31, March 30, March 31, (i
Slide 25: Adjusted EBITDA and Adjusted EBITDA Margin
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN The following is a reconciliation of reported net income from continuing operations to adjusted EBITDA and adjusted EBITDA ‘margin for the three and six month periods ended March 30, 2025 and March 31, 2024. “Three Month Periods Ended ‘Six Month Periods End
Slide 26: Adjusted Diluted EPS
ADJUSTED DILUTED EPS ‘The following is a reconciliation of reported diluted EPS from continuing operations to adjusted diluted EPS from continuing operations for the three and six month periods ended March 30, 2025 and March 31, 2024. ‘Three Month Periods Ended ‘Six Month Periods Ended (per share am
Slide 27: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW The following is a reconciliation of reported operating cash flow from continuing operations to adjusted free cash flow for the three and six month periods ended March 30, 2025 and March 31, 2024. Six Month Periods Ended {in millions) March 30, 2025 March 31, 2024 Net cash pr
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