Pet business lifts Q1 earnings for Spectrum Brands

Global Pet Care (GPC), Spectrum Brands’ pet business, posted $281.6 million (€258M) in net sales for the first quarter of fiscal year (FY) 2026, ending 28 December 2025. This figure represents an 8.3% year-over-year (YoY) increase. Organic net sales grew 5.8% YoY, excluding favorable foreign currency impacts. 

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) dropped by 4.9% to $49 million (€45.1M).

The American corporation attributes the decrease to “higher tariff costs, inflation and additional trade and investment spend, partially offset by higher sales volume, pricing and cost improvement actions,” the company says. 

“We are pleased with our results this quarter, particularly that our most profitable and largest Adjusted EBITDA contributing business, Global Pet Care, returned to growth,” says David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

Companion animal and aquatics segments

Within the GPC portfolio, sales in the companion animal segment rose in the high single digits, while aquatics reported low single-digit sales growth.

“Beyond the broader category improvements, our key companion animal brands have continued to outperform, and they’re performing exceptionally well, further strengthening our market share positions,” Maura told investors during the earnings call, as transcribed by Seeking Alpha.

Faisal Qadir, Executive Vice President & Chief Financial Officer, noted that brands such as Good n Fun, DreamBone, Nature’s Miracle and FURminator are gaining market share across Grooming and Chews, Stain & Odor.

“In grooming, our FURminator growth with expanded distribution will be confirmed in the coming months. Our Good Boy brand, the number one brand in dog chews in the UK, continues to grow market share, driven by consistent consumer-focused innovation,” Qadir says. 

Company-wide performance

Spectrum Brands reported global net sales of $677 million (€622.8M) across all its businesses, down 3.3% YoY, with organic net sales declining 6%. The decrease was primarily driven by softer category demand and unusually high-volume orders from customers in the prior year, partially offset by growth in Global Pet Care.

Net income from continuing operations rose to $29.4 million (€27M), a 19.5% YoY increase, supported by a one-time tax benefit. 

Adjusted EBITDA totaled $62.6 million (€57.6M), down 19.5% YoY, while adjusted EBITDA margin narrowed by 190 basis points to 9.2%.

Guidance

For FY2026, Spectrum Brands expects to deliver flat to low single-digit growth in reported net sales. Adjusted EBITDA is expected to increase by low single digits. 

The company anticipates a return to growth in Global Pet Care and Home & Garden businesses, while Home & Personal Care’s revenue is expected to decline. 

For Q2 FY2026, the company expects year-over-year pressure driven by continued weak demand in its Home and Personal Care business. 

“As we look ahead to the second quarter, we anticipate that our results will continue to be impacted by continued softness in consumer demand and ongoing headwinds,” says Qadir.

The CFO adds that the second half of the year “is expected to show sequential improvement as we lap softer prior-year comparisons and benefit from the actions we have taken to strengthen our business.”