Start here if you're new
what it is
Spectrum Brands sells the stuff around your house and pets, from dog products to bug control to small kitchen appliances.
how it gets paid
Last year Spectrum Brands made $2.8B in revenue. Home & Garden was the main engine at $1.10B, or 39% of sales.
why growth slowed
Revenue fell 5.2% last year. Adjusted EBITDA fell 19.5%. That tells you the earnings beat was less clean than the headline made it look.
what just happened
Spectrum posted $1.40 EPS in fiscal Q1 2026, well above the $0.86 estimate, but revenue still fell.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
14.5x trailing p/e — the market's not buying it — or you found a deal
2.7% dividend yield — cash in your pocket every quarter
5.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Spectrum Brands sells the stuff around your house and pets, from dog products to bug control to small kitchen appliances.
This is a shelf-space business. If your retailer already carries your pet, garden, and appliance brands, replacing them is a headache. Spectrum gets 44% of revenue outside the U.S. in fiscal 2025, so you are not betting on one country or one aisle.
How they make money
$2.8B
annual revenue · their business grew -5.2% last year
Home & Garden
$1.10B
3.0%
Global Pet Care
$0.95B
11.0%
Home & Personal Care
$0.70B
2.0%
Other / corporate
$0.05B
0.0%
The products that matter
small appliances and grooming
Home & Personal Care
core consumer segment
this sits inside a $2.8B company that kept only 4.3 cents of each revenue dollar. Segment-level mix is thin here, which matters because you are underwriting execution with limited granularity.
margin watch
pet consumables and accessories
Pet Care
one of three main segments
pet care helps diversify the revenue base, but the company still posted a 5.2% sales decline last year. Translation: diversification exists, insulation did not.
demand watch
seasonal lawn and garden products
Home & Garden
consumer seasonal exposure
when your full-year EPS is $5.43 and quarterly margin is 3.6%, small category swings matter. This segment adds cyclicality to a business that already lacks much profit cushion.
seasonality risk
Key numbers
$6.50
fy2029 eps est
$3B
fy2029 rev est
14.5x
trailing p/e
2.7%
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $554M (24% of capital)
- net profit margin 4.5% — keeps 4 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SPB 3 years ago → it's now worth $13,210.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Spectrum posted $1.40 EPS in fiscal Q1 2026, well above the $0.86 estimate, but revenue still fell.
Revenue was $677M, down 3% vs. prior year. The weird part is plain: EPS looked strong while adjusted EBITDA dropped 19.5% to $62.6M.
$677M
revenue
$1.40
eps
35.7%
gross margin
the number that mattered
Adjusted EBITDA fell 19.5%. That tells you the earnings beat was less clean than the headline made it look.
-
unusual factors are driving the seemingly strong bottom-line gains at spectrum brands.
-
the company recorded an increase of 37% in adjusted earnings per share in the december quarter, to $1.40 from $1.02 in the prior year.
-
however, sales fell 3% in the period, and adjusted ebitda declined 20%.a large tax credit, which was included in adjusted earnings, and significant stock repurchases accounted for the earnings gain. Management is striving to shore up its home & personal care business with an eye toward an eventual sale.
-
this division has underperformed of late, with an organic sales drop of 11% in the latest quarter and a decline in adjusted ebitda of 23%.
-
this is spectrum's largest business, accounting for 40% of annual sales but only about 1/4 of profits.it will likely be necessary to narrow the focus and reduce operating costs in order to improve results in this highly competitive sector. a disposition may still be a year or more off, and the value of the business is uncertain at this time. The pet care segment is likely to be the driving force for long-term growth.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is tariff inflation on imported household goods.
med
tariff inflation
spectrum brands sells physical goods into retail channels. If import costs rise, a 4.3% net margin can compress fast.
thin margins mean even small cost moves matter against a $2.8B revenue base.
med
consumer demand softness
annual revenue already fell 5.2%. If households trade down or delay purchases, the turnaround stretches out.
this risk touches the entire consumer portfolio, not one isolated product line.
med
retailer and promotional pressure
when you do not have a clear moat, big retailers keep negotiating. More promotions can protect volume while quietly damaging profit.
with quarterly margin at 3.6%, price cuts do not need to be dramatic to hurt earnings.
med
turnaround execution
EPS improved to $5.43, but the business still has a 35/100 predictability score. That usually means the path stays uneven.
if revenue misses the roughly $3B fiscal 2026 expectation, the market will question whether the improvement is durable.
revenue is down, margin is thin, and debt is still $554M. That combination leaves very little room for a consumer slowdown or a cost shock.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
revenue stabilization
sales fell 5.2% last year and the latest quarter was down 3% from a year ago. If that line does not flatten out, the whole turnaround stays cosmetic.
metric
margin recovery
quarterly margin was 3.6% versus a 4.3% full-year net margin. You want that spread moving up, not down.
risk
tariff and input-cost headlines
this business does not have much profit cushion. Cost inflation is not background noise here. It is the story.
calendar
next earnings print
the next report needs to show both demand discipline and cost discipline. One without the other will not do much for the stock.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they think the stock can work even before the business looks beautiful.
risk profile
average
stability score 3 — this is middle-of-the-pack risk, not a bunker stock and not a disaster candidate.
chart momentum
below average
technical score 4 — the chart says investors still want more proof from here.
earnings predictability
35 / 100
earnings can swing around. Translation: do not confuse one clean quarter with a permanently cleaner business.
source: institutional data
Institutional activity
89 buyers vs. 76 sellers in 4q2025. total institutional holdings: 25.6M shares.
source: institutional data
Price targets
3-5 year target range
$64
$137
$79
current price
$101
target midpoint · +28% from current · 3-5yr high: $135 (+70% · 16% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive