EPC Filings — Edgewell Personal Care Company - FilingSpy
EPC
Edgewell Personal Care Company
A maker of everyday personal care goods, Edgewell owns shaving brands like Schick, Wilkinson Sword and Billie, sun-care names such as Banana Boat and Hawaiian Tropic, plus skincare lines like Bulldog and Jack Black. It came to be in 2015 when the old Energizer Holdings split in two, keeping the personal care side and taking the new "Edgewell" name—a play on the "edge" of a razor blade and consumer "well-being." Its roots go back centuries: Wilkinson Sword began in 1772 as a London sword maker before turning to razors.
North America returned to organic growth for the first time in over a year, but Wet Shave segment profit fell 20.9% as higher costs compressed margins.
North America grew 3.0%, the first increase after four consecutive quarters of decline. rose 1.7% to $570.1 million and was flat at $0.72, as a $5.3 million tariff refund benefit and volume gains were offset by a 210-basis-point drop in to 42.5% and a 20.9% organic profit decline in Wet Shave. The Feminine Care divestiture proceeds eliminated borrowings, but the core profit engine is now shrinking.
Key takeaways
North America rose 3.0%, reversing a multi-quarter decline that reached 8.0% in Q3 FY2025, driven by volume growth in Sun Care, Skin Care, and Grooming.
Wet Shave profit fell 20.9% on an organic basis, as higher SG&A and marketing expenses more than offset the benefit of volume growth, a reversal from the 16.5% organic profit growth reported in Q2 FY2025.
contracted 210 to 42.5%, as productivity savings were outweighed by inflation, tariffs, and unfavorable product mix, though the rate improved 80 basis points sequentially from Q2 FY2026's 41.8%.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 1.7% to $570.1M on North America volume growth; adjusted EPS flat at $0.72 as margin pressure offset gains.
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Total Q3 increased 1.7% to $570.1M, with of 1.1% driven by 3.0% growth in North America across Sun, Skin Care, and Grooming.
International organic sales declined 1.4% due to Middle East conflict disruption and Wet Shave manufacturing consolidation impacts.
The company recognized a $5.3 million benefit from IEEPA tariff refunds and recorded a $5.7 million charge for a contract manufacturing settlement, partially offsetting each other in the quarter.
Proceeds from the Feminine Care divestiture were used to fully repay the U.S. , leaving no borrowings outstanding and $418.8 million available, while exposure fell to $34.2 million from $308.4 million at Q1 FY2026.
International declined 1.4%, as growth in Latin America was offset by Middle East conflict disruption and Wet Shave manufacturing consolidation impacts.
What changed
North America returned to growth at 3.0%, after a 4.8% decline in Q2 FY2026 and an 8.0% drop in Q3 FY2025 — the steepest in the reported history — settling the question of whether the region's decline would deepen further.
Wet Shave profit fell 20.9% organically, a sharp reversal from the 16.5% organic profit growth in Q2 FY2025 and the 27.7% decline in Q2 FY2026, confirming that the segment's profit engine — which had relied on rather than volume growth — is now under pressure from both higher costs and increased spending.
exposure dropped to $34.2 million from $308.4 million at Q1 FY2026, as the Feminine Care divestiture proceeds were used to repay borrowings, addressing the concern flagged in prior quarters about rising interest rate sensitivity.
The company recognized a $5.3 million IEEPA tariff refund benefit, a partial offset to the tariff headwinds that had compressed by 420 in Q2 FY2026, though the net impact on the quarter was muted by a $5.7 million contract manufacturing settlement charge.
Restructuring charges of $23.0 million were recorded in Q2 FY2026, and the company now expects approximately $90 million in total pre-tax charges for fiscal 2026, up from $65 million estimated in Q1 FY2026, but the Q3 filing did not report additional charges, suggesting the program may be nearing completion.
What to watch
Whether Wet Shave profit stabilizes after a 20.9% organic decline, or whether the combination of higher SG&A and marketing spending continues to erode the company's largest profit engine even as North America volumes recover.
Whether the 3.0% North America is sustained in Q4 FY2026, or whether the recovery proves temporary given the region's 4.4% full-year decline in FY2025 and the 4.8% drop in Q2 FY2026.
Whether the $90 million in expected fiscal 2026 restructuring charges delivers measurable recovery toward the 43-44% range, or whether tariffs and inflation continue to outpace productivity savings as they did in the first half.
Whether the company uses the $418.8 million in availability to resume share repurchases, which totaled $90.2 million in FY2025, or preserves the liquidity buffer given that of $54.3 million in Q2 FY2026 remains below prior-year levels.
fell 210 to 42.5% as productivity savings were more than offset by inflation, tariffs, and unfavorable mix.
Wet Shave dropped 20.9% organically on higher SG&A and marketing, while Sun and Skin Care profit was nearly flat.
Liquidity strengthened as proceeds from the Feminine Care divestiture were used to fully pay down the , leaving $418.8M available.
The company recognized a $5.3M benefit from IEEPA tariff refunds and recorded a $5.7M charge for a contract manufacturing settlement.
Quantitative and Qualitative Disclosures About Market Risk
(Amounts in millions) The market risk inherent in our financial instruments and positions represents the potential loss arising from adverse changes in currency rates, commodity prices, and interest rates. At times, we enter into contractual arrangements (derivatives) to reduce…
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(Amounts in millions)
The market risk inherent in our financial instruments and positions represents the potential loss arising from adverse changes in currency rates, commodity prices, and interest rates. At times, we enter into contractual arrangements (derivatives) to reduce these exposures. For further information on our foreign currency derivative instruments, refer to Note 16 of Notes to our Condensed Consolidated Financial Statements.
As of June 30, 2026, there were no open derivative or hedging instruments for future purchases of raw materials or commodities.
Our exposure to interest rate risk relates primarily to our variable-rate debt instruments, which currently bear interest based on Secured Overnight Financing Rate (SOFR) plus margin. As of June 30, 2026, our outstanding variable-rate debt included $34.2 related to international, variable-rate notes payable. Assuming a one-percent increase in the applicable interest rates, annual interest expense on these variable-rate debt instruments would increase approximately $0.3.
There have been no material changes in our assessment of market risk sensitivity since our presentation of Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report.
Rising production costs and tariffs are newly emphasized as a material risk that could erode margins.
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Volatile raw material, energy, shipping, and labor costs—driven by inflation, geopolitics, and supply chain disruptions—may materially raise production costs.
The Middle East conflict and Strait of Hormuz uncertainty have already increased energy and transportation costs and caused global supply chain disruptions.
If the company cannot offset cost increases through price hikes or savings, will be negatively impacted.
Sustained price increases risk volume and market share declines if competitors do not follow or customers reduce consumption.