Energizer Holdings, Inc. Q4 FY2025 earnings call

• Delivered strong earnings in fiscal 2025 by being agile and focused amidst a disruptive environment. • Grew net sales driven by e-commerce growth, international expansion, and auto care innovation. • Project Momentum achieved over $200 million in savings, extended to nearly $3 billion. • Adjusted EPS increased 6% to $3.52, supported by organic growth, cost management, and manufacturing production credits. • Returned $177 million to shareholders through dividends and share repurchases. • Responded to macro challenges by realigning manufacturing footprint and executing pricing actions. • Outlook for fiscal 2026 includes challenges in Q1 but double-digit adjusted EPS growth in the final three quarters due to initiatives like network realignment and Project Momentum savings.

No specific details on product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• First quarter expected to be challenging with sales comparison, transitional tariff-related costs, and moderating consumer sentiment. • Anticipates double-digit adjusted EPS growth over the final three quarters of fiscal 2026. • Expects low single-digit top-line growth, normalized gross margins with Project Momentum savings to drive EPS growth. • Based outlook on category down ~2%, trade policies staying in place, and built in cushion to absorb shocks.

• Tariffs increasing costs. • Consumer demand softened late in fiscal 2025. • Supply chains required rapid rebalancing.

Q: Peter K. Grom asked about the ramp needed to hit full year following a challenging first quarter and the flexibility/cushion in the outlook.

A: Mark and John responded discussing Project Momentum's progress, first quarter challenges, and outlook for Q2-Q4 with low single-digit top-line growth, normalized gross margins, and low double-digit EPS growth.

Q: Lauren Rae Lieberman inquired about consumer slowdown, changes since last spoke, and category changes.

A: Mark responded about consumer sentiment softening, category expected to be down in Q1 but stabilizing, and margin impacts.

Q: Robert Edward Ottenstein asked about channel dynamics and consumer response.

A: Mark said consumers seek value, shift channels, e-commerce grew over 35% in Q4, and Energizer is gaining share.

Q: Shovana Chowdhury asked about US manufacturing incremental benefit.

A: Mark said they expect $15-$20 million annual upside from US manufacturing, anticipating benefit in fiscal 2026.

Q: William Michael Reuter asked about consumer behavior and deleveraging path.

A: Mark said consumers have temporary behaviors, focus on paying down debt, expect to pay down $150-200 million of debt in 2026.

Q: Brian Christopher McNamara asked about retail partner inventory.

A: Mark said inventory tightness impacted Q4-Q1 dynamics and expects tighter inventory management in 2026.