EDGEWELL PERSONAL CARE Co Q2 FY2026 earnings call

Key managerial messages include four priorities: 1. Durable international growth, expecting strong sales growth throughout the remainder of the fiscal year. 2. Compelling innovation with a robust second half pipeline including relaunches and new launches across portfolios, supported by significant A&P spend. 3. Productivity through supply chain optimization, delivering approximately 220 basis points of gross productivity savings this quarter, with wet shave manufacturing consolidation nearly complete. 4. U.S. commercial transformation with simplified structure, investment in core capabilities, and shift to more sustained brand building and balanced marketing mix for U.S.-focused brands.

Wet shave now represents approximately 60% of total sales. Sun, skin care, and grooming businesses combined are approaching 40% of total sales, with grooming now over 10% of the business. Organic net sales decreased 240 basis points this quarter, with North America organic net sales decreasing 4.8% and international organic net sales increasing 1%. Wet shave organic net sales declined less than 1%, sun and skincare organic net sales decreased approximately 4.5%, and grooming organic net sales growth was approximately 6%.

Reaffirms underlying outlook for fiscal year 2026. Expect organic net sales to be down 1% to up 2% excluding FX tailwinds. Adjusted gross margin expected to expand in the second half. Adjusted EPS is expected to be in the range of $1.70 to $2.10. Adjusted EBITDA is expected to be in the range of $245 million to $265 million. Anticipate Q3 to be the strongest sales quarter due to increased sun shipment and seasonal timing, with Q3 adjusted gross margin in the range of 44% to 45% and Q4 as the strongest gross margin quarter.

Increased overall risk given the conflict in the Middle East, modest incremental risk to top line particularly in Middle East markets, higher inflation risk most notably from oil and higher fuel costs.

Q: Nick Mody asked about inflation and guidance; A: Rod and Fran responded on guidance holding and inflation impacts from Middle East activity.

Q: Chris Carvey asked on inflation and North America; A: Rod and Fran discussed gross margin expectations and North America growth prospects.

Q: Susan Anderson asked on inventory and launches; A: Rod and Fran talked about retail inventory situation and new product launches.

Q: Olivia Tong asked on next 12 months and pricing; A: Rod and Fran discussed cost productivity and potential pricing levers for next year