Edgewell Personal Care’s third quarter results reflected solid top-line momentum, with organic net sales growth driven by international markets and modest recovery in core North America segments. Management highlighted that improved market share in key brands and categories, together with ongoing innovation and supply chain productivity efforts, helped offset weaker performance in sun care and tariff-related cost pressures. CEO Rod Little acknowledged the external and internal challenges faced during the quarter, stating, “We faced significant external pressures: tariffs, foreign exchange volatility, geopolitical tensions, and consumer uncertainty that impacted our financial performance and stressed our global supply chain.”
Is now the time to buy EPC? Find out in our full research report (it’s free for active Edge members).
Edgewell Personal Care (EPC) Q3 CY2025 Highlights:
- Revenue: $537.2 million vs analyst estimates of $533.8 million (3.8% year-on-year growth, 0.6% beat)
- Adjusted EPS: $0.68 vs analyst expectations of $0.81 (15.9% miss)
- Adjusted EBITDA: $63.5 million vs analyst estimates of $70.32 million (11.8% margin, 9.7% miss)
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.35 at the midpoint, missing analyst estimates by 13.5%
- EBITDA guidance for the upcoming financial year 2026 is $300 million at the midpoint, below analyst estimates of $319.7 million
- Operating Margin: -6.8%, down from 3.9% in the same quarter last year
- Organic Revenue rose 2.5% year on year vs analyst estimates of 1.4% growth (109.4 basis point beat)
- Market Capitalization: $809.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Edgewell Personal Care’s Q3 Earnings Call
- Olivia Tong (Raymond James) asked about the assumptions behind category growth and share, and the flexibility in financial goals. CEO Rod Little explained the plan is based on low single-digit category growth and holding current share levels, with more flexibility to respond to headwinds than in prior years.
- Nik Modi (RBC Capital Markets) questioned the long-term strategic direction post-feminine care divestiture and potential for further M&A. Little responded that the focus is now on core categories with improved optionality, and that future M&A will be highly disciplined and value-driven.
- Chris Carey (Wells Fargo Securities) pressed for details on the company’s ability to deliver productivity gains and gross margin recovery amid recent transitory costs. CFO Fran Weissman clarified that productivity initiatives are on track, with most margin gains expected in the back half as tariff mitigation and supply chain changes take effect.
- Peter Grom (UBS) inquired about the timing and use of proceeds from the feminine care sale and its impact on earnings. Little and Weissman confirmed proceeds will primarily go to debt reduction, with the transaction expected to close in early 2026 and earnings impact updated at that time.
- Susan Anderson (Canaccord Genuity) asked about sun and skin care promotional dynamics, inventory levels, and innovation pipeline. Little described a cleaned-up inventory position, ongoing promotional competitiveness, and new marketing campaigns and product innovation for Hawaiian Tropic and Banana Boat.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will monitor (1) the pace of international sales and market share gains, especially in Europe and Asia, (2) evidence of margin stabilization as productivity and tariff mitigation efforts take hold, and (3) the impact of increased marketing investment on brand performance and household penetration. Additionally, we will track the execution of the feminine care divestiture and supply chain consolidation initiatives as key markers for future profitability.
Edgewell Personal Care currently trades at $17.43, down from $18.91 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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