Overview of Financial Performance

Edgewell Personal Care Company reported mixed financial results for fiscal year 2025. Net sales decreased 1.3% to $2,223.5 million, with organic net sales also declining 1.3%. The company saw growth in its International markets, with 3.5% organic growth, but this was offset by a 4.4% decline in North America.

Net earnings for the year decreased 74.2% to $25.4 million. On an adjusted basis, net earnings declined 21.3% to $120.4 million. The decrease in adjusted net earnings was primarily due to lower gross margin and higher brand investment, which was partially offset by lower selling, general and administrative (SG&A) expenses.

Diluted earnings per share (EPS) was $0.53 compared to $1.97 in the prior year. On an adjusted basis, diluted EPS was $2.52 compared to $3.05 in fiscal 2024.

Revenue and Profit Trends

Edgewell’s net sales decline was driven by volume decreases in the Wet Shave, Feminine Care and Sun Care categories, partially offset by growth in Skin Care and Grooming. International markets delivered 3.5% organic growth, while North America declined 4.4%.

Gross profit decreased 3.2% to $924.9 million, with gross margin declining 80 basis points to 41.6%. Adjusted gross margin decreased 110 basis points to 42.0%, primarily due to unfavorable core inflation, mix, and higher promotional spending, which offset productivity savings.

SG&A expenses decreased slightly to $425.0 million, or 19.1% of net sales, the same as the prior year. Adjusted SG&A increased 10 basis points to 18.6% of net sales as lower incentive compensation and legal costs were offset by higher people and corporate project expenses.

Advertising and sales promotion (A&P) expense increased 6.3% to $246.7 million, or 11.1% of net sales, up from 10.3% in the prior year. The increase was primarily due to higher investment in Sun Care, Women’s Shave, and Men’s Grooming.

Segment profit for Wet Shave decreased 6.7% to $190.3 million, with organic segment profit up 1.5%. Sun and Skin Care segment profit declined 25.1% to $98.4 million, with organic segment profit down 21.4% due to lower gross margin and higher expenses. Feminine Care segment profit decreased 45.8% to $15.6 million on lower sales.

Strengths and Weaknesses

A key strength for Edgewell is its diversified portfolio of leading personal care brands, including Schick, Wilkinson Sword, Edge, Skintimate, Banana Boat, and Hawaiian Tropic. The company’s international presence, with 45% of net sales coming from outside North America, also provides geographic diversification.

However, the company faces some challenges. Its core Wet Shave category has been in decline, with North America Wet Shave sales down 7.2% organically. The Feminine Care business has also struggled, with a 7.7% organic sales decline. While the Skin Care and Grooming categories have shown growth, they are smaller parts of the overall portfolio.

Edgewell has undertaken restructuring and cost savings initiatives, but these have not been enough to fully offset the top-line pressures. The company also recorded a $51.1 million non-cash goodwill impairment charge related to its Feminine Care reporting unit.

Outlook and Future Prospects

Looking ahead, Edgewell will need to focus on driving growth in its higher-margin and faster-growing categories like Skin Care and Grooming, while stabilizing the performance of Wet Shave and Feminine Care. Continued investment in brand building, innovation, and go-to-market capabilities will be critical.

The company has a strong balance sheet, with $225.7 million in cash and $1.42 billion in total debt as of September 30, 2025. This provides financial flexibility to invest in the business and pursue strategic opportunities. However, the company will need to carefully manage its debt levels and leverage ratios going forward.

Overall, Edgewell faces a challenging operating environment, but the company’s diversified portfolio, international presence, and financial resources provide a foundation for potential future success if it can execute effectively on its strategic priorities. Investors will be watching closely to see if the company can return to consistent organic growth and profitability improvement.

Key Financial Tables

Net Sales by Segment:

Segment	FY 2025	% Change	FY 2024	% Change
Wet Shave	$1,218.9	(0.8%)	$1,229.3	(0.1%)
Sun and Skin Care	$743.1	0.3%	$740.8	5.0%
Feminine Care	$261.5	(7.8%)	$283.6	(10.0%)
Total Net Sales	$2,223.5	(1.3%)	$2,253.7	0.1%

Segment Profit:

Segment	FY 2025	% Change	FY 2024	% Change
Wet Shave	$190.3	(6.7%)	$203.9	28.8%
Sun and Skin Care	$98.4	(25.1%)	$131.3	(4.4%)
Feminine Care	$15.6	(45.8%)	$28.8	(42.1%)

Reconciliation of GAAP to Adjusted Results:

Metric	FY 2025	FY 2024	FY 2023
Gross Profit	$924.9	$955.7	$940.8
Adjusted Gross Profit	$933.4	$971.2	$937.9
SG&A	$425.0	$430.1	$409.6
Adjusted SG&A	$413.5	$418.0	$407.7
Operating Income	$96.6	$199.3	$227.0
Adjusted Operating Income	$219.1	$267.2	$245.9
EBIT	$23.6	$120.9	$147.7
Adjusted EBIT	$142.9	$191.9	$174.5
Net Earnings	$25.4	$98.6	$114.7
Adjusted Net Earnings	$120.4	$153.0	$134.5
Diluted EPS	$0.53	$1.97	$2.21
Adjusted Diluted EPS	$2.52	$3.05	$2.59

Liquidity and Capital Resources

Edgewell ended fiscal 2025 with $225.7 million in cash and $1.42 billion in total debt. The company has a $425 million revolving credit facility, of which $140 million was drawn as of September 30, 2025.

Cash flow from operating activities was $118.4 million in fiscal 2025, down from $231.0 million in the prior year, driven by changes in net working capital and lower earnings. Capital expenditures were $77.0 million in fiscal 2025, up from $56.5 million in fiscal 2024.

The company’s debt covenants require a ratio of indebtedness to EBITDA not greater than 4.0 to 1.0 and a ratio of EBITDA to interest expense above 3.0 to 1.0. As of September 30, 2025, Edgewell was in compliance with these covenants.

Edgewell paid $29.3 million in dividends during fiscal 2025 and repurchased $90.2 million of its common stock. The company has $100 million remaining under its current share repurchase authorization.

Looking ahead, Edgewell expects capital expenditures of $70-$80 million in fiscal 2026, primarily for maintenance, productivity, and information technology investments. The company also has ongoing pension funding obligations, with an estimated $5.6 million in required contributions in fiscal 2026.

Conclusion

Edgewell Personal Care Company faced a challenging fiscal 2025, with declines in net sales, earnings, and profitability. The company’s core Wet Shave and Feminine Care categories struggled, offsetting growth in Skin Care and Grooming.

While Edgewell has a diversified portfolio of leading personal care brands and a strong international presence, it will need to execute effectively on its strategic priorities to drive consistent organic growth and profitability improvement. Key focus areas include brand investment, innovation, and cost savings initiatives.

The company maintains a solid financial position, with ample liquidity and manageable debt levels. However, investors will be closely watching Edgewell’s ability to navigate the current operating environment and position the business for long-term success.