Edgewell Personal 2025 Q4 Earnings Sharp Loss Amid Strategic Shifts

Edgewell Personal (EPC) reported fiscal 2025 Q4 earnings on November 14, 2025, marking a significant swing to a loss despite revenue outperforming expectations. The results fell short of profit forecasts, with guidance for FY26 signaling cautious optimism. Strategic moves, including the divestiture of its Feminine Care segment, underscore a pivot toward core businesses.

Revenue

Total revenue rose 3.8% to $537.20 million in Q4 2025, exceeding the $517.60 million reported in Q4 2024. The Wet Shave segment led the way with $321.90 million, while Sun and Skin Care contributed $148 million. Feminine Care, set for divestiture, accounted for $67.30 million. The performance highlights resilience in core categories despite broader industry headwinds.

Earnings/Net Income

Edgewell swung to a loss of $0.66 per share in Q4 2025, a 466.7% decline from a $0.18 profit in Q4 2024. Net losses widened to $30.60 million, reflecting a 447.7% deterioration from $8.80 million net income a year prior. The sharp decline underscores operational challenges and the financial impact of restructuring efforts. The EPS performance indicates a severe deterioration in profitability.

Post-Earnings Price Action Review

The stock’s post-earnings trajectory reflects mixed signals: a 0.72% daily gain contrasts with a 3.20% weekly drop and a 10.07% monthly decline. While a revenue-beat-and-hold strategy historically shows promise, recent context complicates its viability. EPC’s earnings miss and weak guidance pressured shares to a 52-week low, though the company remains bullish on organic growth in 2026. A 4.4% forward dividend yield offers income appeal, but the Altman Z-Score’s distress signal and short-term volatility raise caution. Strategic clarity and execution will be critical for near-term recovery.

CEO Commentary

Rod Little, President and CEO of Edgewell, emphasized the company’s focus on margin recovery and sustainable shareholder value. He highlighted the Feminine Care divestiture as a “pivotal step” to sharpen focus on core categories, stating, “We exited the year with encouraging momentum—marked by improving sales and market share trends and a revitalized brand portfolio.” The CEO reiterated confidence in returning to organic growth, with accelerated progress anticipated in the second half of 2026.

Guidance

For fiscal 2026, Edgewell projects sales growth of 0.5% to 3.5%, with organic net sales expected to range from -1% to +2%. Adjusted EPS guidance is set between $2.15 and $2.55, below the $2.71 consensus. These targets exclude the impact of the Feminine Care sale, which is projected to reduce adjusted EPS by $0.40 to $0.50 annually.

Additional News

1. M&A Activity: Edgewell finalized a $340 million deal to sell its Feminine Care segment to Essity, with the transaction expected to close in Q1 2026. The move aims to streamline operations and strengthen financial flexibility.

2. Dividend Update: The company maintained its $0.15/share quarterly dividend, offering a forward yield of 4.4%, underscoring commitment to shareholder returns.

3. Insider Transactions: Several executives, including CFO Francesca Weissman, exercised stock options in late November, though no significant net purchases were reported.