Spectrum Brands shares surge 10.05% intraday after Q1 results beat expectations, citing Global Pet Care growth and strong cash flow.

Spectrum Brands surged 10.05% intraday following the release of its fiscal 2026 first-quarter results, which exceeded expectations despite a 3.3% net sales decline. The company reported $29.4 million in net income and $62.6 million in Adjusted EBITDA, driven by cost improvements and strong performance in its Global Pet Care segment, which returned to growth. Management highlighted disciplined execution of strategic initiatives and reiterated guidance for low single-digit revenue and EBITDA growth, while authorizing a new $300 million share repurchase program. Strong cash flow generation ($67.7 million operating cash flow) and a net debt leverage ratio of 1.65x reinforced confidence in the company’s balance sheet and M&A capabilities. The positive earnings surprise and optimism around segment recovery and capital allocation underpinned the sharp intraday rally.