Market Newsdesk

InfuSystem Announces Financial Results for First Quarter 2026

Net Revenues of $33.7 million Representing a 3% Reduction from the Prior Year

Net income of $1.0 million

Adjusted EBITDA (non-GAAP) of $6.4 million

Adjusted EBITDA (non-GAAP) margin expanded by 1% to 19%

Reaffirms Full-Year 2026 Guidance

ROCHESTER HILLS, Mich.–(BUSINESS WIRE)–InfuSystem Holdings, Inc. (NYSE American:INFU) (“InfuSystem” or the “Company”), a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, today reported financial results for the first quarter ended March 31, 2026.

2026 First Quarter Overview:

• Net revenues totaled $33.7 million, a decrease of 3% vs. prior year.
  • Patient Services net revenue was $22.1 million, an increase of 6% vs. prior year.

  • Device Solutions net revenue was $11.6 million, a decrease of 17% vs. prior year.

• Gross profit was $19.7 million, an increase of 3% vs. prior year.

• Gross margin was 58%, an increase of 3% vs. prior year.

• Net income was $1.0 million, or $0.05 per diluted share vs. prior year net loss of $0.3 million, or $0.01 per diluted share.

• Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) (non-GAAP) was $6.4 million, even with the prior year.

• Adjusted EBITDA margin was 18.9% an increase of 0.7% vs. prior year.

• Stock Repurchases totaled $856 thousand for the quarter.

• Company liquidity totaled $57.1 million, as of March 31, 2026.

Management Discussion

Carrie Lachance, Chief Executive Officer of InfuSystem commented, “Overall, we delivered a solid quarter that reflects both disciplined execution and meaningful strategic progress. While GAAP revenue declined modestly year over year to $33.7 million, that decline was expected and resulted from the strategic decision to restructure our GE Healthcare biomedical services contract. On a pro‑forma basis, net revenue grew 1.7%, and just as importantly, profitability held strong. We delivered $6.4 million of Adjusted EBITDA, essentially flat year over year, due to margins improving to 18.9%. As previously discussed, reducing revenue to improve our overall profitability was a deliberate and, we believe, value‑accretive decision. The restructuring reduced first‑quarter revenue by $1.6 million, but it enabled a significantly larger reduction in direct contract expenses. While GAAP revenue is lower, the economics of the business are better, and that’s clearly showing up in our Adjusted EBITDA performance.”

“Wound care continues to be an exciting growth engine for InfuSystem. First‑quarter net revenue reached $2.1 million, more than doubling year-over-year. While currently just 6% of total revenue, we believe the growth rate indicative of the new therapy’s potential. Roughly 60% of the year-over-year growth came from compression devices, which we began rolling out last year and expanded further this quarter. We initially introduced Pneumatic Compression Devices, which are highly effective at treating even the most high risk, chronic patient conditions. This quarter, we added Adjustable Compression Wraps, which are less complex and suitable for a much broader group of lymphedema patients. This significantly expands our addressable market and positions us well for sustained growth in the wound care category.”

“On March 1, 2026, after nearly two years of intense preparation, we successfully went live on our new ERP system. I would call this transformational. While implementations of this scale always come with early‑stage adjustments, the hardest part is behind us. This system completely changes how we operate. Our data is now integrated, workflows are connected, and processes are standardized across the business. The benefits span the entire organization. We expect improved productivity, better cost and margin visibility, stronger pricing insights, more efficient utilization of our medical device fleet, and improved working capital management. Just as important, the ERP gives us a scalable platform to support future growth. We’re already identifying enhancements that offer fast payback and high returns,” concluded Ms. Lachance.

2026 First Quarter Financial Review

Net revenues for the quarter ended March 31, 2026 (“2026 First Quarter”) were $33.7 million, a decrease of $1.0 million, or 3%, compared to $34.7 million for the quarter ended March 31, 2025 (“2025 First Quarter”). As we announced during our review of the 2025 third quarter, we restructured our largest biomedical services contract and, consequently, we started 2026 at a reduced revenue volume of $1.6 million, or 4.6%, for the 2026 First Quarter and $7.1 million, or 5.5% for the full year. This was a necessary change that has had an immediate favorable impact on our reported earnings and cash flows since we also achieved an even larger reduction in our expenses. After adjusting for this decrease, our pro-forma growth rate was 1.7% during the 2026 First Quarter as compared with the prior year period.

Patient Services net revenue of $22.1 million increased $1.3 million, or 6%, during the 2026 First Quarter compared to the 2025 First Quarter. This increase was primarily attributable to additional treatment volume in Oncology and Wound Care which were partially offset by a lower amount in Pain Management. The improved volume and collections benefited Oncology revenue by $0.4 million or 2.4%, and Wound Care treatment revenue by $1.1 million, or 116.0%. Pain Management revenue decreased by $0.2 million, or 15.1%. The Wound Care net revenues included sales of compression therapy devices stemming from two new supplier relationships which were added after the end of the three-month period of 2025. Sales for the first of these new supplier relationships, which include Pneumatic Compression Devices (PCD’s), started during the third quarter of 2025 and the second supplier relationship, which is a manufacturer of Adjustable Compression Wraps (ACW’s), began during the current period. On a combined basis, compression therapy devices represented over 60% of the growth in Wound Care.

Device Solutions net revenue of $11.6 million decreased $2.4 million, or 17%, during the 2026 First Quarter compared to the 2025 First Quarter. This decrease included a reduction in biomedical services revenue of $1.3 million, equipment rentals of $0.4 million and equipment sales of $1.0 million. These decreases were partially offset by an increase in disposable medical supplies of $0.3 million. A portion of the decrease in biomedical services revenue totaling $1.6 million reflected a reduction in the volume and service level of devices on contract with GE Healthcare which, as mentioned above, was restructured during the third quarter of 2025. These decreases were partially offset by additional volume with other customers. The decrease in rental revenue and the decreased equipment sales are both related to a large customer rental buyout that began in the 2025 First Quarter. The buyout elevated the amount of equipment sales in the prior year and reduced quarterly rental revenues during the subsequent quarters including the current quarter.

Gross profit of $19.7 million for the 2026 First Quarter increased $0.5 million, or 3%, from $19.2 million for the 2025 First Quarter. This increase was due to the increase in gross margin partially offset by the lower net revenues. Gross margin increased to 58.4% during the three-month period of 2026 compared to 55.2% during the same prior year period. Gross profit was higher in the Patient Services segment and lower in the Devices Solutions segments. Gross margin was higher for both segments.

Patient Services gross profit was $14.3 million during the 2026 First Quarter, representing an increase of $1.1 million, or 9%, compared to the 2025 First Quarter. The improvement reflected increased net revenue and a higher gross margin, which increased from the prior year by 1.3% to 64.8%. The increase in gross margin reflected lower pump disposal and maintenance expenses offset partially by unfavorable product mix favoring lower gross margin revenue categories. Pump disposal expenses include retirements of damaged pumps and reserves for missing pumps. Pump maintenance expenses include annual preventative maintenance certification and repairs and are performed by the Device Solutions segment. On a combined basis pump disposal and maintenance expenses decreased by $0.3 million during the 2026 First Quarter compared to the prior year period. The unfavorable gross margin mix was mainly related to the increase in revenue related to wound care treatments, which have lower average gross margin than other Patient Services revenue categories.

Device Solutions gross profit during the 2026 First Quarter was $5.4 million, representing an decrease of $0.6 million, or 10%, compared to the 2025 First Quarter. The decrease was due to the reduction in net revenue offset partially by an increase in gross margin. The Device Solutions gross margin was 46.3% during the current period, which was 3.4% higher than the same prior year period. This increase in gross margin was primarily due to the aforementioned restructuring of the biomedical services contract with GE Healthcare which resulted in reduced expenses greater than the related reduction in net revenue. Reduced contract expenses included a reduction in biomedical personnel, a reduced amount of medical device replacement parts and lower travel expenses. These impacts improved the gross margin for the device solutions segment by 7.2%. Additional gross margin improvements totaling 0.6% were achieved though ongoing initiatives focused on improved procurement costs of materials and increased biomedical productivity. These benefits in gross margin were partially offset by cost inflation impacts from increased employee wage rates and higher healthcare expenses, which on a combined basis, reduced the Device Solutions segment gross margin by 2.5%, and unfavorable product mix impacts disfavoring higher gross margin revenues, such as rental revenue and sales of used equipment, which reduced gross margin by 1.9%. Higher wages were the result of typical annual merit and cost of living increases, however, the increase in the cost of health care benefits were significantly higher than amounts experience in prior years.

Selling and marketing expenses for the 2026 First Quarter were $3.1 million, representing an increase of $0.1 million, or 3%, compared to selling and marketing expenses for the 2025 First Quarter. Selling and marketing expenses as a percentage of net revenues was 9.1% representing a increase from the prior year period amount of 8.6%. This increase reflected an increase in sales team headcount, increased travel expenses and inflationary impacts including an increase in employee healthcare expenses. These amounts were partially offset by a reduction in commission expenses.

General and administrative (“G&A”) expenses for the 2026 First Quarter were $14.8 million, a decrease of $0.5 million, or 3%, from the 2025 First Quarter. The amount for the three-month period of 2025 included a one-time accrued severance expense of $1.0 million for the Company’s outgoing CEO. Additional reductions included a $0.3 million reduction in the accrual for management bonuses, lower accounting fees totaling $0.2 million and $0.1 million in reduced travel expenses. These decreases were partially offset by increases in other expenses including; $0.4 million in increased expenses related to information technology and business applications upgrades including the replacement of the Company’s enterprise resource planning system (ERP), additional personnel directly related to the increased Patient Services net revenue including revenue cycle personnel totaling $0.3 million, a $0.1 million increase in stock-based compensation expenses and cost inflation impacts from increased employee wage rates and higher healthcare expenses totaling $0.4 million. The ERP system upgrade project expenses were higher during the current period due to a higher intensity of activities related to the go-live phase of the project which occurred on March 1, 2026. While additional costs are expected to be incurred during the post go-live phase to support system stabilization and enhancement activities, project expenses are expected to begin to taper down during future quarterly periods. Higher wages were the result of typical annual merit and cost of living increases, however, the increase in the cost of health care benefits were significantly higher than amounts experience in prior years. General and Administrative expenses as a percentage of net revenues for the three-month period of 2026 decreased to 43.9% compared to 44.1% for the same prior year period.

Net income for the 2026 First Quarter was $1.0 million, or $0.05 per diluted share, compared to a net loss of $0.3 million, or $0.01 per diluted share for the 2025 First Quarter.

Adjusted EBITDA, a non-GAAP measure, for the 2026 First Quarter was $6.4 million, or 18.9% of net revenue, and increased by $32 thousand compared to Adjusted EBITDA for the 2025 First Quarter of $6.3 million, or 18.2% of prior period net revenue.

Balance sheet, cash flows and liquidity

During the three-month period ended March 31, 2026, operating cash flow provided cash totaling $1.0 million compared with $1.8 million during the same period in 2025. The decrease reflected a higher increase in working capital during 2026. Capital expenditures, which include purchases of medical devices, totaled $1.8 million during the three-month period of 2026 which was $1.6 million, or 46%, lower than the amount purchased during the same prior year period reflecting revenue growth in business lines that are less capital intensive such as wound care and sales of disposable medical supplies. Also during the three-month period ended March 31, 2026, the Company repurchased $0.8 million of its Common Stock.

As of March 31, 2026, available liquidity totaled $57.1 million and consisted of $55.0 million in available borrowing capacity under the Company’s revolving line of credit plus cash and cash equivalents of $2.1 million. Net debt, a non-GAAP measure (calculated as total debt of $19.6 million less cash and cash equivalents of $2.1 million) as of March 31, 2026 was $17.5 million representing an increase of $1.1 million as compared to net debt of $16.4 million as of December 31, 2025 (calculated as total debt of $19.6 million less cash and cash equivalents of $3.2 million). Our ratio of Adjusted EBITDA to net debt (non-GAAP) for the last four quarters was 0.56 to 1.00 (calculated as net debt of $17.5 million divided by Adjusted EBITDA of $31.5 million).

Full Year 2026 Guidance

InfuSystem is reaffirming annual net revenue guidance for the full year 2026. After adjusting for the impact of the reduced revenue related to the GE Healthcare contract restructuring, pro-forma net revenue growth is estimated to be between 6% to 8% for 2026. We also are continuing to forecast Adjusted EBITDA margin (non-GAAP) to be in the mid to low 20%’s. This includes the implementation expenses for the Company’s upgraded information technology systems which went on-line on March 1, 2026. The Company intends to continue to update its annual guidance throughout the year.

The full year 2026 guidance reflects management’s current expectations for operational performance, given the current market conditions. This includes our best estimate of revenue and Adjusted EBITDA. The Company and its businesses are subject to certain risks, including those risk factors discussed in our most recent Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 27, 2026. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.

Conference Call

The Company will conduct a conference call for all interested investors on Thursday, May 7, 2026, at 9:00 a.m. Eastern Time to discuss its first quarter 2026 financial results. The call will include discussion of Company developments, forward-looking statements and other material information about business and financial matters.

To participate in this call, please dial (833) 366-1127 or (412) 902-6773, or listen via a live webcast, which is available in the Investors section of the Company’s website at https://ir.infusystem.com/. A replay of the call will be available by visiting https://ir.infusystem.com/ or by calling (855) 669-9658 or (412) 317-0088, replay access code 1097864, through August 7, 2026.

Non-GAAP Measures

This press release contains information prepared in conformity with GAAP as well as non-GAAP financial information. Non-GAAP financial measures presented in this press release include EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, net debt and Adjusted EBITDA to net debt ratio. The Company believes that the non-GAAP financial measures presented in this press release provide useful information to the Company’s management, investors and other interested parties about the Company’s operating performance because they allow them to understand and compare the Company’s operating results during the current periods to the prior year periods in a more consistent manner. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP, and similarly titled non-GAAP measures may be calculated differently by other companies. The Company calculates those non-GAAP measures by adjusting for non-recurring or non-core items that are not part of the normal course of business. A reconciliation of those measures to the most directly comparable GAAP measures is provided in the accompanying schedule, titled “GAAP to Non-GAAP Reconciliation” below. Future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the accompanying schedule below. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as non-core, nonrecurring, unusual or unanticipated changes, expenses or gains or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP guidance to the most comparable GAAP measures and, therefore, such comparable GAAP measures and reconciliations are excluded from this release in reliance upon applicable SEC staff guidance.

About InfuSystem Holdings, Inc.

InfuSystem Holdings, Inc. (NYSE American:INFU), is a leading national healthcare service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The first platform is Patient Services, providing last-mile solutions for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The Patient Services segment is comprised of Oncology, Pain Management and Wound Therapy businesses. The second platform, Device Solutions, supports the Patient Services platform and leverages strong service orientation to win incremental business from its direct payer clients. The Device Solutions segment is comprised of direct payer rentals, pump and consumable sales, and biomedical services and repair. Headquartered in Rochester Hills, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Massachusetts, Texas and Ontario, Canada.

Forward-Looking Statements

The financial results in this press release reflect preliminary results, which are not final until the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2026 is filed. In addition, certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to future actions, our share repurchase program and capital allocation strategy, business plans, strategic partnerships, growth initiatives, objectives and prospects, future operating or financial performance, guidance and expected new business relationships and the terms thereof (including estimated potential revenue under new or existing contracts). The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “goal,” “expect,” “strategy,” “future,” “likely,” variations of such words, and other similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Forward-looking statements are subject to factors, risks and uncertainties that could cause actual results to differ materially, including, but not limited to, our ability to successfully execute on our growth initiatives and strategic partnerships, our ability to enter into definitive agreements for the new business relationships on expected terms or at all, our ability to generate estimated potential revenue amounts under new or existing contracts, the uncertain impact of disruptions caused by public health emergencies or extreme weather or other climate change-related events, our dependence on estimates of collectible revenue, potential litigation, changes in third-party reimbursement processes, changes in law, global financial conditions and recessionary risks, rising inflation and interest rates, supply chain disruptions, systemic pressures in the banking sector, including disruptions to credit markets, the Company’s ability to remediate any material weaknesses in internal control over financial reporting, contributions from acquired businesses or new business lines, products or services and other risk factors disclosed in the Company’s most recent Annual Report on Form 10-K and, to the extent applicable, quarterly reports on Form 10-Q. Our strategic partnerships are subject to similar factors, risks and uncertainties. All forward-looking statements made in this press release speak only as of the date hereof. We do not undertake any obligation to update any forward-looking statements to reflect future events or circumstances, except as required by law.

Additional information about InfuSystem Holdings, Inc. is available at www.infusystem.com.

FINANCIAL TABLES FOLLOW

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended March 31,
(in thousands, except share and per share data)		2026				2025
Net revenues	$	33,684			$	34,716
Cost of revenues		14,002				15,549
Gross profit		19,682				19,167
Selling, general and administrative expenses:
Amortization of intangibles		209				248
Selling and marketing		3,080				2,985
General and administrative		14,803				15,316
Total selling, general and administrative		18,092				18,549
Operating income		1,590				618
Other expense:
Interest expense		(255	)			(336	)
Other income (expense)		82				(29	)
Income before income taxes		1,417				253
Provision for income taxes		(400	)			(520	)
Net income (loss)	$	1,017			$	(267	)
Net income (loss) per share:
Basic	$	0.05			$	(0.01	)
Diluted	$	0.05			$	(0.01	)
Weighted average shares outstanding:
Basic		20,211,045				21,125,019
Diluted		20,893,767				21,125,019

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

SEGMENT REPORTING

(UNAUDITED)

		Three Months Ended March 31,								Better/ (Worse)
(in thousands)			2026				2025
Net revenues:
Patient Services		$	22,105			$	20,774			$	1,331
Device Solutions			13,221				15,824				(2,603	)
Less: elimination of inter-segment revenues (a)			(1,642	)			(1,882	)			240
Total Device Solutions			11,579				13,942				(2,363	)
Total			33,684				34,716				(1,032	)
Gross profit:
Patient Services			14,323				13,185				1,138
Device Solutions			5,359				5,982				(623	)
Total		$	19,682			$	19,167			$	515

(a)

Inter-segment allocations are for cleaning and repair services performed on medical equipment.

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(UNAUDITED)

NET INCOME TO EBITDA, ADJUSTED EBITDA, NET INCOME MARGIN, ADJUSTED EBITDA MARGIN AND NET REVENUE GROWTH RATE TO PRO FORMA REVENUE GROWTH RATE:

		Three Months Ended March 31,
(in thousands)			2026				2025
GAAP net income (loss)		$	1,017			$	(267	)
Adjustments:
Interest expense			255				336
Income tax provision			400				520
Depreciation			3,045				3,072
Amortization			209				248
Non-GAAP EBITDA		$	4,926			$	3,909
Stock compensation costs			1,233				1,108
Medical equipment reserve and disposals (1)			187				222
Management reorganization/transition costs (2)			—				1,028
Certain other non-recurring costs			9				56
Non-GAAP Adjusted EBITDA		$	6,355			$	6,323
GAAP Net Revenues		$	33,684			$	34,716
Net Revenue Growth from Prior Year			(3.0	)%
Pro-Forma Net Revenue Adjustment (3)		$	—			$	(1,605	)
Non-GAAP Pro-Forma Net Revenue		$	33,684			$	33,111
Non-GAAP Pro-Forma Net Revenue Growth from Prior Year			1.7	%
Net Income Margin (4)			3.0	%			(0.8	)%
Non-GAAP Adjusted EBITDA Margin (5)			18.9	%			18.2	%
Business Application (“ERP”) Upgrade Investment (6)		$	883			$	466

(1)		Amounts represent a non-cash (benefit) expense recorded to adjust the reserve for missing medical equipment and is being added back due to its similarity to depreciation.
(2)		Includes severance compensation for the outgoing CEO totaling $1.0 million.
(3)		Amount represents effect on net revenue related to a restructuring of a Biomedical Services Contract which took effect on January 1, 2026. Net revenue adjustment amount for 2025 presents the impact as though the change in the contract had occurred on January 1, 2025.
(4)		Net Income Margin is defined as GAAP Net Income as a percentage of GAAP Net Revenues.
(5)		Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA as a percentage of GAAP Net Revenues.
(6)		Represents expenses associated with a project to upgrade the Company’s information technology and business applications including a replacement of our main enterprise resource planning (“ERP”) application. The project was launched during the second quarter of 2024 and was completed during the first quarter of 2026. Amounts are included in GAAP net income and have not been added back in the measurement of Non-GAAP Adjusted EBITDA.

 

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

		As of
(in thousands, except par value and share data)		March 31, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	2,106			$	3,186
Accounts receivable, net			23,980				22,901
Inventories, net			5,832				5,391
Other current assets			4,744				4,858
Total current assets			36,662				36,336
Medical equipment for sale or rental			3,669				4,589
Medical equipment in rental service, net of accumulated depreciation			34,255				34,456
Property & equipment, net of accumulated depreciation			3,217				3,359
Goodwill			3,710				3,710
Intangible assets, net			6,656				6,866
Operating lease right of use assets			3,844				4,178
Deferred income taxes			4,232				4,640
Derivative financial instruments			766				748
Other assets			1,646				1,678
Total assets		$	98,657			$	100,560
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	9,632			$	10,821
Other current liabilities			7,510				9,361
Total current liabilities			17,142				20,182
Long-term debt			19,646				19,625
Operating lease liabilities, net of current portion			3,120				3,427
Total liabilities			39,908				43,234
Stockholders’ equity:
Preferred stock, $0.0001 par value: authorized 1,000,000 shares; none issued			—				—
Common stock, $0.0001 par value: authorized 200,000,000 shares; 20,178,890 issued and outstanding as of March 31, 2026 and 20,209,636 issued and outstanding as of December 31, 2025			2				2
Additional paid-in capital			118,713				117,461
Accumulated other comprehensive income			575				565
Retained deficit			(60,541	)			(60,702	)
Total stockholders’ equity			58,749				57,326
Total liabilities and stockholders’ equity		$	98,657			$	100,560

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Three Months Ended March 31,
(in thousands)			2026				2025
OPERATING ACTIVITIES
Net income (loss)		$	1,017			$	(267	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for doubtful accounts			69				45
Depreciation			3,044				3,072
Loss on disposal of and reserve adjustments for medical equipment			202				257
Loss (gain) on sale of medical equipment			123				(838	)
Amortization of intangible assets			209				248
Amortization of deferred debt issuance costs			21				19
Stock-based compensation			1,233				1,108
Deferred income taxes			400				520
Changes in assets – (increase)/decrease:
Accounts receivable			(2,250	)			(2,095	)
Inventories			(203	)			433
Other current assets			(130	)			126
Other assets			563				729
Changes in liabilities – (decrease)/increase:
Accounts payable and other liabilities			(3,328	)			(1,577	)
NET CASH PROVIDED BY OPERATING ACTIVITIES			970				1,780
INVESTING ACTIVITIES
Purchase of medical equipment			(1,680	)			(3,284	)
Purchase of property and equipment			(157	)			(131	)
Proceeds from sale of medical equipment, property and equipment			577				754
NET CASH USED IN INVESTING ACTIVITIES			(1,260	)			(2,661	)
FINANCING ACTIVITIES
Principal payments on long-term debt			(6,145	)			(14,407	)
Cash proceeds from long-term debt			6,145				19,231
Common stock repurchased as part of share repurchase program			(809	)			(2,895	)
Common stock repurchased to satisfy statutory withholding on employee stock-based compensation plans			(165	)			(228	)
Cash proceeds from exercise of options and ESPP			184				159
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES			(790	)			1,860
Net change in cash and cash equivalents			(1,080	)			979
Cash and cash equivalents, beginning of period			3,186				527
Cash and cash equivalents, end of period		$	2,106			$	1,506

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507062705/en/

Barry Steele

Chief Financial Officer

(248) 260-2211

KEYWORDS: Michigan United States North America

INDUSTRY KEYWORDS: Health Hospitals Practice Management Other Health Managed Care General Health

MEDIA:

Logo

Spectrum Brands Holdings Reports Fiscal 2026 Second Quarter Results

• Second Quarter Net Sales Increased 4.9% and Organic Net Sales Excluding Foreign Exchange Increased 1.5%
• Second Quarter Net Income From Continuing Operations of $22.5 Million and Adjusted EBITDA of $84.0 Million Increased by $20.7 Million and $12.7 Million, Respectively
• Ended Second Quarter with Net Debt Leverage of 1.66x Adjusted EBITDA
• Executed a Strategic Partnership in the Home and Personal Care Segment, Designed to Accelerate Long Term Growth of the Business
• Updating Fiscal 2026 Framework, Continue to Expect Net Sales to be Flat to Up Low Single Digits and Approximately 50% Conversion of Adjusted EBITDA to Adjusted Free Cash Flow; Adjusted EBITDA is Now Expected to be Up Low to Mid Single Digits

MIDDLETON, Wis.–(BUSINESS WIRE)–
Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or the “Company”), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, today reported results from continuing operations for the second quarter of fiscal 2026 ended March 29, 2026.

“We are pleased with our results this quarter, where we returned to top-line growth for the first time since first quarter of fiscal 2025. Our key brands across Global Pet Care and Home & Garden continue to outperform the market driven by strong innovation and distribution gains. In Home & Personal Care, while net sales declined, adjusted EBITDA increased, demonstrating the positive impact of the actions taken over the past year. These results continue to reinforce the effectiveness of our strategic initiatives and the strength of our team. Looking forward, while we remain focused on the dynamic macroeconomic environment, our first half results represent meaningful progress for the full fiscal year. We are updating our earnings framework and increasing our Adjusted EBITDA expectation to low to mid single digit growth while maintaining our net sales expectation of flat to low single digit growth in fiscal 26,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

Mr. Maura continued, “On the strategic front, following quarter close, we entered into a partnership with Oaktree Capital Management on our Home & Personal Care business. The transaction includes a strategic $127 million cash investment from Oaktree Capital in the form of preferred equity and debt, and we will continue to own approximately 73% of the Appliances business. Upon closing, which is expected to occur later this month, the HPC subsidiaries will be designated as unrestricted subsidiaries with their own capital structure that is non-recourse to Spectrum Brands Holdings. We believe that a partnership with Oaktree Capital, who has a strong track record in disciplined capital allocation, validates our vision for creating value in our Appliances business through both organic and inorganic growth initiatives. Importantly, this transaction represents a meaningful step in our previously announced strategy of separating the HPC business from our Pet and Home & Garden businesses.”

Fiscal 2026 SecondQuarter Highlights

		Three Month Periods Ended
(in millions, except per share and %)		March 29, 2026				March 30, 2025				Variance
Net sales		$	708.9			$	675.7			$	33.2		4.9	%
Gross profit			270.3				253.4				16.9		6.7	%
Gross profit margin			38.1	%			37.5	%			60	bps
Operating income			43.5				19.5				24.0		123.1	%
Net income from continuing operations			22.5				1.8				20.7		n/m
Net income from continuing operations margin			3.2	%			0.3	%			290	bps
Diluted earnings per share from continuing operations		$	0.96			$	0.06			$	0.90		n/m
Non-GAAP Operating Metrics
Adjusted EBITDA from continuing operations		$	84.0			$	71.3				12.7		17.8	%
Adjusted EBITDA margin			11.8	%			10.6	%			120	bps
Adjusted EPS from continuing operations		$	1.25			$	0.68			$	0.57		83.8	%

• Net sales increased 4.9% with an increase in organic net sales of 1.5%, which excludes the impact of $22.9 million of favorable foreign exchange rates. The net sales increase was primarily due to strong performance in Global Pet Care and Home and Garden with market share gains across key brands. External factors including favorable weather and strategic order accelerations by certain retailers also contributed. This was partially offset by consumer demand softness in Home and Personal Care across both North America and Europe.

• Gross profit and margin increased driven by pricing, cost improvement actions, and favorable foreign exchange partially offset by higher trade spend and higher tariff cost.

• Operating income increased due to the increase in gross profit and lower operating expenses.

• Net income from continuing operations and diluted earnings per share increased driven by higher operating income. Diluted earnings per share also benefited from a lower share count.

• Adjusted EBITDA increased 17.8% and adjusted EBITDA margin increased 120 basis points driven by improved gross margins.

• Adjusted diluted EPS increased to $1.25 due to higher adjusted EBITDA and a reduction to shares outstanding.

Fiscal 2026 Second Quarter Segment Level Data

Global Pet Care (GPC)

		Three Month Periods Ended
(in millions, except %)		March 29, 2026				March 30, 2025				Variance
Net sales		$	299.3			$	269.2			$	30.1		11.2	%
Adjusted EBITDA			56.8				50.0				6.8		13.6	%
Adjusted EBITDA margin			19.0	%			18.6	%			40	bps

Net sales increased 11.2%. Excluding favorable foreign currency impacts, organic net sales increased 7.6%. Reported net sales in Companion Animal increased low double digits while sales in Aquatics increased mid single digits. North American net sales increased primarily driven by market share gains across Companion Animal brands and E-commerce channel strength. Organic net sales in EMEA increased across both categories due to continued brand strength and expanded distribution as well as a strategic acceleration of orders by certain retailers in advance of the SAP S4/HANA ERP implementation.

Adjusted EBITDA of $56.8 million increased from $50.0 million in the prior year, and adjusted EBITDA margins were 19.0% compared to 18.6% in the prior year. The increase in adjusted EBITDA and margin is due to higher sales volume, pricing and cost improvement actions partially offset by higher tariff cost and additional trade and investment spend.

Home & Garden (H&G)

		Three Month Periods Ended
(in millions, except %)		March 29, 2026				March 30, 2025				Variance
Net sales		$	169.5			$	152.3			$	17.2		11.3	%
Adjusted EBITDA			34.8				26.7				8.1		30.3	%
Adjusted EBITDA margin			20.5	%			17.5	%			300	bps

Net sales increased 11.3% and organic net sales increased 11.2% due to favorable weather conditions positively impacting POS and retailer order patterns, with above-market growth across key brands.

Adjusted EBITDA of $34.8 million increased from $26.7 million in the prior year and adjusted EBITDA margins of 20.5% increased from 17.5% in the prior year primarily due to higher sales volume, productivity improvements and operational efficiencies partially offset by higher trade spend and unfavorable mix.

Home & Personal Care (HPC)

		Three Month Periods Ended
(in millions, except %)		March 29, 2026				March 30, 2025				Variance
Net sales		$	240.1			$	254.2			$	(14.1	)		(5.5	)%
Adjusted EBITDA			8.1				7.3				0.8			11.0	%
Adjusted EBITDA margin			3.4	%			2.9	%			50	bps

Net sales decreased 5.5%. Excluding favorable foreign currency impacts, organic net sales decreased 10.7%. Reported net sales in Personal Care were down low single digits and net sales in Home Appliances were down high single digits. Excluding the favorable impact of foreign currency, organic net sales in EMEA declined across both Home Appliances and Personal Care, impacted by elevated levels of inventory at a key retailer following soft consumer demand amid increased competition. LATAM organic net sales increased mid single digits due to sustained growth in Personal Care. North American net sales percent declined in the mid teens, primarily driven by lower volumes in light of increased product cost from higher tariffs and customer inventory management actions to address pockets of excess inventory.

Adjusted EBITDA was $8.1 million compared to $7.3 million in the prior year, and adjusted EBITDA margins increased to 3.4% compared to 2.9% last year, driven by pricing, reduced investment spend, cost improvement initiatives and favorable foreign exchange partially offset by lower volumes and higher tariff costs.

Liquidity and Debt

As of the end of the quarter, the Company had a cash balance of $125.1 million and total liquidity of $595.9 million, including undrawn capacity on its cash flow revolver of $470.8 million. The Company also had $599.7 million of debt outstanding, with $24.0 million of outstanding borrowings on the revolver, senior unsecured notes of $496.1 million and finance leases of $79.6 million. The Company ended the quarter with net debt of $474.6 million.

Fiscal 2026 Earnings Framework

The Company expects to deliver flat to low single digit growth in reported net sales in fiscal 2026. Fiscal 2026 adjusted EBITDA is expected to increase by low single digits. Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA.

The Company continues to target a long-term net leverage ratio of 2.0 – 2.5 times.

Conference Call/Webcast Scheduled for 9:00 A.M. Eastern Time Today

Spectrum Brands will host an earnings conference call and webcast at 9:00 a.m. Eastern Time today, May 7, 2026. The live webcast and related presentation slides will be available by visiting the Event Calendar page in the Investor Relations section of Spectrum Brands’ website at www.spectrumbrands.com. Participants may register here. Instructions will be provided to ensure the necessary audio applications are downloaded and installed. Users can obtain these at no charge.

A replay of the live broadcast will be accessible through the Event Calendar page in the Investor Relations section of the Company’s website.

About Spectrum Brands Holdings, Inc.

Spectrum Brands is a home-essentials company with a mission to make living better at home. We focus on delivering innovative products and solutions to consumers for use in and around the home through our trusted brands. We are a leading supplier of specialty pet supplies, lawn and garden and home pest control products, personal insect repellents, shaving and grooming products, personal care products, and small household appliances. Helping to meet the needs of consumers worldwide, we offer a broad portfolio of market-leading, well-known and widely trusted brands including Tetra®, DreamBone®, SmartBones®, Nature’s Miracle®, 8-in-1®, FURminator®, Healthy-Hide®, Good Boy®, Meowee!®, OmegaOne®, Spectracide®, Cutter®, Repel®, Hot Shot®, Rejuvenate®, Black Flag®, Liquid Fence®, Remington®, George Foreman®, Russell Hobbs®, Black + Decker®, PowerXL®, Emeril Lagasse®, and Copper Chef®. For more information, please visit www.spectrumbrands.com.Spectrum Brands – A Home Essentials Company™

Non-GAAP Measurements

Our consolidated results contain non-GAAP metrics such as organic net sales, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow. While we believe organic net sales and adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and adjusted Free Cash Flow are useful supplemental information, such adjusted results are not intended to replace our financial results in accordance with Accounting Principles Generally Accepted in the United States (“GAAP”) and should be read in conjunction with those GAAP results.

Organic Net Sales – We define organic net sales as net sales excluding the effect of changes in foreign currency exchange rates and impact from acquisitions (where applicable). We believe this non-GAAP measure provides useful information to investors because it reflects regional and operating segment performance from our activities without the effect of changes in currency exchange rates and acquisitions. We use organic net sales as one measure to monitor and evaluate our regional and segment performance. Organic growth is calculated by comparing organic net sales to net sales in the prior year. The effect of changes in currency exchange rates is determined by translating the current period net sales using the currency exchange rates that were in effect during the prior comparative period. Net sales are attributed to the geographic regions based on the country of destination. We exclude net sales from acquired businesses in the current year for which there are no comparable sales in the prior period.

Adjusted EBITDA and Adjusted EBITDA Margin – Adjusted EBITDA and adjusted EBITDA margin are non-GAAP metrics used by management, which we believe are useful to investors to measure the operational strength and performance of our business. These metrics provide investors additional information about our operating profitability for certain non-cash items, non-routine items we do not expect to continue at the same level in the future, as well as other items not core to our continuing operations. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives, as securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. They facilitate comparisons between peer companies since interest, taxes, depreciation, and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA is also used for determining compliance with the Company’s debt covenants. EBITDA is calculated by excluding the Company’s income tax expense, interest expense, depreciation expense and amortization expense (from intangible assets) from net income from continuing operations. Adjusted EBITDA also excludes certain non-cash adjustments including share based compensation; impairment charges on property, plant and equipment, right of use lease assets, and goodwill and other intangible assets; gain or loss from the early extinguishment of debt; and purchase accounting adjustments recognized in income subsequent to an acquisition attributable to the step-up in value on assets acquired. Additionally, the Company will further recognize adjustments from adjusted EBITDA for other costs, gains and losses that are considered significant, non-recurring, or otherwise not supporting the continuing operations and revenue generating activity of the segment or Company, including but not limited to, exit and disposal activities, or incremental costs associated with strategic transactions, restructuring and optimization initiatives such as the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure the Company and its operations. Adjusted EBITDA margin is adjusted EBITDA as a percentage of reported net sales.

Adjusted EPS – Management uses adjusted EPS as one means of analyzing the Company’s current and future financial performance and identifying trends in its financial condition and results of operations. Management believes that adjusted EPS is a useful measure for providing further insight into our operating performance because it eliminates the effects of certain items that are not comparable from one period to the next. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives, as securities analysts and other interested parties use such calculations as a measure of financial performance, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. Adjusted EPS is calculated by excluding the effect of certain adjustments from diluted EPS, including non-cash adjustments including impairment charges on property, plant and equipment, operating and finance lease assets, and goodwill and other intangible assets; gain or loss from the early extinguishment of debt; and purchase accounting adjustments recognized in income subsequent to an acquisition attributable to the step-up in value on assets acquired. Additionally, the Company will further recognize adjustments from diluted EPS for other costs, gains and losses that are considered significant, non-recurring, or otherwise not supporting the continuing operations and revenue generating activity of the segment or Company, including but not limited to, exit and disposal activities, or incremental costs associated with strategic transactions, restructuring and optimization initiatives such as the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure the Company and its operations. Adjusted EPS is further impacted by the effect on the income tax provision from adjustments made to reported diluted EPS.

Adjusted Free Cash Flow – Management uses adjusted free cash flow as a means of analyzing the Company’s operating results and evaluating cash flow generation from its revenue generating activities, excluding certain cash flow activity associated with strategic transactions and other costs and receipts attributable to non-recurring events. Management believes that adjusted free cash flow is a useful measure in understanding cash flow conversion associated with the Company’s operations that is available for acquisitions and other investments, service of debt, dividends and share repurchases and meetings its working capital requirements. By providing these measures, together with a reconciliation of the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business, as well as assisting investors in evaluating how well we are generating cash flow from operations, as securities analysts and other interested parties use such calculations as a measure of financial performance, and they are regularly used by management and our Board of Directors for internal purposes in evaluating our business performance, making budgeting decisions, and comparing our performance against other peer companies using similar measures. Free cash flow is calculated by excluding capital expenditures from cash flow provided (used) by operating activities and further adjusted for non-operating strategic transaction costs and other non-recurring or unusual cash flow activity that would otherwise be considered operating cash flow under US GAAP. Cash flow conversion is adjusted free cash flow as a percentage of adjusted EBITDA.

The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results. Other Supplemental Information has been provided to demonstrate reconciliation of non-GAAP measurements discussed above to most relevant GAAP financial measurements.

Forward-Looking Statements

We have made or implied certain forward-looking statements in this document. Statements or expectations regarding our business and M&A strategy, macroeconomic headwinds, U.S. trade policy, our use of share repurchase plans, ERP platform transformation and productivity expectations, evaluating acquisition targets and entering into strategic partnerships, earnings framework, future operations and operating model, financial condition, estimated revenues, projected costs, inventory management, supply chain and supply chain relocation efforts, earnings power, project synergies, prospects, plans and strategic objectives of management, the geopolitical environment, and information concerning expected actions of third parties are forward-looking statements. When used in this report, the words future, anticipate, pro forma, seek, intend, plan, envision, estimate, believe, belief, expect, project, forecast, outlook, earnings framework, goal, target, could, would, will, can, should, may and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

Because these forward-looking statements are based upon our current expectations of future events and projections and are subject to a number of risks and uncertainties, many of which are beyond our control and some of which may change rapidly, actual results or outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance on these statements. Important factors that could cause our actual results to differ materially from those expressed or implied herein include, without limitation: (1) the economic, social and political conditions, civil unrest, terrorist attacks, acts of war, natural disasters or other public health concerns in the U.S. or the international markets that impact our business, customers, employees (including our ability to retain and attract key personnel), manufacturing facilities, suppliers, capital markets or financial condition and results of operations, which may amplify the other risks and uncertainties we face; (2) the number of local, regional and global uncertainties could negatively impact our business; (3) the negative effect of the Russia-Ukraine war, the Israel-Hamas war, and the U.S.-Iran war and their impact on those regions and surrounding regions, including the Middle East and disruptions to international trade, supply chain and shipping routes and pricing, and on our operations and those operations of our customers, suppliers and other stakeholders; (4) our reliance on third-party partners, suppliers and distributors that are outside our control to achieve our business objectives; (5) the impact of government intervention with or influence on the operations of our suppliers, including in China; (6) the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring and optimization activities, including changes in inventory and distribution center changes which are complicated and involve coordination among a number of stakeholders, including our suppliers and transportation and logistics handlers; (7) the impact of our indebtedness and financial leverage position on our business, financial condition and results of operations; (8) the impact of restrictions in our debt instruments on our ability to operate our business, finance our capital needs or pursue or expand business strategies; (9) any failure to comply with financial covenants and other provisions and restrictions of our debt instruments; (10) the effects of interest rate fluctuations or general economic conditions, including the impact of, uncertainty around and changes to, tariffs and trade policies, including the tariffs and trade agreements announced by the Trump Administration in 2025, the tariff refunds announced in 2026 and any further changes and that may be announced in the future, tariff mitigation efforts (including supply chain relocation efforts), inflation, recession or fears of a recession, depression or fears of a depression, labor costs and stock market volatility or monetary or fiscal policies in the countries where we do business; (11) the impact of fluctuations in transportation and shipment costs, fuel costs, commodity prices, costs or availability of raw materials or terms and conditions available from suppliers, including suppliers’ willingness to advance credit; (12) changes in foreign currency exchange rates that may impact our purchasing power, pricing and margin realization within international jurisdictions; (13) the loss of, significant reduction in, or dependence upon, sales to any significant retail customer(s), including their changes in retail inventory levels and management thereof; (14) competitive promotional activity or spending by competitors, or price reductions by competitors; (15) the introduction of new product features or technological developments by competitors and/or the development of new competitors or competitive brands, including via private label manufacturers; (16) changes in consumer spending preferences, shopping trends, and demand for our products, particularly in light of economic stress; (17) our ability to develop and successfully introduce new products, protect intellectual property and avoid infringing the intellectual property of third parties; (18) our ability to successfully identify, implement, achieve and sustain productivity improvements, cost efficiencies (including at our manufacturing and distribution operations) and cost savings; (19) the seasonal nature of sales of certain of our products; (20) the impact weather conditions may have on the sales of certain of our products; (21) our ability to respond to unusual weather activity, natural disasters and pandemics; (22) the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection regulations); (23) our ability to use social media platforms as effective marketing tools and to manage negative commentary regarding us, and the impact of rules governing the use of e-commerce and social media; (24) public perception regarding the safety of products that we manufacture and sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties; (25) the impact of existing, pending or threatened litigation, government regulation or other requirements or operating standards applicable to our business; (26) the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data, including our failure to comply with new and increasingly complex global data privacy regulations; (27) changes in accounting policies applicable to our business; (28) our discretion to adopt, conduct, suspend or discontinue any share repurchase program or conduct any debt repayments, redemptions, repurchases or refinancing transactions (including our discretion to conduct purchases or repurchases, if any, in a variety of manners including open-market purchases, privately negotiated transactions, tender offers, redemptions, or otherwise); (29) our ability to utilize net operating loss carry-forwards to offset tax liabilities; (30) our ability to separate the Company’s HPC business and create an independent Global Appliances business on expected terms, and within the anticipated time period, or at all, and to realize the potential benefits of such business; (31) our ability to create a pure play consumer products company composed of our GPC and H&G businesses and to realize the expected benefits of such creation, and within the anticipated time period, or at all; (32) our ability to successfully implement and realize the benefits of acquisitions or dispositions and the impact of any such transactions on our financial performance; (33) the impact of actions taken by significant shareholders; (34) the unanticipated loss of key members of senior management and the transition of new members of our management teams to their new roles; and (35) the other risk factors set forth in Spectrum Brands Holdings, Inc. 2025 Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and the other filings within the U.S. Securities and Exchange Commission (the “SEC”).

Some of the above-mentioned factors are described in further detail in the sections entitled Risk Factors in our annual and quarterly reports (including this report), as applicable. You should assume the information appearing in this report is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since that date. Except as required by applicable law, including the securities laws of the U.S. and the rules and regulations of the SEC, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three Month Periods Ended								Six Month Periods Ended
(in millions, except per share amounts)		March 29, 2026				March 30, 2025				March 29, 2026				March 30, 2025
Net sales		$	708.9			$	675.7			$	1,385.9			$	1,375.9
Cost of goods sold			438.6				422.3				874.0				864.7
Gross profit			270.3				253.4				511.9				511.2
Selling, general & administrative			226.8				218.2				441.3				431.3
Impairment of intangible assets			—				15.7				—				15.7
Total operating expenses			226.8				233.9				441.3				447.0
Operating income			43.5				19.5				70.6				64.2
Interest expense			7.3				7.5				14.1				13.7
Interest income			(0.5	)			(0.4	)			(1.1	)			(3.0	)
Other non-operating (income) expense, net			(0.1	)			1.0				0.3				5.7
Income from continuing operations before income taxes			36.8				11.4				57.3				47.8
Income tax expense			14.3				9.6				5.4				21.4
Net income from continuing operations			22.5				1.8				51.9				26.4
Loss from discontinued operations, net of tax			(0.4	)			(0.6	)			(1.4	)			(1.4	)
Net income			22.1				1.2				50.5				25.0
Net income from continuing operations attributable to non-controlling interest			—				0.3				—				0.6
Net income attributable to controlling interest		$	22.1			$	0.9			$	50.5			$	24.4
Amounts attributable to controlling interest
Net income from continuing operations attributable to controlling interest		$	22.5			$	1.5			$	51.9			$	25.8
Loss from discontinued operations attributable to controlling interest, net of tax			(0.4	)			(0.6	)			(1.4	)			(1.4	)
Net income attributable to controlling interest		$	22.1			$	0.9			$	50.5			$	24.4
Earnings Per Share
Basic earnings per share from continuing operations		$	0.97			$	0.06			$	2.22			$	0.96
Basic earnings per share from discontinued operations			(0.02	)			(0.03	)			(0.06	)			(0.06	)
Basic earnings per share		$	0.95			$	0.03			$	2.16			$	0.90
Diluted earnings per share from continuing operations		$	0.96			$	0.06			$	2.22			$	0.95
Diluted earnings per share from discontinued operations			(0.02	)			(0.03	)			(0.06	)			(0.05	)
Diluted earnings per share		$	0.94			$	0.03			$	2.16			$	0.90
Weighted Average Shares Outstanding
Basic			23.2				26.1				23.3				27.0
Diluted			23.3				26.2				23.4				27.1

SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
		Six Month Periods Ended
(in millions)		March 29, 2026				March 30, 2025
Cash flows from operating activities
Net cash provided (used) by operating activities from continuing operations		$	77.9			$	(48.6	)
Net cash used by operating activities from discontinued operations			(0.3	)			(0.7	)
Net cash provided (used) by operating activities			77.6				(49.3	)
Cash flows from investing activities
Purchases of property, plant and equipment			(17.4	)			(15.1	)
Other investing activity			—				(0.1	)
Net cash used by investing activities			(17.4	)			(15.2	)
Cash flows from financing activities
Payment of debt and debt premium			(6.2	)			(5.1	)
Proceeds from issuance of debt			24.0				83.0
Payment of debt issuance costs			—				(0.1	)
Dividends paid to shareholders			(21.8	)			(25.3	)
Dividends paid by subsidiary to non-controlling interest			—				(0.7	)
Treasury stock purchases			(42.3	)			(232.8	)
Excise tax paid on net share repurchases			(3.2	)			(9.7	)
Share based award tax withholding payments, net of proceeds upon vesting			(8.5	)			(4.4	)
Other financing activity			—				0.1
Net cash used by financing activities			(58.0	)			(195.0	)
Effect of exchange rate changes on cash and cash equivalents			(0.8	)			(12.8	)
Net change in cash, cash equivalents and restricted cash			1.4				(272.3	)
Cash, cash equivalents, and restricted cash, beginning of period			127.2				370.5
Cash, cash equivalents, and restricted cash, end of period		$	128.6			$	98.2

SPECTRUM BRANDS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
(in millions)		March 29, 2026			September 30, 2025
Assets
Cash and cash equivalents		$	125.1		$	123.6
Trade receivables, net			560.5			521.7
Other receivables			58.9			50.9
Inventories			487.1			446.1
Prepaid expenses and other current assets			40.3			41.9
Total current assets			1,271.9			1,184.2
Property, plant and equipment, net			242.5			255.0
Operating lease assets			118.6			73.5
Deferred charges and other			61.2			62.5
Goodwill			865.4			866.8
Intangible assets, net			914.3			937.6
Total assets		$	3,473.9		$	3,379.6
Liabilities and Shareholders’ Equity
Current portion of long-term debt		$	12.0		$	11.7
Accounts payable			348.7			283.7
Accrued wages and salaries			42.8			50.2
Accrued interest			4.9			4.5
Income tax payable			17.2			21.2
Short-term operating lease liabilities			20.9			31.8
Other current liabilities			107.8			120.1
Total current liabilities			554.3			523.2
Long-term debt, net of current portion			575.9			556.2
Long-term operating lease liabilities			116.7			54.5
Deferred income taxes			136.8			136.6
Uncertain tax benefit obligation			171.9			180.3
Other long-term liabilities			17.6			19.1
Total liabilities			1,573.2			1,469.9
Shareholders’ equity			1,900.7			1,909.7
Total liabilities and shareholders’ equity		$	3,473.9		$	3,379.6

SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
NET SALES AND ORGANIC NET SALES
The following is a summary of net sales by segment for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
(in millions, except %)		Three Month Periods Ended													Six Month Periods Ended
		March 29, 2026			March 30, 2025			Variance							March 29, 2026			March 30, 2025			Variance
GPC		$	299.3		$	269.2		$	30.1			11.2	%		$	580.9		$	529.2		$	51.7			9.8	%
H&G			169.5			152.3			17.2			11.3	%			243.4			244.4			(1.0	)		(0.4	)%
HPC			240.1			254.2			(14.1	)		(5.5	)%			561.6			602.3			(40.7	)		(6.8	)%
Net Sales		$	708.9		$	675.7			33.2			4.9	%		$	1,385.9		$	1,375.9			10.0			0.7	%

The following is a reconciliation of reported sales to organic sales for the three and six month periods ended March 29, 2026 compared to reported net sales for the three and six month periods ended March 30, 2025, respectively.
		March 29, 2026										Net Sales March 30, 2025
Three Month Periods Ended (in millions, except %)		Net Sales			Effect of Changes in Foreign Currency				Organic Net Sales						Variance
GPC		$	299.3		$	(9.7	)		$	289.6		$	269.2		$	20.4			7.6	%
H&G			169.5			(0.1	)			169.4			152.3			17.1			11.2	%
HPC			240.1			(13.1	)			227.0			254.2			(27.2	)		(10.7	)%
Total		$	708.9		$	(22.9	)		$	686.0		$	675.7			10.3			1.5	%
		March 29, 2026										Net Sales March 30, 2025
Six Month Periods Ended (in millions, except %)		Net Sales			Effect of Changes in Foreign Currency				Organic Net Sales						Variance
GPC		$	580.9		$	(16.1	)		$	564.8		$	529.2		$	35.6			6.7	%
H&G			243.4			(0.1	)			243.3			244.4			(1.1	)		(0.5	)%
HPC			561.6			(25.2	)			536.4			602.3			(65.9	)		(10.9	)%
Total		$	1,385.9		$	(41.4	)		$	1,344.5		$	1,375.9			(31.4	)		(2.3	)%

SPECTRUM BRANDS HOLDINGS, INC. OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED EBITDAANDADJUSTED EBITDA MARGIN
The following is a reconciliation of reported net income from continuing operations to adjusted EBITDA and adjusted EBITDA margin for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
		Three Month Periods Ended								Six Month Periods Ended
(in millions, except %)		March 29, 2026				March 30, 2025				March 29, 2026				March 30, 2025
Net income from continuing operations		$	22.5			$	1.8				51.9				26.4
Income tax expense			14.3				9.6				5.4				21.4
Interest expense			7.3				7.5				14.1				13.7
Depreciation			13.9				14.0				29.5				28.0
Amortization			10.3				10.5				20.5				21.0
Share based compensation			6.0				5.2				10.3				9.9
Non-cash impairment charges			—				15.7				0.5				15.7
Exit and disposal costs			3.8				3.5				4.9				4.0
Global ERP transformation1			2.4				2.3				4.8				4.8
Litigation costs2			0.7				0.8				1.6				1.6
Other3			2.8				0.4				3.1				2.6
Adjusted EBITDA		$	84.0			$	71.3			$	146.6			$	149.1
Net sales		$	708.9			$	675.7			$	1,385.9			$	1,375.9
Net income from continuing operations margin			3.2	%			0.3	%			3.7	%			1.9	%
Adjusted EBITDA margin			11.8	%			10.6	%			10.6	%			10.8	%

____________________
1	Costs attributable to a multi-year transformation project to upgrade and implement our enterprise-wide operating systems to SAP S/4 HANA on a global basis, including project management and professional services for planning, design, and business process review that do not qualify as software configuration and implementation costs recognized as capital expenditures or deferred costs under applicable accounting principles. The Company had recently extended the project to include its HPC segment and anticipates costs to be incurred through further deployments through calendar year 2026.
2	Litigation costs are associated with the Company’s cost to facilitate various ongoing litigation matters associated with the Tristar Business acquisition in Fiscal 2023, previously disclosed in our 2025 Annual Report. Such costs are anticipated to be incurred until such litigation matters have been resolved.
3	Other is attributable to other project costs associated with previous strategic separation initiatives and distribution center transitions, plus certain non-recurring key executive severance costs in the prior year.

SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED DILUTED EPS
The following is a reconciliation of reported diluted EPS from continuing operations to adjusted diluted EPS from continuing operations for the three and six month periods ended March 29, 2026 and March 30, 2025, respectively.
		Three Month Periods Ended								Six Month Periods Ended
(per share amounts)		March 29, 2026				March 30, 2025				March 29, 2026				March 30, 2025
Diluted EPS from continuing operations		$	0.96			$	0.06			$	2.22			$	0.95
Adjustments:
Non-cash impairment charges			—				0.60				0.02				0.58
Exit and disposal costs			0.16				0.14				0.21				0.15
Global ERP transformation1			0.11				0.09				0.20				0.18
Litigation costs2			0.03				0.03				0.07				0.05
Other3			0.11				0.01				0.13				0.10
Pre-tax adjustments			0.41				0.87				0.63				1.06
Tax impact of adjustments4			(0.12	)			(0.25	)			(0.20	)			(0.30	)
Net adjustments			0.29				0.62				0.43				0.76
Diluted EPS from continuing operations, as adjusted		$	1.25			$	0.68			$	2.65			$	1.71

____________________
1	Costs attributable to a multi-year transformation project to upgrade and implement our enterprise-wide operating systems to SAP S/4 HANA on a global basis, including project management and professional services for planning, design, and business process review that do not qualify as software configuration and implementation costs recognized as capital expenditures or deferred costs under applicable accounting principles. The Company had recently extended the project to include its HPC segment and anticipates costs to be incurred through further deployments through calendar year 2026.
2	Litigation costs are associated with the Company’s cost to facilitate various ongoing litigation matters associated with the Tristar Business acquisition in Fiscal 2023, previously disclosed in our 2025 Annual Report. Such costs are anticipated to be incurred until such litigation matters have been resolved.
3	Other is attributable to other project costs associated with previous strategic separation initiatives and distribution center transitions, plus certain non-recurring key executive severance costs in the prior year.
4	Income tax adjustment reflects the impact on the income tax provision from the adjustments to diluted EPS.

SPECTRUM BRANDS HOLDINGS, INC.
OTHER SUPPLEMENTAL INFORMATION (Unaudited)
ADJUSTED FREE CASH FLOW
The following is a reconciliation of reported operating cash flow from continuing operations to adjusted free cash flow for the six month periods ended March 29, 2026 and March 30, 2025, respectively.
		Six Month Periods Ended
(in millions)		March 29, 2026				March 30, 2025
Net cash provided by operating activities from continuing operations		$	77.9			$	(48.6	)
Purchases of property, plant and equipment			(17.4	)			(15.1	)
Free cash flow			60.5				(63.7	)
Deal transaction costs1			—				5.9
Other2			0.1				(0.6	)
Adjusted free cash flow		$	60.6			$	(58.4	)

____________________
1	Incremental cash flow attributable to certain strategic transactions including previous separation initiatives.
2	Other is attributable to restricted cash balances which are considered a component of operating cash flow under US GAAP.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506157622/en/

Investor/Media Contact:

Jen Schultz 314-253-5923

KEYWORDS: Wisconsin United States North America

INDUSTRY KEYWORDS: Department Stores Other Retail Pets Specialty Home Goods Consumer Retail Supply Chain Management Online Retail

MEDIA:

Logo

Vontier Reports First Quarter Results and Reaffirms Full Year 2026 Guidance

First Quarter 2026 Results

• Sales of $750.6 million, up 1.3% vs. prior year; Core sales up 1.7% year-over-year

• GAAP diluted net EPS of $0.66; Adjusted diluted net EPS of $0.80

• Operating cash flow was $46.5 million; Adjusted free cash flow was $28.0 million, representing 25% adjusted free cash flow conversion

2026 Outlook

• Initiates Q2 2026 guidance for adjusted diluted net EPS of $0.78 to $0.81

• Reaffirms FY 2026 guidance for adjusted diluted net EPS of $3.35 to $3.50

RALEIGH, N.C.–(BUSINESS WIRE)–
Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced results for the first quarter ended April 3, 2026.

Reported sales in the first quarter increased 1.3% year-over-year to $750.6 million. Core sales increased 1.7% led by strong demand for convenience retail solutions including fueling and environmental systems and payment technologies. Operating profit of $134.8 million increased 3.6% from the prior year, and operating profit margin increased approximately 40 basis points, to 18.0%. Adjusted operating profit of $157.6 million decreased 1.9% from the prior year and adjusted operating profit margin decreased 70 basis points to 21.0%. Net earnings were $94.3 million, and adjusted net earnings were $113.6 million, resulting in GAAP diluted net earnings per share of $0.66 and adjusted diluted net earnings per share of $0.80.

“Vontier delivered solid Sales and Order growth to start the year, and we continue to see meaningful momentum in our Convenience Retail end market, reinforcing our confidence in the growth opportunity ahead,” said Mark Morelli, President and Chief Executive Officer. “Demand trends across our most important end markets remain constructive, and we are confident in our outlook for the full year. We are focused on disciplined execution and capital allocation as we work to deliver strong full-year performance and long-term shareholder value.”

Segment Results

Environmental & Fueling Solutions	Q1 2026	Q1 2025	Change
Sales ($M)	$344.8	$329.8	4.5%
Segment Operating Profit ($M)	$101.9	$97.5	4.5%
Segment Operating Profit Margin	29.6%	29.6%	flat

Environmental & Fueling Solutions reported sales increased 4.5% versus the prior year. Core sales increased 6.1%, led by strong demand for fuel dispensing equipment and aftermarket parts. Segment operating profit margin was flat on benefits from volume leverage and ongoing simplification initiatives, offset by unfavorable mix.

Mobility Technologies	Q1 2026	Q1 2025	Change
Sales(a)($M)	$269.3	$270.5	(0.4)%
Segment Operating Profit ($M)	$44.7	$51.9	(13.9)%
Segment Operating Profit Margin	16.6%	19.2%	-260bps
(a) Includes $16.4 million and $12.2 million of intersegment sales for Q1 2026 and Q1 2025, respectively, that are eliminated in consolidation.

Mobility Technologies reported sales decreased 0.4% versus the prior year. Core sales decreased 1.2% year-over-year, on strong demand for convenience retail payment and point-of-sale technologies, offset by lower shipments of vehicle identification solutions versus the prior year. Segment operating profit margin declined 260 basis points year-over-year as ongoing simplification initiatives were more than offset by higher R&D expense and unfavorable mix.

Repair Solutions	Q1 2026	Q1 2025	Change
Sales ($M)	$152.9	$153.0	(0.1)%
Segment Operating Profit ($M)	$30.4	$33.2	(8.4)%
Segment Operating Profit Margin	19.9%	21.7%	-180bps

Repair Solutionsreported and coresales declined 0.1% versus the prior year. Sales at Repair Solutions held flat as growth initiatives helped offset macroeconomic pressures impacting service technicians’ discretionary spending. Segment operating profit margin declined 180 basis points on unfavorable mix and a reserve for bad debt.

Other Items

• Announced an agreement to divest a majority of Teletrac Navman for a purchase price that values the business at $220 million.

• Repurchased 1.8 million shares for $70 million during the quarter

• Refinanced $500 million bond maturity; Repaid $200 million using cash on hand and refinanced the remaining $300 million with a 364-day term loan

• Net leverage ratio ended Q1 at 2.4X

2026 Outlook

• Underlying fundamentals in previous guidance unchanged; Total Sales and Adjusted Operating Margin revised to reflect the impact of the Teletrac divestiture (expected to close in early June)

• Total sales of $2,990 to $3,040 million (including $110 million headwind from divestiture); Core sales growth midpoint of approximately 3%

• Adjusted operating profit margin expansion midpoint of approximately 130bps year-over-year (including 50 basis point tailwind from divestiture)

• Adjusted diluted net EPS in the range of $3.35 to $3.50

• Adjusted free cash flow conversion of approximately 95%

Q2 2026 Outlook

• Total sales of $730 to $740 million (including $15 million headwind from divestiture); Core sales growth down approximately 1%

• Adjusted operating profit margin expansion of approximately 80 basis points (including 20 basis point tailwind from divestiture)

• Adjusted diluted net EPS in the range of $0.78 to $0.81 (including $0.01 headwind from divestiture)

Conference Call Details

Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:30 a.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Vontier’s website, www.vontier.com, under “Events & Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

The call can be accessed via webcast or by dialing +1 800-549-8228, along with the conference ID: 57509. A replay of the webcast will be available at the same location shortly after the conclusion of the presentation, or by dialing +1 888-660-6264, along with the passcode 57509 or under the “Investors” section of the Vontier website under “Events & Presentations.”

ABOUT VONTIER

Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier powers the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references “core sales growth,” “adjusted operating profit,” “adjusted operating profit margin,” “adjusted net earnings,” “adjusted diluted net earnings per share,” “free cash flow,” “adjusted free cash flow”, “adjusted free cash flow conversion,” “EBITDA,” “adjusted EBITDA,” “net debt,” and “net leverage ratio” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Vontier in this release may be different from similarly-titled non-GAAP measures used by other companies.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated sales growth, anticipated adjusted operating margin expansion, anticipated adjusted net earnings per share, anticipated adjusted cash flow conversion, and anticipated earnings growth, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, changes in U.S. and international geopolitics, including trade policies, volatility in financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental policies and regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with changes in applicable laws and regulations, risks relating to global economic, political, war or hostility, public health, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025. These forward-looking statements represent Vontier’s beliefs and assumptions only as of the date of this release and Vontier does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) (unaudited)
	April 3, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	233.8			$	492.2
Accounts receivable, net		529.6				527.4
Inventories		341.5				326.5
Prepaid expenses and other current assets		161.8				145.7
Total current assets		1,266.7				1,491.8
Property, plant and equipment, net		135.3				129.5
Operating lease right-of-use assets		33.4				34.4
Long-term financing receivables, net		288.0				285.0
Other intangible assets, net		395.4				412.4
Goodwill		1,757.0				1,757.6
Other assets		255.5				258.1
Total assets	$	4,131.3			$	4,368.8
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	305.6			$	502.2
Trade accounts payable		366.8				361.6
Current operating lease liabilities		13.8				14.3
Accrued expenses and other current liabilities		344.8				410.4
Total current liabilities		1,031.0				1,288.5
Long-term operating lease liabilities		24.0				24.8
Long-term debt		1,594.7				1,594.2
Other long-term liabilities		216.1				210.1
Total liabilities		2,865.8				3,117.6
Commitments and Contingencies
Equity:
Preferred stock		—				—
Common stock		—				—
Treasury stock		(1,000.3	)			(929.8	)
Additional paid-in capital		111.1				111.7
Retained earnings		2,021.3				1,930.5
Accumulated other comprehensive income		126.5				131.8
Total Vontier stockholders’ equity		1,258.6				1,244.2
Noncontrolling interests		6.9				7.0
Total equity		1,265.5				1,251.2
Total liabilities and equity	$	4,131.3			$	4,368.8

VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share amounts) (unaudited)
	Three Months Ended
	April 3, 2026				March 28, 2025
Sales	$	750.6			$	741.1
Operating costs and expenses:
Cost of sales, excluding amortization of acquisition-related intangible assets		(398.3	)			(390.9	)
Selling, general and administrative expenses		(159.0	)			(160.3	)
Research and development expenses		(41.4	)			(40.2	)
Amortization of acquisition-related intangible assets		(17.1	)			(19.6	)
Operating profit		134.8				130.1
Non-operating income (expense), net:
Interest expense, net		(13.7	)			(15.1	)
Other non-operating expense, net		—				(3.9	)
Earnings before income taxes		121.1				111.1
Provision for income taxes		(26.8	)			(23.2	)
Net earnings	$	94.3			$	87.9
Net earnings per share:
Basic	$	0.67			$	0.59
Diluted	$	0.66			$	0.59
Weighted average shares outstanding:
Basic		141.8				149.0
Diluted		142.5				149.5

VONTIER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited)
	Three Months Ended
	April 3, 2026				March 28, 2025
Cash flows from operating activities:
Net earnings	$	94.3			$	87.9
Non-cash items:
Depreciation expense		14.8				12.9
Amortization of acquisition-related intangible assets		17.1				19.6
Stock-based compensation expense		7.7				7.5
Change in deferred income taxes		4.3				(5.7	)
Other non-cash items		0.4				11.0
Change in accounts receivable and long-term financing receivables, net		(7.3	)			3.3
Change in other operating assets and liabilities		(84.8	)			(26.1	)
Net cash provided by operating activities		46.5				110.4
Cash flows from investing activities:
Payments for additions to property, plant and equipment		(21.7	)			(17.7	)
Cash paid for equity investments		(0.3	)			—
Proceeds from sale of equity investments		1.0				—
Net cash used in investing activities		(21.0	)			(17.7	)
Cash flows from financing activities:
Proceeds from issuance of short-term debt		300.0				—
Proceeds from issuance of long-term debt		—				83.3
Repayment of long-term debt		(500.0	)			(133.3	)
Net proceeds from short-term borrowings		3.6				—
Payments for debt issuance costs		(0.4	)			(2.3	)
Payments of common stock cash dividend		(3.5	)			(3.7	)
Purchases of treasury stock		(70.0	)			(55.0	)
Proceeds from stock option exercises		2.2				1.9
Other financing activities		(13.1	)			(10.6	)
Net cash used in financing activities		(281.2	)			(119.7	)
Effect of exchange rate changes on cash and cash equivalents		(2.7	)			4.2
Net change in cash and cash equivalents		(258.4	)			(22.8	)
Beginning balance of cash and cash equivalents		492.2				356.4
Ending balance of cash and cash equivalents	$	233.8			$	333.6

VONTIER CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL SUMMARY (in millions) (unaudited)
	Three Months Ended
	April 3, 2026				March 28, 2025
Sales
Environmental & Fueling Solutions	$	344.8			$	329.8
Mobility Technologies		269.3				270.5
Repair Solutions		152.9				153.0
Intersegment eliminations		(16.4	)			(12.2	)
Total Vontier Sales	$	750.6			$	741.1
Segment Operating Profit
Environmental & Fueling Solutions	$	101.9			$	97.5
Mobility Technologies		44.7				51.9
Repair Solutions		30.4				33.2
Segment Operating Profit Margin
Environmental & Fueling Solutions		29.6	%			29.6	%
Mobility Technologies		16.6	%			19.2	%
Repair Solutions		19.9	%			21.7	%
Operating Profit & Adjusted Operating Profit
Operating Profit (GAAP)	$	134.8			$	130.1
Operating Profit Margin (GAAP)		18.0	%			17.6	%
Adjusted Operating Profit (Non-GAAP)	$	157.6			$	160.6
Adjusted Operating Profit Margin (Non-GAAP)		21.0	%			21.7	%

VONTIER CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

AND OTHER INFORMATION

Core Sales Growth

We define core sales growth as the change in total sales calculated according to GAAP but excluding (i) sales from acquired and certain divested businesses; (ii) the impact of currency translation; and (iii) certain other items.

• References to sales attributable to acquisitions or acquired businesses refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested or exited businesses or product lines not considered discontinued operations.

• The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales (excluding sales from acquired businesses) and (b) the period-to-period change in sales, including foreign operations, (excluding sales from acquired businesses) after applying the current period foreign exchange rates to the prior year period.

• The portion of sales attributable to other items is calculated as the impact of those items which are not directly correlated to core sales which do not have an impact on the current or comparable period.

Core sales growth should be considered in addition to, and not as a replacement for or superior to, total sales, and may not be comparable to similarly titled measures reported by other companies.

Management believes that reporting the non-GAAP financial measure of core sales growth provides useful information to investors by helping identify underlying growth trends in our business and facilitating easier comparisons of our sales performance with our performance in prior and future periods and to our peers. We exclude the effect of acquisitions and certain divestiture-related items because the nature, size and number of such transactions can vary dramatically from period to period and between us and our peers. We exclude the effect of currency translation and certain other items from core sales because these items are either not under management’s control or relate to items not directly correlated to core sales growth. Management believes the exclusion of these items from core sales growth may facilitate assessment of underlying business trends and may assist in comparisons of long-term performance.

Adjusted Operating Profit and Adjusted Operating Profit Margin

Adjusted operating profit refers to operating profit calculated in accordance with GAAP, but excluding amortization of acquisition-related intangible assets, costs associated with restructurings including one-time termination benefits and related charges and impairment and other charges associated with facility closure, contract termination and other related activities, and the related impact of certain divested or exited businesses or product lines not considered discontinued operations (“Restructuring- and divestiture-related adjustments”), transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, and other charges which represent charges incurred that are not part of our core operating results (“Other charges”). Adjusted operating profit margin refers to adjusted operating profit divided by GAAP sales.

Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share

Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments, including the tax effect of these adjustments and other tax adjustments. The tax effect of such adjustments was calculated by applying our estimated adjusted effective tax rate to the pretax amount of each adjustment. Adjusted diluted net earnings per share refers to adjusted net earnings divided by the weighted average diluted shares outstanding.

Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion

Free cash flow refers to cash flow from operations calculated according to GAAP but excluding capital expenditures. Adjusted free cash flow refers to free cash flow adjusted for cash received from the sale of property, plant and equipment and cash paid for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs and Other charges. Adjusted free cash flow conversion refers to adjusted free cash flow divided by adjusted net earnings.

Net Leverage Ratio, EBITDA and Adjusted EBITDA

EBITDA refers to net earnings calculated in accordance with GAAP, excluding interest, taxes, depreciation and amortization of acquisition-related intangible assets. Adjusted EBITDA refers to EBITDA adjusted for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments. Net leverage ratio refers to net debt divided by Adjusted EBITDA.

Management believes that these non-GAAP financial measures provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our profitability to prior and future periods and to our peers.

These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

A reconciliation of each of the projected Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings Per Share and Adjusted Free Cash Flow Conversion, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.

Components of Sales Growth

	% Change Three Months Ended April 3, 2026 vs. Comparable 2025 Period
	Environmental & Fueling Solutions		Mobility Technologies		Repair Solutions		Total
Total Sales Growth (GAAP)	4.5%		(0.4)%		(0.1)%		1.3%
Core sales growth (Non-GAAP)	6.1%		(1.2)%		(0.1)%		1.7%
Acquisitions and divestitures (Non-GAAP)	(3.5)%		(1.5)%		—%		(2.1)%
Currency exchange rates (Non-GAAP)	1.9%		2.3%		—%		1.7%

Reconciliation of Operating Profit to Adjusted Operating Profit

	Three Months Ended
$ in millions	April 3, 2026				March 28, 2025
Operating Profit (GAAP)	$	134.8			$	130.1
Amortization of acquisition-related intangible assets		17.1				19.6
Restructuring- and divestiture-related adjustments		4.8				10.9
Transaction- and deal-related costs		0.7				0.9
Asbestos-related adjustments		0.2				(0.7	)
Other charges		—				(0.2	)
Adjusted Operating Profit (Non-GAAP)	$	157.6			$	160.6
Operating Profit Margin (GAAP)		18.0	%			17.6	%
Adjusted Operating Profit Margin (Non-GAAP)		21.0	%			21.7	%

Reconciliation of Net Earnings to Adjusted Net Earnings

	Three Months Ended
($ in millions)	April 3, 2026				March 28, 2025
Net Earnings (GAAP)	$	94.3			$	87.9
Amortization of acquisition-related intangible assets		17.1				19.6
Restructuring- and divestiture-related adjustments		4.8				10.9
Transaction- and deal-related costs		0.7				0.9
Asbestos-related adjustments		0.2				(0.7	)
Other charges		0.3				(0.2	)
Non-cash write-off of deferred financing costs		—				0.2
(Gain) loss on equity investments		(0.4	)			3.6
Tax effect of the Non-GAAP adjustments and other tax adjustments		(3.4	)			(7.3	)
Adjusted Net Earnings (Non-GAAP)	$	113.6			$	114.9
Diluted weighted average shares outstanding		142.5				149.5
Diluted Net Earnings Per Share (GAAP)	$	0.66			$	0.59
Adjusted Diluted Net Earnings Per Share (Non-GAAP)	$	0.80			$	0.77

Reconciliation of Operating Cash Flow to Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Conversion

	Three Months Ended
($ in millions)	April 3, 2026				March 28, 2025
Operating Cash Flow (GAAP)	$	46.5			$	110.4
Less: Purchases of property, plant & equipment (capital expenditures)		(21.7	)			(17.7	)
Free Cash Flow (Non-GAAP)	$	24.8			$	92.7
Restructuring- and divestiture-related adjustments		2.5				2.1
Transaction- and deal-related costs		0.7				0.8
Adjusted Free Cash Flow (Non-GAAP)	$	28.0			$	95.6
Adjusted Net Earnings (Non-GAAP)	$	113.6			$	114.9
Adjusted Free Cash Flow Conversion (Non-GAAP)		24.6	%			83.2	%

Net Leverage Ratio and Reconciliation from Net Earnings to EBITDA to Adjusted EBITDA

Total Debt	$	1,906.0
Less: Cash		(233.8	)
Net Debt	$	1,672.2
Adjusted EBITDA (Non-GAAP)	$	705.9
Net Leverage Ratio		2.4

		Three Months Ended				LTM
($ in millions)		April 3, 2026				April 3, 2026
Net Earnings (GAAP)		$	94.3			$	412.5
Interest expense, net			13.7				58.4
Income tax expense			26.8				105.7
Depreciation and amortization expense			31.9				124.6
EBITDA (Non-GAAP)		$	166.7			$	701.2
Restructuring- and divestiture-related adjustments			4.8				11.4
Transaction- and deal-related costs			0.7				3.3
Asbestos-related adjustments			0.2				0.6
Other charges			0.3				(0.9	)
Gain on sale of businesses			—				(3.5	)
Gain on equity investments			(0.4	)			(6.2	)
Adjusted EBITDA (Non-GAAP)		$	172.3			$	705.9

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507370392/en/

INVESTOR RELATIONS:

Ryan Edelman

Vice President, Investor Relations

+1 (984) 238-1929

[email protected]

KEYWORDS: North Carolina United States North America

INDUSTRY KEYWORDS: Software Vehicle Technology Machinery Machine Tools, Metalworking & Metallurgy Fleet Management IOT (Internet of Things) General Automotive Aftermarket Technology Automotive Satellite Manufacturing

MEDIA:

Logo