Strong Free Cash Flow Generation
Generated $246.4M in free cash flow for fiscal '26, up ~1.3% year-over-year; company expects >= $250M in free cash flow for fiscal '27 and projects cumulative cash flow approaching $900M over the next 3 years (preliminary, excluding pending acquisitions).
Disciplined Capital Allocation and Shareholder Returns
Returned capital via >$150M in share repurchases in fiscal '26 and invested ~$110M in Pillar5 to secure eye care manufacturing; $90M+ of repurchase authorization remains; prioritizing brand investment, debt reduction, and M&A.
Margins and Profitability Resilience
Adjusted gross margin was 55.6% for fiscal '26, essentially flat versus prior year (55.8%); company maintained a low-30s EBITDA margin profile despite sales headwinds.
Completed and Announced Strategic Acquisitions
Acquired Pillar5 (Dec) to internalize eye care production; announced pending acquisitions of Breathe Right (expected >$125M revenue) and LaCorium (~$40M revenue). Breathe Right previously estimated to be ~+$0.25 EPS (annualized) and LaCorium expected to be neutral-to-slightly-accretive on close.
E-commerce and Brand Strength
E-commerce penetration reached ~18% with continued double-digit consumption growth; leading franchise performance highlighted (Fleet >50% market share; GI brands grew; Summer's Eve stabilized; Monistat held share despite category declines).
FY'27 Initial Guidance
Management guided fiscal '27 revenue $1.10B–$1.12B with organic growth ~1%–3%, adjusted EPS $4.42–$4.51, Q1 revenue ~ $250M and EPS ~$0.87, and gross margin expected roughly in line with fiscal '26.
Low Capital Expenditure Profile
Corporate model supports low capex (~1%–3% of sales); management expects ~ $25M capex for fiscal '27 even including Pillar5, preserving strong free cash flow conversion.
Medium-Term Growth Targets
Management expects catalysts (acquisitions + eye care recovery + international expansion) to target revenue CAGR approaching ~10% through fiscal '29 and EPS CAGR of ~8%+, with international footprint potentially approaching ~20% of sales.