Strong Free Cash Flow
Adjusted free cash flow of $171 million exceeded expectations, and strong free cash flow generation is expected to continue into fiscal 2026.
Balance Sheet Strength
The company ended the year with $124 million in cash, zero drawn on the revolver, and 1.58 turns of net leverage after returning approximately $375 million to shareholders.
Supply Chain Resilience
Chinese sourced products to the US market were reduced by nearly 50%. Further diversification is prioritized, with direct spend in China expected to be only $15-20 million by the end of fiscal 2026.
Pet Care and Home and Garden Business Growth
Both segments are expected to return to growth in 2026, with a strong innovation pipeline and expansion into adjacent categories.
Return to Growth Expected
Despite a 5% decline in net sales in fiscal 2025, the company expects net sales to be flat to up low single digits in fiscal 2026.