Global Pet Care Returned to Growth
Reported net sales for Global Pet Care (GPC) increased 8.3% (ex-FX) with organic net sales up 5.8%. Companion animal sales grew high single digits and aquatics increased low double digits. GPC adjusted EBITDA was $49.0 million, and the business showed market share gains across key brands (Good & Fun, Dream Bone, Nature's Miracle, Furminator).
Adjusted EPS and Share Count Improvement
Adjusted diluted EPS increased to $1.40 for the quarter, driven by a one-time tax benefit and a reduced share count from repurchases (approx. 600,000 shares repurchased in the quarter; ~800,000 year-to-date for ~$42.3 million).
Strong Balance Sheet and Liquidity
Quarter-end cash balance of $126.6 million, $492.2 million available on the $500 million revolver, total debt ~$578.9 million, net debt ~$452.3 million, and net leverage of 1.65x (well below long-term targets).
Aggressive Share Repurchase Activity and Capital Return
Since the HHI transaction close, returned ~ $1.4 billion to shareholders via buybacks; repurchased almost 45% of share count since that close. Board authorized a new $300 million share repurchase program.
Cash Flow Generation and Free Cash Flow Conversion Target
Management reported strong first-quarter cash generation (transcript states nearly $660 million of adjusted free cash flow for Q1) and reiterated an expected adjusted free cash flow conversion of ~50% of adjusted EBITDA for fiscal 2026.
Reiterated Fiscal 2026 Framework and Operational Progress
Company reiterated FY26 guidance: net sales flat to up low single digits, adjusted EBITDA low single-digit growth, and progress on S4HANA ERP rollout with deployments complete in several regions/businesses. Management emphasized 'fewer, bigger, better' investment strategy and disciplined expense/working capital management.