Overview
- Adjusted EPS for the fourth quarter was $1.05 versus the $1.12 consensus, while revenue rose 3.4% to $832.8 million and slightly beat estimates.
- Organic net sales declined 2.2% and volumes fell 2.9% on softer North American demand, partially offset by 0.7% pricing gains plus e-commerce and international growth.
- Adjusted gross margin contracted 370 basis points to 38.5% due to higher input and logistics costs, network rebalancing inefficiencies, and the lower-margin APS business.
- Guidance calls for first-quarter adjusted EPS of $0.20–$0.30 and a GAAP loss of $0.08–$0.09, with 2026 adjusted EPS forecast at $3.30–$3.60.
- Project Momentum is being extended into a fourth year after delivering over $200 million in savings, free cash flow for fiscal 2025 was $63.2 million, and shares fell about 19% in premarket trading.