Executive Summary

Q2 FY2025 was resilient on margins but softer on top-line: revenue $580.7M (-3.1% YoY), adjusted EPS $0.87 (-$0.01 YoY), and adjusted EBITDA $99.3M, with gross margin +100 bps YoY to 44.1% .
Miss vs consensus: revenue $580.7M vs $590.1M*, adjusted EPS $0.87 vs $0.91*; EBITDA reported at $99.3M vs $97.2M*; softness concentrated in North America Sun Care and Fem Care .
FY2025 guidance lowered: organic sales now flat to +1% (from +1% to +3%), adjusted EPS $2.85–$3.05 (from $3.15–$3.35), adjusted EBITDA $329–$341M (from $356–$368M), FCF $130–$140M (from $185M), reflecting tougher consumption, incremental Q3 brand investments, and ~$3–$4M tariff headwinds .
Management leaned into Q3 with incremental A&P (~~$7M) and total investment (~~$15M) behind Hawaiian Tropic and Women’s Shave to restore North America momentum; near-term catalysts: Q3 margins guided down (~100 bps GM, ~230 bps op margin) as spend/tariffs flow through .

What Went Well and What Went Wrong

What Went Well
- Gross margin accretion: GAAP gross margin +100 bps YoY to 44.1% on ~380 bps productivity savings; adjusted GM +100 bps (+110 bps at constant currency) .
- International strength: organic growth +2.9% in Q2; 12th growth quarter in last 13 with double-digit Greater China and mid-single-digit Japan/Europe; Wet Shave international grew and market shares improved .
- Segment profitability: Wet Shave segment profit +15.3% YoY; Billie share gains in Women’s systems (e.g., ~15% at Walmart, ~14% at Target) signal brand vitality .
- Quote: “Accelerated productivity savings…underpinned another quarter of meaningful year-on-year gross margin accretion” – CEO Rod Little .
What Went Wrong
- Top-line softness: organic net sales -1.5% as North America declined 3.9% on volume in Wet Shave, Fem Care, and Sun Care; GAAP EPS down to $0.60 from $0.72 .
- Fem Care pressure: segment profit -64.4% YoY; pads/tampons declines with ongoing transition from Stayfree to Carefree taking longer than planned .
- Guidance cuts: adjusted EPS, adjusted EBITDA, gross/operating margin accretion all revised down; FCF cut to $130–$140M on lower earnings and tariff-related inventory builds .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$517.6	$478.4	$580.7
GAAP EPS ($)	$0.17	$(0.04)	$0.60
Adjusted EPS ($)	$0.72	$0.07	$0.87
Gross Margin % (GAAP)	41.1%	40.1%	44.1%
Gross Margin % (Adjusted)	42.6%	40.1%	44.7%
Operating Margin % (GAAP)	3.9%	4.2%	10.1%
Operating Margin % (Adjusted)	10.8%	5.6%	13.2%
Adjusted EBITDA ($USD Millions)	$78.9	$45.9	$99.3

Segment breakdown – Net Sales

Segment Net Sales ($USD Millions)	Q4 2024	Q1 2025	Q2 2025
Wet Shave	$318.2	$294.5	$285.5
Sun and Skin Care	$132.7	$120.6	$231.1
Feminine Care	$66.7	$63.3	$64.1
Total	$517.6	$478.4	$580.7

Segment breakdown – Segment Profit

Segment Profit ($USD Millions)	Q4 2024	Q1 2025	Q2 2025
Wet Shave	$62.2	$46.6	$46.6
Sun and Skin Care	$14.0	$(3.4)	$50.8
Feminine Care	$6.2	$3.2	$3.1
Total Segment Profit	$82.4	$46.4	$100.5

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
A&P Expense ($MM) / % of Sales	$44.1 / 8.5%	$50.3 / 10.5%	$65.5 / 11.3%
SG&A % (GAAP) / Adjusted %	21.1% / 20.5%	21.5% / 21.2%	18.2% / 18.0%
Cash & Equivalents ($MM)	$209.1	$175.5	$170.1
Net Debt ($MM)	$1,090.4	$1,292.3	$1,290.2
Net Debt Leverage (x)	3.1x	3.8x	3.8x
Adjusted EBITDA ($MM)	$78.9	$45.9	$99.3

Consensus vs actual (Q2 2025)

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$580.7	$590.1*	-$9.4
Adjusted EPS ($)	$0.87	$0.91*	-$0.04

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic Net Sales Growth	FY2025	+1% to +3%	Flat to +1%	Lowered
GAAP EPS	FY2025	$2.54–$2.74	$2.09–$2.29	Lowered
Adjusted EPS	FY2025	Toward lower end $3.15–$3.35	$2.85–$3.05	Lowered
Adjusted Gross Margin Δ (reported)	FY2025	+55 bps (90 bps at cc)	+10 bps (70 bps at cc)	Lowered
Adjusted Operating Margin Δ (reported)	FY2025	+10 bps (50 bps at cc)	~-65 bps (10 bps at cc)	Lowered
Adjusted EBITDA ($MM)	FY2025	$356–$368 (toward lower end)	$329–$341	Lowered
Other Expense (Income), net ($MM)	FY2025	+$1 (income)	-$3 (expense)	Lowered
Interest Expense ($MM)	FY2025	~$74	~$74	Maintained
Adjusted Effective Tax Rate	FY2025	~22%	~20%	Lowered
Depreciation & Amortization ($MM)	FY2025	~$89	~$87	Lowered
Capex (% of Sales)	FY2025	2.5%–3.0%	2.5%–3.0%	Maintained
Free Cash Flow ($MM)	FY2025	~$185	~$130–$140	Lowered
Tariffs (COGS impact)	FY2025	Not included	~$3–$4M included	New headwind

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 & Q1’25)	Current Period (Q2’25)	Trend
Tariffs/macro	FX headwinds raised; outlook revised primarily for currency (Q1) ; macro cautious but categories healthy (Q1) .	Tariffs contemplated: ~$3–$4M in-year COGS (mostly Q4); annualized exposure ~3%–4% of COGS (1.5–2 pts margin); mitigation via sourcing/productivity/possible pricing .	Headwinds intensifying; mitigation underway.
Supply chain/operations	Wet Ones plant fire lapped; service levels improving (Q1) .	Strong service/OTIF; productivity savings 380 bps; pre-buys to buffer tariffs; constant-currency margin accretion +110 bps .	Execution strengthening.
Product performance	International Sun wins (Australia, Mexico); Billie/Cremo momentum (Q1) .	Hawaiian Tropic share up +1 pt; Billie women’s refills #1 in units; Cremo +20%; Wet Ones +15% share ~68% .	Positive in Grooming/Women’s Shave/Sun.
Regional trends	International grew +2% (Q1), 11 of last 12 quarters; North America challenged in Wet Shave/Fem Care (Q1) .	International organic +3%; North America organic -4%; confidence in H2 sequential improvement .	International strong; North America improving.
Pricing/promotions	Elevated promotions in Women’s Shave/Fem Care (Q1) .	Incremental Q3 promotion/A&P (~$7M A&P; ~100 bps GM headwind in Q3) .	Near-term spend up to drive share.
Regulatory/legal	No new major items beyond sun reformulation costs .	No new legal issues disclosed in Q2; tariff policy uncertainty persists .	Neutral; policy risk.
R&D/Innovation	Schick FIRST TOKYO, Bulldog range, Banana Boat 360, mineral restage pipeline (Q1) .	Continued NPD in Sun & Grooming; Hawaiian Tropic “Tana Sutra” campaign with Alix Earle .	Ongoing activation/NPD.
AI/Technology initiatives	Not applicable.	Not applicable.	N/A.

Management Commentary

Strategic stance: “We remained in investment mode…to support exciting new brand campaigns…As we look forward to the second half…challenging economic environment to negatively impact consumer sentiment…we will incrementally invest, focusing on our Wet Shave and Sun Care portfolios in the US” – CEO Rod Little .
International proof points: “Now representing 40% of our net sales profile, this business has delivered consistent mid- to high single-digit organic growth over a 4-year period” .
Tariffs quantified: “In-year cost impact…~$3M to $4M…annualized exposure of 3% to 4% of COGS…roughly 1.5–2 pts of margin pressure…we routinely take out about 250 bps in productivity savings” – COO Dan Sullivan .
Q3 investments: “Incrementally invest above and below the line in the third quarter, adding just over 1 point in A&P investment rate of sale…largest investment for Hawaiian Tropic in the U.S. in the last 5 years…featuring Alix Earle” .
Financial lens: “Adjusted gross margin rate increased 100 bps…Adjusted operating margin was flat at constant currency despite incremental brand investments…Adjusted EPS $0.87…Adjusted EBITDA $99.3M” – CFO Francesca Weissman .

Q&A Highlights

Tariffs: Buckets include raw materials (sun chemicals, aluminum/steel, fibers), inbound finished goods (Wet Shave), and outbound U.S. to Canada; annualized exposure ~3%–4% of COGS; pricing may be considered if needed .
H2 acceleration drivers: Easter shift (~1 pt), lapping supply disruptions (~0.5 pt), International growth (~4.5%–5% organic), North America Sun growth with tempered consumption assumptions (low single-digit) .
Q3 spend/margins: Incremental ~~$15M total investment (~~$7M A&P flows through Q3), Q3 gross margin down ~100 bps, Q3 operating margin down ~230 bps vs prior year .
FCF reduction: Driven by lower earnings and higher inventories (pre-buys to mitigate tariffs); considered transitory .
Private label: No material shifts; Edgewell Custom Brands (private brands) strong, particularly in Europe .

Estimates Context

Q2 FY2025: Revenue $580.7M vs $590.1M*; adjusted EPS $0.87 vs $0.91*; modest miss on both. EBITDA consensus ~$97.2M*, company reported adjusted EBITDA $99.3M (above consensus). Values retrieved from S&P Global.

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$580.7	$590.1*	-$9.4
Adjusted EPS ($)	$0.87	$0.91*	-$0.04

Values with asterisk (*) retrieved from S&P Global.

Where estimates may need to adjust:

FY guide reductions (organic, margins, EPS/EBITDA, FCF) plus explicit tariff costs likely drive consensus down for FY EPS/EBITDA and Q3 margins; H2 top-line phasing and increased Q3 brand spend suggest near-term EPS risk with potential H4 stabilization .

Key Takeaways for Investors

Mixed print: strong gross margin and execution offset by top-line softness in North America and a modest miss vs consensus on revenue/EPS; adjusted EBITDA slightly above consensus .
Guidance reset: comprehensive downward revisions across organic growth, margins, EPS/EBITDA, and FCF reflect macro caution, tariffs, and planned Q3 investment—reducing FY earnings visibility .
Near-term setup: Expect Q3 margin pressure (GM ~-100 bps; op margin ~-230 bps) as spend/tariffs flow through; monitor Hawaiian Tropic/Billie activations and Sun season consumption trajectory .
Structural positives: International remains a growth engine with share gains; productivity program continues to deliver substantial COGS savings (~380 bps Q2) to buffer inflation/tariffs .
Tariff risk quantified: ~$3–$4M in-year (mostly Q4); annualized 3%–4% of COGS exposure, mitigated by sourcing, productivity, and potential pricing; watch policy developments .
Balance sheet/capital returns: Net debt leverage 3.8x; continued buybacks/dividends; FCF guide cut to $130–$140M due to inventory/tariff pre-buys—framed as transitory .
Trading lens: Story hinges on execution of Q3 investments and H2 sequential improvement; catalysts include Sun season outcomes, tariff policy clarity, and Q3 spend effectiveness translating into share gains and Q4 margin recovery .

Additional Q2 2025 Materials

Earnings press release (8-K 2.02) and detailed non-GAAP reconciliations .
Earnings call transcript with strategic and operational commentary –.
Hawaiian Tropic “Tana Sutra” campaign press release (Alix Earle) supporting the Q3 investment stance in Sun Care .

Disclosures on Non-GAAP

Adjusted EPS and margins exclude restructuring/repositioning, sun care reformulation, commercial realignment, vendor bankruptcy and other items; Q2 EPS bridge shows ~$0.19 from restructuring, ~$0.05 commercial realignment, ~$0.01 sun care, ~$0.01 vendor bankruptcy and ~$0.01 other projects .

EDGEWELL PERSONAL CARE Co (EPC)·Q2 2025 Earnings Summary