EDGEWELL PERSONAL CARE Co: Form 10-Q for the period ended Mar 31, 2026

(Amounts in millions, except per share data, unaudited)

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November 18, 2025 (the “2025 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our 2025 Annual Report.

Non-GAAP Financial Measures

While we report financial results in accordance with GAAP, this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as “adjusted” or “organic” and exclude items which are considered by the Company as unusual or non-recurring, and which may have a disproportionate positive or negative impact on the Company’s financial results in any particular period. Reconciliations of non-GAAP measures are included within this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We use this non-GAAP information, including adjusted gross margin, adjusted selling general and administrative (“SG&A”), adjusted operating income, adjusted EBIT (as defined below), adjusted effective tax rate, adjusted net earnings, and adjusted diluted net earnings, internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. We view the use of non-GAAP measures that exclude the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is also a component in determining management’s incentive compensation. Finally, we believe this information provides more transparency.

The following provides additional detail on our non-GAAP measures for the periods presented:

• We analyze net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency translation.
• Segment profit is impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management’s best estimate.

All comparisons are with the same period in the prior year, unless otherwise noted.

Industry and Market Data

Unless we indicate otherwise, we base the information contained or incorporated by reference herein, concerning our industry on our general knowledge and expectations. Our market position, market share, and industry market size are estimates based on internal and external data from various industry analyses, our internal research and adjustments, and assumptions that we believe to be reasonable. We have not independently verified data from industry analyses and cannot guarantee its accuracy or completeness. In addition, we believe that industry, market size, market position and market share data within our industry provides general guidance but is inherently imprecise and has not been verified by any independent source. Further, our estimates and assumptions involve risks and uncertainties and are subject to change based on various factors, including those discussed in Item 1A. Risk Factors in Part I of our 2025 Annual Report. These and other factors could cause results to differ materially from those expressed in the estimates and assumptions. You are cautioned not to place undue reliance on this data.

Retail sales for purposes of market size, market position and market share information are based on retail sales in U.S. dollars.

Trademarks and Trade Names

We own or have rights to use trademarks and trade names that we use in conjunction with the operation of our business, which appear throughout this Quarterly Report on Form 10-Q. We may also refer to brand names, trademarks, service marks and trade names of other companies and organizations, which are the property of their respective owners.

Recent Developments

On February 20, 2026 the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) by the executive branch were unlawful. As a result of this ruling, we may be eligible for a refund of IEEPA tariffs previously paid on imported goods.

The Company is evaluating the applicability of the court decisions and subsequent administrative process to its import entries, including the effect of procedural requirements under U.S. customs laws (including liquidation finality and the timing of administrative protests) and the scope and timing of the emerging administrative refund process. However, the ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.

Executive Summary

Feminine Care Divestiture

On February 2, 2026, we closed the transaction and received proceeds of approximately $340 on a cash-free and debt-free basis. In connection with closing of the transaction, we and Essity entered into a transition services agreement for the provision of certain services to support the transition of the Feminine Care segment following the closing. The divestiture of the Feminine Care segment is a key step to transform Edgewell into a more focused, agile and consumer-driven personal care company. The former Feminine Care segment’s results are presented as discontinued operations on a retrospective basis for the three and six months period ended March 31, 2026 and 2025.

All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Edgewell unless otherwise noted.

Second Quarter of Fiscal 2026

The following is a summary of results from continuing operations for the second quarter of fiscal 2026, as compared to the corresponding period in fiscal 2025. In addition to net sales, net income from continuing operations and earnings per share (“EPS”) from continuing operations for the periods presented were also impacted by certain costs or income, as described in the table below. The impact of these items on reported net income from continuing operations and EPS from continuing operations are provided as a reconciliation of net income from continuing operations and EPS from continuing operations to adjusted net income from continuing operations and adjusted diluted EPS from continuing operations, both of which are non-GAAP measures.

• Net sales in the second quarter of fiscal 2026 increased $2.9, or 0.6%, to $519.5, as compared to the prior year quarter. Organic net sales decreased $12.6, or 2.4%. Organic growth in International markets was 1.0%, largely driven by volume growth in Wet Shave and favorable pricing in Wet Shave and Sun Care. Organic sales declined in North America by 4.8%, driven primarily by lower volumes in Wet Shave and Sun Care, partially offset by volume growth in Grooming.
• Net earnings from continuing operations in the second quarter of fiscal 2026 were $4.0, as compared to $20.8 in the prior year quarter. On an adjusted basis, net earnings from continuing operations for the second quarter of fiscal 2026 were $27.8, as compared to $32.9 in the prior year quarter. Adjusted net earnings decreased primarily due to lower gross profit and higher operating expenses, partially offset by higher sales and lower interest expense.
• Diluted net earnings per share from continuing operations during the second quarter of fiscal 2026 were $0.09, as compared to $0.43 in the prior year quarter. On an adjusted basis, diluted net earnings per share from continuing operations during the second quarter of fiscal 2026 were $0.60, as compared to $0.69 in the prior year quarter.

Three Months Ended March 31, 2026

30

Three Months Ended March 31, 2025

(1) EBIT is defined as Earnings before income taxes.

First Six Months of Fiscal 2026

• Net sales in the first six months of fiscal 2026 increased $10.6, or 1.1%, to $942.3, as compared to the prior year period. Organic net sales decreased $14.5, or 1.6%. Organic sales in North America declined 2.6% driven primarily by lower volumes in Wet Shave and Skin Care, partially offset by volume growth in Grooming and Sun Care. Organic sales in International markets declined 0.3% largely driven by lower volumes in Sun Care and Grooming, partially offset by favorable pricing in Wet Shave.
• Net (loss) earnings from continuing operations in the first six months of fiscal 2026 were $(25.2), as compared to $10.7 in the prior year period. On an adjusted basis, net earnings from continuing operations for the second quarter of fiscal 2026 were $20.2, as compared to $28.2 in the prior year period. Adjusted net earnings decreased primarily due to lower gross profit and higher operating expenses, partially offset by higher sales and lower interest expense.
• Diluted net (loss) earnings per share from continuing operations during the first six months of fiscal 2026 were $(0.54), as compared to $0.22 in the prior year period. On an adjusted basis, diluted net earnings per share from continuing operations during the first six months of fiscal 2026 were $0.44, as compared to $0.59 in the prior year period.

Six Months Ended March 31, 2026

31

Six Months Ended March 31, 2025

(1) EBIT is defined as Loss before income taxes.

Operating Results

The following table presents changes in net sales for the first six months and second quarter of fiscal 2026, as compared to the corresponding periods in fiscal 2025, and provides a reconciliation of organic net sales to reported amounts.

Net Sales

For the second quarter of fiscal 2026, net sales increased $2.9, or 0.6%, to $519.5, including a $15.5, or 3.0%, favorable impact from currency movements, as compared to the prior year quarter. Organic net sales decreased $12.6, or 2.4%. Organic growth in International markets was 1.0%, largely driven by volume growth in Wet Shave and favorable pricing in Wet Shave and Sun Care. Organic sales declined in North America by 4.8%, driven primarily by lower volumes in Wet Shave and Sun Care, partially offset by volume growth in Grooming.

For the first six months of fiscal 2026, net sales increased $10.6, or 1.1%, to $942.3, including a $25.1, or 2.7%, favorable impact from currency movements, as compared to the prior period. Organic net sales decreased $14.5, or 1.6%. Organic sales in North America declined 2.6% driven primarily by lower volumes in Wet Shave and Skin Care, partially offset by volume growth in Grooming and Sun Care. Organic sales in International markets declined 0.3%, largely driven by lower volumes in Sun Care and Grooming, partially offset by favorable pricing in Wet Shave.

Gross Profit

Gross profit was $216.9 during the second quarter of fiscal 2026, compared to $236.9 in the prior year quarter, a decrease of $20.0, or 8.4%. Gross margin as a percent of net sales for the second quarter of fiscal 2026 decreased 410-basis points, to 41.8%. Adjusted gross margin, as a percent of net sales, decreased 310-basis points to 43.4% in the quarter. Productivity savings of approximately 220-basis points were more than offset by 420-basis points of core inflation and tariffs, 70-basis points of unfavorable mix and promotional levels (net of pricing), and 40-basis points of unfavorable currency movements.

Gross profit was $377.9 during the first six months of fiscal 2026, compared to $409.4 in the prior year period, a decrease of $31.5, or 7.7%. Gross margin as a percent of net sales for the first six months of fiscal 2026 decreased 380-basis points, to 40.1%. Adjusted gross margin, as a percent of net sales, decreased 270-basis points. Productivity savings of approximately 230-basis points were more than offset by approximately 430-basis points of core inflation, tariffs, and volume absorption and 75-basis points of unfavorable mix and promotional levels (net of pricing).

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense was $111.0, or 21.4%, of net sales in the second quarter of fiscal 2026 compared to $102.8, or 19.9%, of net sales in the prior year quarter. Adjusted SG&A was 20.1% of net sales, compared to 19.6% in the prior year quarter, which was primarily driven by higher consulting and corporate expenses and unfavorable currency impacts, partly offset by lower people costs.

Selling, general and administrative (“SG&A”) expense was $213.4, or 22.6%, of net sales in the first six months of fiscal 2026 compared to $202.4, or 21.7%, of net sales in the prior year period. Adjusted SG&A was 21.7% of net sales, compared to 21.4% in the prior year quarter, which was primarily driven by higher outside services costs and corporate expenses, partially offset by lower people costs.

Advertising and Sales Promotion Expense

Advertising and sales promotion (“A&P”) expense for the second quarter of fiscal 2026 was $58.6, a decrease of $1.3, or 2.2%, compared to $59.9 in the prior year quarter. A&P was 11.3% of net sales, compared to 11.6% in the prior year quarter.

Advertising and sales promotion (“A&P”) expense for the first six months of fiscal 2026 was $104.2, a decrease of $1.8, or 1.7%, compared to $106.0 in the prior year period. A&P was 11.1% of net sales, compared to 11.4% in the prior year quarter.

Research and Development Expense

Research and development (“R&D”) expense for the second quarter of fiscal 2026 was $14.9, an increase of $1.5, or 11.2%, compared to $13.4 in the prior year quarter. As a percentage of net sales, R&D expense was 2.9% in the second quarter of fiscal 2026, compared to 2.6% in the prior year quarter.

Research and development (“R&D”) expense for the first six months of fiscal 2026 was $28.7, an increase of $1.9, or 7.1%, compared to $26.8 in the prior year period. As a percentage of net sales, R&D expense was 3.0% in the first six months of fiscal 2026, compared to 2.9% in the prior year period.

Restructuring and Related Charges

In fiscal 2026, the Company continues to take specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring actions, including streamlining the Company’s operations and supply chain by consolidating its Mexico facilities and Wet Shave operations. As a result of these actions, we expect to incur pre-tax charges of approximately $90 in fiscal 2026. We incurred $14.0 and $11.8 of restructuring and related charges in the second quarter of fiscal 2026 and 2025, respectively, and $32.1 and $15.9 during the first six months of fiscal 2026 and 2025, respectively.

Other restructuring related charges of $8.7 and $14.5 associated with the consolidation of Wet Shave operations and supply chain actions were recorded in costs of products sold in the second quarter and first six months of fiscal 2026, respectively, and $0.3 and $0.8 were recorded in selling, general and administrative expense in the second quarter and first six months of fiscal 2026, respectively. No charges were incurred in the comparative prior period in costs of products sold and SG&A related to these actions.

See Note 3 to the Condensed Consolidated Financial Statements for additional information.

Interest Expense Associated with Debt

Interest expense associated with debt for the second quarter of fiscal 2026 was $17.9, a decrease of $2.3, or 11.4%, compared to $20.2 in the prior year quarter. The decrease in interest expense was the result of lower borrowing levels on the Company’s U.S. Revolving Credit Facility as a result of the paydown of the revolving credit facility utilizing cash proceeds from the divestiture of the Feminine Care business.

Interest expense associated with debt for the first six months of fiscal 2026 was $37.2, a decrease of $1.8, or 4.6%, compared to $39.0 in the prior year period. The decrease in interest expense was the result of lower borrowing levels on the Company’s U.S. Revolving Credit Facility as a result of the paydown of the revolving credit facility utilizing cash proceeds from the divestiture of the Feminine Care business.

Other (Income) Expense, net

Other (income) expense, net, $(7.4) compared to $(2.6) in the prior year quarter. The current year quarter included $6.7 of Transition Services Agreement (“TSA”) income. Additionally, the current year quarter included $0.2 of other project gains, compared to $0.6 in the prior year quarter. Currency hedge and remeasurement losses were $0.9 in the current quarter, compared to gains of $2.4 in the prior year quarter. Adjusted other (income) expense, net was $(7.2) compared to $(2.0) in the prior year quarter.

Other (income) expense, net, was $(8.7) compared to $0.6 in the prior year period. The current year quarter included $6.7 of TSA income. Currency hedge and remeasurement losses were $1.7 in the current period, compared to gains of $0.4 in the prior year period. The current year period included $0.7 of other project gains, compared to $1.2 of expense in the prior year quarter. Adjusted other (income) expense, net was $(6.5) compared to $0.3 in the prior year period.

Income Taxes from Continuing Operations

The continuing operations effective tax rate for the second quarter of fiscal 2026, was 49.7%, as compared to 33.7% in the prior year quarter. The fiscal 2026 effective tax rate reflects more unusual items resulting in larger tax expense compared to fiscal 2025. On an adjusted basis, the effective tax rate was 27.9%, down from the prior year quarter adjusted effective tax rate of 30.9%.

The continuing operations effective tax rate for the first six months of fiscal 2026, was 13.1%, as compared to 42.6% in the prior year period. The current year period reflects a tax benefit on a loss. The fiscal 2026 effective tax rate reflects more favorable discrete and unusual items resulting in a tax benefit compared to fiscal 2025. On an adjusted basis, the effective tax rate was 24.9% down from the prior year period adjusted effective tax rate of 33.6%.

(Loss) earnings from discontinued operations, net of tax

(Loss) earnings from discontinued operations, net of tax includes the results of the Feminine Care business.

The loss of $14.6 in the second quarter of fiscal 2026 primarily includes the impact of tax related charges from the completion of the Feminine Care Divestiture. The loss of $51.1 in the first six months of 2026 also includes the impact of the goodwill impairment charge of $37.4 recorded during the first quarter.

Segment Results

The following tables present changes in segment net sales and segment profit for the second quarter and first six months of fiscal 2026, compared to the corresponding period in fiscal 2025, and provide a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of segment profit to Income (loss) from continuing operations before income taxes, refer to Note 17 of Notes to Condensed Consolidated Financial Statements.

Our operating model includes some shared business functions across segments, including product warehousing and distribution, transaction processing functions and, in most cases, a combined sales force and management teams. We apply a fully allocated cost basis in which shared business functions are allocated between segments. Certain indirect expenses for corporate overhead costs previously allocated to the Fem Care segment have not been reallocated to the Wet Shave or Sun and Skin Care segments.

Wet Shave

Wet Shave net sales for the second quarter of fiscal 2026 were $294.1, an increase of $8.6, or 3.0%, as compared to the prior year quarter, including a $10.7, or 3.7%, favorable impact from currency. Organic net sales decreased $2.1, or 0.7%, as International markets grew 3.6%, primarily reflecting higher volumes, while North America declined 6.0%, primarily reflecting lower volumes.

Wet Shave net sales for the first six months were $585.4, an increase of $5.4, or 0.9%, as compared to the prior year period, including a $19.1, or 3.3%, favorable impact from currency. Organic net sales decreased $13.7, or 2.4%, as International markets grew 1.4%, primarily reflecting favorable pricing, while North America declined approximately 7.1%, primarily reflecting lower volumes.

Wet Shave segment profit for the second quarter of fiscal 2026 was $33.7, a decrease of $12.9, or 27.7%, and inclusive of a $0.7, or 1.5%, unfavorable impact from currency. Organic segment profit decreased $12.2, or 26.2%, driven by lower gross margins and higher SG&A expense, partially offset by lower marketing expense.

Wet Shave segment profit for the first six months was $75.9, a decrease of $17.3, or 18.6%, and inclusive of a $3.4, or 3.6%, favorable impact from currency. Organic segment profit decreased $20.7, or 22.2%, as lower gross margins and higher SG&A expense were primarily offset by lower marketing expenses.

Sun and Skin Care

Sun and Skin Care net sales for the second quarter of fiscal 2026 decreased $5.7, or 2.5%, as compared to the prior year quarter, including a favorable impact from foreign currency of $4.8, or 2.0%. Organic net sales decreased $10.5, or 4.5%, driven by an 8.4% decline in Sun Care. The Sun Care decline primarily reflects lower volumes, as expected, due to the pull-forward of Sun Care orders into the first quarter. Grooming increased 6.3%, driven by significant volume growth in Cremo.

Sun and Skin Care net sales for the first six months increased $5.2, or 1.5%, including a favorable impact from foreign currency of $6.0, or 1.6%. Organic net sales decreased $0.8, or 0.1%, driven by strong performance in Grooming and Sun Care in North America, partly offset by declines in International Sun Care.

Sun and Skin Care segment profit for the second quarter of fiscal 2026 was $47.6, a decrease of $3.2, or 6.3%, as compared to the prior year quarter, including a favorable impact from foreign currency of $1.2, or 2.4%. Organic segment profit decreased $4.4, or 8.7%, driven by driven primarily by lower gross profit.

Sun and Skin Care segment profit for the first six months of fiscal 2026 was $44.0, a decrease of $3.4, or 7.2%, including a favorable impact from foreign currency of $1.5, or 3.1%. Organic segment profit decreased $4.9, or 10.3%, driven by higher marketing expenses and lower gross margins.

General Corporate and Other Expenses

For the second quarter of fiscal 2026, general corporate and other expenses were $148.9, or 15.8%, of net sales, as compared to $121.9, or 13.1% in the prior year quarter.

During the second quarter and first six months of fiscal 2026, corporate expenses increased primarily related to indirect corporate overhead costs previously allocated to the Feminine Care segment.

During the second quarter and first six months of fiscal 2026, we recorded TSA income of $6.7 in Interest and other expense, net.

During the second quarter of fiscal 2026, we recorded a charge of $4.7 related to legal matters.

During the first six months of fiscal 2026 and 2025, we recorded a gain of $1.5 and $0.9, respectively, for the fair value measurement of certain equity interests accounted for under the cost and equity methods.

Liquidity and Capital Resources

As of March 31, 2026, a significant portion of our cash balances was located outside the U.S. Given our extensive international operations, a significant portion of our cash is denominated in foreign currencies. Refer to Note 16 of Notes to Condensed Consolidated Financial Statements for a discussion of the primary currencies to which the Company is exposed. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct business and the cost effectiveness with which those funds can be accessed. We generally repatriate a portion of current year earnings from select non-U.S. subsidiaries only if the economic cost of the repatriation is not considered material.

Our cash is deposited with multiple counterparties which consist of major financial institutions. We consistently monitor positions with, and credit ratings of, counterparties both internally and by using outside ratings agencies.

Our total borrowings as of March 31, 2026 and September 30, 2025 were as follows:

Our Revolver utilization is summarized below.

As noted above, on February 2, 2026, we closed on the sale of our Feminine Care segment to Essity. We used proceeds from this sale to repay all outstanding borrowings under our U.S. Revolving Credit Facility. The remaining proceeds are expected to be used for continued investment in our core brands, capital expenditures and other growth initiatives. We estimate approximately $55 of cash taxes to be paid in fiscal 2026 on the tax gain from the sale.

Historically, we have generated, and expect to continue to generate, favorable cash flows from operations. Our cash flows are affected by the seasonality of our Sun Care businesses, typically resulting in higher net sales and increased cash generated in the second and third quarters of each fiscal year. We believe our cash on hand, including remaining proceeds from the sale of our Feminine Care segment, cash flows from operations and borrowing capacity under the U.S. Revolving Credit Facility will be sufficient to satisfy our future working capital requirements, interest payments, R&D activities, capital expenditures, and other capital requirements for at least the next 12 months. We will continue to monitor our cash flows, spending and liquidity needs. For more information on the U.S. Revolving Credit Facility and our other debt, see Note 11 to the Notes To Condensed Consolidated Financial Statements and Note 12 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

Short-term financing needs primarily consist of working capital requirements and interest payments on our long-term debt. Long-term financing needs will depend largely on potential growth opportunities, including acquisition activity and repayment or refinancing of our long-term debt obligations. Our long-term liquidity may be influenced by our ability to borrow additional funds, renegotiate existing debt, and raise equity under terms that are favorable to us. We may, from time-to-time, seek to repurchase shares of our common stock. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

As of March 31, 2026, we were in compliance with the provisions and covenants associated with our debt agreements.

Cash Flows

A summary of our cash flow activities is provided in the following table:

Operating Activities

Cash flow used for operating activities was $71.6 during the first six months of fiscal 2026, compared to $70.5 during the prior year period. The increase in cash used for operating activities was largely driven by lower earnings, partially offset by changes in net working capital.

Investing Activities

Net cash proceeds provided by investing activities was $315.1 during the first six months of fiscal 2026, compared to net cash used of $33.0 during the prior year period. The increase in cash provided by investing activities was primarily related to proceeds received from the sale of our Feminine Care segment of $338.9 and a decrease in capital expenditures, which were $25.6 during the first six months of fiscal 2026, compared to $33.9 in the prior year period.

Financing Activities

Net cash used by financing activities was $167.4 during the first six months of fiscal 2026, compared to $72.5 cash provided by financing activities in the prior year period. During the first six months of fiscal 2026, we had net payments of $140.0 under the U.S. Revolving Credit Facility, compared to net proceeds of $157.0 in the prior year period. Dividend payments totaled $14.5 in the first six months of fiscal 2026, compared to $15.2 in the prior year period. We had $15.8 share repurchases in the first six months of fiscal 2026, compared to $65.7 in the prior year period.

Share Repurchases

On November 13, 2025, the Board approved an authorization to repurchase for up to $100.0, superseding the previous share repurchase authorization from January 2018, when the Board approved an authorization to repurchase up to 10.0 shares of the Company's common stock. Any future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise permitted, and in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors. During the first six months of fiscal 2026, we repurchased 0.7 shares at a total cost of 15.8. $84.9 remains available for repurchase in the future under the Board’s authorization. For more information, see Note 14 of the Notes to Condensed Consolidated Financial Statements.

Dividends

Dividend activity for the six months ended March 31, 2026 was as follows:

On May 6, 2026, the Board declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter of 2026. The dividend will be payable on July 9, 2026 to shareholders of record as the close of business on June 10, 2026.

Dividends declared during the six months ended March 31, 2026 totaled $14.6. Payments made for dividends during the six months ended March 31, 2026 totaled $14.5.

Commitments and Contingencies

Contractual Obligations

As of March 31, 2026, we had no outstanding borrowings under our U.S. Revolving Credit Facility, which matures in 2029. As noted above, following the closing of the sale of the Feminine Care segment, we repaid all outstanding borrowings under the U.S. Revolving Credit Facility. As of March 31, 2026, future minimum repayments of fixed debt are: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.

There have been no other material changes in our contractual obligations since the presentation in our 2025 Annual Report.

Other Matters

On February 20, 2026 the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by the executive branch are not lawful, but did not provide guidance on how importers may claim refunds of IEEPA tariffs previously paid. On March 4, 2026, the Court of International Trade (CIT) issued an additional ruling that importers that paid tariffs under IEEPA are due refunds and ordered U.S. Customs and Border Protection (CBP) to begin the refund process for all importers who were subject to IEEPA duties.

As of March 31, 2026, the Company has not recognized an asset related to the potential refund of IEEPA tariffs paid. The ultimate availability, timing and amount of any potential refunds of such tariffs is highly uncertain and are subject to further legal, regulatory and administrative developments. The Company will continue to evaluate new information and will recognize the refund when the requirements under ASC 450, Contingencies, have been met.

In the three and six months ended, March 31, 2026, we recorded a $4.7 charge related to an offer to settle certain claims and disputes in connection with a former contract manufacturing agreement.

Recent Accounting Pronouncements

Information regarding new accounting pronouncements is included in Note 1 of the Notes to Condensed Consolidated Financial Statements.

Critical Accounting Estimates

Our critical accounting estimates are fully described in our 2025 Annual Report. The preparation of these financial statements requires us to make estimates and assumptions. These estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates. As of March 31, 2026 there have been no significant changes to our critical accounting estimates disclosed in our 2025 Annual Report.

(Amounts in millions)

The market risk inherent in our financial instruments and positions represents the potential loss arising from adverse changes in currency rates, commodity prices, and interest rates. At times, we enter into contractual arrangements (derivatives) to reduce these exposures. For further information on our foreign currency derivative instruments, refer to Note 16 of Notes to our Condensed Consolidated Financial Statements.

As of March 31, 2026, there were no open derivative or hedging instruments for future purchases of raw materials or commodities.

Our exposure to interest rate risk relates primarily to our variable-rate debt instruments, which currently bear interest based on Secured Overnight Financing Rate (SOFR) plus margin. As of March 31, 2026, our outstanding variable-rate debt included $308.4 related to our U.S. Revolving Credit Facility and international, variable-rate notes payable. Assuming a one-percent increase in the applicable interest rates, annual interest expense on these variable-rate debt instruments would increase approximately $3.1.

There have been no material changes in our assessment of market risk sensitivity since our presentation of Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the specified time periods, and that such information is accumulated and communicated to management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

Our management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2026. Based on that evaluation, our CEO and CFO concluded that, as of that date, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are likely to materially affect, our internal control over financial reporting.

For a discussion of potential risks and uncertainties related to us, see the information included in Part I, Item 1A, "Risk Factors" of our 2025 Annual Report. Except for the risk factor discussed below, we do not believe that there have been no material changes to the risk factors disclosed in our 2025 Annual Report.

Changes in production costs, including raw material prices and tariffs, could erode our profit margins and negatively impact operating results.

Pricing and availability of raw materials, energy, shipping, labor and other services needed for our business can be volatile due to general economic conditions, including inflation, supplier capacity restraints, geopolitical developments, including armed conflict and regional instability, changes in supply and demand, natural disasters, energy costs, health epidemics or pandemics, labor shortages and turnover, production levels, currency fluctuations, governmental actions (including import and export requirements such as new or increased tariffs, sanctions, quotas or trade barriers), port congestions or delays, transport capacity restraints, cybersecurity incidents or other disruptions of key manufacturing sites, acts of terrorism and other factors beyond our control. In particular, the ongoing conflict in the Middle East, including disruptions and heightened uncertainty regarding transit through the Strait of Hormuz, has increased energy and transportation costs and caused global supply chain disruptions. There is no certainty that we will be able to offset future cost increases. This volatility can significantly affect our production costs and may, therefore, have a material adverse effect on our business, results of operations and financial condition.

If such cost pressures persist or exceed our estimates and we are not able to increase the prices of our products or achieve cost savings to offset such cost increases, our operating margins would be negatively impacted. In addition, even if we increase the prices of our products in response to increases in the cost of commodities or other cost increases, we may not be able to sustain such price increases. Sustained price increases may lead to declines in volume as competitors may not adjust their prices or customers may reduce consumption due to pay the higher prices, which could lead to sales and market share declines. Our projections may not accurately predict the potential negative volume impact of price increases, which could adversely affect our business, financial condition and results of operations.