Edgewell Personal Care (EPC) reported QQ2 2025 results that reflected a modest YoY revenue decline yet solid gross margin progression and meaningful productivity savings, underpinning a constructive path on the transformation of the business. Organic net sales declined 1.5% for the quarter, driven by a slower-than-anticipated U.S. Fem Care recovery and weather-related softness in Sun Care, while international markets continued to demonstrate resilient growth with 3% organic growth. Total revenue stood at $580.7 million for the quarter. The company delivered gross margin expansion of 100 basis points on an adjusted basis (about 110 bps in constant currency), supported by 380 basis points of productivity savings, and EBITDA of $99.3 million. Net income was $29 million and GAAP EPS was $0.60, with adjusted EPS of $0.87 (vs. $0.88 prior year) impacted by a higher tax rate and currency dynamics.
Management underscored the ongoing transformation agenda: replatforming international operations, accelerating innovation with brand renovations (e.g., Billie, Bulldog, Protista, Cremo), and a broad efficiency program that has delivered more than 200 bps of COGS savings annually. North America remains the biggest near-term growth opportunity, with leadership changes and an intensified commercial program designed to restore momentum in Sun Care and Shave. The company signaled a more cautious but deliberate 2H outlook, acknowledging macro volatility and tariff-related costs. The updated full-year guidance contemplates flat-to-low-single-digit organic net sales growth, gross margin accretion of roughly 70 bps in full-year terms (net of incremental tariffs), and adjusted EPS in the $2.85–$3.05 range with free cash flow of $130–$140 million. Management emphasized pursuing productivity, price/mix discipline, and incremental brand investments to support the North America rebound and international strength. Investors should monitor tariff developments, the pace of North America execution, and the effectiveness of the Hawaii Tropic/Billie campaigns as pivotal drivers of the 2H trajectory.