Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q2'25 → | B+ | B- |
| Q3'25 → | B+ | B |
| Q4'25 → | B+ | B |
| Q1'26 → | B | B |
| Q2'26 → | B+ | B |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q2'26 | ✅ | S/4HANA implementation in EMEA Pet business Went live March 30, 2026 with $6M sales pull-forward for inventory preparation | delivered |
| Q2'26 | ✅ | Adjusted free cash flow ~50% of EBITDA conversion Q1 delivered $66M FCF, maintaining 50% conversion guidance for full year | delivered |
| Q2'26 | ⏳ | Net sales flat to up low single digits for fiscal 2026 YTD tracking ahead of guidance with Q2 growth, but maintaining conservative outlook | pending |
| Q2'26 | ✅ | HPC business would improve profitability in fiscal 2026 EBITDA margin recovering: 6.4% Q1 to 3.4% Q2 on improving base | delivered |
| Q2'26 | ⏳ | Home & Garden growth weighted to second half of fiscal year Strong Q2 performance but management still expects back-half weighting for full year | pending |
| Q2'26 | ✅ | Global Pet Care business would return to growth in Q1 2026 Pet grew 8.3% in Q1, accelerated to 11.2% in Q2 though includes timing benefits | delivered |
| Q1'26 | ❌ | Address remaining $10M corporate cost headwind No progress made, still have $10M to address with vague timeline | missed |
| Q1'26 | ⏳ | Adjusted EBITDA expected to grow low single digits Q1 essentially flat, need H2 improvement | pending |
| Q1'26 | ⏳ | Full-year net sales flat to up low single digits Q1 down 3.3% but guidance maintained | pending |
| Q1'26 | ✅ | Expect improvement to overall profitability in HPC business in fiscal 2026 HPC EBITDA up $5M to $20.7M with margin expansion to 9.7% | delivered |
| Q1'26 | ⏳ | Home and Garden growth would be weighted toward second half of the year Q1 decline was expected, waiting for H2 performance | pending |
| Q1'26 | ✅ | Pet would lead the way with growth in first fiscal quarter Global Pet Care up 8.3% in Q1 as forecasted | delivered |
| Q1'26 | ⏳ | Both Global Pet Care and Home and Garden businesses would return to growth in fiscal 2026 Pet Care delivered growth in Q1 as promised, Home & Garden growth still expected in back half | pending |
| Q4'25 | ⏳ | Targeting $20-25M additional pricing and supplier concessions to cover incremental 2026 exposure Work in progress, some mitigation already in place | pending |
| Q4'25 | ✅ | HPC continuing to build out non-Chinese sourcing throughout remainder of fiscal 2025 Diversification efforts ongoing, supply chain significantly restructured | delivered |
| Q4'25 | ✅ | GPC having non-Chinese sourcing alternatives for predominance of purchases by calendar year-end Chinese exposure cut by ~50%, on track for further reduction | delivered |
| Q4'25 | ✅ | Reduce costs by over $50M in fiscal 2025 Achieved through reduction in force and operational efficiencies | delivered |
| Q4'25 | ✅ | Deliver approximately $160M in free cash flow fiscal 2025 Delivered $171M, beating by $11M | exceeded |
| Q3'25 | ✅ | Running business for cash flow generation for remainder of fiscal 2025 $160M free cash flow target maintained despite revenue disruption | delivered |
| Q3'25 | ✅ | Home & Garden expects to be virtually out of China by fiscal year-end Reconfirmed with 'relatively small negligible impact' qualification | delivered |
| Q3'25 | ✅ | HPC transitioning to mid-40s percentage non-Chinese sourcing by calendar year-end On track, with 35% by fiscal year-end confirmed | delivered |
| Q3'25 | ✅ | Cost reduction efforts saving approximately $10 million annually Delivered $50M in Q3 alone, 5x the original commitment | exceeded |
| Q3'25 | ✅ | GPC having non-Chinese sourcing alternatives for predominance of purchases by calendar year-end Upgraded to 'all but $20M' which is more specific and aggressive than 'predominance' | exceeded |
| Q3'25 | ⏳ | Targeting free cash flow of approximately $160 million Reiterated unchanged despite operational disruptions - confidence signal | pending |
| Q2'25 | ⏳ | Free cash flow target of approximately $160 million New promise for $6-7 per share. Became their primary guidance metric after withdrawing earnings framework. | pending |
| Q2'25 | ⏳ | 35% to 40% of HPC US-bound products sourced outside China by fiscal year-end Reaffirmed at 35% now, targeting 45% by calendar year-end. On track but timeline extended. | pending |
| Q2'25 | ✅ | HPC transaction timeframe taking longer due to geopolitical factors Explicitly said 'unlikely we will find mutually agreeable M&A transaction by end of fiscal year' - delivered on the warning. | delivered |
| Q2'25 | ❌ | Adjusted EBITDA to grow mid to high single digits EBITDA down $24M ex-investment income in Q2. Withdrew earnings framework entirely. | missed |
| Q2'25 | ❌ | Low single-digit sales growth for fiscal 2025 Organic sales down 4.6% in Q2. Withdrew all sales guidance due to 'unprecedented global tariff conditions.' | missed |
| Q2'25 | ❌ | We expect to mitigate the vast majority of any currently announced tariff impacts in the year Completely abandoned this promise when tariffs escalated to 45-70%. Now running business for cash flow, not earnings. | missed |
Get the next SPB call sheet the day it drops.
Subscribe to Call Sheet Daily →