Energizer Holdings, Inc.

Good morning. My name is Kathleen and I will be your conference operator today. At this time, I would like to welcome everyone to the Energizer's first fiscal year 2016 conference call. After the speaker's remarks, there will be a question and answer session. If you wish to ask a question during the question and answer session, please press star 1. As a reminder, this call is being recorded. And now I would like to turn the conference over to Vice President, Treasurer, and Investor Relations. Please go ahead.

Good morning, and welcome to Energizer's second quarter fiscal 2026 conference call. Joining me today are Mark Levine, President and Chief Executive Officer, and John Dravik, Executive Vice President and Chief Financial Officer. In just a moment, Mark will share a few opening comments, and then we'll take your questions. A replay of this call will be available on the investor relations section of our website, energizerholdings.com. In addition, please note that our earnings release, prepared remarks, and the slide deck are also posted on our website. During the call, we will make forward-looking statements about the company's future business and financial performance, among other matters. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these statements. We do not undertake to update these forward-looking statements. Other factors that could cause actual results to differ materially from these statements are included in reports we file with the SEC. We also refer in our presentations to non-GAAP financial measures. or Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures, is shown in our press release issued earlier today, which is available on our website. Information concerning our categories and estimated market share discussed in this call relates to the categories where we compete and is based on Energizer's internal data, data from industry analysis, and estimates we believe to be reasonable. The battery category information includes both brick-and-mortar and e-commerce retail sales. Unless otherwise noted, all comments regarding the quarter and year pertain to Energizer's fiscal year, and all comparisons to prior year relate to the same period in fiscal 2025. With that, I would like to turn the call over to Mark. Good morning, and thanks for joining us today.

As in prior quarters, we've posted prepared remarks on our website that provide a detailed review of our second quarter performance and our outlook. But I wanted to begin with a few brief comments. As we move through fiscal 2026, our strategic priorities remain clear and consistent, restoring growth, rebuilding margins impacted by tariffs, and returning the business to its long-term historical cash flow profile. The second quarter marked an important step forward as disciplined execution across pricing, supply chain optimization, and an improved cost structure produced tangible results. During the quarter, tariff-related developments provided an incremental benefit, further supporting our ability to restore margins while still reinvesting in the business to drive sustainable top- and bottom-line growth. The building blocks for a return to growth are in place. We expect the third quarter to mark an inflection in organic net sales supported by stable category dynamics, higher quality distribution across our portfolios, continued progress on the APS integration, and strong innovation. Innovation remains a core pillar of our strategy, as highlighted by the recent launch of Energizer Ultimate Child Shield. In auto care, growing distribution of the Armor All Podium Series, together with continued innovation across the portfolio, is enhancing the business's long-term earnings and growth potential. Stepping back, performance in the first half of fiscal 2026 was largely consistent with our expectations and reflected a transition that will be followed by a second half with organic sales growth and profitability continuing to benefit from announced and accepted pricing and ongoing supply chain initiatives. As a result, we expect to deliver the high end of our fiscal 2026 earnings outlook. Thank you for your continued confidence in Energizer. And with that, let's open the call for questions.