Prestige Consumer Healthcare reports FY2026 results, announces $150M LaCorium acquisition

Prestige Consumer Healthcare disclosed its financial results for the fourth quarter and full fiscal year ended March 31, 2026. The 8-K references a press release (Exhibit 99.1) containing the detailed earnings figures, but the body of the filing does not provide specific revenue, earnings, or guidance numbers.

Prestige Consumer Healthcare reported fiscal 2026 revenues of $1,088.7 million, down 4.3% year-over-year, driven primarily by limited supply of Clear Eyes® eye care products. Diluted EPS was $3.91 (adjusted $4.38), down from $4.29 ($4.52 adjusted) in the prior year. The company generated $246.4 million in free cash flow and repurchased 2.3 million shares for approximately $156 million.

Prestige disclosed that fiscal 2026 revenue declines were driven primarily by limited ability to supply demand for Clear Eyes® eye care products. The company's recently acquired Pillar5 sterile eye care facility is undergoing remediation and capacity optimization, with associated costs adjusted out of non-GAAP metrics. Management expects variability in eye care supply to continue in fiscal 2027 as they prioritize quality and increase Clear Eyes® output.

The company disclosed progress on integrating the Pillar5 acquisition, which provides an owned aseptic eye care manufacturing facility. After a first full quarter of ownership, the company is working to ramp production capacity and quality standards, with expectations for sales improvement in fiscal 2027 as production increases. The company is pursuing a multi-year strategic plan to return to category leadership in eye care, including identifying supplemental suppliers and prioritizing capital expenditures to enhance supply quality and resilience.

Prestige announced that two previously disclosed acquisitions—Breathe Right (an iconic nasal strip brand with approximately $200 million in revenue) and LaCorium Health (a therapeutic lip, skin, and foot care portfolio with approximately $40 million in revenue)—are expected to close in June and July 2026, respectively. These acquisitions are not yet reflected in the fiscal 2027 guidance. The Breathe Right acquisition includes an estimated $150 million present value of future tax savings.

The company repurchased $156 million of shares (2.3 million shares) in fiscal 2026 and ended the year with net leverage of 2.6x. Following the pending acquisitions, management is prioritizing debt reduction for the remainder of fiscal 2027 and projects approximately $900 million in total free cash flow over the next three years, which will be used to rapidly reduce debt and enhance shareholder value.

Prestige Consumer Healthcare's Australian subsidiary has agreed to acquire five Australian companies that collectively form a leader in therapeutic skin care for approximately $150 million in cash. The purchase price is subject to adjustments for indebtedness and other items specified in the agreement. The acquisition expands Prestige's presence in the Australian therapeutic skin care market.

The transaction is expected to close in the second quarter of fiscal 2027, which is approximately $40 million one year from the agreement date. Closing is contingent on satisfying or waiving customary closing conditions, which are typical for acquisitions of this size.

The buyer has purchased warranty and indemnity insurance to protect against losses from breaches of the sellers' representations and warranties. This insurance serves as the buyer's sole recourse except in cases of fraud, which is a common risk-mitigation structure in private company acquisitions that limits direct claims against the sellers.