Discontinued Operations

3 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

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. On February 2, 2026, we closed the sale of our Feminine Care segment to Essity and received proceeds of approximately $340.0 on a cash-free and debt-free basis. In the first quarter of fiscal 2026, the assets and liabilities of the segment were classified as held for sale and the segment’s results are presented as discontinued operations. This change was applied on a retrospective basis. As of the date we determined the Feminine Care segment to be held for sale, we tested the assets within the disposal group, including goodwill, for impairment and recorded a goodwill impairment loss of $37.4. Fair value of the reporting unit was determined under a market approach and based on the offer received to purchase the disposal group, a Level 3 fair value input.

The following table presents the financial results of Feminine Care included in (Loss) earnings from discontinued operations, net of tax for the three months ended December 31, 2025 and 2024:

	Three Months Ended December 31,
	2025		2024
Net sales	$	64.0	$	63.3
Cost of products sold	48.0		44.2
Gross profit	16.0		19.1
Selling, general and administrative expense	12.5		3.3
Advertising and sales promotion expense	2.0		4.2
Research and development expense	0.6		0.5
Restructuring charges	0.2		0.1
Impairment charges	37.4		—
Operating income	(36.7)		11.0
Loss on assets held for sale	3.8		—
(Loss) earnings from discontinued operations before income taxes	(40.5)		11.0
Income tax (benefit) expense on discontinued operations	(4.0)		3.0
(Loss) earnings from discontinued operations, net of tax	$	(36.5)	$	8.0

The following table reconciles the gross proceeds with the loss on assets held for sale included in (Loss) earnings from discontinued operations, net of tax:

	Three Months Ended December 31, 2025
Gross proceeds	$	340.0
Less direct costs to sell	7.0
Less carrying amount	336.8
Loss on assets held for sale	$	3.8

In the second quarter of 2026, upon deconsolidation of the net assets of the disposal group because of the closing of the transaction, we expect to finalize the calculation of the loss on assets held for sale and an additional loss could occur.

The following table presents the carrying amounts of assets and liabilities that are classified as held for sale on the condensed consolidated balance sheet as of December 31, 2025 and September 30, 2025:

	December 31, 2025		September 30, 2025
Inventories	$	48.1	$	50.9
Other current assets	8.9		8.7
Current assets held for sale	57.0		59.6
Property, plant and equipment, net	73.9		74.3
Goodwill	117.0		154.0
Other intangible assets, net	92.7		93.1
Other assets	0.2		0.4
Allowance for loss on classification as held for sale	(3.8)		—
Non-current assets held for sale	280.0		321.8
Total assets held for sale	337.0		381.4
Other current liabilities	4.0		5.2
Current liabilities held for sale	4.0		5.2
Total liabilities held for sale	$	4.0	$	5.2

The following table presents significant cash flow items from discontinued operations for the three months ended December 31, 2025 and 2024:

	Three Months Ended December 31,
	2025		2024
Capital expenditures	$	0.4	$	1.4
Depreciation and amortization	1.3		3.6

The goodwill impairment charge of $37.4 and loss on assets held for sale of $3.8 are the material non-cash amounts included in the condensed consolidated statements of cash flows which is included in operating activities for the three months ended December 31, 2025.

In connection with the divestiture, Edgewell entered into a Transition Services Agreement (“TSA”) with Essity. Pursuant to the TSA, Edgewell agreed to provide certain services to Essity, on an interim, transitional basis from and after closing for an initial duration of twelve months following the divestiture. The TSA covers various services such as operations and supply chain, IT, commercial, sales and finance, controllership and global business support activities. The remuneration of such services is intended to allow the company to recover a significant portion of its costs and expenses of providing such services.

The costs related to services provided by Edgewell under the TSA will be recorded in continuing operations within the condensed consolidated statement of earnings and comprehensive income beginning in the second quarter of fiscal 2026 following the closing of the transaction. Pass-through costs related to the cost of providing certain services will be recorded in continuing operations as a direct offset within costs of products sold or selling, general and administrative expense and other cost reimbursements will be recorded in other income (expense), net.