A：To address challenges, Energizer has completed the supply chain realignment that is central to restoring margins, secured final customer decisions on theAPS to Energizer brand transition for organic growth, strengthened distribution across brands and retailers, and advanced innovation across products. These actions position the company to deliver over 200 basis points of gross margin expansion from Q1 to Q2 and another 100 basis points by year-end.

A：The main priorities of Energizer's capital allocation strategy include reducing debt to strengthen the balance sheet and returning capital to shareholders through an attractive dividend and share repurchases when market conditions are favorable.

A：Energizer's business is being impacted by a softening consumer trend and the lapping of hurricane-driven demand from last year. There has been an uptick in private label offerings and continued pressure on lower-end consumers. Consumer demand has recently stabilized, and the company is encouraged by the rebound in December volumes in the US, the strengthening in-store presence, and the repositioning of the cost structure.

A：Energizer is projected to experience a strong acceleration of net sales and earnings in the back half of the year. The first half reflected short-term factors, but the underlying trajectory is improving. Specifically, the company is targeting over 200 basis points of gross margin expansion from Q1 to Q2 and an additional 100 basis points by year-end.

A：The projected impact of recent winter storms on battery consumption trends is expected to be positive, contributing to very strong volume growth in January due to the storms. The category is forecasted to be stable for the remainder of the year, in line with initial assumptions.

A：The impact of the recent winter storms on business volumes is considered a benefit for the business, but it's too early to quantify the exact effect as the company needs to handle replenishment orders, manage disrupted shipments, and work through inventory levels at retailers.

A：The company's outlook for the second half of the year is that the battery category will be relatively flat, with a good base to build on from December and January. Key drivers for top-line growth include the transition of Advanced Power Systems (APS) customers to Energizer branded products, plans to increase distribution, and carryover pricing. These factors are expected to contribute to 4 to 500 basis points of growth in the back half of the year.

A：The first quarter was impacted by several factors, including high tariffs leading to a 300 basis point impact, the sale of $65 million in Panasonic branded products related to the APS transition, resulting in a 200 basis point hit to gross margin, and transitional product costs that were almost 100 basis points. The company expects these impacts to improve or not recur in future quarters.

A：To improve gross margins in the future, the company is working through the inventory purchased at higher rates due to tariffs, and is leveraging plans to reset the global supply chain, which should be mostly flushed through by the second quarter. The company expects a sequential improvement of about 100 basis points in the second quarter, with continued expansion into the third and fourth quarters, aiming to return to low 40s gross margins, as was the case before tariffs impacted.

A：The company tries to build in enough flexibility in its plans to deal with uncertainty. Over the past five to six years, the organization has developed 'muscle memory' to read and react to situations, allowing for adjustments to plans on a daily basis. Despite a volatile and uncertain environment, the company is confident in the outlook it provided and believes it can deliver the forecasted financial results.

A：The discrepancy between strong battery sales and a less expected gross profit increase is primarily due to higher tariffs and the transitional nature of product costs, which negatively impacted the quarter's results.

A：The strength in December's sales is attributed to the company's performance rather than the category as a whole. This performance is indicative of potential market share gains in 2026. The company also observed strength in shelf space and points of distribution, which are positive signs for future market position.

A：The category has shown improvement in December and the company has gained share in the latest reporting periods. The company is positioned to continue improving ahead of the category, focusing on value to premium distribution and new product innovations in Q2 and Q3.

A：In Q1, the auto business saw a slight impact from weather and some timing issues. As the business heads into its peak season, it anticipates growth, though there is a noticeable bifurcation in the consumer base with higher-end parts showing growth and lower-end parts seeing delayed purchases or opt-outs.

A：The auto category is experiencing a bifurcated consumer base, with higher-end parts showing growth and lower-end parts having consumers delaying or opting out of purchases. The company's response includes the timely launch of the Cur Podium series and continued focus on international growth and e-commerce.

A：Consumers are seeking value and are comfortable switching channels, retailers, and brands, which makes it critical for the company to meet their needs. Private label plays a role in the category, and while it leads to volume growth for retailers, it erodes category value. The company aims for balance between private label value and premium products, with plans to compete effectively while leveraging both value and premium brands.

A：The target is to have a leverage of 5 or slightly below by the end of the year, with a focus on debt pay-down. The company aims to pay down over $100 million in the first quarter, with a target of $150 to $200 million for the year. While the company will continue to look at M&A opportunities, any deals would be leverage-neutral and not impact the current pay-down trajectory.

A：While specific impacts differ between winter storms and summer storms, the company ensures product availability when needed, regardless of the season. The focus is on delivering products to consumers when they are required.

A：The impact of products produced during high tariffs has been estimated to normalize the EBITDA by around $40 to $70 million this quarter, with the expectation that the impact improves as the year progresses due to pricing credits and tax benefits.

A：The company saw a negative impact from input costs, including freight and production inefficiencies in the first quarter. While they have some momentum offsetting these impacts, there is a push in spot prices for certain materials like zinc. They are fixed on about 90% of input costs through contracts and inventory, which puts them in a decent position. They have also taken targeted pricing actions, especially on the auto side, to offset some of the cost impacts expected in the second and third quarters. The overall trends are slightly negative, and the company continues to manage the situation carefully.