<\/p>\n
Newell Brands Announces Third Quarter 2026 Results<\/b><\/p>\n
\nTop-Line Growth Accelerates Sequentially, Delivering Second Consecutive Quarter of Sales Growth
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Raises Full-Year Sales Outlook<\/p>\n
ATLANTA–(BUSINESS WIRE<\/a>)– \nChris Peterson, Newell Brands President and Chief Executive Officer, said, “Top-line growth accelerated sequentially as Newell Brands delivered its second consecutive quarter of year-over-year growth in sales. Growth during the quarter was broad-based, with both the U.S. and International delivering growth along with four of our six businesses and seven of our top 10 brands. Our investment in consumer understanding, brand building, innovation, and marketing continues to expand distribution and drive growth. Based on these solid results and the dramatic improvements we have made across the key capabilities required to win in our industry, we are raising our full year sales outlook and now expect to deliver positive sales growth in both the fourth quarter and full year 2026.”<\/p>\n \nMark Erceg, Newell Brands Chief Financial Officer, said, “Stronger sales and world-class productivity efforts allowed third quarter normalized gross and operating margins to expand significantly versus last year and normalized earnings per share to come in at the high end of our guidance range despite inflation that exceeded our expectations. Higher projected sales than previously anticipated and additional cost containment efforts give us the confidence to maintain the midpoints of our normalized operating margin and normalized earnings per share outlooks. Deleveraging remains a top priority and, consistent with that, we anticipate reducing total debt and factoring by a couple hundred million dollars this year.”<\/p>\n Third Quarter 2026 Highlights<\/span><\/b><\/p>\n Third Quarter 2026 Operating Results<\/span><\/b><\/p>\n \nNet sales were $1.9 billion, an increase of 3.7% compared with the prior year period, reflecting core sales growth of 3.3% and favorable foreign exchange.<\/p>\n \nGross margin was 34.7% compared with 34.1% in the prior year period, with the positive impact from higher net sales and gross productivity more than offsetting headwinds from inflation. Normalized gross margin was 35.2% compared with 34.5% in the prior year period.<\/p>\n \nOperating income was $27 million compared with $119 million in the prior year period. Operating margin was 1.4% compared with 6.6% in the prior year period. The current period included a non-cash impairment charge of $101 million related to an indefinite-lived tradename. Normalized operating income was $184 million, or 9.8% of sales, compared with $162 million, or 8.9% of sales, in the prior year period. The year-over-year increase in normalized results primarily reflected higher net sales and improved gross margin.<\/p>\n \nNet interest expense was $86 million compared with $83 million in the prior year period.<\/p>\n \nIncome tax benefit was $11 million compared with an income tax provision of $21 million in the prior year period. The normalized income tax provision was $9 million compared with $6 million in the prior year period.<\/p>\n \nNet loss was $81 million compared with net income of $21 million in the prior year period. Normalized net income was $86 million compared with $70 million in the prior year period. Normalized EBITDA was $248 million compared with $225 million in the prior year period.<\/p>\n \nDiluted loss per share was $0.19 compared with diluted EPS of $0.05 in the prior year period. Normalized diluted EPS was $0.20 compared with $0.17 in the prior year period.<\/p>\n \nAn explanation of non-GAAP measures disclosed in this release and a reconciliation of these non-GAAP results to comparable GAAP measures, if available, are included in the tables attached to this release.<\/p>\n Balance Sheet and Cash Flow<\/span><\/b><\/p>\n \nYear-to-date operating cash flow was $93 million compared with $103 million in the prior year period.<\/p>\n \nAt the end of the third quarter of 2026, Newell Brands had debt outstanding of $4.8 billion and cash and cash equivalents of $249 million, compared with $4.8 billion and $229 million, respectively, at the end of the third quarter of 2025.<\/p>\n \nDuring the third quarter of 2026, the Company entered into a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extending the facility’s general maturity to 2031. The Company also issued $600 million of 6.250% senior notes due 2031 and used the proceeds to redeem its 6.375% senior notes due 2027 and repay a portion of the borrowings under the new facility.<\/p>\n Third Quarter 2026 Operating Segment Results<\/span><\/b><\/p>\n \nThe Home & Commercial Solutions segment generated net sales of $1.01 billion compared with $942 million in the prior year period, reflecting core sales growth of 6.0%, as well as the impact of favorable foreign exchange. Core sales increased in the Kitchen, Home Fragrance and Commercial businesses. Operating loss was $37 million, or negative 3.7% of sales, compared with operating income of $40 million, or 4.2% of sales, in the prior year period. The current period included a non-cash impairment charge of $101 million related to an indefinite-lived tradename. Normalized operating income was $86 million, or 8.5% of sales, compared with $64 million, or 6.8% of sales, in the prior year period.<\/p>\n \nThe Learning & Development segment generated net sales of $692 million compared with $681 million in the prior year period, reflecting core sales growth of 2.3%, as well as the impact of unfavorable foreign exchange. Core sales grew in the Writing business while the Baby business was roughly flat. Operating income was $137 million, or 19.8% of sales, compared with $124 million, or 18.2% of sales, in the prior year period. Normalized operating income was $157 million, or 22.7% of sales, compared with $130 million, or 19.1% of sales, in the prior year period.<\/p>\n \nThe Outdoor & Recreation segment generated net sales of $169 million compared with $183 million in the prior year period, reflecting a core sales decline of 6.4%, as well as the impact of unfavorable foreign exchange. Operating loss was $14 million, or negative 8.3% of sales, compared with $8 million, or negative 4.4% of sales, in the prior year period. Normalized operating loss was $10 million, or negative 5.9% of sales, compared with $1 million, or negative 0.5% of sales, in the prior year period.<\/p>\n Outlook<\/span><\/b><\/p>\n \nThe Company initiated its outlook for the fourth quarter and raised its full-year 2026 sales outlook, reflecting third-quarter performance and updated expectations for the fourth quarter. Higher sales expectations and additional cost containment are offsetting additional inflation, enabling the Company to maintain the midpoints of its full-year normalized operating margin and normalized EPS outlooks.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Q4 2026 Outlook<\/span><\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet Sales<\/p>\n<\/td>\n \n1% to 3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCore Sales<\/p>\n<\/td>\n \n1% to 3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNormalized Operating Margin<\/p>\n<\/td>\n \n8.4% to 9.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNormalized EPS<\/p>\n<\/td>\n \n$0.17 to $0.19<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Updated Full-Year 2026 Outlook<\/span><\/b><\/p>\n<\/td>\n Previous Full-Year 2026 Outlook<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n \nNet Sales<\/p>\n<\/td>\n \n2% to 3%<\/p>\n<\/td>\n \n1% to 2%<\/p>\n<\/td>\n<\/tr>\n \nCore Sales<\/p>\n<\/td>\n \n1% to 2%<\/p>\n<\/td>\n \nFlat to 1%<\/p>\n<\/td>\n<\/tr>\n \nNormalized Operating Margin<\/p>\n<\/td>\n \n10.0% to 10.4%<\/p>\n<\/td>\n \n10.0% to 10.4%<\/p>\n<\/td>\n<\/tr>\n \nNormalized EPS<\/p>\n<\/td>\n \n$0.74 to $0.76<\/p>\n<\/td>\n \n$0.73 to $0.77<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe Company revised its full-year 2026 operating cash flow outlook primarily due to two one-time non-operating items, the first of which relates to the previously announced termination of its non-qualified defined benefit plans. This transaction is expected to generate a net cash benefit of approximately $60 million, but the benefit payments are classified as operating cash outflows while the associated proceeds are classified as investing cash inflows. The accounting treatment lowers expected operating cash flows by approximately $85 million, including related cash taxes. The second item reflects lower than previously anticipated proceeds from receivables factoring as the Company reduces its reliance on these programs following its upsized bond refinancing. Based on these two items the Company has revised its full-year operating cash flow guidance to approximately $150 million.<\/p>\n \nThe Company has presented forward-looking statements regarding core sales, normalized operating margin and normalized EPS. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, the Company is unable to present a quantitative reconciliation of forward-looking normalized operating margin or normalized EPS to the most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s future financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the Company’s actual results and preliminary financial data set forth above may be material.<\/p>\n Conference Call<\/span><\/b><\/p>\n \nNewell Brands\u2019 third quarter 2026 earnings conference call will be held today, October 30, at 7:30 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investors section of the Company\u2019s website at www.newellbrands.com<\/a>. A webcast replay will be made available in the Quarterly Earnings section of the Company\u2019s website.<\/p>\n
\nNewell Brands (NASDAQ: NWL) today announced its third quarter 2026 financial results.<\/p>\n\n
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