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Newell Brands Announces Second Quarter 2026 Results<\/b><\/p>\n
\nReturns to Sales Growth for the First Time in Over Four Years
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Results Exceed Expectations Across All Key Metrics
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Raises Full Year Outlook<\/p>\n
ATLANTA–(BUSINESS WIRE<\/a>)– \nChris Peterson, Newell Brands President and Chief Executive Officer, said, “Newell Brands returned to year-over-year growth in both net sales and core sales in the second quarter, marking an important milestone in our turnaround. The improvement was broad-based across the portfolio and reflects stronger innovation, higher levels of advertising and promotional support and vastly improved go-to-market capabilities we have built over the past several years. These investments have strengthened the capabilities required to win in our industry and established a solid foundation upon which, we believe, profitable growth can be achieved and sustained in the years ahead.”<\/p>\n \nMark Erceg, Newell Brands Chief Financial Officer, said, “Second quarter results were above our expectations across all key financial metrics as stronger sales, gross productivity and disciplined overhead management more than offset higher-than-anticipated commodity and transportation costs. Based on our second quarter performance, including the IEEPA tariff refund P&L benefit we recorded during the quarter and the cash refund we expect to receive during the second half of the year, and improving top line trends we are raising our full-year outlook for net and core sales growth, normalized operating margin, normalized earnings per share and operating cash flow.”<\/p>\n Second Quarter 2026 Highlights<\/span><\/b><\/p>\n Second Quarter 2026 Operating Results<\/span><\/b><\/p>\n \nNet sales were $2.0 billion, an increase of 3.0% compared with the prior year period, reflecting core sales growth of 2.3% and favorable foreign exchange.<\/p>\n \nGross margin was 40.7% compared with 35.4% in the prior year period. Results included approximately $100 million of pretax tariff recovery related to IEEPA tariffs expensed in 2025 and approximately $26 million of pretax recovery related to IEEPA tariffs expensed in the first quarter of 2026. Gross profit also benefited slightly from higher sales and gross productivity savings which more than offset higher inflation costs. Normalized gross margin was 40.8% compared with 35.6% in the prior year period.<\/p>\n \nOperating income was $283 million compared with $171 million in the prior year period. Operating margin was 14.2% compared with 8.8% in the prior year period. Normalized operating income was $324 million, or 16.2% of sales, compared with $208 million, or 10.7% of sales, in the prior year period. The year-over-year increase primarily reflected higher gross profit partially offset by higher advertising and promotion spending.<\/p>\n \nNet interest expense was $87 million compared with $82 million in the prior year period.<\/p>\n \nIncome tax provision was $89 million compared with $25 million in the prior year period. The normalized income tax provision was $65 million compared with $24 million in the prior year period.<\/p>\n \nNet income was $106 million compared with $46 million in the prior year period. Normalized net income was $180 million compared with $101 million in the prior year period. Normalized EBITDA was $406 million compared with $280 million in the prior year period.<\/p>\n \nDiluted EPS was $0.25 compared with $0.11 in the prior year period. Normalized diluted EPS was $0.42 compared with $0.24 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 outflow was $204 million compared with $271 million in the prior year period primarily driven by working capital improvements and a lower incentive compensation payment. The tariff recovery did not benefit second-quarter operating cash flow as it had not been collected as of quarter end.<\/p>\n \nAt the end of the second quarter of 2026, Newell Brands had debt outstanding of $5.0 billion and cash and cash equivalents of $209 million, compared with $5.1 billion and $219 million, respectively, at the end of the second quarter of 2025.<\/p>\n \nSubsequent to the end of the second quarter, the Company entered into a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extended general maturity to 2031.<\/p>\n Second Quarter 2026 Operating Segment Results<\/span><\/b><\/p>\n \nThe Home & Commercial Solutions segment generated net sales of $903 million compared with $892 million in the prior year period, reflecting a core sales decline of 0.4%, as well as the impact of favorable foreign exchange. Core sales growth in the Kitchen and Home Fragrance businesses was more than offset by a core sales decline in the Commercial business. Operating income was $49 million, or 5.4% of sales, compared with $24 million, or 2.7% of sales, in the prior year period. Normalized operating income was $68 million, or 7.5% of sales, compared with $44 million, or 4.9% of sales, in the prior year period.<\/p>\n \nThe Learning & Development segment generated net sales of $851 million compared with $809 million in the prior year period, reflecting core sales growth of 4.9%, as well as the impact of favorable foreign exchange. Core sales increased in both the Baby and Writing businesses. Operating income was $308 million, or 36.2% of sales, compared with $202 million, or 25.0% of sales, in the prior period. Normalized operating income was $314 million, or 36.9% of sales, compared with $207 million, or 25.6% of sales, in the prior year period.<\/p>\n \nThe Outdoor & Recreation segment generated net sales of $240 million compared with $234 million in the prior year period, reflecting core sales growth of 3.7%, as well as the impact of unfavorable foreign exchange. Operating income was $4 million, or 1.7% of sales, compared with $8 million, or 3.4% of sales, in the prior year period. Normalized operating income was $9 million, or 3.8% of sales, compared with $13 million, or 5.6% of sales in the prior year period.<\/p>\n Outlook<\/span><\/b><\/p>\n \nThe Company initiated its outlook for the third quarter and raised its outlook for the full year 2026. The higher outlook reflects second quarter performance and the latest expectations for the balance of the year, including current-year tariff and inflationary impacts.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Q3 2026 Outlook<\/span><\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet Sales<\/p>\n<\/td>\n \n2% to 3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCore Sales<\/p>\n<\/td>\n \n2% to 3%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNormalized Operating Margin<\/p>\n<\/td>\n \n9.5% to 10.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNormalized EPS<\/p>\n<\/td>\n \n$0.18 to $0.20<\/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 \n1% to 2%<\/p>\n<\/td>\n \nFlat to 2%<\/p>\n<\/td>\n<\/tr>\n \nCore Sales<\/p>\n<\/td>\n \nFlat to 1%<\/p>\n<\/td>\n \n(1%) to 1%<\/p>\n<\/td>\n<\/tr>\n \nNormalized Operating Margin<\/p>\n<\/td>\n \n10.0% to 10.4%<\/p>\n<\/td>\n \n8.6% to 9.2%<\/p>\n<\/td>\n<\/tr>\n \nNormalized EPS<\/p>\n<\/td>\n \n$0.73 to $0.77<\/p>\n<\/td>\n \n$0.56 to $0.60<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe Company increased its outlook for full year 2026 operating cash flow to around $400 million. The updated full-year operating cash flow outlook assumes receipt of substantially all of the IEEPA tariff recovery before year-end and also reflects the updated inflation outlook.<\/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 judgement 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 second quarter 2026 earnings conference call will be held today, July 31, 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 second quarter 2026 financial results.<\/p>\n\n
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