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Newell Brands (NWL) investor relations material

Newell Brands Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary31 Oct, 2025

Executive summary

  • Net sales for Q3 2025 declined 7% year-over-year to $1.81 billion, driven by lower retailer inventory, international market slowdowns, and aggressive tariff-related pricing actions not matched by competitors.

  • Operating income improved to $119 million from a prior-year loss of $121 million, aided by the absence of $260 million in non-cash impairment charges and restructuring savings.

  • Net income was $21 million, compared to a net loss of $198 million in the prior year quarter.

  • Management remains confident in the turnaround strategy, citing strong innovation pipelines, expected net distribution gains, and a focus on margin expansion and deleveraging.

  • Strategic actions included sourcing changes, pricing adjustments, and productivity initiatives to offset tariff impacts and inventory reductions.

Financial highlights

  • Q3 2025 net sales: $1.81 billion (down 7% year-over-year); core sales down 7.4%.

  • Gross margin declined to 34.1% from 34.9%; normalized gross margin was 34.5%, down 90 bps, but would have expanded by 40 bps excluding one-time China tariffs.

  • Operating margin improved to 6.6% from -6.2% prior year; normalized operating margin was 8.9%, down 60 bps, but would have expanded by 80 bps to 10.3% excluding China tariffs.

  • Net income was $21 million; normalized net income was $70 million, up from $69 million; diluted EPS was $0.05, normalized diluted EPS was $0.17.

  • Year-to-date operating cash flow was $103 million, down from $346 million last year, impacted by higher tariffs and bonus payouts.

Outlook and guidance

  • Q4 2025 net sales expected to decline 4%-1%, core sales to decline 5%-3%, with sequential improvement anticipated.

  • Full-year 2025 net sales expected to decline 5%-4.5%, core sales 5%-4%.

  • Normalized operating margin for 2025 projected at 8.4%-8.6%; normalized EPS range $0.56-$0.60, including $0.23 per share in tariff headwinds.

  • Full-year operating cash flow guidance updated to $250-$300 million, reflecting $180 million in incremental cash tariff impacts.

  • 2026 outlook: significant improvement in operating cash flow, lower CapEx, and improved working capital as tariff effects normalize.

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Frequently asked questions

Newell Brands Inc. operates in five segments: Commercial Solutions, which distributes commercial products for foodservice and other industries; Home Appliances, which offers kitchen appliances and accessories under a number of diverse brand names; Home Solutions, which includes the Rubbermaid and Levolor brands and markets storage, organization, laundry care, and other household products; Learning and Development, which focuses on early childhood learning toys and family games; and Outdoor and Recreational Products ,which markets outdoor cooking grills and accessories under the Weber brand name.

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