Newell Brands Earnings Call Transcripts
Fiscal Year 2026
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Year-over-year net and core sales growth returned for the first time in four years, with broad-based gains across business units and brands, led by strong U.S. performance. Margins and EPS were boosted by one-time tariff recoveries, and full-year guidance was raised across all key metrics.
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Significant progress in operational efficiency, innovation, and AI adoption has driven margin expansion, market share gains, and a return to top-line growth. The company is leveraging its integrated supply chain and domestic footprint for competitive advantage, while focusing on premiumization and high-ROI investments to sustain future growth.
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Q1 2026 results exceeded expectations, driven by strong innovation, market share gains, and improved consumer demand. Full-year outlook for net sales, core sales, and EPS was raised, despite ongoing cost and tariff headwinds.
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A multi-year transformation has driven operational excellence, AI-enabled innovation, and portfolio simplification, positioning the company for accelerated growth and distribution gains in 2026. Despite tariff headwinds, margins and cash flow are improving, with a robust innovation pipeline and strong retailer support.
Fiscal Year 2025
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2025 saw improved structural economics and resilience despite tariff headwinds, with Q4 and full-year margins expanding and market share gains in key segments. 2026 guidance anticipates flat to slightly positive sales, margin expansion, and strong innovation, with Q2-Q4 expected to drive growth.
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A new productivity plan, enabled by AI and prior simplification, targets $110–$130 million in cost savings and a 100 basis point reduction in overhead by 2026. Innovation and distribution gains are set to drive growth, while international markets are expected to recover by 2026.
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Net and core sales declined 7% year-over-year, driven by tariffs, retailer inventory reductions, and international slowdowns. Despite these headwinds, strong innovation and cost management are expected to drive sequential improvement and a return to growth in 2026.
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A comprehensive transformation has driven improved gross margins, reduced leverage, and a stronger innovation pipeline. Tariff management and supply chain shifts have created competitive advantages, while distribution gains and AI-driven efficiencies support optimism for future growth.
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Q2 2025 results met expectations with margin expansion and strong EPS, despite a 4.4% core sales decline. Distribution gains, innovation launches, and tariff-advantaged sourcing are set to drive sequential improvement in H2, with full-year EPS guidance updated to $0.66-$0.70.
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A multi-year transformation has driven operational, cultural, and financial improvements, including margin expansion, innovation, and supply chain optimization. The company is leveraging its U.S. and Mexico manufacturing advantage to win market share, with ongoing productivity and AI initiatives supporting future growth.
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Q1 2025 results met or exceeded expectations, with margin expansion and strong operational performance. Guidance for sales, margin, and EPS is affirmed, though core sales outlook is more cautious due to macro uncertainty. Tariff risks are largely mitigated except for baby gear, with ongoing efforts to secure exemptions and leverage domestic manufacturing.
Fiscal Year 2024
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Delivered strong margin and cash flow improvements in 2024, with sequential Core Sales progress and significant portfolio simplification. 2025 guidance anticipates margin expansion, positive Core Sales in the back half, and continued innovation, while monitoring tariff and macroeconomic risks.
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Significant organizational and cultural transformation has driven improved gross margins, cash flow, and EBITDA, with a focus on innovation, mix management, and supply chain de-risking. The company expects to return to positive core sales growth in 2025, gain U.S. distribution, and continue deleveraging while maintaining disciplined capital allocation.
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Q3 results exceeded expectations with strong margin expansion, improved cash flow, and reduced leverage. Full-year guidance for operating margin, EPS, and cash flow was raised, supported by innovation, portfolio rationalization, and productivity gains.
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Demand normalization and inflation have pressured sales, but operational and strategic changes are driving sequential improvement in margins, cash flow, and brand focus. International and key segments are returning to growth, with innovation and revenue management expected to further boost performance.
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Q2 results exceeded expectations with strong margin expansion, improved cash flow, and raised full-year guidance. Innovation, supply chain efficiency, and reduced China exposure are driving sequential improvement, despite ongoing macroeconomic and category pressures.
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A comprehensive turnaround strategy has driven significant improvements in sales trends, margins, and cash flow, supported by portfolio simplification, innovation, and operational efficiencies. Leadership expects continued acceleration in 2024 and beyond, with a focus on profitable growth and deleveraging.