Newell Brands Inc

Latest Results (02.10.2025):

Newell Brands Inc reported its second quarter of 2025 financial results, demonstrating continued improvement in gross margins and operational efficiency despite a challenging macroeconomic environment. The company achieved its highest gross margin rate in four years and maintained net income within guidance ranges, reflecting strategic agility and strong investor support.

Net Sales

Net sales for Q2 2025 were $1.9 billion, representing a 4.8% decline compared to the same period last year. Core sales decreased by 4.4%, influenced by unfavorable foreign exchange rates and business exits.

Gross Margin Expansion

Gross margin increased to 35.4% in Q2 2025 from 34.4% the previous year. Normalized gross margin also rose to 35.6%, marking the eighth consecutive quarter of over 100 basis points expansion in gross margins.

Operating Margin Improvement

Operating margin improved to 8.8% from 8.0% year-over-year, driven by restructuring savings and reduced charges. Normalized operating margin reached 10.7%, up slightly from 10.6% in the prior year.

Net Income and EPS

Net income for the quarter was $46 million, slightly up from $45 million a year ago. Diluted EPS remained steady at $0.11, while normalized diluted EPS declined to $0.24 from $0.35 compared to the previous year.

Debt Refinancing

Newell Brands refinanced $1.25 billion of senior unsecured notes at an 8.50% interest rate due 2028. The offering was four-times oversubscribed, reflecting strong investor confidence in the company's strategic direction.

Updated Full Year Outlook

The company updated its full year 2025 outlook, anticipating higher tariff costs which are expected to impact gross profit by approximately $105 million before mitigation. Operating cash flow projections have been adjusted to a range of $400 million to $450 million.