Newell Brands (NWL) investor relations material

Executive summary

• Q3 net sales rose 3.7% to $1.873B and core sales grew 3.3%, marking a second consecutive quarter of growth across both geographies, four of six businesses and seven of the top 10 brands.

• Normalized margins, earnings and EBITDA improved; GAAP operating income fell to $27M and net loss was $81M, primarily reflecting a $101M noncash tradename impairment.

• FY sales guidance rose while normalized operating margin and EPS guidance midpoints were maintained despite higher inflation expectations.

Financial highlights

• Q3 GAAP gross margin was 34.7% vs. 34.1%; normalized gross margin was 35.2% vs. 34.5%, up 70 bps YoY.

• Normalized operating income rose to $184M from $162M, with margin at 9.8% vs. 8.9%; normalized diluted EPS was $0.20 vs. $0.17.

• Q3 net loss was $81M and diluted EPS was $(0.19), vs. net income of $21M and diluted EPS of $0.05; operating income was $27M vs. $119M.

• 9M sales increased 2.1% to $5.416B and operating income rose 10.6% to $344M; net loss was $8M vs. $30M net income.

• 9M gross margin expanded to 36.4% from 34.0%, including tariff-refund benefits; normalized EBITDA rose to $789M from $641M.

Outlook and guidance

• Q4 net and core sales growth forecast at 1%–3%; normalized operating margin at 8.4%–9.0% and normalized diluted EPS at $0.17–$0.19.

• FY 2026 net sales growth guidance raised to 2%–3% and core sales growth to 1%–2%; normalized operating margin remains 10.0%–10.4%.

• FY normalized diluted EPS guidance is $0.74–$0.76, midpoint $0.75 unchanged; includes ~$100M, or $0.17/share, of IEEPA tariff-cost recovery recorded in Q2.

• FY operating cash flow guidance revised to ~$150M due to two one-time items; underlying operational guidance remains ~$400M excluding them.

• 2027 base plan assumes positive core sales growth, ~$150M inflation, modest early-year pricing and normalized operating margin growth above the 50 bps evergreen target, excluding the 2026 tariff-refund benefit.