Newell Brands (NWL) Q4 2025 earnings summary

Executive summary

• Significant investment in front-end and back-end capabilities since 2023 has driven improved structural economics and resilience, despite 2025 being more challenging than anticipated due to tariffs and retailer fulfillment shifts.

• Decisive actions included reducing China sourcing below 10%, launching a global productivity plan, and executing three rounds of pricing to protect margins.

• Q4 net sales declined 2.7% YoY to $1.9B, with core sales down 4.1%; full-year net sales were $7.2B, down 5%, and core sales down 4.6%.

• Normalized operating margin improved in Q4 (8.7% vs. 7.1%) and for the full year (8.4% vs. 8.2%), with normalized net income for Q4 at $75M and for the year at $240M.

• Net loss for Q4 was $315M and for the full year $285M, both higher than prior year.

Financial highlights

• Q4 normalized EBITDA: $241M, up nearly 12% YoY; full-year normalized EBITDA: $882M, down 2%.

• Q4 normalized gross margin: 33.9% (down 70 bps YoY); full-year normalized gross margin: 34.2% (up 10 bps YoY).

• Q4 normalized EPS: $0.18 (vs. $0.16 prior year); full-year normalized EPS: $0.57 (down from $0.68 YoY).

• Operating cash flow for 2025 was $264M, down from $496M in 2024, impacted by tariffs and higher bonus payouts.

• Net leverage ratio at year-end: 5.1x; net debt at year-end: $4.47B.

Outlook and guidance

• 2026 net sales guidance: -1% to +1%; core sales: -2% to flat, assuming category contraction of ~2%.

• Normalized operating margin expected at 8.6%-9.2%; normalized EPS: $0.54-$0.60, including a $0.07 EPS headwind from tariffs and higher tax rate.

• Operating cash flow guidance: $350-$400M (midpoint: +40% YoY); CapEx budget: $200M.

• Q1 2026 expected to be the weakest quarter due to shipment timing and shelf resets; Q2-Q4 expected to show even, positive growth.