Newell Brands Stock Earnings Reports

Newell Brands reported a challenging Q3 2025 driven by elevated and expanding tariff costs, retailer inventory destocking, weakness in key international markets (notably Brazil and Argentina), and competitive pricing dynamics that pressured sales. Q3 net and core sales declined ~7%, with tariffs contributing materially to margin and cash pressure. The company now expects approximately $180 million in incremental gross tariff cash costs for 2025 (up from $155 million), which has weighed on operating cash flow and increased the cash conversion cycle. Normalized gross margin was 34.5% (down 90 bps) and normalized operating margin was 8.9% (down 60 bps); adjusted for certain China tariff effects, margins would have shown improvement. Management highlighted progress on overhead reduction (normalized overheads down ~120 bps y/y), elevated A&P investment, a stronger innovation pipeline and improving distribution that should benefit results starting in Q4 and into 2026. Updated guidance: Q4 core sales expected down 5% to 3% (company assumes aggregate category down ~3%); full-year 2025 core sales down ~5%–4%; normalized operating margin of 8.4%–8.6%; normalized EPS $0.56–$0.60; full-year operating cash flow lowered to $250M–$300M. Management expects tariff impacts to be largely transitory, a return to international growth in Q4, sequential margin improvement, and stronger cash flow in 2026 as tariff and one-time effects normalize and CapEx declines.