Newell Brands(NWL) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $1.8 billion, a decline of 7.2% year-over-year, with core sales down 7.4%[4] - Gross margin decreased to 34.1% from 34.9% in the prior year, with normalized gross margin at 34.5% compared to 35.4%[5][6] - Operating income improved to $119 million, compared to an operating loss of $121 million in the prior year, with an operating margin of 6.6%[7] - Net income was $21 million, a significant recovery from a net loss of $198 million in the prior year, with normalized net income at $70 million[9] - Diluted EPS was $0.05, compared to a diluted loss per share of $0.48 in the prior year, with normalized diluted EPS at $0.17[9] - The updated outlook for full year 2025 estimates net sales decline of 5.0% to 4.5% and normalized EPS of $0.56 to $0.60[17] - For the three months ended September 30, 2025, normalized diluted earnings per share increased to $0.17 compared to $0.16 in the same period of 2024, reflecting a growth of 6.3%[46] Cash Flow and Debt - Year-to-date operating cash flow was $103 million, down from $346 million in the prior year, affected by working capital use and cash tariff costs[11] - At the end of Q3 2025, total debt was $4.8 billion, down from $5.0 billion in the prior year, with cash and cash equivalents at $229 million[12] - Cash and cash equivalents at the end of Q3 2025 were $269 million, down from $521 million at the end of Q3 2024[35] - The company reported a net cash provided by operating activities of $103 million for the nine months ended September 30, 2025, compared to $346 million for the same period in 2024[35] - Net debt as of September 30, 2025, is $4,548 million, an increase from $4,397 million in the previous year[65] Segment Performance - The Home & Commercial Solutions segment reported net sales of $942 million, a decline of 9.8%, while the Learning & Development segment generated $681 million, down 5.6%[13][14] - The Home and Commercial Solutions segment reported a net sales decline of 10.0% for the three months ended September 30, 2025, compared to the same period in 2024[51] - The Learning and Development segment experienced a normalized operating margin of 21.3% for the nine months ended September 30, 2025, compared to 22.5% in the same period of 2024[48] Cost and Expenses - The company expects an incremental cash tariff cost of approximately $180 million for full year 2025, impacting gross profit by about $115 million[16] - Selling, general and administrative expenses for the three months ended September 30, 2025, are reported at $492 million, a decrease from $536 million in 2024[68] - The company incurred restructuring-related costs of $43 million for the three months ended September 30, 2025, primarily related to severance and employee termination costs[40] - The company incurred restructuring-related costs of $25 million for the three months ended September 30, 2025[65] Assets and Liabilities - Total assets increased to $11,287 million as of September 30, 2025, up from $11,004 million at the end of 2024[33] - Total liabilities rose to $8,590 million as of September 30, 2025, compared to $8,253 million at the end of 2024[33] Market Conditions - The company continues to face inflationary pressures and soft global demand, impacting financial performance and requiring greater use of estimates in financial statements[27] - The company is focused on executing its Realignment Plan to optimize costs and improve productivity amid challenging macroeconomic conditions[29] Normalized Metrics - Normalized gross profit for the three months ended September 30, 2025, was $625 million, or 34.5% of net sales, compared to $690 million and 35.4% in 2024[40] - Normalized operating income for the three months ended September 30, 2025, was $162 million, down from $306 million in the same period of 2024, representing a decline of 47.5%[48] - Normalized EBITDA for the three months ended September 30, 2025, was $225 million, a decrease of 10.0% from $250 million in the same period of 2024[58] - Normalized net income for the trailing twelve months ended September 30, 2025, is $234 million, compared to $286 million for the same period in 2024[65] - Total normalized adjustments, net of tax, for the trailing twelve months ended September 30, 2025, amount to $258 million[65]