Newell Q4 Earnings Meet Estimates, Core Sales Decline 4.1% Y/Y

Core Insights - Newell Brands Inc. (NWL) reported fourth-quarter 2025 results with sales exceeding the Zacks Consensus Estimate but declining year over year, while earnings met expectations and increased compared to the previous year [1][2] Financial Performance - NWL's normalized earnings per share (EPS) were 18 cents, an increase from 16 cents in the same quarter last year, aligning with the Zacks Consensus Estimate [2] - Net sales decreased by 2.7% year over year to $1,897 million, primarily due to lower core sales, although this figure surpassed the Zacks Consensus Estimate of $1,885 million [3] - Core sales fell by 4.1% year over year [3] - The normalized gross margin contracted by 70 basis points to 33.9%, while the normalized operating margin expanded by 160 basis points year over year to 8.7% [4] - Normalized EBITDA was $241 million, reflecting an 11.6% increase from $216 million in the prior year [4] Market Reaction - Following the results, NWL shares dropped approximately 14% in premarket trading due to softer-than-expected outcomes and a reduced outlook, attributed to ongoing sales declines and rising tariff-related costs [5] Segment Performance - In the Home & Commercial Solutions segment, net sales were $1.1 billion, down 3.7% year over year, with core sales declining by 5.3% [10] - The Learning and Development segment saw net sales of $629 million, slightly up from $628 million in the previous year, with core sales down by 1.5% [10] - The Outdoor and Recreation segment's net sales were $142 million, down from $152 million year over year, with core sales falling by 6.2% [11] 2026 Outlook - For 2026, NWL anticipates sales to decline between 1% and increase by 1%, with core sales expected to drop by 2% to remain flat [16] - The company projects normalized EPS for 2026 to be in the range of 54 to 60 cents, with operating cash flow estimated at $350 million to $400 million [15][16] - The first quarter of 2026 is expected to show weaker results due to timing issues rather than reduced consumer demand, with net sales anticipated to dip by 5% to 3% and core sales expected to decline by 7% to 5% [14]