Peterson also said these actions helped Newell maintain a leverage ratio “at about five times” and that distribution momentum improved as the year progressed, contributing to fourth-quarter sales coming in modestly better than expected.Pricing: The company executed three rounds of pricing in impacted categories to protect structural economics, which management said helped expand normalized operating margin for the year while also increasing advertising and promotional support by 50 basis points.Domestic man ...

Newell Brands (NasdaqGS:NWL) Q4 2025 Earnings call February 06, 2026 08:30 AM ET Company ParticipantsChris Peterson - President and CEOJoanne Freiberger - SVP of Investor Relations and Chief Communications OfficerMark Erceg - CFOConference Call ParticipantsAndrea Teixeira - Managing Director and Senior Equity Research AnalystBrian McNamara - Managing Director and Senior Equity Research AnalystLauren Lieberman - Managing Director and Senior Equity Research AnalystOlivia Tong - Managing Director and Equity Re ...

Newell Brands (NasdaqGS:NWL) Q4 2025 Earnings call February 06, 2026 08:30 AM ET Company ParticipantsChris Peterson - President and CEOJoanne Freiberger - SVP of Investor Relations and Chief Communications OfficerMark Erceg - CFOConference Call ParticipantsAndrea Teixeira - Managing Director and Senior Equity Research AnalystBrian McNamara - Managing Director and Senior Equity Research AnalystLauren Lieberman - Managing Director and Senior Equity Research AnalystOlivia Tong - Managing Director and Equity Re ...

Financial Data and Key Metrics Changes - Fourth quarter net sales were $1.9 billion, down 2.7% year-over-year, and core sales declined 4.1% [17] - Full-year net sales were $7.2 billion, a decline of 5%, and core sales decreased by 4.6% [21] - Normalized gross margin for the fourth quarter was 33.9%, down 70 basis points year-over-year, while normalized operating margin was 8.7%, up 160 basis points [18][19] - Normalized earnings per share for 2025 were $0.57 compared to $0.68 in the prior year [23] Business Line Data and Key Metrics Changes - The Learning and Development segment showed resilience, with strong performance from brands like Sharpie and Expo [9] - The Baby segment improved significantly, with Graco's market share increasing by 160 basis points for the full year and over 350 basis points in the fourth quarter [9] - The Home and Commercial segment faced challenges, particularly in the Kitchen category, but promotional activities and selective price adjustments helped stabilize performance [10] - Outdoor and Recreation segment showed stabilization with improved gross and operating margins as the year progressed [11] Market Data and Key Metrics Changes - Core sales in Argentina grew slightly in the fourth quarter due to economic recovery, while Brazil's core sales were down only mid-single digits [18] - The overall market environment remains challenging, with expectations of a 2% decline in categories for 2026 [12] Company Strategy and Development Direction - The company has focused on rebuilding front-end capabilities and strengthening back-end capabilities while reducing complexity [4] - A global productivity plan was announced to enhance competitiveness and support long-term value creation [6] - The company aims to convert strengthened capabilities into improved performance while maintaining margin and cash discipline [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was more challenging than anticipated due to tariffs impacting consumer behavior and retail dynamics [5] - The company expects core sales to decline by approximately 2% for 2026 but is confident in outperforming the category due to strong innovation and distribution improvements [12][30] - Management highlighted the importance of innovation, with over 25 Tier 1 and Tier 2 launches planned for 2026 [13] Other Important Information - The company reduced its China sourcing exposure to below 10%, enhancing supply chain resilience [6] - Full-year operating cash flow guidance for 2026 is set at $350-$400 million, reflecting a 40% increase over 2025 [27] Q&A Session Questions and Answers Question: Can you help us understand your level of visibility on shelf space wins and confidence in sales growth? - The company is planning for category declines but expects to outperform due to strong innovation and secured shelf space wins that will kick in starting in Q2 [37][40] Question: Can you elaborate on the pricing interventions in the baby and kitchen categories? - The company adjusted pricing in response to tariff rollbacks and is implementing a 15% price reduction on Rubbermaid EasyStore lids to remain competitive [42][44] Question: What are the expectations for category growth in the long term? - The company anticipates that real income growth and product life cycles will contribute to category recovery, aiming for a long-term growth rate of 2%-3% [58]