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

Newell Brands Inc. NWL posted fourth-quarter 2025 results, wherein sales beat the Zacks Consensus Estimate but fell year over year. Nevertheless, earnings met the consensus mark and increased year over year.

Newell’s fourth-quarter results reflected disciplined execution in a challenging environment, with stronger underlying profitability driven by productivity actions and improved cost control. While sales remained under pressure, the company exited the year on firmer footing, supported by margin improvement and momentum heading into the new fiscal year.

NWL’s normalized earnings per share (EPS) were 18 cents, up from 16 cents in the year-ago quarter. The bottom-line figure met the Zacks Consensus Estimate.

Newell Brands Inc. Price, Consensus and EPS Surprise

Newell Brands Inc. price-consensus-eps-surprise-chart | Newell Brands Inc. Quote

Net sales dipped 2.7% year over year to $1,897 million due to lower core sales, offset by favorable foreign exchange. However, the metric beat the Zacks Consensus Estimate of $1,885 million. Core sales fell 4.1% year over year.

The normalized gross margin contracted 70 bps to 33.9%. Meanwhile, the normalized operating margin expanded 160 bps year over year to 8.7%. Normalized EBITDA was $241 million, up 11.6% from $216 million seen in the year-ago period. Our model anticipated an increase of 19.9% in adjusted EBITDA for the same quarter.

Newell shares have lost around 14% in premarket trading after the company posted softer-than-expected results and cut its outlook, citing ongoing sales declines and rising tariff-related cost pressures, which dampened investor sentiment. In the past six months, the company’s shares have fallen 8.3% compared with the industry’s 0.5% decline.

NWL Stock's Price Performance

NWL’s Segmental Details

Net sales in the Home & Commercial Solutions segment were $1.1 billion, down 3.7% from the year-ago period. The decrease was due to a 5.3% decline in core sales, offset by favorable foreign exchange rates. We had expected sales of $1.1 billion for the segment.

The Learning and Development segment recorded net sales of $629 million compared with $628 million in the year-ago quarter. Core sales fell 1.5%, offset by favorable foreign exchange rates. We had expected net sales of $624 million for the segment.

The Outdoor and Recreation segment’s net sales were $142 million, compared with $152 million in the year-ago quarter. Core sales fell 6.2%, offset by favorable foreign exchange. We had expected the segment's net sales to be $146 million.

Other Financial Details of Newell

This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $203 million, net long-term debt of $4.5 billion, outstanding debt of $4.7 billion and shareholders’ equity of $2.4 billion.

NWL also provided $264 million in cash for operating activities during 2025.

NWL’s Q4 & 2026 Outlook

Newell initiated its outlook for the first quarter and its full-year 2026. The company noted that first-quarter 2026 results will likely look weaker because of timing issues, not softer consumer demand. As the seasonally smallest quarter, the first quarter will be affected by the timing of shelf resets, innovation shipments and a tougher comparison with last year, which benefited from tariff-related ordering patterns. As a result, first-quarter core sales and earnings are expected to decline modestly before improving later in the year.

For the first quarter, net sales are expected to dip in the range of 5-3%, with core sales anticipated to drop in the band of 7-5%. The company expects a normalized operating margin in the range of 2.5-3.5% and a normalized loss in the band of 12-8 cents per share.

Newell’s 2026 outlook factors in the full-year impact of tariffs enacted in 2025. While cash tariff payments are expected to decline, the annualized pressure on gross profit will be higher before mitigation. Productivity initiatives, selective pricing and tariff-related wins should offset part of this impact, with tariffs expected to reduce normalized EPS by about 7 cents, while full-year EPS is projected at 54 to 60 cents and operating cash flow at $350 million to $400 million.

For 2026, the company anticipates sales to drop in the band of negative 1% to positive 1% year over year, with core sales to decline 2% to flat. The normalized operating margin is likely to be in the band of 8.6-9.2% compared with 8.4% recorded last year.

Here’s How Better-Ranked Stocks Fared

Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1 (Strong Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.

The Hershey Company HSY engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It holds a Zacks Rank #2 (Buy) at present. HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average.

The Zacks Consensus Estimate for Hershey’s current fiscal-year sales implies growth of 4.1% from the year-ago figures.

Monster Beverage Corporation MNST engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings implies growth of 95% and 22.8%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.

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