Newell Brands Restores Sales Growth After Two Declining Quarters

The Tip Desk · July 31, 2026 · 3 min read

Second-quarter net sales reached $2.0 billion, up 3.0% from a year earlier, as the company lifted its full-year 2026 outlook across sales, margin and earnings.

Newell Brands (NWL) returned to year-over-year growth in both net sales and core sales in the second quarter, reversing two consecutive quarters of decline and marking the first such increase in more than four years.

Net sales were $2.0 billion, up 3.0% from a year earlier, after a 1.1% year-over-year decline in the first quarter and a 2.7% decline in the fourth quarter of 2025. Core sales grew 2.3% after falling 3.5% in the first quarter and 4.1% in the fourth quarter of 2025. President and Chief Executive Officer Chris Peterson said the improvement was broad-based across the portfolio and reflected stronger innovation, higher advertising and promotional support, and improved go-to-market capabilities.

Chief Financial Officer Mark Erceg said second-quarter results were above the company’s expectations across all key financial metrics, with stronger sales, gross productivity, and disciplined overhead management more than offsetting higher-than-anticipated commodity and transportation costs.

Gross margin increased to 40.7% from 35.4% a year earlier. Normalized gross margin was 40.8%. Operating margin improved to 14.2% from 8.8%; normalized operating margin was 16.2%. Normalized EBITDA was $406 million.

Reported and normalized results included about $100 million pretax, or about $76 million after tax and about $0.17 a share, of IEEPA tariff recoveries related to tariffs expensed in 2025, plus about $26 million pretax, or about $19 million after tax and about $0.04 a share, of recoveries related to IEEPA tariffs expensed in the first quarter of 2026. Gross profit also benefited slightly from higher sales and gross productivity savings that more than offset higher inflation costs.

Net income was $106 million. Normalized net income was $180 million. Diluted earnings were $0.25 a share; normalized diluted earnings were $0.42 a share.

Learning & Development was the largest contributor. The segment generated net sales of $851 million, with 4.9% core sales growth in both the Baby and Writing businesses. Operating income was $308 million, or 36.2% of sales; normalized operating income was $314 million, or 36.9% of sales.

Home & Commercial Solutions generated net sales of $903 million. Core sales declined 0.4%, as growth in Kitchen and Home Fragrance was more than offset by a decline in Commercial. Operating income was $49 million, or 5.4% of sales; normalized operating income was $68 million, or 7.5% of sales.

Outdoor & Recreation generated net sales of $240 million, with 3.7% core sales growth. Operating income was $4 million, or 1.7% of sales; normalized operating income was $9 million, or 3.8% of sales.

Year-to-date operating cash outflow was $204 million. The tariff recovery did not benefit second-quarter operating cash flow because it had not been collected as of quarter-end. Debt outstanding was $5.0 billion, and cash and cash equivalents were $209 million at June 30.

The company raised its full-year 2026 outlook for net sales to 1% to 2% from flat to 2%, core sales to flat to 1% from (1%) to 1%, normalized operating margin to 10.0% to 10.4% from 8.6% to 9.2%, and normalized EPS to $0.73 to $0.77 from $0.56 to $0.60. It increased the full-year operating cash flow outlook to around $400 million, assuming receipt of substantially all of the IEEPA tariff recovery before year-end.

For the third quarter, the company expects net sales and core sales of 2% to 3%, normalized operating margin of 9.5% to 10.2%, and normalized EPS of $0.18 to $0.20.

Subsequent to quarter-end, Newell Brands entered a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extending general maturity to 2031.