Newell Raises 2026 Sales Outlook After Growth Reaccelerates

The Tip Desk · October 30, 2026 · 3 min read

Third-quarter net sales were $1.9 billion, up 3.7% from a year earlier, and the company now expects 2% to 3% full-year sales growth.

Newell Brands (NWL) reported third-quarter net sales of $1.9 billion, up 3.7% from a year earlier, as year-over-year growth accelerated from 3.0% in the second quarter after a 1.1% decline in the first quarter. Core sales rose 3.3%.

The global consumer goods company said the acceleration marked a second consecutive quarter of sales growth and that both the U.S. and International delivered growth, along with four of six businesses and seven of its top 10 brands. President and Chief Executive Officer Chris Peterson said the company is raising its full-year sales outlook and now expects positive sales growth in both the fourth quarter and full year 2026.

GAAP results were a net loss of $81 million, or $0.19 a share, compared with net income of $21 million, or $0.05 a share, a year earlier. The period included a $101 million non-cash impairment of an indefinite-lived tradename. Operating income was $27 million, and operating margin was 1.4%. Normalized net income was $86 million, or $0.20 a share, versus $70 million, or $0.17 a share. Normalized operating income was $184 million, or 9.8% of sales. Normalized EBITDA was $248 million.

Gross margin was 34.7%, compared with 34.1% a year earlier. Normalized gross margin was 35.2%. The company said the positive impact from higher net sales and gross productivity more than offset inflation headwinds. Normalized results, it said, primarily reflected higher net sales and improved gross margin.

Home & Commercial Solutions generated $1.01 billion of net sales, with core sales up 6.0% and growth in the Kitchen, Home Fragrance and Commercial businesses. Normalized operating income was $86 million, or 8.5% of sales. Learning & Development net sales were $692 million, with core sales up 2.3% as Writing grew and Baby was roughly flat. Normalized operating income there was $157 million, or 22.7% of sales. Outdoor & Recreation net sales were $169 million, with a 6.4% core decline. Normalized operating loss was $10 million, or negative 5.9% of sales.

The company raised its full-year 2026 net sales outlook to 2% to 3% from 1% to 2% and core sales to 1% to 2% from flat to 1%. It kept normalized operating margin at 10.0% to 10.4% and set normalized EPS at $0.74 to $0.76, from a prior $0.73 to $0.77 range. Fourth-quarter 2026 outlook was 1% to 3% net sales and core sales, 8.4% to 9.0% normalized operating margin, and $0.17 to $0.19 normalized EPS. Chief Financial Officer Mark Erceg said higher projected sales and additional cost containment offset inflation that exceeded expectations.

Full-year operating cash flow guidance was revised to approximately $150 million. The company said the change reflected a pension-plan termination whose accounting treatment lowers expected operating cash flows by about $85 million, including related cash taxes, and lower receivables-factoring proceeds after an upsized bond refinancing. Year-to-date operating cash flow was $93 million.

At quarter-end, debt outstanding was $4.8 billion and cash and cash equivalents were $249 million. The company entered a new $800 million asset-based revolving credit facility maturing in 2031 and issued $600 million of 6.250% senior notes due 2031, using proceeds to redeem 6.375% notes due 2027 and repay part of the new facility. Erceg said the company anticipates reducing total debt and factoring by a couple hundred million dollars this year.