Key Highlights

  • Net sales rose 3.7% to USD 1,873 million, and core sales grew 3.3%, both above the top of guidance ranges.
  • Normalized diluted EPS was USD 0.20 versus USD 0.17, while the GAAP loss was USD 0.19 per share.
  • Normalized gross Margin was 35.2%, up 70 basis points, and normalized Operating Margin reached 9.8%, up 90 basis points.
  • Home and Commercial core sales grew 6%, with all three businesses growing for the first time in five years.

Growth Returns, GAAP Loss Recorded

Newell Brands Inc. (NASDAQ:NWL) reported third-quarter 2026 net sales of USD 1,873 million, up 3.7% from USD 1,806 million, with core sales up 3.3%. Both exceeded the high end of guidance ranges of 2% to 3%. Gross Profit was USD 649 million against USD 616 million, but a USD 101 million Impairment of goodwill, intangibles and other Assets cut Operating Income to USD 27 million from USD 119 million.

The net loss was USD 81 million, or USD 0.19 per share, versus Net Income of USD 21 million, or USD 0.05. Normalized diluted EPS was USD 0.20 versus USD 0.17.

Margins and Brands

Normalized gross margin was 35.2%, up 70 basis points, as higher sales and productivity offset Inflation and tariffs. Normalized operating margin was 9.8% against 8.9%, with Advertising and promotion near 6.9% of sales and normalized overheads down 20 basis points. Net interest expense was USD 86 million versus USD 83 million, and the normalized tax rate was 9.5% versus 7.9%.

Growth was broad, with two of three segments, four of six businesses and seven of the top ten brands growing. Writing delivered mid-single-digit core growth on its strongest U.S. back-to-school point-of-sale growth in three years, Yankee Candle returned to double-digit U.S. growth, and Baby core sales were roughly flat. Outdoor and Recreation core sales declined. Management said it believes October was Crock Pot's largest sales month ever. Learning and Development delivered a third consecutive quarter of core growth, Kitchen a second, and the new 34 gallon Brute container earned a 2026 Pro Tool Innovation Award. Baby car seat point-of-sale growth reached low double digits with share gains at key mass retailers, and Oster blenders posted positive U.S. point-of-sale and Latin American growth. Year-to-date core sales growth was nearly 1% after more than four years of declines.

Outlook and Cash

Management now sees its categories flat to down 1% for the year, one to two points better than at the start. Input cost inflation has exceeded plans, particularly diesel, transportation, resins and labor, and the company used limited pricing actions covering under 10% of the portfolio. It raised its 2026 sales outlook while maintaining the midpoint of operating margin and EPS guidance.

Year-to-date Operating Cash Flow was USD 93 million versus USD 103 million, reflecting higher inventory. The cash conversion cycle improved by 4 days. Trailing twelve-month normalized EBITDA grew 20%.

Variables Behind the Next Quarter

Management said 2026 results include about USD 100 million of Tariff refund benefit related to 2025, so normalized operating margin is anticipated to be lower than the 2026 reported level in 2027, though higher by more than the 50 basis point evergreen target excluding that benefit. Items to watch include input costs, Outdoor and Recreation trends and deleveraging.