Newell Brands Inc

Newell Brands Inc (NASDAQ: NWL) is a diversified global consumer goods company that operates through three primary segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Home and Commercial Solutions segment offers a broad portfolio of products, including commercial cleaning and maintenance solutions, closet and garage organization systems, hygiene and material handling solutions, as well as a wide range of household goods such as kitchen appliances, food and home storage items, vacuum sealing systems, premium cookware, bakeware, cutlery, and home fragrance products.

Key Business Updates

• Continued Progress Amid Industry Disruptions: Newell Brands, Inc. (NASDAQ: NWL) announced its financial results for the third quarter of 2025, highlighting continued progress in its turnaround strategy despite significant trade disruptions affecting the broader industry. President and Chief Executive Officer Chris Peterson stated that the company took swift strategic actions—including sourcing adjustments, pricing measures, and productivity initiatives—to mitigate the adverse impacts. Sales performance was affected by reduced retail inventory levels, weaker international demand, particularly in Brazil, and moderated volumes following tariff-driven price changes. Management believes the retail inventory adjustment was temporary and anticipates renewed growth in the international segment during the fourth quarter, supported by competitive pricing actions and a robust domestic manufacturing base in key categories such as Writing.
• Operational and Strategic Highlights: Chief Financial Officer Mark Erceg emphasized several operational positives despite the soft top line. Gross margin performance would have improved by approximately 55 basis points if not for the one-time China tariff impact. The company achieved its highest advertising and promotion rate as a percentage of sales in nearly a decade, underscoring its commitment to innovation and brand development. Additionally, normalized overheads as a percentage of sales declined by about 120 basis points—the first reduction in three years—reflecting ongoing efficiency initiatives and the integration of advanced AI tools across operations.
• Financial Overview and Profitability: For the third quarter of 2025, Newell Brands reported net sales of USD 1.8 billion, a decline of 7.2% year-over-year, primarily due to a 7.4% decline in core sales, partially offset by favorable foreign exchange. Gross margin decreased to 34.1% from 34.9%, while normalized gross margin declined to 34.5% from 35.4%, as benefits from pricing and productivity were outweighed by tariff costs and inflationary pressures. Operating income improved significantly to USD 119 million, compared to a loss of USD 121 million in the prior-year period, aided by reduced restructuring charges. Normalized operating income was USD 162 million, or 8.9% of sales, versus USD 185 million, or 9.5%, a year earlier.
• Net Income, EPS, and EBITDA Performance: Net income for the quarter was USD 21 million, reversing a USD 198 million loss recorded in the prior-year period, which had included a non-cash impairment charge of USD 260 million. On a normalized basis, net income rose marginally to USD 70 million from USD 69 million. Normalized EBITDA stood at USD 225 million, compared to USD 250 million a year earlier, while diluted earnings per share improved to USD 0.05, compared with a diluted loss per share of USD 0.48. Normalized diluted EPS rose to USD 0.17, slightly above the prior-year figure of USD 0.16.
• Balance Sheet and Cash Flow Position: As of the end of the third quarter, Newell Brands reported total debt of USD 4.8 billion and cash and cash equivalents of USD 229 million, compared with USD 5.0 billion and USD 494 million, respectively, at the same period in 2024. Year-to-date operating cash flow was USD 103 million, down from USD 346 million in the prior-year period, primarily due to working capital usage, tariff-related cash costs, and the lapping of significant reductions achieved last year. The company’s liquidity position remains adequate to support ongoing restructuring and investment priorities.
• Segment Performance Overview: By segment, Home & Commercial Solutions generated net sales of USD 942 million, down from USD 1.0 billion, representing a 9.8% core sales decline. Operating income rose sharply to USD 40 million from a loss of USD 94 million, driven by restructuring savings, though normalized operating income declined to USD 64 million from USD 122 million. The Learning & Development segment reported net sales of USD 681 million, down 5.6%, with operating income rising to USD 124 million from USD 75 million, and normalized operating income at USD 130 million versus USD 154 million last year. The Outdoor & Recreation segment maintained net sales of USD 183 million, with operating loss narrowing to USD 8 million from USD 23 million, and normalized operating loss improving to USD 1 million from USD 15 million in the prior year.
• Outlook for Fourth Quarter and Full Year 2025: Newell Brands issued guidance for the fourth quarter and updated its full-year 2025 outlook, incorporating the anticipated incremental cash tariff cost of approximately USD 180 million versus 2024, with an estimated gross profit impact of USD 115 million, or USD 0.23 per share after tax. For Q4 2025, the company expects net sales to decline between 4.0% and 1.0%, core sales to decline 5.0% to 3.0%, normalized operating margin between 9.0% and 9.5%, and normalized EPS in the range of USD 0.16 to USD 0.20. For the full year 2025, Newell projects net sales down 5.0% to 4.5%, core sales down 5.0% to 4.0%, normalized operating margin between 8.4% and 8.6%, and normalized EPS between USD 0.56 and USD 0.60. The company also revised its operating cash flow outlook to USD 250 million to USD 300 million, signaling continued focus on cash discipline and operational execution.

Technical Observation (on the daily chart):

Newell Brands’ stock shows a clear downtrend, with the price plunging nearly 28% to USD 3.40, breaking below key support near USD 4.00. Both the 20-day and 50-day moving averages remain bearish, while a sharp volume spike suggests heavy selling pressure. The RSI at 8.27 indicates extreme oversold conditions, hinting at a possible short-term rebound, but the overall trend remains weak.

Newell Brands Inc., a global consumer goods company, reported mixed performance across its diverse portfolio. While strategic actions and operational efficiencies supported profitability improvements, sales were pressured by trade disruptions, softer international demand, and tariff-related impacts. The company demonstrated progress in cost control, margin recovery, and restructuring benefits, yet continued challenges in core sales and cash flow highlight that its turnaround, though advancing, remains in transition.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Newell Brands Inc (NASDAQ: NWL) at the closing market price of USD 3.40 as of Oct 31,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 31,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.