Newell Brands Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NWL?
Source: seekingalpha
- Market Challenges and Responses: CEO Christopher Peterson highlighted unexpected tariff interventions in 2025 that necessitated multiple pricing actions, significantly impacting consumer behavior and retail dynamics; however, the company demonstrated decisiveness by reducing China sourcing exposure to below 10% and launching a global productivity plan.
- Financial Performance Overview: Fourth quarter net sales reached $1.9 billion, down 2.7% year-over-year, with core sales declining 4.1%, yet exceeding revised expectations, while normalized gross margin improved to 33.9%, reflecting the company's resilience in adversity.
- Market Share Growth: The Baby segment reported a 160 basis point increase in market share for the full year, with Graco's market share up over 350 basis points in Q4, indicating significant progress in innovation and distribution that enhances competitive positioning.
- Future Outlook and Risks: Management anticipates overall sales for 2026 to decline by 1% to increase by 1%, with core sales expected to drop by 2%, alongside a projected $150 million tariff cost pressure; nevertheless, confidence in the innovation pipeline and market share growth remains strong.
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Analyst Views on NWL
Wall Street analysts forecast NWL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NWL is 4.81 USD with a low forecast of 3.75 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 4.520
Low
3.75
Averages
4.81
High
7.00
Current: 4.520
Low
3.75
Averages
4.81
High
7.00
About NWL
Newell Brands Inc. is a global consumer goods company. The Company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The products offered under the Home and Commercial Solutions segment include commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions; household products, including kitchen appliances; food and home storage products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products. The Learning and Development segment offers products in baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based products and labeling solutions. The Outdoor and Recreation segment offers products for outdoor and outdoor-related activities. Its brands include Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Yankee Candle, and Paper Mate, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Newell Brands Reports Q4 2025 Results with Mixed Outlook
- Earnings Report Highlights: Newell Brands reported adjusted earnings per share of 18 cents for Q4 2025, meeting analyst expectations, while quarterly sales reached $1.897 billion, surpassing the Street's estimate of $1.878 billion, indicating resilience in sales performance.
- Core Sales Decline: Despite the overall sales beat, core sales fell 4.1% year-over-year, with the Home & Commercial Solutions segment generating $1.1 billion in sales, down 5.3%, reflecting challenges in market demand.
- Margin Changes: The adjusted gross margin was 33.9%, down from 34.6% year-over-year, while the operating margin decreased from positive 0.5% to negative 14.3%, highlighting increased cost pressures that impacted profitability.
- Outlook Forecast: Newell Brands forecasts a first-quarter adjusted loss per share between 12 and 8 cents, wider than the analyst expectation of a 3-cent loss, and projects fiscal 2026 sales between $7.132 billion and $7.276 billion, slightly below the analyst estimate of 60 cents.
See More
Newell Brands to Announce Q4 Earnings on February 6
- Earnings Announcement: Newell Brands is set to release its Q4 earnings on February 6 before the market opens, with consensus EPS estimate at $0.18, reflecting a 12.5% year-over-year increase, while revenue is expected to decline by 3.6% to $1.88 billion, indicating revenue challenges ahead.
- Performance History: Over the past two years, Newell Brands has exceeded EPS estimates 88% of the time, but only 38% for revenue, suggesting stable profitability but struggles with revenue growth.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and nine downward revisions, while revenue estimates saw one upward and five downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance.
- Workforce Reduction: Newell Brands announced a 10% workforce reduction and the closure of 20 Yankee Candle stores, which may further impact operational efficiency and market share, highlighting the urgency of cost control and business restructuring efforts.
See More
Newell Brands Q4 2025 Earnings Call Insights
- Market Challenges and Responses: CEO Christopher Peterson highlighted unexpected tariff interventions in 2025 that necessitated multiple pricing actions, significantly impacting consumer behavior and retail dynamics; however, the company demonstrated decisiveness by reducing China sourcing exposure to below 10% and launching a global productivity plan.
- Financial Performance Overview: Fourth quarter net sales reached $1.9 billion, down 2.7% year-over-year, with core sales declining 4.1%, yet exceeding revised expectations, while normalized gross margin improved to 33.9%, reflecting the company's resilience in adversity.
- Market Share Growth: The Baby segment reported a 160 basis point increase in market share for the full year, with Graco's market share up over 350 basis points in Q4, indicating significant progress in innovation and distribution that enhances competitive positioning.
- Future Outlook and Risks: Management anticipates overall sales for 2026 to decline by 1% to increase by 1%, with core sales expected to drop by 2%, alongside a projected $150 million tariff cost pressure; nevertheless, confidence in the innovation pipeline and market share growth remains strong.
See More
NEWELL BRANDS STOCK FALLS NEARLY 5% FOLLOWING ANNUAL ADJUSTED EPS PROJECTION THAT MISSES EXPECTATIONS
Stock Performance: Newell Brands' shares have decreased by approximately 5%.
Forecast Adjustment: The decline follows an annual adjustment to their forecast, which was below market expectations.
See More
Newell Brands Reports Q4 Earnings with Mixed Results
- Earnings Report: Newell Brands reported a Q4 non-GAAP EPS of $0.18, in line with expectations, while revenue reached $1.89 billion, a 3.1% year-over-year decline, although it beat estimates by $10 million, indicating ongoing market challenges for the company.
- Sales Decline: Net sales of $1.9 billion represented a 2.7% decrease compared to the prior year, primarily driven by a core sales decline of 4.1%, although favorable foreign exchange impacts provided some relief, reflecting volatility in global markets.
- Future Outlook: The Q1 2026 revenue consensus anticipates a decline of 2.44%, with an EPS consensus of -$0.03, while the full-year revenue consensus suggests flat growth, indicating market caution regarding the company's future growth prospects.
- Operational Adjustments: The company plans to cut 10% of its workforce and close 20 Yankee Candle stores, aiming to address current market challenges through cost reductions and resource optimization, although this may negatively impact employee morale and brand image.
See More
Newell Brands Q4 Earnings Preview
- Earnings Release Announcement: Newell Brands is set to release its fourth-quarter earnings before the market opens on February 6, with analysts projecting earnings per share of 18 cents, an increase from 16 cents in the same period last year, indicating a gradual improvement in profitability.
- Revenue Expectations: Analysts estimate that Newell Brands will report quarterly revenue of $1.88 billion, down from $1.95 billion a year earlier, which may reflect weakened market demand and intensified competitive pressures.
- Layoff Plan Impact: On December 1, the company announced plans to reduce its global workforce by over 900 employees as part of a global productivity initiative, aimed at enhancing operational efficiency, though this may negatively affect employee morale and the company's image.
- Stock Price Movement: Newell Brands shares fell 1.3% to close at $4.52 on Thursday, reflecting market caution ahead of the earnings report, with investors needing to monitor the potential impact of the results on the stock price.
See More
Newell Brands Reports Q4 2025 Results with Mixed Outlook
- Earnings Report Highlights: Newell Brands reported adjusted earnings per share of 18 cents for Q4 2025, meeting analyst expectations, while quarterly sales reached $1.897 billion, surpassing the Street's estimate of $1.878 billion, indicating resilience in sales performance.
- Core Sales Decline: Despite the overall sales beat, core sales fell 4.1% year-over-year, with the Home & Commercial Solutions segment generating $1.1 billion in sales, down 5.3%, reflecting challenges in market demand.
- Margin Changes: The adjusted gross margin was 33.9%, down from 34.6% year-over-year, while the operating margin decreased from positive 0.5% to negative 14.3%, highlighting increased cost pressures that impacted profitability.
- Outlook Forecast: Newell Brands forecasts a first-quarter adjusted loss per share between 12 and 8 cents, wider than the analyst expectation of a 3-cent loss, and projects fiscal 2026 sales between $7.132 billion and $7.276 billion, slightly below the analyst estimate of 60 cents.
See More
Newell Brands to Announce Q4 Earnings on February 6
- Earnings Announcement: Newell Brands is set to release its Q4 earnings on February 6 before the market opens, with consensus EPS estimate at $0.18, reflecting a 12.5% year-over-year increase, while revenue is expected to decline by 3.6% to $1.88 billion, indicating revenue challenges ahead.
- Performance History: Over the past two years, Newell Brands has exceeded EPS estimates 88% of the time, but only 38% for revenue, suggesting stable profitability but struggles with revenue growth.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and nine downward revisions, while revenue estimates saw one upward and five downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance.
- Workforce Reduction: Newell Brands announced a 10% workforce reduction and the closure of 20 Yankee Candle stores, which may further impact operational efficiency and market share, highlighting the urgency of cost control and business restructuring efforts.
See More
Newell Brands Q4 2025 Earnings Call Insights
- Market Challenges and Responses: CEO Christopher Peterson highlighted unexpected tariff interventions in 2025 that necessitated multiple pricing actions, significantly impacting consumer behavior and retail dynamics; however, the company demonstrated decisiveness by reducing China sourcing exposure to below 10% and launching a global productivity plan.
- Financial Performance Overview: Fourth quarter net sales reached $1.9 billion, down 2.7% year-over-year, with core sales declining 4.1%, yet exceeding revised expectations, while normalized gross margin improved to 33.9%, reflecting the company's resilience in adversity.
- Market Share Growth: The Baby segment reported a 160 basis point increase in market share for the full year, with Graco's market share up over 350 basis points in Q4, indicating significant progress in innovation and distribution that enhances competitive positioning.
- Future Outlook and Risks: Management anticipates overall sales for 2026 to decline by 1% to increase by 1%, with core sales expected to drop by 2%, alongside a projected $150 million tariff cost pressure; nevertheless, confidence in the innovation pipeline and market share growth remains strong.
See More
NEWELL BRANDS STOCK FALLS NEARLY 5% FOLLOWING ANNUAL ADJUSTED EPS PROJECTION THAT MISSES EXPECTATIONS
Stock Performance: Newell Brands' shares have decreased by approximately 5%.
Forecast Adjustment: The decline follows an annual adjustment to their forecast, which was below market expectations.
See More
Newell Brands Reports Q4 Earnings with Mixed Results
- Earnings Report: Newell Brands reported a Q4 non-GAAP EPS of $0.18, in line with expectations, while revenue reached $1.89 billion, a 3.1% year-over-year decline, although it beat estimates by $10 million, indicating ongoing market challenges for the company.
- Sales Decline: Net sales of $1.9 billion represented a 2.7% decrease compared to the prior year, primarily driven by a core sales decline of 4.1%, although favorable foreign exchange impacts provided some relief, reflecting volatility in global markets.
- Future Outlook: The Q1 2026 revenue consensus anticipates a decline of 2.44%, with an EPS consensus of -$0.03, while the full-year revenue consensus suggests flat growth, indicating market caution regarding the company's future growth prospects.
- Operational Adjustments: The company plans to cut 10% of its workforce and close 20 Yankee Candle stores, aiming to address current market challenges through cost reductions and resource optimization, although this may negatively impact employee morale and brand image.
See More
Newell Brands Q4 Earnings Preview
- Earnings Release Announcement: Newell Brands is set to release its fourth-quarter earnings before the market opens on February 6, with analysts projecting earnings per share of 18 cents, an increase from 16 cents in the same period last year, indicating a gradual improvement in profitability.
- Revenue Expectations: Analysts estimate that Newell Brands will report quarterly revenue of $1.88 billion, down from $1.95 billion a year earlier, which may reflect weakened market demand and intensified competitive pressures.
- Layoff Plan Impact: On December 1, the company announced plans to reduce its global workforce by over 900 employees as part of a global productivity initiative, aimed at enhancing operational efficiency, though this may negatively affect employee morale and the company's image.
- Stock Price Movement: Newell Brands shares fell 1.3% to close at $4.52 on Thursday, reflecting market caution ahead of the earnings report, with investors needing to monitor the potential impact of the results on the stock price.
See More
