As it recorded IEEPA tariff recoveries, Newell Brands posted second-quarter earnings and revenue that exceeded Wall Street expectations while returning to year-over-year core sales growth.
Net income was $106 million, or 25 cents per diluted share, versus $46 million, or 11 cents per diluted share, in the year-earlier quarter.
A Zacks Investment Research analyst consensus estimate was for earnings per adjusted diluted share of 19 cents and revenue of $1.97 billion.
Adjusted for one-time events, Newell reported, net income was $180 million, or 42 cents per diluted share, versus $101 million, or 24 cents per diluted share, in the year-prior period.
Net sales were $1.99 billion, compared with $1.94 billion in the year-prior quarter, the company reported. Operating income was $283 million versus $171 million in the year-previous period, while adjusted operating income was $324 million versus $208 million.
Newell maintained that core sales gained 2.3% year over year.
Second-quarter reported and adjusted results included $100 million pretax, or $76 million after tax, from tariff recoveries related to International Emergency Economic Powers Act tariff levies that Newell expensed in 2025, equivalent to 17 cents per diluted share. Second-quarter adjusted results included $26 million pretax, or $19 million after tax, from IEEPA tariff recoveries related to tariff expenses recorded in the first quarter, equivalent to four cents per diluted share.
Newell raised its fiscal-year net sales outlook to growth of 1% to 2% from a prior range of flat to 2%. The company also increased its adjusted EPS outlook to 73 cents to 77 cents from 56 cents to 60 cents.
Newell’s Home & Commercial Solutions operation posted net sales of $903 million versus $892 million in the year-past quarter as favorable foreign exchange effects more than offset a 0.4% decline in core sales. A decline in the commercial business offset core growth in kitchen and home fragrance operations. Operating income was $49 million versus $24 million in the year-past period and adjusted operating income was $68 million versus $44 million.
The Outdoor & Recreation operation posted net sales of $240 million versus $234 million in the year-past quarter, reflecting a core sales gain of 3.7% and an unfavorable foreign exchange impact. Operating income was $4 million versus $8 million in the year-past period, and adjusted operating income was $9 million versus $13 million.
The Learning & Development operation posted net sales of $851 million versus $809 million in the year-past quarter, reflecting a core sales advance of 4.9% as well as a favorable foreign exchange impact. Core sales increased in the baby and writing businesses. Operating income was $308 million versus $202 million in the year-ago period, while adjusted operating income was $314 million versus $207 million.
In announcing the financial results, Chris Peterson, Newell president and CEO, said, “Newell Brands returned to year-over-year growth in both net sales and core sales in the second quarter, marking an important milestone in our turnaround. The improvement was broad-based across the portfolio and reflects stronger innovation, higher levels of advertising and promotional support, and vastly improved go-to-market capabilities we have built over the past several years. These investments have strengthened the capabilities required to win in our industry and established a solid foundation upon which, we believe, profitable growth can be achieved and sustained in the years ahead.”
Mark Erceg, Newell chief financial officer, added, “Second quarter results were above our expectations across all key financial metrics as stronger sales, gross productivity and disciplined overhead management more than offset higher-than-anticipated commodity and transportation costs. Based on our second quarter performance, including the IEEPA tariff refund P&L benefit we recorded during the quarter and the cash refund we expect to receive during the second half of the year, and improving top line trends, we are raising our full-year outlook for net and core sales growth, normalized operating margin, normalized earnings per share and operating cash flow.”
