In the third quarter, Newell Brands’ financial results matched analyst estimates, with sales gains prompting the company to raise its full-year sales guidance.
A Zacks Investment Research analyst consensus estimate pegged net income at 20 cents per adjusted diluted share and revenues at $1.85 billion.
Net sales were $1.87 billion versus $1.81 billion in the year-before quarter, according to Newell. Operating income was $27 million versus $119 million in the prior-year period, while adjusted operating income was $184 million versus $162 million.
- Newell’s Home & Commercial Solutions segment posted net sales of $1.01 billion versus $942 million in the year-past quarter. Operating loss was $37 million versus operating income of $40 million in the prior-year period, and adjusted operating income was $86 million compared with $64 million. Newell noted that core sales grew in the kitchen, home fragrances and commercial operations.
- The Learning & Development segment posted net sales of $692 million versus $681 million in the year-past quarter. Operating income was $137 million versus $124 million in the prior-year period, and adjusted operating income was $157 million compared with $130 million. The company pointed out that core sales increased in the writing business while the baby business was roughly flat.
- The Outdoor & Recreation segment posted net sales of $169 million compared with $183 million in the year-past quarter. Operating loss was $14 million versus an operating loss of $8 million in the prior-year period, and adjusted operating loss was $10 million compared with an adjusted operating loss of $1 million.
Newell updated its fiscal-year guidance to sales growth of 2% to 3% from 1% to 2% previously, and adjusted net income of 74 cents to 76 cents per diluted share from 73 cents to 77 cents.
In announcing the financial results, Chris Peterson, Newell Brands president and CEO, said, “Top-line growth accelerated sequentially as Newell Brands delivered its second consecutive quarter of year-over-year growth in sales. Growth during the quarter was broad-based, with both the U.S. and International delivering growth along with four of our six businesses and seven of our top 10 brands. Our investment in consumer understanding, brand building, innovation, and marketing continues to expand distribution and drive growth. Based on these solid results and the dramatic improvements we have made across the key capabilities required to win in our industry, we are raising our full-year sales outlook and now expect to deliver positive sales growth in both the fourth quarter and full year 2026.”
Mark Erceg, the company’s CFO, stated, “Stronger sales and world-class productivity efforts allowed third-quarter normalized gross and operating margins to expand significantly versus last year and normalized earnings per share to come in at the high end of our guidance range despite inflation that exceeded our expectations. Higher projected sales than previously anticipated and additional cost containment efforts give us the confidence to maintain the midpoints of our normalized operating margin and normalized earnings per share outlooks. Deleveraging remains a top priority and, consistent with that, we anticipate reducing total debt and factoring by a couple hundred million dollars this year.”
