Newell Brands Q4 revenue beats expectations

Overview

• Consumer goods company's Q4 revenue beat analyst expectations

• Normalized EPS for Q4 met analyst expectations

• Company improved normalized operating margin and increased normalized EBITDA

Outlook

• Company expects 2026 net sales to be flat, representing sequential improvement

• Newell Brands projects 2026 normalized EPS of $0.54 to $0.60

• Company forecasts 2026 operating cash flow of $350 mln to $400 mln

Result Drivers

• RESTRUCTURING AND PRODUCTIVITY - Normalized operating income improved due to restructuring and productivity actions, despite higher advertising and promotion spend

• TARIFF AND INFLATION HEADWINDS - Gross margin was impacted by tariff costs and inflation, but offset by productivity and pricing

• INCREASED ADVERTISING AND PROMOTION - Co increased advertising and promotion investment by 50 basis points, contributing to improved profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the appliances, tools & housewares peer group is "buy."

• Wall Street's median 12-month price target for Newell Brands Inc is $4.50, about 0.4% below its February 5 closing price of $4.52

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw97qjkQa

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