Newell Brands Inc. (NWL) shares gained ground Friday after the consumer goods company delivered fourth-quarter fiscal 2025 results that painted a complicated picture of stability amid ongoing headwinds.
The company posted adjusted earnings of 18 cents per share for the quarter, matching analyst expectations. Revenue came in at $1.897 billion, down 2.7% from the prior year but managing to edge past the Street's $1.878 billion estimate. So earnings met the bar, revenue beat slightly despite declining, and the stock moved higher. That's the kind of market where we're living right now.
Breaking Down the Segments
Core sales fell 4.1% year over year, with weakness spread across Newell's business units. The Home & Commercial Solutions segment brought in $1.1 billion in net sales, reflecting a 5.3% core sales decline. Learning & Development generated $629 million, down 1.5%. The smallest segment, Outdoor & Recreation, saw net sales drop to $142 million from $152 million in the prior year period, representing a 6.2% core sales decline.
Adjusted gross margin compressed to 33.9% from 34.6% in the year-ago quarter. Operating margin is where things get interesting: on a GAAP basis, it plunged to negative 14.3% from positive 0.5% last year. But on an adjusted basis, operating margin actually improved to 8.7% from 7.1%, suggesting the headline number was weighed down by one-time charges or restructuring costs.
Adjusted EBITDA climbed 11.6% to $241 million from $216 million, which helps explain why investors weren't rushing for the exits despite the topline struggles.
Cash Flow Takes a Hit
Full-year operating cash flow dropped to $264 million from $496 million in the prior year. The company pointed to two specific culprits: $174 million in cash tariff costs and a substantially higher bonus payout in 2025 related to strong business results in 2024. So they performed well last year, paid people accordingly, and that shows up as a cash flow headwind this year. Such is life.
Looking Ahead
Newell Brands expects first-quarter adjusted losses between 8 cents and 12 cents per share, wider than the 3-cent loss analysts were anticipating. First-quarter revenue is projected at $1.488 billion to $1.519 billion, below the $1.536 billion consensus.
For the full fiscal 2026, the company forecasts adjusted earnings of 54 to 60 cents per share, compared with analyst estimates of 60 cents, and sales of $7.132 billion to $7.276 billion.
Price Action: Newell Brands shares traded up 4.09% at $4.70 at the time of publication Friday.
