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Jun 30, 2025
Newell Brands Q2 2025 Earnings Report
Newell Brands reported its second quarter 2025 financial results, achieving net sales, core sales, normalized operating margin, and normalized EPS within guidance ranges, alongside its eighth consecutive quarter of gross margin expansion.
Key Takeaways
Newell Brands delivered second quarter 2025 financial results within its guidance ranges, with net sales of $1.9 billion and diluted EPS of $0.11. The company achieved its eighth consecutive quarter of gross margin expansion, reaching 35.4%, and improved its operating margin to 8.8%. Normalized net income was $101 million, and normalized diluted EPS was $0.24.
Net sales for Q2 2025 were $1.9 billion, a 4.8% decline compared to the prior year period, with core sales declining 4.4%.
Gross margin increased to 35.4% in Q2 2025, marking the eighth consecutive quarter of 100+ basis points expansion year-over-year.
Operating income improved to $171 million, with an operating margin of 8.8%, reflecting savings from restructuring actions.
Normalized diluted EPS was $0.24, compared to $0.35 in the prior year period, while GAAP diluted EPS remained unchanged at $0.11.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Newell Brands updated its full year 2025 outlook, including an estimated incremental cash tariff cost of approximately $155 million compared to 2024, impacting gross profit by an estimated $105 million or $0.21 per share after tax.
Positive Outlook
- Full year 2025 normalized operating margin is projected to be between 9.0% and 9.5%.
- Full year 2025 normalized EPS is expected to be in the range of $0.66 to $0.70.
- Full year 2025 operating cash flow is projected to be between $400 million and $450 million.
- The company is focused on optimizing costs and cash flow.
- Efforts are underway to mitigate the impact of soft global demand and retailer inventory rebalancing.
Challenges Ahead
- Full year 2025 net sales are expected to decline by 3% to 2%.
- Full year 2025 core sales are expected to decline by 3% to 2%.
- An incremental cash tariff cost of approximately $155 million is estimated for full year 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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