Newell Brands Inc (NASDAQ:NWL) Reports Q3 2025 Earnings Miss, Stock Plunges 16%

Newell Brands Inc (NASDAQ:NWL) reported financial results for the third quarter of 2025 that fell short of analyst expectations, triggering a significant negative reaction in the stock during pre-market trading.

Earnings and Revenue Versus Estimates

The consumer goods company posted a double miss on key financial metrics for the quarter. Net sales declined to $1.81 billion, a 7.2% drop compared to the prior year period. This figure came in substantially below the analyst consensus estimate of $1.90 billion.

On the profitability front, the company reported normalized earnings per share of $0.17. This also missed the mark, falling short of the $0.18 per share that analysts had projected. The performance highlights the challenges the company faced during the quarter.

The market's immediate reaction was severe, with the stock down approximately 16.3% in pre-market activity following the earnings release.

Management Commentary and Operational Challenges

In the earnings release, CEO Chris Peterson acknowledged the difficult quarter, stating the company "navigated significant trade disruptions." He attributed the sales decline to several factors:

• Reduced retail inventory levels
• Softness in international markets, particularly Brazil
• Moderated demand following tariff-driven pricing actions

Peterson characterized the retailer inventory adjustment as a "one-time event" and expressed confidence that international business would return to growth in the fourth quarter.

CFO Mark Erceg highlighted some positive operational developments despite the top-line challenges, noting that gross margin would have expanded by 55 basis points if not for the temporary impact of one-time China tariffs. He also pointed to increased investment in advertising and promotion, which reached its highest rate as a percentage of sales in nearly 10 years.

Updated Outlook and Segment Performance

The company provided updated guidance for the full year and initial outlook for the fourth quarter of 2025. The updated full-year outlook appears cautious compared to existing analyst expectations.

• Q4 2025 Normalized EPS Guidance: $0.16 to $0.20
• Full-Year 2025 Normalized EPS Guidance: $0.56 to $0.60
• Full-Year 2025 Core Sales Guidance: Decline of 5.0% to 4.0%

The full-year normalized EPS guidance of up to $0.60 compares to analyst estimates of approximately $0.68 for the full year 2025. Similarly, the full-year sales guidance projecting a decline contrasts with analyst expectations for sales of $7.42 billion.

Segment performance was mixed during the quarter:

• Home & Commercial Solutions: Core sales declined 9.8%
• Learning & Development: Core sales declined 5.6%
• Outdoor & Recreation: Core sales declined 0.9%

Balance Sheet and Cash Flow

The company's financial position showed some tightening, with operating cash flow for the first nine months of the year at $103 million, down from $346 million in the prior year period. Debt outstanding stood at $4.8 billion at quarter-end, with cash and cash equivalents of $229 million.

For more detailed earnings information and future estimates, readers can review the complete earnings and estimates data for Newell Brands.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.