0000814453-26-000008
SEC filingSoft demand, tariffs, and impairment charges drove a 5% revenue decline and widened net loss to $285M.
Newell Brands Inc. describes itself as a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, and others. The company was founded in 1903 and is incorporated in Delaware. It sells products in over 150 countries and has operations in more than 45.
The company operates through three primary segments: Home and Commercial Solutions (H&CS), Learning and Development (L&D), and Outdoor and Recreation (O&R). H&CS covers commercial cleaning, kitchen appliances, food storage, gourmet cookware, home fragrance, and more, with brands such as Rubbermaid, Calphalon, Yankee Candle, and Mr. Coffee. L&D includes writing instruments, art products, baby gear, and labeling solutions under brands like Sharpie, Paper Mate, Elmer’s, Graco, and Dymo. O&R focuses on active lifestyle products, technical apparel, and beverageware under brands like Coleman, Campingaz, Contigo, and Marmot. The Chief Operating Decision Maker (CEO) reviews these segments for resource allocation and performance assessment.
Key brands cited include Calphalon, Campingaz, Coleman, Contigo, Crockpot, Dymo, Elmer’s, EXPO, FoodSaver, Graco, Mapa, Marmot, Mr. Coffee, NUK, Oster, Paper Mate, Parker, Rubbermaid, Rubbermaid Commercial Products, Sharpie, Sistema, Spontex, Sunbeam, WoodWick, and Yankee Candle. The company highlights its multi-product offering as a competitive advantage, allowing it to meet customer needs more effectively.
Newell Brands markets its products directly to mass merchants, warehouse clubs, home centers, department stores, drug/grocery stores, specialty retailers, e-commerce retailers, commercial distributors, and direct to consumers online. In 2025, Amazon was the largest customer at approximately 17% of net sales, followed by Walmart at approximately 13%. Other top customers include Costco, Grainger, Office Depot, Staples, Target, The Home Depot, Kroger, and Uline.
The filing describes an intensely competitive environment driven by large retailers’ negotiating power, shifts in consumer shopping patterns, and private label growth. Key competitive methods include maintaining leading brands, innovating products, delivering superior customer service, and cost competitiveness. Competitors are numerous and include large manufacturers and distributors. Specifically, Yankee Candle retail stores compete with specialty candle and personal care retailers.
The company’s strategic priorities, identified in 2023, are based on “where to play” and “how to win” choices. They focus on igniting top-line improvement through innovation and brand building; building margin defense via productivity and procurement savings; deleveraging the balance sheet; strengthening operational excellence; and fostering a high-performance culture. Two key initiatives are the Realignment Plan (completed by end of 2025) to improve commercial capabilities, and the Productivity Plan (announced December 2025) to reduce the workforce by over 900 employees and close about 20 Yankee Candle stores.
As of December 31, 2025, Newell Brands employed approximately 21,900 people worldwide: North America 9,850, Latin America 4,500, Europe/Middle East/Africa 4,200, and Asia-Pacific 3,350. Around 13,250 employees are in manufacturing and supply chain roles. The company emphasizes talent attraction, development, and a culture of integrity, teamwork, and inclusion.
Newell Brands reported a 5.0% decline in net sales to $7.20B for fiscal 2025, driven by soft demand across all segments, net distribution losses, and product line exits. Gross profit decreased 4.6% to $2.43B, but gross margin improved 20 basis points to 33.8% due to gross productivity, pricing, and lower restructuring-related charges, partially offset by $114M in tariff costs and inflation. Operating income fell 41.8% to $39M, as higher restructuring charges ($17M increase), increased advertising and promotion ($12M), and the impact of lower gross profit were only partially offset by a $95M reduction in incentive compensation and savings from restructuring actions. Net loss widened to $285M from $216M, with diluted loss per share of $(0.68) versus $(0.52). The effective tax rate dropped to 5.3% from 16.9%, driven by discrete benefits and lower pretax income.
Management's outlook focuses on executing the Productivity Plan announced in December 2025, targeting $75–90M in restructuring charges (mostly by end of 2026) to simplify processes and redirect resources. The company continues to navigate tariff headwinds, noting $174M in incremental cash tariff costs in 2025, and plans to offset through pricing, productivity, and manufacturing relocation. No specific revenue or earnings guidance was provided. Key risks include further tariff escalation, sustained soft demand, and the ability to maintain financial covenants on its $1.00B credit revolver. The Commercial reporting unit and two tradenames are at risk of further impairment if conditions worsen.
As of December 31, 2025, Newell Brands had cash and cash equivalents of $203M (up from $198M in 2024). Total debt was $4,673M, including $130M drawn on the revolving credit facility (short-term) and $4,543M long-term debt. The company maintains a $1.0B revolving credit facility maturing August 2027, with $852M availability based on collateral, but net of $130M borrowings and $37M letters of credit, net availability was $685M. Shareholders' equity declined to $2,391M from $2,751M, mainly due to the net loss and dividends.
No significant purchase commitments were disclosed beyond routine trade payables. The company has a supplier finance program with $11M outstanding at year-end. Future debt maturities are $130M in 2026, $500M in 2027, $1,252M in 2028, $500M in 2029, $750M in 2030, and $1,586M thereafter. Operating lease liabilities total $546M, with $137M due in 2026.
Dividends declared were $123M ($0.28 per share), flat versus 2024, and cash dividends paid were $120M. Capital expenditures were $247M, representing 3.4% of net sales, down from $259M in 2024. Debt activity included the issuance of $1.25B of 8.500% senior notes due 2028, used to redeem the $1.233B 4.200% notes due 2026, plus repayment of $48M of 3.900% notes due 2025. The company recorded a $13M loss on debt extinguishment. No share repurchases were reported; treasury stock increased slightly due to equity compensation.
The segment footnote (Footnote 16) was incomplete in the provided excerpt, so segment-level revenue and operating income are not available. However, from restructuring footnotes, the three segments are Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. Impairment charges were concentrated in H&CS ($290M) and L&D ($50M). The company also disclosed that the Writing reporting unit (within L&D) has goodwill of $1.93B and passed its qualitative test, while the Commercial and Baby reporting units underwent quantitative testing with no goodwill impairment.
Newell Brands faces intense competition from large omni-channel retailers and e-commerce platforms that exert strong pricing pressure and demand innovation. The company's top customers, such as Walmart and Amazon, have significant negotiating power and may further consolidate, potentially reducing Newell's sales and margins. Notably, the company lacks long-term contracts with these customers, making revenue streams volatile. The rise of private label brands and digitally native competitors adds to the competitive threat.
Newell relies heavily on third-party vendors, including single-source suppliers for certain key products (e.g., baby business). Supply disruptions due to port congestion, geopolitical conflicts, or supplier financial issues could severely impact operations. The company also faces risks from its turnaround plan, which involves restructuring and cost-cutting initiatives that may not be completed on time or within budget. Additionally, the integration of AI into operations introduces new risks around data privacy, intellectual property, and regulatory compliance.
The company's substantial debt ($4.67 billion as of December 2025) limits financial flexibility and exposes it to interest rate fluctuations and covenant compliance. Credit rating downgrades in 2024 and 2025 triggered coupon step-ups on certain notes. Goodwill impairment charges of $340 million in 2025 indicate potential further asset write-downs if business performance deteriorates. Foreign exchange risks, particularly from hyperinflation in Argentina, also weigh on results.
Newell is exposed to evolving trade policies, including new tariffs on Chinese imports that increase costs. The company faces potential tax liabilities from ongoing IRS disputes and global tax reforms like Pillar Two. Environmental regulations and growing stakeholder focus on sustainability may impose additional compliance costs. Cybersecurity threats remain a persistent concern, with potential data breaches leading to legal and reputational damage.
Net loss of $(285)M was more than offset by non-cash charges (depreciation $311M, impairment $346M, stock-based compensation $68M), resulting in positive CFO of $264M. However, CFO declined sharply from $496M in FY2024 due to unfavorable working capital: accounts receivable increased $53M (vs. a $241M decrease in 2024), and accrued liabilities decreased $230M (vs. a $136M decrease in 2024). Inventory decreased $172M, providing a partial offset. Capex remained stable at $247M, resulting in CFO minus capex of only $17M, leaving little room for dividends ($120M) which were funded partly by financing activities (net proceeds of long-term debt $1,235M offset by payments on current portion $1,282M). The company relied on external financing to cover capital returns and working capital needs. Anomalies include a large impairment charge and pension settlement (none in 2025 vs. $126M in 2023). Overall, cash flow quality deteriorated due to working capital outflows, despite stable non-cash adjustments.