Announcing Q2 2025 Performance: Newell Brands Reports Results
Newell Brands, a leading global consumer goods company, has announced its financial results for the second quarter of 2025. The company's performance showed a slight decline in net sales and core sales, but significant improvements in gross margin and operational cash flow.
Financial Performance
The company's net sales for Q2 2025 amounted to $1.9 billion, representing a 4.8% decline year-over-year. Core sales also saw a drop of 4.4% due to weaker demand in certain segments and foreign exchange headwinds. Despite the top-line softness, Newell Brands achieved its eighth consecutive quarter of gross margin expansion, with gross margin improving by 100 basis points year-over-year to 35.4%, the highest rate in four years.
The company's normalized operating margin rose slightly to 10.7%, even in the face of core sales decline. Newell Brands expects to generate $400–$450 million in operating cash flow for the full year 2025, a significant recovery from a $64 million cash outflow in the first half of 2024.
Debt Refinancing
Newell Brands successfully refinanced $1.25 billion of debt maturing in 2026 through a senior notes offering due in 2028 with an 8.50% coupon. The offering was four times oversubscribed, signaling strong investor confidence in Newell’s corporate strategy. However, the company still carries a substantial debt burden of about $5.1 billion.
Strategic Moves
The company has been mitigating tariff pressures by shifting production from China to the U.S., where domestic factories now represent a larger share of its cost of goods sold — down from 35% China exposure in 2017 to 15% in 2025. This $2 billion investment in domestic manufacturing facilities helps reduce tariff-related costs and aligns with consumer preferences for American-made products.
Newell Brands is also pivoting toward higher-margin categories like education tools and smart storage to offset demand softness in discretionary goods.
Earnings and Outlook
Newell Brands' earnings per share (diluted) for Q2 2025 was $0.11 compared with $0.11 in the prior year period. The company's net income for Q2 2025 was $46 million compared with $45 million in the prior year period.
The company's dividends per share for H1 2025 was $0.14 compared with $0.14 in the prior year period. The Newell Brands' second quarter 2025 earnings conference call will be held today, August 1, at 7:30 a.m. ET.
Full-Year 2025 Outlook
Newell Brands updated its outlook for full year 2025, with expectations of generating $400–$450 million in operating cash flow. The company's mission is to delight consumers by lighting up everyday moments.
For more detailed information about Newell Brands' Q2 2025 financial results, please visit the company's website at www.newellbrands.com. The press release and additional information are available on the Company's website. The consolidated condensed financial statements are prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP").
[1] Newell Brands Q2 2025 Earnings Release [2] Newell Brands Q2 2025 Earnings Call Transcript [3] Newell Brands Q2 2025 Investor Presentation [4] Newell Brands Q2 2025 Financial Supplement
The company, Newell Brands, announced improvements in its financial performance, as seen in the significant increase in gross margin by 100 basis points year-over-year and a projected operational cash flow of $400–$450 million for the full year 2025. Despite a decline in net sales and core sales, the financial results indicate a positive outlook for the company's future in the consumer goods business sector.
In response to tariff pressures, Newell Brands has strategically shifted production from China to cloud-based domestic manufacturing facilities, reducing tariff-related costs and aligning with consumer preferences for American-made products. This move positions the company for continued financial growth and performance in the future.
