Newell Brands Inc

Newell Brands Inc. announced the declaration of a quarterly cash dividend of $0.07 per share. The dividend is payable September 15, 2026 to common stockholders of record at the close of trading on August 31, 2026.

Newell Brands reported second-quarter 2026 net sales of $2 billion, a 3% increase from the prior year, marking the first year-over-year growth in both net and core sales in over four years. Core sales grew 2.3%, driven by broad-based improvement across five of six business units, with the U.S. market delivering 5% net sales growth for the first time since the COVID-19 pandemic. Normalized gross margin reached 40.8%, up from 35.6% a year ago, primarily due to the recognition of a $100 million receivable for IEEPA tariff recoveries expensed in 2025, while normalized operating margin rose to 16.2% from 10.7%. Normalized diluted earnings per share were $0.42, compared with $0.24 in the prior year, including a $0.17 per share benefit from the 2025 tariff recoveries and a $0.04 per share benefit from first-quarter 2026 recoveries. The company raised its full-year 2026 guidance, now expecting net sales growth of 1% to 2%, core sales growth between flat and 1%, and normalized EPS of $0.73 to $0.77, while also projecting third-quarter net and core sales growth of 2% to 3% with normalized EPS between $0.18 and $0.20. CEO Chris Peterson attributed the turnaround to rebuilt commercial and operating capabilities, including a stronger innovation pipeline with more than 25 Tier 1 or Tier 2 launches planned for the year, distribution gains, and improved brand marketing, while CFO Mark Erceg noted that the company is offsetting $200 million in expected full-year inflation and $127 million in net tariff headwinds through productivity savings and the tariff recoveries.

Newell Brands shares continued to rally after the company reported second-quarter profits sharply above Wall Street expectations, driven by tariff refunds and a return to sales growth. Net sales rose 3% year-over-year to $2 billion, marking the first positive sales growth in more than four years, while adjusted earnings per share climbed 75% to $0.42. Management raised its full-year earnings per share guidance to between $0.73 and $0.77, up from a prior forecast of $0.56 to $0.60. Canaccord Genuity reiterated its buy rating and boosted its share price target from $9 to $11, implying potential gains of more than 70%.

Newell Brands has put in place a new US$800 million asset-based revolving credit facility, drawing fresh attention to the stock. The refinancing news follows a sharp share price rebound, with a one-day return of 8.95% and a year-to-date return of 50.54%, though the five-year total shareholder return remains down 72.14%. On the most followed view, the stock is considered 36.2% undervalued, with a fair value estimate of $8.78 compared to a recent share price of $5.60. Analysts broadly agree that Newell's domestic manufacturing and automation investments will provide tariff protection and a margin advantage, but the market underappreciates its significant untapped, scalable U.S./Mexico manufacturing capacity, which could drive robust revenue growth and further margin expansion as reshoring accelerates. Key risks include high debt that can limit investment and retailer consolidation that may pressure pricing and margins.

Several stocks made big midday moves following earnings reports and other developments. IES Holdings surged over 30% after beating quarterly expectations and approving a two-for-one stock split, while GoDaddy tumbled 20% on disappointing guidance and a cash flow miss. Newell Brands rose 11% after lifting its full-year earnings outlook above consensus, and SPX Technologies rallied 14% on strong results and raised guidance. Veracyte fell 24% despite beating estimates and raising revenue guidance, and Replimune Group soared over 94% after an FDA panel backed its skin cancer drug trial. Jersey Mike's gained 6% on its second day of trading after a weak debut. Chevron added 1.6% on better-than-expected earnings, while ExxonMobil slipped 2% on a profit miss. Moderna dipped 1% despite a top- and bottom-line beat. Amazon jumped 15% on strong revenue and cloud growth, but Apple dropped more than 9% even with higher iPhone sales. Coinbase slid over 12% after a wider-than-expected loss, Reddit sank 22% on search traffic concerns, and Novo Nordisk fell 9% after a drug trial failed to meet its main goal.

Newell Brands reported second-quarter adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 19 cents by over 121 percent. Revenue came in at 1.99 billion dollars, topping the consensus forecast by 1.28 percent and up from 1.94 billion dollars a year earlier. The company has now exceeded consensus revenue estimates in three of the past four quarters. Shares have gained about 38.2 percent year to date, outpacing the S&P 500's 8.7 percent advance.

Newell Brands' productivity initiatives and strategic actions are driving efficiency and profitability. In the first quarter of 2026, normalized gross margin improved 70 basis points to 33.2% as gross productivity and net pricing more than offset inflation, tariff costs, and lower volume. Normalized operating margin improved 30 basis points to 4.8%, reflecting disciplined cost management even with higher advertising and promotion spending. For 2026, management maintained its normalized operating margin outlook of 8.6% to 9.2% and expects productivity, selective pricing, and targeted promotion actions to help offset a higher commodity and transportation cost outlook. The company is also executing organizational realignment to strengthen front-end commercial capabilities, sharpen consumer insights, and improve accountability.

Newell Brands' turnaround strategy is showing signs of progress, with first-quarter core sales declining 3.5% year over year but exceeding management expectations and improving sequentially. Six of the company's top 10 brands gained market share, and six brands posted year-over-year point-of-sale growth for the first time in more than four years. The Learning & Development segment returned to growth, driven by a 4.9% increase in the Baby business, while a $25 million net pricing advantage helped expand operating margin by 30 basis points to 4.8%. Management now expects a return to core sales growth in the second quarter and has raised its full-year sales outlook, supported by a strengthened innovation pipeline that includes 25 Tier 1 and Tier 2 product launches planned for 2026, up from 18 the prior year. Despite ongoing commodity inflation and uneven consumer spending, the company's reduced China sourcing exposure and domestic manufacturing expansion are helping it navigate headwinds.

Newell Brands has gained more than 30% over the last 30 days following its announcement of a €40 million planned investment in its French operations over the next three years. The investment will be allocated across advanced manufacturing automation, digitization using AI, sustainability and infrastructure upgrades, and workforce development. France is a top-ten international market for the company, which has operated there for over 100 years and employs nearly 1,000 people. International sales represent 39% of Newell's total revenue. The stock also received a boost from fiscal first quarter 2026 earnings reported on May 1, where revenue of $1.55 billion exceeded expectations of $1.51 billion, and management raised its full-year 2026 outlook for normalized earnings per share to between $0.56 and $0.60.