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 IncReports first sales growth in over four years, raises full-year guidance, and beats earnings estimates.
