Newell Brands Inc. (NASDAQ:NWL) released its financial results for the fourth quarter of fiscal 2025 on Friday, delivering mixed outcomes across key financial measures that prompted a modest gain in its stock price during trading. The company reported adjusted earnings per share (EPS) of 18 cents, exactly aligning with the consensus estimate from analysts. Despite a decline in year-over-year sales, Newell slightly exceeded revenue expectations, posting quarterly sales of $1.897 billion compared to the Street's forecast of $1.878 billion.
The firm’s revenues represent a 2.7% decrease when compared to the same period in the prior fiscal year, marking ongoing challenges within its core business as consumer demand and competitive dynamics evolve.
Segment Performance
Disaggregating the quarter's results reveals notable variation among Newell's operating segments. The Home & Commercial Solutions division generated net sales totaling $1.1 billion, reflecting a 5.3% contraction in core sales relative to the prior-year period. Similarly, the Learning & Development segment recorded net sales of $629 million, down 1.5%. The Outdoor & Recreation segment experienced the sharpest decline, with net sales falling to $142 million from $152 million in Q4 of the prior year, equating to a 6.2% drop in core sales.
Margins and Profitability
The company reported an adjusted gross margin of 33.9%, a slight compression from 34.6% in the year-ago quarter. Operating margin shifted negatively to -14.3% from +0.5% previously, impacted by a range of operational factors. Nevertheless, adjusted operating margin improved, rising from 7.1% to 8.7% on a year-over-year basis, indicating some operational efficiencies in the adjusted figure.
Adjusted EBITDA increased by 11.6% to $241 million compared to the prior year's $216 million, highlighting improved earnings before interest, taxes, depreciation, and amortization notwithstanding sales challenges.
Operating cash flow for the full fiscal year stood at $264 million, a decrease from $496 million in the previous year. This reduction was influenced by $174 million in cash tariff expenses and a notably larger cash bonus payout in 2025, associated with strong business performance achieved in 2024.
Guidance and Outlook
Looking ahead, Newell Brands provided cautious guidance for the first quarter of fiscal 2026. The company anticipates adjusted losses per share in the range of 12 cents to 8 cents, a broader deficit than the analyst consensus loss estimate of 3 cents. The firm projects first-quarter revenues between $1.488 billion and $1.519 billion, slightly below analysts’ consensus of $1.536 billion.
For the full fiscal 2026 period, the company expects adjusted earnings between 54 cents and 60 cents per share, somewhat trailing analyst projections centered on 60 cents. Revenue guidance for the year ranges from $7.132 billion to $7.276 billion.
Market Response
Following the publication of its quarterly results, Newell Brands' stock advanced by approximately 4.09%, trading at $4.70 during Friday's session based on Benzinga Pro quotes. The movement suggests that investors responded favorably to the revenue beat and adjusted EBITDA improvement despite the sales contraction and cautious profit outlook.
Overall, the company’s quarterly report reflects ongoing headwinds affecting top-line growth but also showcases pockets of operational strength and improved adjusted earnings performance. The cautious guidance signals management's tempered expectations for the upcoming year amid a complex retail and consumer environment.