Newell Brands (NWL) said its turnaround strategy is gaining traction after delivering its first quarter of positive core sales growth since Q2 2022, a milestone announced during a presentation at Barclays' 19th Annual Global Consumer Conference on September 8, 2026.
President and CEO Chris Peterson said the company launched its turnaround plan in 2023 after core sales dropped 12% that year. "We needed to do something different," he said. "A big part of that strategy was capability improvement on the front-end parts of the business required to drive sustainable top-line growth." In Q2 2025, core sales grew 2.3% — driven by a 5% gain in the U.S., which accounts for 61% of the business, offsetting a 2.7% international decline.
For the remainder of 2025, Newell raised its full-year core sales growth guidance to flat to plus 1%, up from prior expectations. Third-quarter core sales growth is guided between 2% and 3%. The company expects operating cash flow of approximately $400 million, capital spending of about $200 million, and debt paydown north of $100 million for the full year.
CFO Mark Erceg highlighted gross margin expansion of roughly 500 basis points over the past three years, achieved despite significant headwinds. Tariff impacts reached about $127 million in 2025 (excluding a $100 million, or 140-basis-point, refund benefit from out-of-period recoveries), compared with roughly $115 million in 2024. Inflationary pressures are expected to total about $200 million in 2026, tied largely to diesel and resin costs — WTI crude traded near $92 to $93 a barrel and diesel exceeded $5 a gallon.
The FUEL productivity program is delivering approximately $200 million to $215 million in annual savings, equating to roughly 4.5% of COGS reduction against a 3% world-class benchmark. About 55% of the business is now manufactured in the U.S. across 15 plants, up from 45% previously. Since 2017, Newell has invested $2 billion in automation. Its PEAK improvement program has enrolled 47 of 50 targeted plants.
Leverage has fallen to below 4.5x from 6.5x at the start of the turnaround, with a long-term target of 2.5x. Erceg noted that achieving investment-grade status would lower the average cost of debt by 135 to 140 basis points, saving more than $70 million annually in interest expense. Newell has paid dividends for 55 consecutive years.
On the innovation front, Newell plans 25 Tier 1 and Tier 2 product launches in 2025, up from 19 in 2024 and eight in 2023. Several products are outperforming — the Coleman Snap 'N Go cooler is tracking about 10 times initial revenue expectations, and Rubbermaid Brilliance glass is nearly doubling year-over-year amid supply constraints.
Newell's stock gained 11% year-to-date and returned 10% over the prior six months, trading near its 52-week high.
