Newell Brands Inc. ( NWL ) reported third-quarter results on Friday that fell short of analysts’ expectations, as lower retail inventory levels and weakness in international markets weighed down sales.

The company reported adjusted earnings of 17 cents per share, compared with 16 cents in the prior year period, which was slightly below Wall Street expectations of 18 cents.

Revenue came in at $1.81 billion, missing analysts’ estimates of $1.88 billion, a decline of 7.2% compared with the prior year period, reflecting a core sales decline of 7.4% and favorable foreign exchange.

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Gross margin fell to 34.1% from 34.9% a year earlier, as benefits from productivity and pricing more than offset by headwinds from tariff costs, volume declines, and inflation. Excluding the temporary $24 million impact from one-time China tariffs, gross margin would have increased by 55 basis points.

Adjusted gross margin is 34.5%, compared with 35.4% in the year-ago quarter, while adjusted operating margin fell to 8.9%, compared with 9.5% in the same quarter last year. Adjusted EBITDA totaled $225 million, down from $250 million in the prior-year period.

Year-to-date operating cash flow totaled $103 million, down from $346 million a year ago. At the end of the third quarter, Newell Brands ( NWL ) reported total debt outstanding of $4.8 billion and cash and cash equivalents of $229 million.

Segment Performance

The Home & Commercial Solutions segment posted net sales of $942 million, down from about $1.0 billion a year earlier, with core sales declining 9.8%. Adjusted operating margin stood at 6.8%, compared with 11.7% in the prior-year period.

The Learning & Development segment recorded net sales of $681 million, versus approximately $717 million a year ago, as core sales fell 5.6% and adjusted operating margin narrowed to 19.1% from 21.5%.

The Outdoor & Recreation segment reported net sales of $183 million, with core sales down 0.9% and an adjusted operating loss of 0.5%, improving from a loss of 8.2% in the prior year.

Outlook

Newell Brands ( NWL ) issued its fourth-quarter 2025 outlook, projecting adjusted earnings per share (EPS) in the range of 16 to 20 cents, which falls below Wall Street’s consensus estimate of 27 cents.

The company expects quarterly sales between $1.871 billion and $1.930 billion, also missing analysts’ estimate of $1.959 billion.

The company lowered its full-year 2025 guidance, reflecting softer-than-expected demand trends. It now projects adjusted EPS between 56 and 60 cents, down from its prior forecast of 66 to 70 cents and below Wall Street’s consensus estimate of 68 cents.

Newell also reduced its full-year sales outlook to a range of $7.203 billion to $7.241 billion, compared with the previous estimate of $7.355 billion to $7.430 billion, missing the analyst consensus of $7.346 billion.

The revised outlook underscores ongoing challenges from weak retail orders, inflationary pressures, and soft international performance.

The company expects an incremental cash tariff cost of about $180 million in 2025 compared with 2024. The gross profit impact before mitigation measures is estimated at roughly $115 million, or 23 cents per share after tax.

Chris Peterson, Newell Brands ( NWL ) president and CEO, said, “Our turnaround continues to advance, even as Newell and the broader industry navigated significant trade disruptions in the third quarter. Our team responded swiftly with strategic measures including sourcing changes, pricing actions, and productivity initiatives to mitigate the impact. Sales were affected by reduced retail inventory levels, softness in international markets—particularly in Brazil—and moderated demand following tariff driven pricing actions.”

Price Action: NWL shares were trading lower by 17.04% to $3.916 premarket at last check Friday.

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