Q2 2025 Newell Brands Inc Earnings Call Transcript
Key Points
- Newell Brands Inc (NWL) achieved a normalized operating margin increase of 10 basis points to 10.7%, marking the first time all three business segments were positive since Q3 2022.
- The company reported an 80 basis point increase in normalized gross margin, reaching the highest rate in four years at 35.6%.
- Newell Brands Inc (NWL) secured incremental business in 13 of the 19 categories where it has domestic manufacturing capability, leveraging tariff advantages.
- The Yankee Candle brand underwent a comprehensive refresh, expected to drive growth with a new marketing campaign and product upgrades.
- The company plans to invest more in marketing during the back half of 2025 than any six-month period since 2017, supporting new product launches and innovation.
- Second-quarter core sales declined by 4.4%, slightly below the company's operating plan.
- The company updated its core sales guidance to reflect category growth expectations at the low end of the prior range due to subdued market growth.
- Operating cash flow was an outflow of $271 million, compared to a cash inflow of $64 million in the prior year, partly due to proactive inventory purchases ahead of tariff-driven cost increases.
- The net leverage ratio increased to 5.5 times, slightly above Q2 2024, although a year-end leverage ratio of about 4.5 times is expected.
- The company faces challenges from high interest rates and consumer pullback in discretionary categories, impacting overall sales growth.
Good morning, and welcome to Newell Brands second-quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded. A live webcast of the call is available at ir.newellbrands.com.
I will now turn the call over to Joanne Freiberger, SVP of Investor Relations and Chief Communications Officer. Ms. Freiberger, you may begin.
Thank you. Good morning, everyone, and welcome to Newell Brands second-quarter 2025 earnings call. On the call with me today are Chris Peterson, our President and CEO; and Mark Erceg, our CFO.
Before we begin, I'd like to inform you that during today's call, we will be making forward-looking statements, which involve risks and uncertainties. Actual results and outcomes may differ materially, and we take -- undertake no obligation to update forward-looking statements. I refer you to the cautionary language and risk factors available in our earnings release our Form 10-K, Form 10-Q, and other
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
