Newell Brands returned to year-over-year sales growth for the first time in more than four years during the second quarter of 2026, but tariff recoveries accounted for approximately half of the company’s normalized earnings per share. Normalized diluted EPS increased to $0.42 from $0.24.
The latest result included $0.17 per share from recoveries of tariffs expensed during 2025 and another $0.04 from tariffs expensed during the first quarter of 2026.
Combined, tariff recoveries contributed $0.21 per share, exactly half of Newell’s $0.42 in normalized EPS.
Excluding those benefits, normalized EPS would have been approximately $0.21, below the $0.24 generated during the prior-year quarter. This is an inference based on the company’s disclosed figures.
Net sales increased 3% to approximately $2 billion, while core sales increased 2.3%.
The performance marked the first time in more than four years that Newell produced year-over-year growth in both reported and core sales.
North American core sales increased 4.9%, while international core sales declined 2.7%.
Learning & Development was the strongest segment, with sales increasing 5.2% and core sales rising 4.9%. Both the Baby and Writing businesses contributed to the improvement.
Learning & Development normalized operating income surged to $314 million from $207 million.
Normalized operating margin expanded to 36.9% from 25.6%, reflecting tariff recoveries, stronger sales, productivity savings, and overhead leverage.
Home & Commercial Solutions generated $903 million of sales, increasing 1.2%, but core sales declined 0.4%.
Growth in Kitchen and Home Fragrance was more than offset by weaker Commercial sales. Normalized operating margin improved to 7.5% from 4.9%.
Outdoor & Recreation sales increased 2.6%, and core sales rose 3.7%. However, normalized operating margin declined to 3.8% from 5.6%.
Newell’s normalized gross margin increased to 40.8% from 35.6%.
The quarterly gross-profit calculation included approximately $100 million of tariff recoveries related to 2025 and another $26 million associated with tariffs expensed during the first quarter.
Normalized operating income increased to $324 million from $208 million, while normalized operating margin expanded to 16.2% from 10.7%.
Normalized EBITDA increased 45% to $406 million from $280 million.
The tariff benefit had not been collected in cash by the end of the quarter.
Newell recorded a year-to-date operating cash outflow of $204 million, compared with an outflow of $271 million during the prior-year period.
The company ended June with approximately $5 billion of debt and only $209 million in cash and cash equivalents.
After the quarter, Newell entered into a new $800 million asset-based revolving credit facility extending its general maturity to 2031.
Newell raised its full-year outlook for reported sales, core sales, normalized operating margin, normalized EPS, and operating cash flow.
The operating cash flow forecast assumes the company receives substantially all of the expected tariff recovery before year-end.
Newell’s return to sales growth represents a meaningful milestone in its turnaround.
However, the earnings composition shows that tariff recoveries provided much of the quarterly improvement. Sustaining the progress will require continued core-sales growth, productivity improvements, and margin expansion after the tariff benefit is no longer repeated.
KEY QUOTES:
“Newell Brands returned to year-over-year growth in both net sales and core sales in the second quarter, marking an important milestone in our turnaround.”
Chris Peterson, President And Chief Executive Officer Of Newell Brands
“Second quarter results were above our expectations across all key financial metrics as stronger sales, gross productivity and disciplined overhead management more than offset higher-than-anticipated commodity and transportation costs.”
Mark Erceg, Chief Financial Officer Of Newell Brands
