Newell Brands announced its second quarter 2025 financial results, reporting net sales of $1.935 billion, a 4.8% decrease year-over-year, with core sales declining by 4.4%. The company reported normalized diluted EPS of $0.24, which was in line with its guidance but down from $0.35 in the prior year period.
The company achieved its eighth consecutive quarter of year-over-year gross margin expansion, with normalized gross margin increasing by 80 basis points to 35.6%. Normalized operating income was $208 million, or 10.7% of sales, compared to $215 million, or 10.6% of sales, in Q2 2024.
Year-to-date operating cash outflow was $271 million, compared to a cash flow of $64 million in the prior year period, impacted by working capital changes and cash tariff costs. Newell Brands also refinanced $1.25 billion of debt during the second quarter, an offering that was four-times oversubscribed.
Newell Brands updated its full-year 2025 outlook, lowering its normalized diluted EPS guidance to $0.66 to $0.70, from the previous range of $0.70 to $0.76. The full-year core sales outlook was also revised to a decline of 3% to 2%, from the prior range of a 3% to 1% decline.
The company's updated outlook includes an estimated incremental cash tariff cost of approximately $155 million compared to 2024, with a gross profit impact of approximately $105 million, or $0.21 per share after tax. The full-year 2025 operating cash flow outlook was narrowed to a range of $400 million to $450 million due to these higher tariff costs on inventory.
For the third quarter 2025, Newell Brands initiated an outlook expecting net sales and core sales to decline between 4% and 2%. Normalized operating margin is projected to be 9.1% to 9.5%, with normalized diluted EPS expected between $0.16 and $0.19.
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