Nasdaq:NWL
NEWELL BRANDS INC.
A global powerhouse in home essentials offering affordable, high-quality products under trusted brands like Rubbermaid and OXO.
Key Metrics
Investment Thesis
Bull Case
NWL offers a compelling turnaround opportunity with substantial operating cash flow of $264M that can fund deleveraging and strategic reinvestments despite current losses. The company's iconic brand portfolio provides stable demand visibility across essential home categories, insulating it from short-term economic volatility. Potential for margin expansion through cost synergies and operational efficiency improvements could unlock significant value for long-term investors.
Bear Case
Investors should exercise caution given the consistent net losses over the last three years, with 2025 seeing a decline to -$285M from -$216M in 2024. Revenue has been in steady decline for five consecutive years, dropping from $9.46B to $7.20B, which raises concerns about secular demand erosion or losing retail partnerships. The substantial retained earnings deficit of -$3.23B and high leverage ratio present significant solvency risks if operational performance does not improve rapidly.
About NEWELL BRANDS INC.
Newell Brands Inc. (NWL) is a leading global consumer products manufacturer specializing in home goods, kitchenware, storage solutions, and decorative accessories sold worldwide. The company leverages its extensive brand portfolio to serve diverse markets across the United States, Europe, and Asia with innovative designs and value-driven pricing strategies.
Analysis
Management Discussion
Despite generating $2.64B in operating cash flow, Newell Brands reported a net profit loss of $285M in 2025, reflecting ongoing challenges in translating top-line growth into bottom-line earnings. Revenue contracted to $7.20B from $7.58B the prior year, continuing a multi-year decline that began at $9.46B in 2022, suggesting structural headwinds or strategic divestitures. The company added significant long-term debt of $1.24B while maintaining healthy cash reserves, indicating an aggressive capital structure adjustment amidst profitability struggles.
Industry Overview
The consumer home goods industry is characterized by rapid innovation cycles and intense competition from both established legacy brands and agile private label manufacturers. Retailers increasingly demand lower costs and higher margins, forcing manufacturers to optimize supply chains and innovate continuously to maintain relevance. Global economic conditions and shifting consumer spending habits toward value-driven purchases significantly influence pricing power and market dynamics.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $9.46B | $8.13B | $7.58B | $7.20B |
| Cost of Revenue | $6.62B | $5.78B | $5.03B | $4.77B |
| Gross Profit | $2.83B | $2.35B | $2.55B | $2.43B |
| Operating Expenses | $2.52B | $2.44B | $2.48B | $2.39B |
| Operating Income | $312.0M | $-85.0M | $67.0M | $39.0M |
| R&D | $140.0M | $117.0M | $123.0M | $114.0M |
| G&A | $2.03B | $2.00B | $2.08B | $1.99B |
| Stock-Based Comp | $12.0M | $50.0M | $74.0M | $68.0M |
| D&A | $296.0M | $334.0M | $323.0M | $311.0M |
| Depreciation | — | $225.0M | $188.0M | $186.0M |
| Amortization | — | $109.0M | $135.0M | $125.0M |
| Other OpEx | $349.0M | $320.0M | $275.0M | $294.0M |
| Non-Operating Income | $-155.0M | $-458.0M | $-327.0M | $-340.0M |
| Interest Expense | $235.0M | $283.0M | — | — |
| Pre-Tax Income | $157.0M | $-543.0M | $-260.0M | $-301.0M |
| Income Tax | $-40.0M | $-155.0M | $-44.0M | $-16.0M |
| Continuing Ops | $197.0M | $-388.0M | $-216.0M | $-285.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $197.0M | $-388.0M | $-216.0M | $-285.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $197.0M | $-388.0M | $-216.0M | $-285.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.05B | $3.35B | $2.77B | $2.71B |
| Cash & Equivalents | $287.0M | $332.0M | $198.0M | $203.0M |
| Accounts Receivable | $1.25B | $1.20B | $878.0M | $987.0M |
| Inventory | $2.20B | $1.53B | $1.40B | $1.28B |
| Prepaid Expenses | $312.0M | $296.0M | $299.0M | $237.0M |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $9.21B | $8.81B | $8.23B | $8.01B |
| Intangibles | $2.65B | $2.49B | $2.01B | $1.63B |
| Goodwill | $3.30B | $3.07B | $3.04B | $3.10B |
| Operating Leases | $578.0M | $515.0M | $466.0M | $453.0M |
| Other LT Assets | $2.69B | $2.73B | $2.72B | $2.82B |
| Total Assets | $13.26B | $12.16B | $11.00B | $10.71B |
| Current Liabilities | $3.08B | $2.90B | $2.44B | $2.52B |
| Accounts Payable | $1.06B | $1.00B | $891.0M | $931.0M |
| Current Leases | $121.0M | $122.0M | $110.0M | $113.0M |
| Taxes Payable | $53.0M | $89.0M | $88.0M | $23.0M |
| Other Current Liab | $1.84B | $1.68B | $1.35B | $1.46B |
| Long-Term Liabilities | $6.67B | $6.15B | $5.82B | $5.80B |
| Long-Term Debt | $4.76B | $4.58B | $4.51B | $4.54B |
| LT Operating Leases | $512.0M | $446.0M | $418.0M | $433.0M |
| Other LT Liab | $1.04B | $1.13B | $890.0M | $810.0M |
| Total Liabilities | $9.74B | $9.05B | $8.25B | $8.32B |
| Shareholders' Equity | $3.52B | $3.11B | $2.75B | $2.39B |
| Retained Earnings | $-2.34B | $-2.73B | $-2.94B | $-3.23B |
| AOCI | $-1.01B | $-890.0M | $-981.0M | $-990.0M |
| Total L&E | $13.26B | $12.16B | $11.00B | $10.71B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $197.0M | $-388.0M | $-216.0M | $-285.0M |
| Non-Cash Adjustments | $278.0M | $2.02B | $1.25B | $888.0M |
| Working Capital Changes | $-747.0M | $-697.0M | $-543.0M | $-339.0M |
| Cash from Operations | $-272.0M | $930.0M | $496.0M | $264.0M |
| Cash from Investing | $343.0M | $-199.0M | $-151.0M | $-164.0M |
| Debt Issuances | $989.0M | $0 | $1.24B | $1.24B |
| Debt Repayments | $0 | $0 | $750.0M | $0 |
| Share Buybacks | $325.0M | $0 | $0 | — |
| Dividends Paid | $385.0M | $184.0M | $118.0M | $120.0M |
| Cash from Financing | $-232.0M | $-664.0M | $-451.0M | $-101.0M |
| FX Effect | $-13.0M | $-9.0M | $-36.0M | $2.0M |
| Net Change in Cash | $-174.0M | $58.0M | $-142.0M | $1.0M |
| Beginning Cash | $477.0M | $303.0M | $361.0M | $219.0M |
| Ending Cash | $303.0M | $361.0M | $219.0M | $220.0M |
Frequently Asked Questions
How does NEWELL BRANDS INC. make money?
The company operates primarily through distinct business units including Kitchenware & Home Storage, which focuses on essential daily items; Decorative Accessories targeting the lifestyle market; and Outdoor Living providing durable patio furniture and accessories. Revenue streams are further diversified by geographic regions, with significant operations in North America, Europe, and Asia-Pacific markets.
What are the main risks for NWL?
The company faces significant exposure to inflationary pressures that impact raw material costs and logistics expenses, potentially squeezing margins. Intense competition from private label goods and discount retailers threatens market share in value-oriented product categories. Recent financial data indicates a widening net loss and declining revenue trends, signaling potential operational inefficiencies or demand contraction. Heavy reliance on global supply chains makes the business vulnerable to geopolitical disruptions and currency exchange volatility.
What is NWL's competitive advantage?
Newell Brands possesses a formidable scale advantage allowing for aggressive cost management and pricing power in a competitive retail landscape. The company's deep distribution networks provide extensive shelf presence across major global retailers, ensuring wide product availability. A robust portfolio of recognized brands fosters strong consumer loyalty and recurring revenue streams despite market fluctuations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.