Returns to Sales Growth for the First Time in Over Four Years
Results Exceed Expectations Across All Key Metrics
Raises Full Year Outlook

Newell Brands (NASDAQ: NWL) today announced its second quarter 2026 financial results.

Chris Peterson, Newell Brands President and Chief Executive Officer, said, "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. The improvement was broad-based across the portfolio and reflects stronger innovation, higher levels of advertising and promotional support and vastly improved go-to-market capabilities we have built over the past several years. These investments have strengthened the capabilities required to win in our industry and established a solid foundation upon which, we believe, profitable growth can be achieved and sustained in the years ahead."

Mark Erceg, Newell Brands Chief Financial Officer, said, "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. Based on our second quarter performance, including the IEEPA tariff refund P&L benefit we recorded during the quarter and the cash refund we expect to receive during the second half of the year, and improving top line trends we are raising our full-year outlook for net and core sales growth, normalized operating margin, normalized earnings per share and operating cash flow."

Second Quarter 2026 Highlights

• Net sales were $2.0 billion, an increase of 3.0% compared with the prior year period. Core sales grew 2.3% compared with the prior year period.
• Gross margin increased to 40.7% compared with 35.4% in the prior year period. Normalized gross margin increased to 40.8% compared with 35.6% in the prior year period.
• Operating margin improved to 14.2% compared with 8.8% in the prior year period. Normalized operating margin increased to 16.2% compared with 10.7% in the prior year period.
• Net income was $106 million compared with $46 million in the prior year period. Normalized net income was $180 million compared with $101 million in the prior year period.
• Diluted EPS was $0.25 compared with $0.11 in the prior year period. Normalized diluted EPS was $0.42 compared with $0.24 in the prior year period.
• Second quarter reported and normalized results included approximately $100 million pretax, or approximately $76 million after tax, from tariff recoveries related to IEEPA tariffs that were expensed in 2025. The impact is equivalent to approximately $0.17 per diluted share. In addition, second quarter normalized results included approximately $26 million pretax, or approximately $19 million after tax from tariff recoveries related to IEEPA that were expensed in the first quarter of 2026. The impact is equivalent to approximately $0.04 per diluted share.
• Normalized EBITDA increased to $406 million compared with $280 million in the prior year period.
• Raised full year 2026 outlook across all key metrics.
• Subsequent to quarter end, entered into a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extended general maturity to 2031.

Second Quarter 2026 Operating Results

Net sales were $2.0 billion, an increase of 3.0% compared with the prior year period, reflecting core sales growth of 2.3% and favorable foreign exchange.

Gross margin was 40.7% compared with 35.4% in the prior year period. Results included approximately $100 million of pretax tariff recovery related to IEEPA tariffs expensed in 2025 and approximately $26 million of pretax recovery related to IEEPA tariffs expensed in the first quarter of 2026. Gross profit also benefited slightly from higher sales and gross productivity savings which more than offset higher inflation costs. Normalized gross margin was 40.8% compared with 35.6% in the prior year period.

Operating income was $283 million compared with $171 million in the prior year period. Operating margin was 14.2% compared with 8.8% in the prior year period. Normalized operating income was $324 million, or 16.2% of sales, compared with $208 million, or 10.7% of sales, in the prior year period. The year-over-year increase primarily reflected higher gross profit partially offset by higher advertising and promotion spending.

Net interest expense was $87 million compared with $82 million in the prior year period.

Income tax provision was $89 million compared with $25 million in the prior year period. The normalized income tax provision was $65 million compared with $24 million in the prior year period.

Net income was $106 million compared with $46 million in the prior year period. Normalized net income was $180 million compared with $101 million in the prior year period. Normalized EBITDA was $406 million compared with $280 million in the prior year period.

Diluted EPS was $0.25 compared with $0.11 in the prior year period. Normalized diluted EPS was $0.42 compared with $0.24 in the prior year period.

An explanation of non-GAAP measures disclosed in this release and a reconciliation of these non-GAAP results to comparable GAAP measures, if available, are included in the tables attached to this release.

Balance Sheet and Cash Flow

Year-to-date operating cash outflow was $204 million compared with $271 million in the prior year period primarily driven by working capital improvements and a lower incentive compensation payment. The tariff recovery did not benefit second-quarter operating cash flow as it had not been collected as of quarter end.

At the end of the second quarter of 2026, Newell Brands had debt outstanding of $5.0 billion and cash and cash equivalents of $209 million, compared with $5.1 billion and $219 million, respectively, at the end of the second quarter of 2025.

Subsequent to the end of the second quarter, the Company entered into a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extended general maturity to 2031.

Second Quarter 2026 Operating Segment Results

The Home & Commercial Solutions segment generated net sales of $903 million compared with $892 million in the prior year period, reflecting a core sales decline of 0.4%, as well as the impact of favorable foreign exchange. Core sales growth in the Kitchen and Home Fragrance businesses was more than offset by a core sales decline in the Commercial business. Operating income was $49 million, or 5.4% of sales, compared with $24 million, or 2.7% of sales, in the prior year period. Normalized operating income was $68 million, or 7.5% of sales, compared with $44 million, or 4.9% of sales, in the prior year period.

The Learning & Development segment generated net sales of $851 million compared with $809 million in the prior year period, reflecting core sales growth of 4.9%, as well as the impact of favorable foreign exchange. Core sales increased in both the Baby and Writing businesses. Operating income was $308 million, or 36.2% of sales, compared with $202 million, or 25.0% of sales, in the prior period. Normalized operating income was $314 million, or 36.9% of sales, compared with $207 million, or 25.6% of sales, in the prior year period.

The Outdoor & Recreation segment generated net sales of $240 million compared with $234 million in the prior year period, reflecting core sales growth of 3.7%, as well as the impact of unfavorable foreign exchange. Operating income was $4 million, or 1.7% of sales, compared with $8 million, or 3.4% of sales, in the prior year period. Normalized operating income was $9 million, or 3.8% of sales, compared with $13 million, or 5.6% of sales in the prior year period.

Outlook

The Company initiated its outlook for the third quarter and raised its outlook for the full year 2026. The higher outlook reflects second quarter performance and the latest expectations for the balance of the year, including current-year tariff and inflationary impacts.

The Company increased its outlook for full year 2026 operating cash flow to around $400 million. The updated full-year operating cash flow outlook assumes receipt of substantially all of the IEEPA tariff recovery before year-end and also reflects the updated inflation outlook.

The Company has presented forward-looking statements regarding core sales, normalized operating margin and normalized EPS. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgement and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period in reliance on the exception provided by item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable to present a quantitative reconciliation of forward-looking normalized operating margin or normalized EPS to the most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company's future financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the Company's actual results and preliminary financial data set forth above may be material.

Conference Call

Newell Brands’ second quarter 2026 earnings conference call will be held today, July 31, at 7:30 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investors section of the Company’s website at www.newellbrands.com. A webcast replay will be made available in the Quarterly Earnings section of the Company’s website.

Non-GAAP Financial Measures

This release and the accompanying remarks contain non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (the "SEC") and includes a reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

The Company uses certain non-GAAP financial measures that are included in this press release, the additional financial information and accompanying remarks both to explain its results to stockholders and the investment community and in the internal evaluation and management of its businesses. The Company’s management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance and liquidity using the same tools that management uses to evaluate the Company’s past performance, reportable segments, prospects for future performance and liquidity, and (b) determine certain elements of management incentive compensation.

The Company’s management believes that core sales provides a more complete understanding of underlying sales trends by providing sales on a consistent basis as it excludes the impacts of acquisitions, divestitures, planned divestitures, retail store openings and closings, certain market and category exits, changes in foreign exchange and customer returns due to a product recall from year-over-year comparisons. The effect of changes in foreign exchange on reported sales is calculated by applying the prior year average monthly exchange rates to the current year local currency sales amounts (excluding acquisitions, divestitures and planned divestitures), with the difference between the current year reported sales and constant currency sales presented as the foreign exchange impact increase or decrease in core sales. The Company’s management believes that “normalized” gross margin, "normalized" overheads, “normalized” operating income, “normalized” operating margin, "normalized EBITDA", “normalized” net income, “normalized” diluted earnings per share and “normalized” income tax benefit or expense, which exclude restructuring and restructuring-related expenses; impairment charges; amortization of acquisition-related intangible assets; divestiture costs; costs related to the acquisition, integration and financing of acquired businesses; hyperinflationary adjustments and one-time and other events such as expenses related to certain legal proceedings, costs related to the extinguishment of debt; certain tax benefits and charges; pension settlement charges; costs related to a product recall; certain facility fire related costs; write-off of assets not placed into service and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations and liquidity. “Normalized EBITDA” is an ongoing liquidity measure (that excludes non-cash items) and is calculated as normalized earnings before interest, tax, depreciation, amortization and stock-based compensation expense.

The Company uses a "with" and "without" approach to calculate normalized income tax expense or benefit. At an interim period, the Company determines the year to date tax effect of the pretax items excluded from normalized results by allocating the difference between the calculated GAAP and calculated normalized tax expense or benefit.

The Company defines "net debt" as short-term debt, current portion of long-term debt and long-term debt less cash and cash equivalents.

While the Company believes these non-GAAP financial measures are useful in evaluating the Company’s performance and liquidity, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

About Newell Brands

Newell Brands (NASDAQ: NWL) is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid, Sharpie, Graco, Coleman, Rubbermaid Commercial Products, Yankee Candle, Paper Mate, FoodSaver, Dymo, EXPO, Elmer’s, Oster, NUK, Spontex and Campingaz. Newell Brands is focused on delighting consumers by lighting up everyday moments.

This press release and additional information about Newell Brands are available on the Company’s website, www.newellbrands.com.

Forward-Looking Statements

Some of the statements in this press release and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, future macroeconomic conditions and similar matters, are forward-looking statements within the meaning of the federal securities laws. These statements generally can be identified by the use of words or phrases, including, but not limited to, "guidance," "outlook," “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” "beginning to,” “will,” “should,” “would,” "could," “resume,” “remain confident,” "remain optimistic," "seek to," or similar statements. We caution that forward-looking statements are not guarantees because there are inherent difficulties in predicting future results. Actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to:

• the Company’s ability to optimize costs and cash flow and mitigate the impact of soft global demand and retailers' inventory rebalancing through discretionary and overhead spend management, advertising and promotion expense optimization, demand forecast and supply plan adjustments and actions to improve working capital;
• the Company’s dependence on the strength of retail and consumer demand and commercial and industrial sectors of the economy in various countries around the world;
• the Company’s ability to improve productivity, reduce complexity and streamline operations;
• risks related to the Company’s substantial indebtedness and current leverage profile, ability to refinance bond maturities on favorable terms, or at all, and potential increases in interest rates or changes in the Company’s credit ratings including the failure to maintain financial covenants which if breached could subject us to cross-default and acceleration provisions in our debt documents;
• the impact on the Company’s operations and financial condition resulting from current global macroeconomic environment, including the impact of tariffs imposed by the U.S. and retaliatory tariffs imposed by foreign countries, and the Company’s ability to effectively execute its mitigation plans, including securing receipt of tariff refunds and defending related litigation
• competition with other manufacturers and distributors of consumer products;
• major retailers’ strong bargaining power and consolidation of the Company’s customers;
• supply chain and operational disruptions in the markets in which we operate, including as a result of geopolitical and macroeconomic conditions and any global military conflicts including those between Russia and Ukraine and in the Middle East;
• changes in the prices and availability of labor, transportation, raw materials and sourced products, including significant inflation and oil price volatility, and the Company’s ability to offset cost increases through pricing and productivity in a timely manner;
• the Company’s ability to effectively execute its turnaround plan, including the Productivity Plan announced in December 2025 and other restructuring and cost saving initiatives;
• the Company’s ability to develop innovative new products, to develop, maintain and strengthen end-user brands and to realize the benefits of increased advertising and promotion spend;
• the risks inherent to the Company’s foreign operations, including currency fluctuations, exchange controls and pricing restrictions;
• future events that could adversely affect the value of the Company’s assets and/or stock price and require additional impairment charges;
• unexpected costs or expenses associated with dispositions;
• the cost and outcomes of governmental investigations, inspections, lawsuits, legislative requests or other actions by third parties, the potential outcomes of which could exceed policy limits, to the extent insured;
• the Company’s ability to maintain effective internal control over financial reporting;
• risk associated with the use of artificial intelligence in the Company’s operations and the Company’s ability to properly manage such use;
• a failure or breach of one of the Company’s key information technology systems, networks, processes or related controls or those of the Company’s service providers;
• the impact of United States and foreign regulations on the Company’s operations, including environmental remediation costs and legislation and regulatory actions related to product safety, data privacy and climate change;
• the potential inability to attract, retain and motivate key employees;
• changes in tax laws and the resolution of tax contingencies resulting in additional tax liabilities;
• product liability, product recalls or related regulatory actions;
• the Company’s ability to protect its intellectual property rights;
• the impact of climate change and the increased focus of governmental and non-governmental organizations and customers on sustainability issues, as well as external expectations related to environmental, social and governance considerations;
• significant increases in the funding obligations related to the Company’s pension plans; and
• other factors listed from time to time in our SEC filings, including but not limited to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other filings.

The consolidated condensed financial statements are prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). Management’s application of U.S. GAAP requires the pervasive use of estimates and assumptions in preparing the condensed consolidated financial statements. The Company continues to be impacted by inflationary pressures, soft global demand, major retailers' focus on tight control over inventory levels, elevated interest rates and indirect macroeconomic impacts from geopolitical conflicts, which has required greater use of estimates and assumptions in the preparation of our condensed consolidated financial statements. Although we believe we have made our best estimates based upon current information, actual results could differ materially and may require future changes to such estimates and assumptions, including reserves, which may result in future expense or impairment charges.

The information contained in this press release and the tables is as of the date indicated. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments. In addition, there can be no assurance that the Company has correctly identified and assessed all of the factors affecting the Company or that the publicly available and other information the Company receives with respect to these factors is complete or correct.

NEWELL BRANDS INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION (UNAUDITED)

The following tables present a reconciliation of certain non-GAAP financial measures to the most directly comparable financial measures in accordance with GAAP for the three and six months ended June 30, 2026 and a comparison to prior year. The Company has chosen to present the following non-GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating the Company’s performance and operating results absent the effect of certain items that are deemed to be stand-alone items apart from the Company’s core operations (“Normalized Adjustments”). While these costs or gains are not expected to continue for any individual transaction on an ongoing basis, similar types of costs, expenses and charges or gains have occurred in prior periods.

Normalized Adjustments in 2026 and 2025 include the following: