Newell Brands Reports $37 Million Net Loss and 5.3% Revenue Decline in Q1 2025

Newell Brands Inc. reported a net loss of $37 million for the first quarter of 2025, compared to a loss of $9 million in the same period last year. The company's revenue for the quarter was $1.566 billion, a decrease of 5.3% from $1.653 billion in the prior year. This decline was attributed to soft global demand, net distribution losses, and unfavorable foreign currency impacts, which collectively reduced sales by approximately $44 million. Despite the revenue drop, the company managed to improve its gross margin to 32.1%, up from 30.5% a year earlier, driven by productivity gains and pricing actions.

In terms of operational performance, Newell Brands experienced a notable increase in operating income, which rose to $21 million from $16 million in the previous year. This improvement was largely due to cost-saving measures from restructuring initiatives, which included a Realignment Plan aimed at enhancing operational efficiency. The company incurred restructuring costs of $11 million during the quarter, down from $26 million in the same period last year. The Learning and Development segment saw a slight increase in sales, while the Home and Commercial Solutions and Outdoor and Recreation segments reported declines of 9.1% and 9.5%, respectively.

The company’s balance sheet showed total assets of $11.279 billion as of March 31, 2025, an increase from $11.004 billion at the end of 2024. Cash and cash equivalents rose to $233 million, up from $198 million. However, total liabilities also increased to $8.589 billion, compared to $8.253 billion at the end of the previous year. The company’s long-term debt remained relatively stable at $4.523 billion, with a weighted average interest rate of 6.0% for the quarter.

Looking ahead, Newell Brands is focused on executing its turnaround strategy, which includes returning to profitable growth through product innovation and international market expansion. The company is also addressing challenges posed by inflation, tariffs, and changing consumer behaviors. Newell Brands plans to continue optimizing its operations and reducing complexity while maintaining a disciplined approach to capital management. The company is actively exploring refinancing options for its $1.2 billion senior notes maturing in April 2026, as it seeks to enhance liquidity and support its growth initiatives.