Newell Brands Reports 5% Decline in Net Sales for Fiscal Year 2025

Newell Brands Inc. reported a decline in financial performance for the fiscal year ending December 31, 2025, with net sales of $7.204 billion, a decrease of 5% from $7.582 billion in 2024. The company's gross profit also fell to $2.432 billion, down from $2.548 billion, while the operating income dropped significantly to $39 million from $67 million in the previous year. The net loss for 2025 was $285 million, compared to a loss of $216 million in 2024, reflecting ongoing challenges in the market and increased operational costs.

The decline in revenue was attributed to soft demand across all segments, particularly in the Home and Commercial Solutions (H&CS) and Outdoor and Recreation (O&R) segments, alongside net distribution losses and product line exits. The company faced additional pressures from tariffs, which added approximately $114 million to costs, and inflationary impacts. Despite these challenges, Newell Brands launched several product innovations that partially mitigated the adverse effects on sales.

Strategically, Newell Brands has been implementing a multi-year transformation plan initiated in 2023, focusing on improving operational efficiency and enhancing its brand portfolio. The company announced a global Productivity Plan in December 2025, which aims to streamline processes and reduce overhead costs, including a reduction of over 900 employees primarily in professional and clerical roles. The Realignment Plan, which was fully implemented by the end of 2025, was designed to strengthen commercial capabilities and improve accountability across the organization.

Operationally, Newell Brands employed approximately 21,900 people globally as of December 31, 2025, with significant workforce reductions expected to impact future employee counts. The company continues to face a highly competitive environment, with major customers like Amazon and Walmart exerting strong negotiating power, which may limit pricing recovery efforts. The company’s international operations accounted for approximately 39% of net sales, with ongoing evaluations of its geographic footprint and product offerings to adapt to changing consumer preferences.

Looking ahead, Newell Brands anticipates ongoing challenges due to macroeconomic conditions, including inflation and shifting consumer behaviors. The company remains committed to executing its turnaround strategy while navigating these external pressures. The management expressed cautious optimism about future performance improvements as the benefits of their strategic initiatives begin to materialize, although the timeline for recovery remains uncertain.