Newell Brands (NWL) | Credit Investor

Next 12 Months: Starting Case

$ in millions	Last 12 Months	Next Quarter (4Q26E)	vs. 4Q25A	Next 12 Months	Change
Revenue	$7,313	$1,934	1.9%	$7,432	1.6%
Adj. EBITDA	$969	$206	(1.8%)	$863	(11.0%)
Free Cash Flow	$53	$66	(27.7%)	$309	482.6%
Net Debt, end of period	$4,592	$4,526		$4,283	(6.7%)
Net Debt / Adj. EBITDA	4.7x	4.7x		5.0x	+0.3x
Total Liquidity, end of period	$729	$795		$1,038	42.4%

The credit over the next year

Newell has returned to core sales growth, up 2.3% in Q2 2026 and 3.3% in Q3 2026 after a 7.4% decline in Q3 2025, and guides 1% to 3% for Q4 2026, so the next year turns on whether Home and Commercial Solutions keeps growing and Writing holds up. Normalized gross margin of 35.2% in Q3 2026 faces replacement Section 122 and 301 tariffs plus oil-driven resin and freight inflation, while higher advertising spend supports the top line. With $4.8 billion of debt, operating cash flow guided to only about $150 million for 2026 and an IEEPA refund receivable still to be collected, margin and working capital set whether leverage comes down.

Leverage rises from 4.7x to 5.0x over the next four quarters on the starting case.
Free cash flow of $309mm is projected over the next year, with no itemised debt due in that time.
Net debt shrinks from $4.59bn to $4.28bn.
Liquidity a year out is $1.04bn, against $729mm today.

Built from the inputs on the Projections tab of the model; change them there. A starting case from history, not a forecast.

Capital Structure

Cap Structure	Amt Out.	Mkt Price	Yield	Lev. Through	View
Unrestricted Cash	$249.0
ABL Revolving Credit Facility due 2031	215.0	100.0%	N/a	0.2x	Neutral
8.500% Senior Notes due 2028	1,250.0	104.2%*	5.55%	1.5x	Neutral
6.625% Senior Notes due 2029	500.0	101.9%*	5.78%	2.0x	Neutral
6.375% Senior Notes due 2030	750.0	101.4%*	5.92%	2.8x	Neutral
6.250% Senior Notes due 2031	600.0	100.2%*	6.19%	3.4x	Neutral
6.625% Senior Notes due 2032	500.0	102.2%*	6.15%	3.9x	Neutral
5.375% Senior Notes due 2036	418.0	100.0%	5.38%	4.4x	Neutral
5.500% Senior Notes due 2046	658.0	100.0%	5.50%	5.0x	Neutral
Other debt	2.0	100.0%	N/a	5.0x	Neutral
Total Debt	$4,841.0			5.0x
Net Debt	$4,592.0			4.7x

Last Twelve Months

Revenue	$7,313
Implied Costs	(6,344)
Adj. EBITDA	$969
(-) Interest Expense	(341)
(-) Capex	(201)
Memo: FCF	$53
Total Liquidity	$729.0

Next 12 months, starting case▶ Revenue $7.31bn → $7.43bn▼ Adj. EBITDA $969mm → $863mm▲ Free cash flow $53mm → $309mm▲ Net leverage 4.7x → 5.0x▲ Liquidity $729mm → $1.04bn

Newell Brands

			9/30/26						Face Value / Adj. EBITDA
Cap Structure	Coupon	Maturity	Amt Out.	Mkt Price	YTM	Next Call	Yield to Call	View	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Unrestricted Cash			$249.0
Undrawn Revolver ($800mm facility)			480.0
Total Liquidity			$729.0

ABL Revolving Credit Facility due 2031	S + 150 to 200	7/30/2031	215.0	100.0%	N/a	N/a	N/a	Neutral
Total Secured Debt			$215.0						0.1x	0.3x	0.3x	0.3x	0.3x	0.2x	0.2x	0.2x
Net Secured Debt			($34.0)						-0.0x	-0.0x	-0.1x	-0.0x	-0.0x	-0.0x	-0.0x	-0.0x

8.500% Senior Notes due 2028	8.50%	6/1/2028	1,250.0	104.2%*	5.55%	3/1/2028 @ 100	5.55%	Neutral
6.625% Senior Notes due 2029	6.625%	9/15/2029	500.0	101.9%*	5.91%	6/15/2029 @ 100	5.78%	Neutral
6.375% Senior Notes due 2030	6.375%	5/15/2030	750.0	101.4%*	5.92%	2/15/2030 @ 100	5.92%	Neutral
6.250% Senior Notes due 2031	6.25%	8/15/2031	600.0	100.2%*	6.19%	2/15/2031 @ 100	6.19%	Neutral
6.625% Senior Notes due 2032	6.625%	5/15/2032	500.0	102.2%*	6.15%	2/15/2032 @ 100	6.15%	Neutral
5.375% Senior Notes due 2036	5.375%	4/1/2036	418.0	100.0%	5.38%	10/1/2035 @ 100	5.38%	Neutral
5.500% Senior Notes due 2046	5.50%	4/1/2046	658.0	100.0%	5.50%	10/1/2045 @ 100	5.50%	Neutral
Other debt	N/a	N/a	2.0	100.0%	N/a	N/a	N/a	Neutral
Other debt, discounts and issuance costs	N/a	N/a	(52.0)
Total Debt			$4,841.0						3.3x	6.1x	7.6x	5.7x	5.9x	5.0x	5.6x	5.6x
Net Debt			$4,592.0						3.1x	5.7x	7.2x	5.4x	5.6x	4.7x	5.0x	4.6x
						Adj. EBITDA			$1,466	$799	$635	$854	$820	$969	$863	$871

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$10,589	$9,459	$8,133	$7,582	$7,204	$7,313	$7,432	$7,541
Y/Y Growth		(10.7%)	(14.0%)	(6.8%)	(5.0%)		1.6%	1.5%
(-) Cost of Revenue	(7,226)	(6,625)	(5,780)	(5,034)	(4,772)	(4,711)	(4,903)	(4,974)
Gross Profit	$3,363	$2,834	$2,353	$2,548	$2,432	$2,602	$2,529	$2,567
Gross Margin	31.8%	30.0%	28.9%	33.6%	33.8%	35.6%	34.0%	34.0%
(-) SG&A	(2,274)	(2,033)	(2,001)	(2,083)	(1,985)	(2,013)	(2,046)	(2,076)
(+/-) Other Operating Costs, net of D&A	249	(193)	(103)	(75)	(97)	(203)	308	308
EBITDA	$1,338	$608	$249	$390	$350	$386	$791	$799
(+) Add-backs: stock comp, restructuring, impairments	128	191	386	464	470	583	72	72
Adj. EBITDA	$1,466	$799	$635	$854	$820	$969	$863	$871
Margin	13.8%	8.4%	7.8%	11.3%	11.4%	13.3%	11.6%	11.5%
(-) Restructuring and other cash add-backs	(16)	(15)	(95)	(45)	(62)	(70)	--	--
Cash EBITDA	$1,450	$784	$540	$809	$758	$899	$863	$871
(-) Interest Expense (Cash Only)	(271)	(244)	(298)	(319)	(354)	(341)	(343)	(343)
(-) Cash Taxes	(165)	(172)	(103)	(173)	(137)	(6)	(6)	(6)
(-) Capex	(289)	(312)	(284)	(259)	(247)	(201)	(205)	(207)
(+/-) Working Capital and Other	(130)	(640)	791	179	(3)	(298)	--	--
Memo: FCF	$595	($584)	$646	$237	$17	$53	$309	$314
% of Debt	12.3%	(12.1%)	13.3%	4.9%	0.4%	1.1%	6.4%	6.5%

Liquidity

Unrestricted Cash	$249.0
Undrawn Revolver	480.0
Total Liquidity	$729.0
(-) Debt due through 2028	(1,250.0)
(+/-) Free cash flow, last twelve months	53.0
Liquidity after maturities and a year of cash flow	($468.0)

Tranches are from the debt table in the latest quarterly or annual report.Blue figures are inputs in the model. Price is 100% of face unless marked *, which is a bond fund's own valuation from its SEC holdings report, not a traded price.Secured and unsecured are judged from each instrument's name. Adj. EBITDA is operating income plus D&A, stock compensation, restructuring and impairment charges as tagged in SEC filings; it is not the company's own adjusted figure. Free cash flow is cash from operations less capital spending.

The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$10,589	$9,459	$8,133	$7,582	$7,204	$7,313	$7,432	$7,541
Y/Y Growth		(10.7%)	(14.0%)	(6.8%)	(5.0%)		1.6%	1.5%
(-) Cost of Revenue	(7,226)	(6,625)	(5,780)	(5,034)	(4,772)	(4,711)	(4,903)	(4,974)
Gross Profit	$3,363	$2,834	$2,353	$2,548	$2,432	$2,602	$2,529	$2,567
Gross Margin	31.8%	30.0%	28.9%	33.6%	33.8%	35.6%	34.0%	34.0%
(-) SG&A	(2,274)	(2,033)	(2,001)	(2,083)	(1,985)	(2,013)	(2,046)	(2,076)
(+/-) Other Operating Costs, net of D&A	249	(193)	(103)	(75)	(97)	(203)	308	308
EBITDA	$1,338	$608	$249	$390	$350	$386	$791	$799
(+) Add-backs: stock comp, restructuring, impairments	128	191	386	464	470	583	72	72
Adj. EBITDA	$1,466	$799	$635	$854	$820	$969	$863	$871
Margin	13.8%	8.4%	7.8%	11.3%	11.4%	13.3%	11.6%	11.5%
(-) Restructuring and other cash add-backs	(16)	(15)	(95)	(45)	(62)	(70)	--	--
Cash EBITDA	$1,450	$784	$540	$809	$758	$899	$863	$871
(-) Interest Expense (Cash Only)	(271)	(244)	(298)	(319)	(354)	(341)	(343)	(343)
(-) Cash Taxes	(165)	(172)	(103)	(173)	(137)	(6)	(6)	(6)
(-) Capex	(289)	(312)	(284)	(259)	(247)	(201)	(205)	(207)
(+/-) Working Capital and Other	(130)	(640)	791	179	(3)	(298)	--	--
Memo: FCF	$595	($584)	$646	$237	$17	$53	$309	$314
% of Debt	12.3%	(12.1%)	13.3%	4.9%	0.4%	1.1%	6.4%	6.5%

Key Drivers

Driver	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E	Sensitivity	Next 12m impact ($mm)
Core sales growth, total company % change year over year (excludes currency, divestitures and exits)	-4.1	-3.5	2.3	3.3	2.0	1.5	1.5	1.5	1.5	1.5	1.5	1.5	$18.3mm on revenue	119
Home and Commercial Solutions core sales growth % change year over year	-5.3	-6.9	-0.4	6.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$9.6mm on revenue	--
Learning and Development core sales growth % change year over year	-1.5	2.0	4.9	2.3	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$6.9mm on revenue	--
Normalized gross margin % of net sales	33.9	33.2	40.8	35.2	33.9	33.2	34.5	35.2	33.9	33.2	34.5	35.2	$-18.3mm on cost of revenue	115
Advertising and promotion costs $ millions per quarter	123	82	114	129	123	82	114	129	123	82	114	129	$1.0mm on SG&A	--

Newell has returned to core sales growth, up 2.3% in Q2 2026 and 3.3% in Q3 2026 after a 7.4% decline in Q3 2025, and guides 1% to 3% for Q4 2026, so the next year turns on whether Home and Commercial Solutions keeps growing and Writing holds up. Normalized gross margin of 35.2% in Q3 2026 faces replacement Section 122 and 301 tariffs plus oil-driven resin and freight inflation, while higher advertising spend supports the top line. With $4.8 billion of debt, operating cash flow guided to only about $150 million for 2026 and an IEEPA refund receivable still to be collected, margin and working capital set whether leverage comes down.

Bottoms-Up Projections: starting case

$ in millions	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E
Revenue	$1,897	$1,549	$1,994	$1,873	$1,934	$1,576	$2,021	$1,900	$1,961	$1,604	$2,049	$1,928
Y/Y Growth	(2.7%)	(1.1%)	3.0%	3.7%	1.9%	1.8%	1.4%	1.5%	1.4%	1.7%	1.4%	1.4%
Adj. EBITDA	$210	$137	$391	$231	$206	$138	$278	$240	$208	$139	$282	$242
Margin	11.1%	8.8%	19.6%	12.3%	10.7%	8.8%	13.8%	12.6%	10.6%	8.7%	13.8%	12.5%
Free Cash Flow	$91	($270)	($18)	$250	$66	$8	$135	$100	$67	$8	$139	$101
Cash, end of period	203	201	209	249	315	323	458	558	625	632	771	872
Total Debt, end of period	4,673	4,965	5,006	4,841	4,841	4,841	4,841	4,841	4,841	4,841	4,841	4,841
Net Debt / Adj. EBITDA	5.5x	5.7x	5.0x	4.7x	4.7x	4.7x	5.1x	5.0x	4.9x	4.9x	4.7x	4.6x

Revenue is built from Home and Commercial, Learning and Development, Outdoor and Recreation, each driven by volume and by price and mix against the same quarter a year earlier. Every cost line, interest, taxes, capital spending and working capital has its own input on the Projections tab of the model. This is a starting case built from history, not a forecast.

Earnings call: Q3 2026 · Oct 30, 2026

Slides Webcast and audio replay Investor relations site

Sales grew for a second straight quarter, up 3.7%, normalized margins widened, and Newell raised its full-year sales outlook but cut its operating cash flow outlook to about $150 million.

Takeaways

Net sales rose 3.7% to $1.87 billion and core sales rose 3.3%. Home and Commercial Solutions led with 6.0% core growth, Learning and Development grew 2.3%, and Outdoor and Recreation fell 6.4%.
Normalized gross margin rose to 35.2% from 34.5% and normalized operating margin rose to 9.8% from 8.9%, despite inflation running above plan. Normalized EBITDA grew 10% to $248 million.
GAAP results swung to an $81 million net loss, driven by a $101 million non-cash impairment of an indefinite-lived tradename in Home and Commercial Solutions.
Cash flow is weak. Year-to-date operating cash flow was $93 million versus $103 million, as inventory rose by $320 million. Full-year operating cash flow guidance was cut to about $150 million, blamed on pension plan termination accounting and less receivables factoring.
Leverage remains high. Gross debt was $4.84 billion and cash $249 million, so net debt was $4.59 billion, about 4.5 times trailing normalized EBITDA of $1.03 billion, down from about 5.3 times a year ago.
Management called deleveraging a top priority and expects to cut total debt plus factoring by a couple hundred million dollars in 2026.

Debt and capital

On July 30, 2026 Newell closed a new five-year $800 million asset-based revolver, maturing in 2031, replacing the prior secured revolver. It carries an uncommitted accordion of up to $500 million.
On August 19, 2026 it issued $600 million of 6.250% senior unsecured notes due 2031. Proceeds redeemed all 6.375% notes due 2027 at 101.53% and paid down part of the revolver, leaving no current debt maturities at quarter end.
A $16 million loss on debt extinguishment was booked in the quarter.
On October 2, 2026 the receivables purchase facility was renewed to October 2027, with the factoring limit set at $75 million and rating triggers keyed to the corporate rating from S&P or Moody's.
The company is reducing reliance on receivables factoring after the upsized bond refinancing.
Quarterly dividend kept at $0.07 per share. No buybacks were mentioned.

Guidance

Full-year 2026 net sales growth raised to 2% to 3% from 1% to 2%; core sales raised to 1% to 2% from flat to 1%.
Full-year normalized operating margin held at 10.0% to 10.4%.
Full-year normalized EPS narrowed to $0.74 to $0.76 from $0.73 to $0.77, keeping the midpoint.
Full-year operating cash flow cut to about $150 million, mainly from two one-time items: pension termination payments booked in operating cash flow (proceeds land in investing) and lower factoring proceeds.
First Q4 2026 outlook: net and core sales up 1% to 3%, normalized operating margin 8.4% to 9.0%, normalized EPS $0.17 to $0.19.

Tone: Upbeat on sales momentum and margins, but cautious on inflation, with cash flow guidance cut and leverage still the main credit concern.

Q2 2026Slides · Webcast
Q1 2026Slides · Webcast
Q4 2025Slides · Webcast

Summary written with AI from Press release only. Newell posts the earnings release and a webcast replay on its IR site but no slide deck, transcript or prepared remarks, and none are filed with the SEC. Debt details also draw on the July, August and October 2026 financing 8-Ks.. Slides, audio and any transcript are the company's and open on its own site. Full transcripts from transcript vendors are not reproduced here.

Last quarter: Third quarter 2026

Sales rose 3.7% and the sales outlook went up, but full-year operating cash flow guidance was cut to about $150mm.

Results

Net sales were $1,873mm, up 3.7% from $1,806mm a year earlier; core sales grew 3.3%.
Normalized EBITDA was $248mm versus $225mm a year earlier; trailing twelve-month normalized EBITDA was $1,030mm.
Normalized operating margin rose to 9.8% from 8.9%, while GAAP operating margin fell to 1.4% from 6.6% because of a $101mm tradename impairment.
The company posted a net loss of $81mm versus net income of $21mm a year earlier; normalized EPS was $0.20 versus $0.17.
Year-to-date operating cash flow was $93mm versus $103mm, and year-to-date capital spending was $131mm versus $177mm.

Why

Higher sales and productivity savings lifted normalized gross margin to 35.2% from 34.5%, more than offsetting inflation that ran above plan.
Home and Commercial Solutions core sales grew 6.0% and Learning and Development grew 2.3%, while Outdoor and Recreation core sales fell 6.4% and lost more money.
The $101mm non-cash impairment of an indefinite-lived tradename and a $19mm pension settlement loss drove the GAAP loss.
Year-to-date inventory build of $320mm and a $159mm rise in prepaid and other current assets absorbed most of the operating cash.

Balance sheet and guidance

Debt was $4,841mm and cash was $249mm at quarter end, for net debt of $4,592mm versus $4,548mm a year earlier.
In the quarter the company replaced its secured revolver with a new $800mm asset-based facility maturing in 2031.
It issued $600mm of 6.250% notes due 2031 and used the proceeds to redeem its 6.375% notes due 2027 and pay down part of the new facility.
Full-year 2026 net sales growth raised to 2% to 3% from 1% to 2%; core sales growth raised to 1% to 2% from flat to 1%.
Full-year normalized operating margin held at 10.0% to 10.4%; normalized EPS narrowed to $0.74 to $0.76 from $0.73 to $0.77.
Full-year operating cash flow cut to about $150mm from about $400mm, mainly from the accounting for a pension plan termination (about $85mm lower) and less receivables factoring.
Fourth-quarter outlook: net and core sales growth of 1% to 3%, normalized operating margin of 8.4% to 9.0%, normalized EPS of $0.17 to $0.19.
Management expects to cut total debt and factoring by a couple hundred million dollars this year.

What to watch

Whether the fourth quarter delivers enough cash to reach about $150mm of operating cash flow after only $93mm through nine months, given the $320mm inventory build.
Progress on cutting debt and factoring by a couple hundred million dollars as the company leans less on receivables sales after the refinancing.
Collection of the IEEPA tariff refund booked in the second quarter, and whether more impairments follow the $101mm tradename charge.

From the company's press release filed Oct 30, 2026. Figures in this section are as the company reports them, including its own adjusted EBITDA.

Filings

Earnings releases 8

Oct 30, 20268-K for Oct 30, 2026: Results · Press release
Jul 31, 20268-K for Jul 31, 2026: Results · Press release
May 1, 20268-K for May 1, 2026: Results · Press release
Feb 6, 20268-K for Feb 6, 2026: Results · Press release
Oct 31, 20258-K for Oct 31, 2025: Results · Press release
Aug 1, 20258-K for Aug 1, 2025: Results · Press release
Apr 30, 20258-K for Apr 30, 2025: Results · Press release
Feb 7, 20258-K for Feb 7, 2025: Results · Press release

Annual reports (10-K) 5

Quarterly reports (10-Q) 12

Current reports (8-K) 20

Nov 9, 20268-K for Nov 4, 2026: Director or officer change
Oct 20, 20268-K for Oct 20, 2026: Director or officer change
Oct 2, 20268-K for Oct 2, 2026: Material agreement; New debt
Aug 19, 20268-K for Aug 19, 2026: Material agreement; New debt
Aug 5, 20268-K for Aug 5, 2026: Other event
Jul 31, 20268-K for Jul 30, 2026: Material agreement; Agreement terminated; New debt
May 13, 20268-K for May 7, 2026: Director or officer change; Shareholder vote
Feb 13, 20268-K for Feb 9, 2026: Director or officer change
Dec 1, 20258-K for Nov 26, 2025: Restructuring; Regulation FD
May 22, 20258-K for May 22, 2025: Material agreement; New debt
May 14, 20258-K for May 8, 2025: Director or officer change; Shareholder vote
May 9, 20258-K for May 8, 2025: Other event
Feb 19, 20258-K for Feb 17, 2025: Director or officer change
Nov 13, 20248-K for Nov 13, 2024: Material agreement; New debt
Oct 30, 20248-K for Oct 29, 2024: Other event
May 10, 20248-K for May 9, 2024: Director or officer change; Shareholder vote
Mar 21, 20248-K for Mar 19, 2024: Director or officer change
Feb 22, 20248-K for Feb 15, 2024: Director or officer change; Bylaw change
Feb 22, 20248-K for Feb 15, 2024: Director or officer change
Feb 9, 20248-K for Feb 7, 2024: Material agreement; New debt

Proxy statements 3

Other filings 8

Oct 31, 2024424B5
Oct 29, 2024424B5
Sep 12, 2022424B5
Sep 9, 2022424B5
May 21, 2020424B5
May 20, 2020424B5
Dec 10, 201825
Sep 26, 2016424B3

Links open the document on SEC EDGAR. Earnings call transcripts are not SEC filings and belong to their publishers, so they are not reproduced here; the press release and slides filed with each results 8-K are.

Rating actions

Invalid DateMoody's: Senior unsecured downgraded to B2 from B1. Second Moody's cut in 2025 amid high leverage; the company said it brought no further coupon step-up because the affected notes were already at their maximum adjustment. · source
Invalid DateS&P: Senior unsecured downgraded to B+ from BB-. Downgrade amid high leverage that triggered a 25 bp coupon step-up on about $1.08 billion of notes from Q4 2025; the filing gives no agency rationale. · source
Apr 14, 2025Moody's: Senior unsecured downgraded to B1 from Ba3. Downgrade amid high leverage that triggered a 25 bp coupon step-up on the coupon-step notes; the filing gives no agency rationale. · source

Coming up

Feb 12, 2027Results. Full-year results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.
Jun 1, 2028Maturity. 8.500% Senior Notes due 2028: $1,250mm outstanding comes due.

Recent 8-K filings

Nov 9, 2026Director or officer change
Oct 30, 2026Reported results
Oct 20, 2026Director or officer change
Oct 2, 2026Entered into a material agreement; Took on new debt or an obligation
Aug 19, 2026Entered into a material agreement; Took on new debt or an obligation
Aug 5, 2026Other event
Jul 31, 2026Entered into a material agreement; Terminated a material agreement; Took on new debt or an obligation
Jul 31, 2026Reported results