Newell Brands (NWL) Is Down 6.8% After Q3 Profit Return Despite Ongoing Sales Declines – What's Changed

• Newell Brands recently reported its third quarter 2025 results, showing a return to profitability with net income of US$21 million despite sales declining to US$1.81 billion, alongside updated guidance projecting further sales declines but positive earnings per share for the rest of the year.
• Notably, the company shifted from a net loss to positive earnings over the first nine months of 2025, which underscores progress in operational improvements even as revenue headwinds persist.
• We’ll now examine how Newell Brands’ return to profitability amid softer sales shapes its investment narrative going forward.

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Newell Brands Investment Narrative Recap

To be a shareholder in Newell Brands right now, you need to believe that its renewed profitability and continued margin improvements will outweigh ongoing sales declines and persistent consumer headwinds. The company’s latest results point to stabilization on the bottom line, but with guidance projecting further revenue softness, the most important short-term catalyst remains Newell’s ability to halt or reverse core sales declines, while heightened leverage continues as its biggest risk. The impact of recent earnings and guidance reaffirms this risk-reward balance and does not materially shift the narrative.

Among Newell’s recent announcements, its Q3 2025 results most directly connect to the current discussion: achieving a turnaround from last year’s loss to a US$21 million net profit highlights operational progress, even as year-over-year sales fell from US$1.95 billion to US$1.81 billion. This shift underlines how profitability improvements are now front and center as management seeks to offset volume pressure, yet questions remain around the sustainability of those gains if revenue declines persist.

In contrast to recent progress on margins and cost savings, investors should be aware of the ongoing risk that elevated net leverage could restrict financial flexibility if...

Read the full narrative on Newell Brands (it's free!)

Newell Brands' outlook projects $7.6 billion in revenue and $482.4 million in earnings by 2028. This scenario assumes a 1.0% annual revenue growth rate and a $725.4 million increase in earnings from the current level of -$243.0 million.

Uncover how Newell Brands' forecasts yield a $6.42 fair value, a 103% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Newell Brands' fair value anywhere from US$5.18 to nearly US$19.81, reflecting six different outlooks. While many expect margin expansion to persist, concerns about sustained revenue contraction could weigh on overall performance; explore these viewpoints for a broader understanding.

Explore 6 other fair value estimates on Newell Brands - why the stock might be worth over 6x more than the current price!

Build Your Own Newell Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Newell Brands research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Newell Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Newell Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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