Newell Raises 2026 Sales Outlook After Revenue Grows 3.7% in Third Quarter
Key Facts
Newell Brands raised its outlook for annual sales growth in 2026 after reporting sales of $1.873 billion in the third quarter, up 3.7% from the same period, according to the company’s statement. Core sales grew 3.3% during the quarter, signaling improvement beyond total revenue. The company said growth spanned the United States and international markets, appearing in four of its six businesses and seven of its 10 largest brands. The results came amid improving margins and adjusted earnings, despite a net loss for the period. The company raised its expected annual sales growth range to 2%–3%, compared with its previous forecast of 1%–2%.
Gross margin rose to 34.7% in the third quarter, from 34.1% a year earlier, while adjusted gross margin increased to 35.2% from 34.5%. The margin improvement accompanied a rise in adjusted diluted earnings per share to $0.20, compared with $0.17 in the same period of 2025. Adjusted earnings before interest, taxes, depreciation and amortization also rose to $248 million from $225 million. These adjusted measures reflect stronger operating performance than in the prior period, alongside growth in core sales. Net results, however, moved in a different direction after a non-cash impairment charge was included.
Newell posted a net loss of $81 million in the third quarter, after net income of $21 million a year earlier. The period’s results included a non-cash impairment charge of $101 million related to an indefinite-lived brand, according to the company’s statement. The charge helps explain some of the difference between the accounting loss and the improvement in adjusted earnings and margins. The company nonetheless moved from net profitability in the year-earlier period to a loss in the current quarter. It kept its focus on the sales outlook, citing third-quarter performance and updated estimates for the fourth quarter as reasons for the revision.
Newell expects fourth-quarter sales growth of 1% to 3% and raised its estimate for full-year core sales growth to 1%–2%, from a previous range of flat to 1%. It said higher sales expectations and cost containment offset the impact of additional inflation. The update places its fourth-quarter estimate among the factors underpinning the company’s higher annual outlook, alongside third-quarter results. A conference call to discuss third-quarter results was scheduled for October 30, 2026, at 7:30 a.m. Eastern time. Fourth-quarter estimates therefore form part of the picture the company presented for the fiscal year.
Newell had $4.8 billion of outstanding debt, while cash and cash equivalents totaled $249 million at the end of the third quarter. During the period, the company entered into an $800 million asset-based revolving credit facility, generally due in 2031. It also issued $600 million of senior notes bearing interest at 6.250% and due in the same year. These figures provide financial context for the higher sales outlook, alongside the net loss recorded in the quarter. Newell shares closed at $5.08 on October 29, while Kite Realty shares closed at $25.03 on the same day.
Kite Realty’s published second-quarter results showed funds from operations under the Nareit measure of $0.53 per share and core funds from operations of $0.52 per share. Same-property net operating income rose 3.7% in the quarter. The company had affirmed a 2026 funds-from-operations outlook range of $2.06 to $2.12 per share and raised its same-property net operating income growth range to 3%–4% from 2.5%–3.5%. Its CEO said capital activity exceeded $870 million in the second quarter, including the sale of about $315 million in non-core assets, the issuance of $345 million in exchangeable notes, the acquisition of two centers for $136 million and share repurchases of $75.7 million. Kite was scheduled to report third-quarter results before the market opened on October 30 and hold its conference call at 11 a.m. Eastern time that day.