Newell Brands (NASDAQ:NWL) shares stabilized on Friday after the consumer goods giant signaled a turning point in its multi-year turnaround, projecting a massive surge in cash flow for 2026 even as aggressive new tariffs continue to eat into its bottom line.
The Atlanta-based maker of Sharpie pens and Rubbermaid containers reported fourth-quarter net sales of $1.9 billion, a 2.7% decline that mirrored the broader cooling in discretionary consumer spending.
However, the company’s internal "Productivity Plan"—which included cutting 10% of its professional workforce and shuttering underperforming Yankee Candle stores—is beginning to bear fruit.
Normalized operating margins expanded to 8.7%, up from 7.1% a year ago, as Newell successfully offset volume declines with better overhead absorption and high-margin product innovation.
The real story for investors, however, lies in the 2026 outlook.
CEO Chris Peterson projected that operating cash flow will reach between $350 million and $400 million this year—a midpoint increase of more than 40% compared to 2025.
This surge is expected despite an additional $0.07 per share hit from tariffs and a higher effective tax rate.