Newell Brands eyes 40% cash flow jump in 2026 despite tariff headwinds

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.

Newell is betting that its "How to Win" flywheel—which focuses on Gen Z-targeted marketing for brands like Sharpie and expanding its distribution footprint for the first time in nearly a decade—will finally return the company to flat-to-positive sales growth by the end of the year.

"We exited 2025 a stronger and more resilient company," Peterson told analysts on Friday.

While the company reported a GAAP net loss of $315 million for the quarter—largely due to non-cash restructuring charges—normalized earnings of $0.18 per share beat Wall Street expectations.