Newell Brands Outlook Raised to Stable by Moody's on Sales Growth

Moody's Ratings has revised its outlook on Newell Brands Inc. (NYSE:NWL) to stable from negative, signaling increased confidence in the consumer goods company's financial trajectory. The ratings agency affirmed Newell's B1 Corporate Family Rating and other existing debt ratings, according to a recent announcement.

Rating Rationale

The improved outlook is based on Newell's stronger operating performance in the second quarter ended June 30, 2026, which saw the company return to year-over-year revenue growth for the first time in four years. Moody's highlighted several positive factors supporting the change:

• Sales Growth: Reported sales increased by 3% in the second quarter, while core sales grew by 2.3%.
• Distribution Gains: U.S. distribution points expanded by a mid-single-digit percentage year-over-year, with further gains expected in the second half of fiscal 2026.
• Product Mix: A strategic shift toward more premium products is expected to support earnings growth.
• Tariff Recovery: The company recorded a $100 million tariff recovery in the quarter related to refunds for tariffs paid in 2025.

Moody's stated that these developments, along with a commitment to reducing debt, are expected to bolster Newell's credit metrics despite a challenging consumer environment over the next 12 to 18 months.

Financial Health and Debt

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Newell's debt-to-EBITDA leverage improved to 6.2x for the twelve months ending in the second quarter, or 6.9x when excluding the one-time tariff recovery. The ratings agency projects this ratio will improve to approximately 5.3x by the end of fiscal 2026 and remain below 6.0x in fiscal 2027, supported by modest revenue growth and margin expansion.

In a related action, Moody's assigned a B2 rating to Newell's proposed $500 million in senior unsecured notes due 2031. The company intends to use the proceeds to fully redeem its existing $500 million notes that are due in 2027.

Company Background

Newell Brands, which generated approximately $7.3 billion in revenue over the last twelve months, owns a portfolio of well-known consumer brands including Rubbermaid, Graco, Sharpie, Coleman, and Yankee Candle. The company's products span home, office, and commercial segments.