The Outdoor & Recreation segment of Newell Brands reported its first gain in core sales in four years, led by high-single-digit growth at Coleman and helped by accelerated investments in innovation. Christopher Peterson, Newell’s president and CEO, said on an analyst call. The segment also includes Baby Jogger, Bubba, Campingaz, Contigo, Ex Officio, and Marmot.

The segment generated net sales of $240 million in the second quarter, compared with $234 million in the prior-year Q2 period, reflecting core sales growth of 3.7 percent, as well as the impact of unfavorable foreign exchange. The last time the segment achieved a gain in core sales was the second quarter of 2022.

Segment operating income was $4 million, or 1.7 percent of sales, in Q2, compared with $8 million, or 3.4 percent of sales, in the prior-year Q2 period. Normalized operating income was $9 million, or 3.8 percent of sales, in Q2, compared with $13 million, or 5.6 percent of sales in the prior-year Q2 period.

The growth comes as annual sales Outdoor & Recreation segment have climbed since receiving a pandemic-related boost in 2021. Sales fell 6.7 percent in 2025, 16 percent in 2024, 8.3 percent in 2023 and 6,7 percent in 2022.

Peterson said in brief comments on the Outdoor & Recreation segment on the call that Coleman gained market share during the quarter, citing the Coleman Snap & Go, a collapsible hard cooler, as a top seller and a “strong example of the consumer-led innovation we are bringing to market, addressing a real consumer need by making large capacity coolers easier to store, transport and use.”

He said Coleman also benefited from activations.  Peterson said, “Coleman provides a strong example of how our marketing capabilities are becoming more visible. During the quarter, the team moved quickly to capitalize on a viral consumer conversation around a fictional Lazy River product, turning it into a highly relevant brand moment. The activation generated more than 90 million earned media impressions, nearly 48 million social impressions and 2.8 million consumer engagements largely through organic activity. It also attracted nearly 30,000 new consumer subscribers to our database. This is the kind of modern, culturally relevant marketing capability we are building across Newell, one that strengthens consumer engagement and helps keep our brands part of the conversation.”

The CEO added that within the Outdoor & Recreation segment, Newell is also advancing innovation across our Contigo and Bubba beverage platforms “with a focus on distinctive design and stronger consumer relevance. Our higher levels of brand support are increasingly being paired with more precise and engaging marketing. We are focused on building relevance around our strongest brands and innovations through programs that reach consumers in the right channels and create stronger retail activation.”

Newell Brands Chief Financial Officer Mark Erceg said consolidated second quarter results across the portfolio were above expectations across all key financial metrics as stronger sales, gross productivity and disciplined overhead management more than offset higher-than-anticipated commodity and transportation costs.

“Based on our second quarter performance, including the IEEPA tariff refund P&L benefit we recorded during the quarter and the cash refund we expect to receive during the second half of the year, and improving top line trends we are raising our full-year outlook for net and core sales growth, normalized operating margin, normalized earnings per share and operating cash flow,” he noted.

Consolidated Second Quarter Summary
Consolidated net sales were $2.0 billion in Q2, an increase of 3.0 percent compared with the prior-year Q2 period, reflecting core sales growth of 2.3 percent and favorable foreign exchange.

Gross margin was 40.7 percent compared with 35.4 percent in the prior-year Q2 period. Results included approximately $100 million of pretax tariff recovery related to IEEPA tariffs expensed in 2025 and approximately $26 million of pretax recovery related to IEEPA tariffs expensed in the first quarter of 2026. Gross profit also benefited slightly from higher sales and gross productivity savings which more than offset higher inflation costs. Normalized gross margin was 40.8 percent compared with 35.6 percent in the prior-year Q2 period.

Operating income was $283 million compared with $171 million in the prior-year Q2 period. Operating margin was 14.2 percent compared with 8.8 percent in the prior-year Q2 period. Normalized operating income was $324 million, or 16.2 percent of sales, compared with $208 million, or 10.7 percent of sales, in the prior-year Q2 period. The year-over-year increase primarily reflected higher gross profit partially offset by higher advertising and promotion spending.

Net interest expense was $87 million in the second quarter, compared with $82 million in the prior-year Q2 period.

Income tax provision was $89 million compared with $25 million in the prior-year Q2 period. The normalized income tax provision was $65 million compared with $24 million in the prior-year Q2 period.

Net income was $106 million compared with $46 million in the prior-year Q2 period. Normalized net income was $180 million compared with $101 million in the prior-year Q2 period. Normalized EBITDA was $406 million compared with $280 million in the prior-year Q2 period.

Diluted EPS was 25 cents per share compared with 11 cents in the prior-year period. Normalized diluted EPS was 42 cents per share in Q2, compared with 24 cents in the prior-year Q2 period.

Balance Sheet and Cash Flow Summary
Year-to-date (YTD) operating cash outflow was $204 million compared with $271 million in the prior-year YTD period primarily driven by working capital improvements and a lower incentive compensation payment. The tariff recovery did not benefit second-quarter operating cash flow as it had not been collected as of quarter end.

At the end of the second quarter of 2026, Newell Brands had debt outstanding of $5.0 billion and cash and cash equivalents of $209 million, compared with $5.1 billion and $219 million, respectively, at the end of the second quarter of 2025.

Subsequent to the end of the second quarter, the company entered into a new $800 million asset-based revolving credit facility, replacing the existing secured revolving credit facility and extended general maturity to 2031.

Outlook
Newell Brands initiated its outlook for the third quarter and raised its outlook for the full year 2026. The higher outlook reflects second quarter performance and the latest expectations for the balance of the year, including current-year tariff and inflationary impacts.

The company increased its outlook for full year 2026 operating cash flow to ~$400 million. The updated full-year operating cash flow outlook assumes receipt of substantially all of the IEEPA tariff recovery before year-end and also reflects the updated inflation outlook.

Image of Coleman Snap & Go cooler courtesy Newell Brands