Newell Brands (NWL) investor relations material

Strategic productivity and restructuring initiatives

• Announced a new productivity plan with a 10% reduction in professional clerical employees, enabled by prior complexity reduction and AI adoption.

• Plan leverages prior reductions in brands, legal entities, ERP systems, and SKUs, as well as over 100 AI use cases implemented company-wide.

• U.S. implementation is occurring immediately, with international completion expected by mid-next year.

• Expected pre-tax cost savings of $110–$130 million, with overhead as a percent of sales to drop by 100 basis points by 2026.

• Part of a multi-year strategy to reach 12–15% operating margin, with gross margin targets of 37–38% and A&P spending at 6–7% of sales.

Organizational transformation and operational progress

• Developed AI-enabled consumer insights and fully formed brand management teams for top 25 brands.

• Integrated global supply chain and consolidated ERP systems from 42 to 6, with full One Newell model in all top 10 countries by next year.

• CapEx investments to support transformation are expected to decrease next year, improving free cash flow.

Market environment and competitive dynamics

• U.S. general merchandise category declined 2–3% this year, driven by a 15% pullback from the lowest income households and a 10% decline among 18–24-year-olds.

• Retailer inventory reductions and a shift from direct import to domestic delivery are largely complete.

• Tariff-driven pricing actions led to early price increases, with competitors following suit in key categories.

• Gained market share in baby gear despite price increases; kitchen appliances saw share loss but improved as competitors raised prices.