A maker of everyday household goods, Newell Brands sells everything from Sharpie pens and Paper Mate writing instruments to Rubbermaid storage, Yankee Candle home fragrance, Calphalon cookware, Coleman outdoor gear, and Graco baby products — used by families, offices, and businesses across more than 150 countries. It began in 1903 when Edgar Newell took over a bankrupt curtain-rod maker in Ogdensburg, New York, and grew through decades of acquisitions, merging with Rubbermaid in 1999 and later with Jarden in 2016 to become Newell Brands. A fun quirk: the Newell surname traces to Old English words meaning "new hill."
Q2 2026 operating income rose 65.5% to $283M on a $138M tariff refund benefit
A $138M tariff refund swung the quarter. rose 3.0% to $1,994.0M, expanded 5.3 points to 40.7%, and rose 65.5% to $283.0M as the IEEPA refund and productivity savings offset higher incentives. The company posted its widest margin in years but tied the gain to a one-off recovery, not demand.
Key takeaways
rose 65.5% to $283.0M, more than doubling from $171.0M a year earlier, driven largely by a $138M pretax benefit from recording a receivable for previously paid IEEPA tariffs that were invalidated.
expanded 5.3 points to 40.7% from 35.4% a year earlier, primarily due to the $138M tariff refund rather than underlying sales strength.
rose 3.0% to $1,994.0M, the first increase after five straight quarters of decline, with all segments growing led by up 5.2%.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 3% to $1,994M and operating income surged 65.5% to $283M, driven largely by a $138M IEEPA tariff refund benefit.
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Consolidated increased 3% to $1,994M, with growth in all segments led by Learning & Development's 5.2% rise from product innovation and distribution gains.
doubled to $49.0M, boosted by a $41M refund within its results.
The company entered a new $800M on July 30, 2026 and used $490M of borrowings to repay the prior .
used $204M for the first half, an improvement of $67M driven by higher and favorable changes.
What changed
Prior filings flagged the Q2 2025 decline of 4.8% and whether it would narrow; Q2 2026 revenue rose 3.0% to $1,994.0M, reversing the trend.
Tariff cash costs of about $155M in 2025 were flagged to watch; this quarter the company recorded a $138M refund of previously paid IEEPA tariffs as a one-off benefit, not a new cost.
had shown two consecutive quarterly uses ($213.0M Q1 2025, $233.0M Q1 2026); first-half 2026 use improved $67M to $204M versus prior year.
The FY2025 10-K flagged further non-cash tradename impairments given minimal headroom; Q2 2026 carried no such , with the quarter's gain from the tariff refund instead.
Section 245A tax dispute and SEC investigation into 2016-2017 practices were carried as watch items and remain unresolved with no update this filing.
What to watch
Whether Q3 2026 growth holds or reaccelerates after the 3.0% Q2 rise against prior-year declines
Resolution of the Section 245A tax dispute ($180M-$220M exposure) and the SEC investigation into 2016-2017 practices
Tariff cash costs in 2026 after the $138M refund and $174M 2025 outflow, and recovery via pricing or relocation
trajectory for full-year 2026 after the $204M first-half use improved $67M
expanded to 40.7% from 35.4%, primarily due to a $138M from recording a receivable for previously paid IEEPA tariffs that were invalidated.
more than doubled to $283M, reflecting the tariff refund, productivity savings, and lower professional service costs, partially offset by $17M higher incentive compensation and $9M increased ad spend.
The Home & Commercial Solutions saw a modest 1.2% sales increase, while its doubled to $49M, boosted by a $41M IEEPA tariff refund.
The company refinanced its , entering a new $800M on July 30, 2026, and used $490M of borrowings to repay the prior revolver.
Cash used in operating activities improved by $67M to $204M for the first half, driven by higher and favorable changes.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes from the information previously reported under Part II, Item 7A. in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
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There have been no material changes from the information previously reported under Part II, Item 7A. in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Information required under this Item is contained above in Part I. Financial Information, Item 1 and is incorporated herein by reference. 35 Table of Contents
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Information required under this Item is contained above in Part I. Financial Information, Item 1 and is incorporated herein by reference.
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There have been no material changes in our risk factors from those disclosed in Part I, Item 1A. of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
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There have been no material changes in our risk factors from those disclosed in Part I, Item 1A. of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.