Reynolds Consumer Products Q2 2026 Earnings Report

Reynolds Consumer Products EPS Results

• Actual EPS: $0.42
• Consensus EPS: $0.40
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: $0.39

Reynolds Consumer Products Revenue Results

• Actual Revenue: $944.00 million
• Expected Revenue: $935.46 million
• Beat/Miss: Beat by +$8.54 million
• YoY Revenue Growth: +0.60%

Reynolds Consumer Products Announcement Details

• Quarter: Q2 2026
• Date: 7/29/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, July 29, 2026
• Conference Call Time: 8:00AM ET

Reynolds Consumer Products (NASDAQ:REYN), Inc. (NASDAQ: REYN) is a leading North American manufacturer and marketer of household consumer products. The company specializes in food storage and cooking solutions, including aluminum foil, plastic wrap, food storage containers and disposable tableware. Its core portfolio features well-known brands such as Reynolds Wrap aluminum foil, Hefty storage containers and trash bags, and Fastfold paper plates.

The company operates through a network of manufacturing and distribution facilities across North America, Latin America, Europe and the Asia Pacific region. Reynolds Consumer Products serves a broad customer base that includes national and regional retailers, foodservice operators, industrial partners and e-commerce channels. The firm leverages proprietary technologies in high-barrier films and specialty packaging to enhance product performance and sustainability.

Headquartered in Lake Forest, Illinois, Reynolds Consumer Products traces its heritage to the pioneering efforts of Reynolds Metals Company. The current public company was formed in 2020 following a spin-off from its previous parent, enabling a dedicated focus on consumer solutions. Reynolds Consumer Products is guided by a management team with extensive experience in fast-moving consumer goods, supported by initiatives in sustainable packaging and material innovation.

The company continues to expand its footprint through strategic investments in production capacity, research and development and supply-chain optimization. With a commitment to product quality, convenience and environmental stewardship, Reynolds Consumer Products aims to meet evolving consumer preferences and drive long-term growth across its end markets.

Reynolds Consumer Products Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-half performance strengthened: Adjusted EBITDA rose 8% to $302 million, adjusted EPS increased 7% in Q2 to $0.42, gross profit expanded by $38 million, and operating cash flow reached $173 million.
• Positive Sentiment: The company raised its full-year revenue outlook to 1%–3% growth, citing higher pricing and retail volume outperformance, while maintaining adjusted EBITDA guidance of $660 million–$675 million and adjusted EPS guidance of $1.57–$1.63.
• Positive Sentiment: Hefty Waste & Clean-Up and Storage & Organization posted distribution gains, while branded waste bags delivered approximately 2% volume and sales growth; Hefty Ultra Strong also ranked among Amazon’s top five products during Prime Day.
• Negative Sentiment: Annualized commodity headwinds are now estimated at approximately $400 million, double the prior estimate, and management expects July pricing actions to pressure second-half margin rates and create demand elasticity.
• Negative Sentiment: Third-quarter adjusted EBITDA is projected at $160 million–$165 million, below the $168 million reported a year earlier, reflecting ongoing macroeconomic uncertainty, promotional intensity, and the effects of further pricing.

Presentation

[Operator]

Greetings. Welcome to Reynolds Consumer Products Inc. Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jill Koval, Director of Investor Relations. Thank you, Jill. You may begin.

[Jill Koval, Director of Investor Relations at Reynolds Consumer Products]

Thank you, operator. Good morning, everyone. Thank you for joining us for Reynolds Consumer Products Second Quarter Earnings Conference Call. Today's call is being webcast, and a replay will be available on the investor relations section of our corporate site at reynoldsconsumerproducts.com. Our earnings press release and investor presentation are also available. Joining me on the call today are Scott Huckins, our President and Chief Executive Officer, and Nathan Lowe, our Chief Financial Officer.

[Jill Koval, Director of Investor Relations at Reynolds Consumer Products]

Following their prepared remarks, we will open the call for a brief question and answer session. Before we begin, I would like to remind you that this morning's discussion will include forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those described today. Please refer to the Risk Factors section of our SEC filings for more information.

[Jill Koval, Director of Investor Relations at Reynolds Consumer Products]

The company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after the call. In addition, we will reference certain non-GAAP or adjusted financial measures during today's call. Reconciliations of these GAAP to non-GAAP financial measures are available in our earnings press release, investor presentation deck, and Form 10-Q, which can be found on the investor relations section of our website. With that, I'd like to turn the call over to Scott.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Thank you, Jill. Good morning, everyone. We delivered a solid second quarter, executing our pricing actions as planned, holding or growing share across the majority of our categories, and driving earnings growth through numerous productivity initiatives. In a highly promotional environment where consumers remain under pressure, our performance reflects the strength of our brands, the value consumers see in our products, and the quality of execution from our teams.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

A few highlights from the quarter. We are executing well against our previously stated priorities. Significant productivity is being achieved across our entire supply chain, with a large portion coming from our manufacturing operations. This enables further investment in R&D, innovation, and growth, which we expect to continue in the back half. We delivered distribution wins across both Hefty Waste & Clean-Up and Hefty Storage & Organization, as evidenced by the volume and revenue performance in each segment.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Each business is overcoming highly promotional environments and the private label losses we've previously communicated. On the e-commerce front, Hefty Ultra Strong trash bags ranked among the top five products sold across all categories on Amazon Prime Day, while our Hefty food bags grew e-commerce sales approximately 30% from the year ago period, meaningfully outpacing the category. These results validate our digital positioning and reflect growing brand visibility across digital channels.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Turning to our business units. In Reynolds Cooking & Kitchen Essentials, we continue to execute our pricing strategy in order to recover higher commodity costs while delivering profitable growth through manufacturing and supply chain productivity. The foil category continues to absorb the impact of cumulative pricing actions taken over the past two years, and Reynolds Wrap performance has remained broadly in line with the category on a year-to-date basis. The share performance variability between Q1

[Nathan Lowe, CFO at Reynolds Consumer Products]

Categories excluding foam. Non-retail revenues also grew modestly year-over-year. Adjusted EPS of $0.42 increased 7%, reflecting flow-through of improved profitability in the quarter. The first half of 2026, adjusted EBITDA of $302 million represents 8% growth versus the prior year period on revenue of $1.8 billion, up 4%.

[Nathan Lowe, CFO at Reynolds Consumer Products]

Gross profit grew $38 million and margin improved 120 basis points in the first half, despite the dilutive effects of pricing to recover commodity costs, which reflects the compounding benefit of our productivity initiatives.

[Nathan Lowe, CFO at Reynolds Consumer Products]

In many respects, the first half sales performance is a better indicator than the second quarter taken in isolation, given the shift in Easter and numerous other changes in our promotional calendar. On a year-to-date basis, we outperform the categories by one point on volume, more than overcoming a two-point headwind from private label distribution losses that took effect in January.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We generated $173 million in operating cash flow in the first half, up from $147 million in the comparable period last year, driven by stronger net income. We continue to deliver strong free cash flow despite commodity pressure and have increased capital expenditures by 25% year-to-date versus the prior year period, reflecting continued investment in growth, automation, and other cost reduction projects. Turning to our full year outlook.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We are increasing our revenue guidance to reflect higher pricing to recover commodity headwinds, as well as reflecting the first half retail volume outperformance. Given the North America-centric nature of our business, the impacts of the Iran conflict are generally limited to higher commodity costs and the effect of a more uncertain environment on consumer demand.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We now expect approximately $400 million of commodity headwinds on an annualized basis, up from $200 million when we reported in April, reflecting changes in commodity rates from the end of March to where markets settled at the end of June. At the same time, the productivity initiatives we are driving across our supply chain that we've discussed over the past year continue to gain traction, with incremental benefits helping offset both commodity inflation and potential elasticity from our second half pricing actions, supporting confirmation of our full year EBITDA and EPS guide.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We are increasing our full year 2026 net revenues outlook to 1% to 3% growth compared to 2025 net revenues of $3.721 billion from a previous guide midpoint of down 1%. In the back half, we expect pricing to be a larger contributor to revenue while factoring in incremental demand pressure from corresponding elasticities.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We continue to expect non-retail revenue to be flat for the year. As mentioned, our earnings guidance is unchanged with net income and adjusted net income expected to be in the range of $331 million-$343 million. EPS and adjusted EPS of $1.57-$1.63, and adjusted EBITDA of $660 million-$675 million. Our confidence in these ranges reflects the progress we delivered in the first half while being thoughtful about the macroeconomic uncertainty that could impact the second half.

[Nathan Lowe, CFO at Reynolds Consumer Products]

For the third quarter, we expect net revenues to be approximately flat compared to third quarter 2025 net revenues of $931 million. Net income and adjusted net income are expected to be in the range of $79 million-$83 million in the third quarter.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We expect adjusted EBITDA between $160 million and $165 million by comparison to third quarter 2025 adjusted EBITDA of $168 million, and earnings per share and adjusted earnings per share in a range of $0.37-$0.39. Turning to capital allocation. Our leverage sits at the lower end of our target at 2.1x net debt to EBITDA. We maintained a disciplined, albeit unchanged approach.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We still see meaningful opportunities in front of us to invest in the business, continue to assess organic and inorganic growth opportunities, all targeted at driving long-term shareholder value. Additional deleverage and returning capital to shareholders through our quarterly dividend remains an important pillar of our capital allocation.

[Nathan Lowe, CFO at Reynolds Consumer Products]

In closing, the first half results demonstrated that our strategy is working as we outperformed our categories, expanded margins, and grew earnings in a challenging environment in spite of a pressured consumer and sharply escalating raw material costs. Our focus for the second half is unchanged. Continue to deliver improved performance in all areas of the business while remaining agile to react to external factors swiftly.

[Nathan Lowe, CFO at Reynolds Consumer Products]

We are also investing in the future. Productivity gains from lean deployment and automation are expanding margins. The savings they generate help fund reinvestment back into the business. That self-reinforcing cycle is how we create durable value for shareholders today and over the long term. With that, we're happy to answer your questions. Operator?

[Operator]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Please limit to one question and one follow-up question. One moment while we pull for questions. Our first question is from Peter Grom with UBS. Please proceed.

[Peter Grom, Analyst at UBS]

Great. Thank you, and good morning, everyone. Scott, maybe just to start, I would love to get some perspective on kind of the waste bag category, some broader thoughts on your strategy now that we're halfway through the year, and maybe how this informs your view on what to expect in the back half. My second question, Nathan, you touched on the strong gross margin performance in the quarter, but you did touch on the $400 million of annualized cost pressures versus the $200 million previously. Just be curious how you see gross margin evolving from here, just given the moving pieces. Thanks.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Good morning, Peter. Thanks for the questions. I'll start with waste, and then Nathan will comment on your second question. I'd say as we reflect on the first half, we feel good about the strategy that we've deployed in waste. I think a few key data points support that view, Peter. First, despite the promotional environment, we've held share in the category. Second, we've actually enjoyed low double-digit increases in distribution in our Hefty-branded waste bag business, which we're very pleased with.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Third, we drove two points of both volume and sales growth in the branded business. Lastly, and importantly, during this period of time, velocities are actually up in both dollars and units. As we reflect on the strategy, we certainly think that our performance brand philosophy is working and the consumer value proposition remains intact. Nathan will pick up on the second one.

[Nathan Lowe, CFO at Reynolds Consumer Products]

Absolutely. Probably good to just go back to the start of the year and think about what we guided to. We guided down retail volumes for the year, EBITDA, essentially flat year-over-year, with some investments in SG&A to fund a number of strategic initiatives. What underpinned all of that was improvement in the profitability of the business in the form of expanded gross profit on lower volumes.

[Nathan Lowe, CFO at Reynolds Consumer Products]

Yes, that has flown through in the form of margin rate expansion in the first half of the year. What remains true in the back half of the year is we've continued to focus on those productivity initiatives that will drive profitability, but I would expect the incremental pricing that's taking effect in July to be a numerical headwind to margin rate.

[Peter Grom, Analyst at UBS]

Great. Thank you so much. I'll pass it on.

[Operator]

Our next question is from Andrea Teixeira with JPMorgan. Please proceed.

[Andrea Teixeira, Analyst at JPMorgan]

Thank you. Good morning, everyone. I just want to basically start clarifying the comment about the trash bags. Is that also evident of you gaining more shelf space? Any color there? My real question is regarding the pricing that you took and then how the elasticity has played out. I understand that this has been in a process of recovering margin and profitability, but just any color on how you're seeing the consumer making those choices between your value proposition within the brands and then against private label, if you can comment on those across your portfolio.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Sure. I think your first question, and good morning, Andrea, your first question is about waste and share and distribution. The comments that I was offering is that as we look back on the first half, we held share in waste. The second comment was that we had low double-digit increases in distribution. We like that data point in terms of what that suggests for the future.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I'd say the environment remains elevated from a promotional standpoint, but I'd say it moderated a bit between Q1 as we transition into Q2. At the same time, we would expect there will be all kinds of pricing changes in the resin categories, plural, probably coming to shelf right about now. We need to be on the lookout and see how that evolves, both on the brands and store brands.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I think your second question is really about pricing generally and private label and GAAP. I think what we'd say there is to recap, we've had several consecutive quarters of smaller price increases in foil, the most recent in market in July, and then across the balance of the portfolio for all things with the resin substrate, those are really our first initiations of cost recovery also in July.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Essentially the full portfolio we've attempted to price to level against the input costs in the business. Difficult to predict what the near term result is just given, as I said, we've got a number of observations watching how both brands and store brands price in this environment.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I think as we look back using foil as at least a proxy, because we've been doing this for six, seven quarters in a row, I think we've demonstrated an ability to be quite rational in our pricing approach, monitoring closely the gaps to the store brand and being nimble in our response.

[Andrea Teixeira, Analyst at JPMorgan]

Scott, this is super helpful. Can I just double-click on the pricing front? Indeed, we've seen you kind of gradually taking pricing on the foil side. Can you remind us, like cumulative, how much that was over the last six to seven quarters that you put it out? In resin, how much was your price increase in July?

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I guess probably the easiest way to answer it would be if you think about on aluminum and if you look at the price volume mix table in the public reporting, in round numbers, you'd see about 20 points of pricing, in each of Q1 and Q2. I'd say as we look at total company, if you take Nathan's comment of about $400 million of incremental commodity exposure divided by our retail revenue, that would suggest a low double-digit level of pricing across the business.

[Andrea Teixeira, Analyst at JPMorgan]

Okay. Super helpful. Obviously, you're still gaining share because it seems like competitors are taking pricing at a similar level. Is that fair to assume?

[Scott Huckins, President and CEO at Reynolds Consumer Products]

You probably have two buckets. I'd say from a share perspective, as again, we look at the first half, I'd say we've held share in foil, held share in waste. Materially, the rest of the business grew share. Food bags, party cups, parchment, Reynolds Kitchens would be the share gainers. Again, as we reflect on that in light of the state of the consumer and the quantum of pricing and commodity headwinds, we're pretty pleased with the outcome.

[Andrea Teixeira, Analyst at JPMorgan]

Okay, great. I'll pass it on. Thank you very much.

[Operator]

Our next question is from Lauren Lieberman with Barclays. Please proceed.

[Lauren Lieberman, Analyst at Barclays]

Great. Thanks so much. Wanted to just get more detail around the promotional timing differences that you mentioned in the release for Cooking & Kitchen. Any way to kind of quantify the impacts as we think about go forward elasticity, that would be helpful.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Sure. Good morning, Lauren. Thanks for the question. I think what we're trying to relay is you had two macro factors, in foil affecting timing. One, the Easter timing shift, which I know you and all of us know about, but also two, we had promotions that we ran in the second quarter of last year that were really run in the first quarter of this year. You end up with a pretty wonky year-over-year compare between Q1 and Q2. How I look at it is when I look at the entirety of the business in the first half, we are right in line with the category.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I think a really important data point, which you may have already looked at, is if you look at the last four weeks, that would have been after the expiry of the promo comp timing differences, the results at retail look a lot like the total year-to-date results. You kind of see a smoothing, if you like, of recent performance relative to the volatility you would have seen in Q1 and Q2.

[Lauren Lieberman, Analyst at Barclays]

Okay. Great. Just one more question was on recent aluminum weakness. I know you talked about incremental pricing, as part of the plan. You gave us the $400 million as a commodity cost inflation number. Just broadly, curious on your thoughts on recent aluminum weakness and if that has been factored into your pricing plans at all, and how does private label manage through that, do you expect?

[Nathan Lowe, CFO at Reynolds Consumer Products]

Yeah, we definitely saw some easing in aluminum late in Q2. It really varies across our basket of commodities, what is happening. What's true across all of them is we finished at the end of Q2 at a rate higher than where we entered Q2. Relative to the high points during the second quarter, they generally were a little softer by the end of Q2. We just go back to what Scott said, we stick to our guns. We've got the pricing in the market. We've just got to stay agile as we see how any elasticities play out and respond accordingly.

[Lauren Lieberman, Analyst at Barclays]

Okay, great. Thanks so much.

[Operator]

As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Brian McNamara with Canaccord Genuity. Please proceed.

[Brian McNamara, Analyst at Canaccord Genuity]

Hey, good morning, guys. Thanks for taking the question. I wanted to drill down on elasticities, particularly in 75 sq ft foil. Scott, I know you mentioned earlier in the year that the $5 tipping point from 2022 is more like $6 at the time. I think you said that in February. We've observed foil prices at retail kind of move from the high $4 to the high $5 range in January to about $6-$7 range broadly today. Has that goalpost moved again, and how does that factor into your pricing plans and expected volumes in H2? Related, how are price gaps to private label today, and has there been any movement there? Thanks.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Good morning, Brian. Good question. Thank you. I guess what we would say is, you're right that I think historically the company would have commented on a price threshold of $5 being important. I think what we've seen over time is, one, if you look across all of grocery and you ask yourself what has been the change in the average item, our research suggests that +30%, +40%.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

That was the data point I may have shared previously that spoke to $5 itself may not be the absolute answer. Number two is certainly at least as important is the absolute price point would be the gap to private label, which I know we've commented on several times.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I'd say, one, the gaps to private label still remain constructive, which I describe as the gaps are generally less than $1, meaning the difference between the Reynolds Wrap brand and the private brand is less than $1. I would say, two, the gaps have expanded a bit as we've watched the Q2. Again, as I was saying a moment ago, what we've seen is the last four weeks, which would pick up the period of time we had our last round of pricing, we've seen the category remain really resilient.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

I think the math is volumes are down 4% or 5%, retail takeaway dollars are up low double digits. I think that suggests that our strategy has been proven resilient and somewhat successful so far. Again, with new pricing in market, as we've said, we certainly want to look at the data each and every week and be prepared to be nimble.

[Brian McNamara, Analyst at Canaccord Genuity]

Great. Appreciate the call. I'll pass it on.

[Operator]

There are no further questions in queue. I would like to turn the conference back over to management for closing remarks.

[Scott Huckins, President and CEO at Reynolds Consumer Products]

Thank you, operator. We appreciate everyone's interest in Reynolds Consumer Products. On behalf of our 6,000 teammates, we wish everybody a great day.

[Operator]

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Participants

Executives

• Jill Koval, Director of Investor Relations
• Scott Huckins, President and CEO
• Nathan Lowe, CFO

Analysts

• Peter Grom, Analyst at UBS
• Andrea Teixeira, Analyst at JPMorgan
• Lauren Lieberman, Analyst at Barclays
• Brian McNamara, Analyst at Canaccord Genuity