Reynolds Consumer Products NASDAQ: REYN reported first-quarter 2026 results that management said reflected continued momentum from 2025, with growth across much of the portfolio despite heightened macroeconomic uncertainty and competitive intensity in several categories.
First-quarter performance and market conditions
President and CEO Scott Huckins said the company delivered 7% revenue growth in the quarter, outperforming its categories by about two points and gaining share across most of its portfolio. He added that service levels “remain[ed] strong,” with case fill continuing in the high-90% range, which he described as a competitive advantage in a volatile supply chain environment.
Huckins said the company delivered double-digit growth in e-commerce, which he attributed to omni-channel execution that is “incremental and accretive” for retail partners. He also noted that private label bid losses previously discussed in February created an expected headwind in the first quarter, representing “roughly a 3-point headwind,” but said the impact was more than offset by strength elsewhere.
Management also pointed to ongoing changes in retailer sourcing strategies. Huckins said some retailers have adopted dual-sourcing for risk management, creating “some near-term headwind,” but added the company expects incremental opportunities over time.
Segment realignment and portfolio commentary
Beginning January 1, the company realigned its operating segments to increase operational and commercial efficiencies and sharpen focus on innovation. Huckins said the changes were designed to provide clearer end-to-end ownership across functions, emphasizing the realignment is “not about taking costs out of the business,” but improving outcomes with existing resources.
The updated structure includes:
- Hefty Waste & Clean-Up (waste bag business consolidated into a new segment)
- Hefty Storage & Organization (food bag business consolidated into a new segment)
- Reynolds Cooking & Kitchen Essentials (renamed from Reynolds Cooking & Baking)
- Hefty Home & Tableware (renamed from Hefty Tableware)
In Reynolds Cooking & Kitchen Essentials, Huckins said the company continued to gain share in parchment and foil. He said parchment volumes outperformed the category by 10 points and foil volumes outperformed by 4 points. He also described the foil category as resilient, with “net elasticity below 1,” indicating consumers have largely absorbed price increases. With rising gas prices, Huckins said the company is seeing “early evidence” that consumers may cut back on eating away from home, which could translate into more at-home cooking and potentially support demand.
Huckins highlighted innovation in the segment, including the launch of Reynolds Kitchens Countertop Prep Paper, which he said extends the brand into higher-frequency use occasions and has already earned “more than 1 billion impressions” from early marketing. He also cited the introduction of a hearts-embossed “fun foil” product and said Reynolds Kitchens Parchment Cooking Bags were named a 2026 Product of the Year in a national consumer survey.
In Hefty Waste & Clean-Up, Huckins said performance was in line with expectations, with flat top-line and bottom-line results in the context of “intense promotional and price actions” by competitors, including private label. Despite the competitive environment, he said Hefty Waste Bags delivered dollar share growth and positive retail sales volume. He also pointed to innovation such as exclusive retailer scents, including a peach-scented offering, and a national expansion of the Hefty Fabuloso color series. Huckins said the company expanded its Hefty Essentials offering with a “high quality, no-frills option” aimed at affordability-focused consumers.
In Hefty Storage & Organization, Huckins said the company gained share again despite a highly promotional backdrop, delivering revenue and volume growth while overcoming last year’s private label losses. He said Hefty food bag volumes outperformed the category by more than 10 points in both Press to Close and premium slider products, driven by increased distribution and consumer acceptance.
In Hefty Home & Tableware, Huckins said the company produced modest revenue growth and “meaningful profit improvement,” supported by operational and supply chain efficiencies and the deployment of revenue growth management capabilities. Hefty party cups delivered 15 points of volume growth, which he attributed to expanded distribution, a broader offering, and supply chain execution. Foam products were an expected headwind, with “foam headwinds of 8 points” masking volume growth elsewhere in the segment, he said.
Financial results, inflation outlook, and guidance
CFO Nathan Lowe said the company delivered net revenues of $877 million for the first quarter, up from $818 million in the first quarter of 2025. He said retail revenues were $804 million, $37 million above the prior-year retail level, reflecting 2% volume growth. Lowe said price increases and “relentless focus on price pack architecture,” along with productivity, helped the company overcome cost inflation and expand gross margin by approximately 60 basis points.
Lowe reported Adjusted EBITDA of $131 million, up from $117 million a year ago, driven primarily by higher retail volumes and manufacturing efficiency gains. He also said adjusted EPS increased by more than 20%, while SG&A investment increased to support growth objectives and strategic priorities.
Looking ahead, Lowe said inflation pressure tied to the Iran conflict has increased global commodity and supply chain costs. Based on increases seen through the end of the first quarter, he said the company expects incremental headwinds of approximately $200 million on an annualized basis, primarily from aluminum and resin. In response to a question, Lowe said from the start of the year to the end of Q1 the company saw increases across commodities ranging from $0.15 to $0.40 per pound, and that aluminum, polyethylene, and other resins contributed roughly equal amounts to the $200 million figure, based on settled rates.
Management said it is working to offset the cost headwinds through productivity initiatives, pricing, and incremental cost reductions, balancing cost recovery with volume, share, and category health. Following the strong start, Lowe said the company reiterated its full-year 2026 outlook, including:
- Net revenue growth of -3% to +1% versus 2025 net revenues of $3.7 billion
- Net income and adjusted net income of $331 million to $343 million
- Adjusted EBITDA of $660 million to $675 million
- EPS and adjusted EPS of $1.57 to $1.63
For the second quarter, Lowe said net revenues are expected to be -2% to +1% versus second-quarter 2025 net revenues of $938 million, “benefiting from foil pricing actions.” He guided to second-quarter net income and adjusted net income of $83 million to $91 million, Adjusted EBITDA of $165 million to $175 million versus $163 million a year ago, and EPS and adjusted EPS of $0.39 to $0.43.
Competitive promotions, consumer behavior, and tariffs
During Q&A, Huckins said promotional and price competition in waste bags was expected, and “if anything, it escalated in April” on the branded side. He also said retailers appear to be using private brand pricing to drive store traffic in the current environment. Huckins said the company’s retail takeaway performance in waste bags was plus one in volume and plus three in dollar sales for the quarter, which he said supported its strategy of maintaining price pack architecture for a performance brand. He added the company monitors conditions and has flexibility to adjust investment, but said it did not believe conditions warranted a change based on the first four months of the year.
On the consumer backdrop, Huckins cited survey data suggesting about three-quarters of active U.S. drivers are preparing to absorb an estimated $165 billion impact from higher fuel costs, with consumers looking to reduce dining out, travel, and entertainment in roughly equal measure. He said management expects 2026 could be “a tale of two halves,” with strength in the first quarter and an anticipated strong second quarter, while also being “careful” about how pricing lands in the second half against a challenged consumer.
Asked about the company’s original expectations for pricing and volume, Lowe said pricing to address the incremental cost increases and any elasticity impacts would be “concentrated in the second half,” and pricing would be a larger part of second-half year-over-year revenue performance than initially contemplated, while remaining within the full-year guidance range. He also said the company expects its performance versus categories to remain consistent, noting any retail volume degradation would be driven by category declines rather than share performance.
On tariffs and potential refunds, Lowe said the company is working on claims, but described the amount as “quite an immaterial amount,” noting imports are a one-digit percentage of cost of goods sold. He said tariff headwinds had shifted more to Section 232 tariffs and aluminum increases, which he said are “out of scope for the Supreme Court ruling.” Lowe added that to the extent the company recovers monies that were priced for, it intends to pass them back to retailers.
As the call concluded, Huckins said the company’s priorities remain unchanged, with a focus on volume growth, operational excellence, and disciplined investing, while emphasizing confidence in navigating near-term uncertainty.
About Reynolds Consumer Products NASDAQ: REYN
Reynolds Consumer Products, 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.
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