Reynolds Consumer Products NASDAQ: REYN reported second-quarter earnings growth and said it raised its full-year revenue outlook as pricing actions and supply-chain productivity helped offset escalating commodity costs.
President and Chief Executive Officer Scott Huckins said the company executed planned pricing actions, held or grew market share across most categories and generated earnings growth through productivity programs. He described the consumer environment as pressured and highly promotional, but said the company’s brands and operating execution supported its performance.
Adjusted earnings per share rose 7% to $0.42 in the second quarter, Chief Financial Officer Nathan Lowe said. For the first half of 2026, adjusted EBITDA increased 8% from the prior-year period to $302 million, while revenue rose 4% to $1.8 billion. Gross profit increased by $38 million and gross margin improved by 120 basis points, despite the dilutive effect of pricing intended to recover higher commodity costs.
First-half volume and category performance
Lowe said the company’s first-half sales results were more indicative of underlying performance than second-quarter results alone because Easter shifted timing and the promotional calendar changed. On a year-to-date basis, Reynolds outperformed its categories by one percentage point on volume, more than offsetting a two-point headwind from private-label distribution losses that took effect in January.
Huckins said the company achieved distribution gains in both its Hefty Waste & Clean-Up and Hefty Storage & Organization businesses. In branded waste bags, Reynolds recorded low-double-digit distribution increases and two points of both volume and sales growth during the first half, while holding category share. Dollar and unit velocities in the branded waste-bag business also increased, he said.
The company also cited momentum in e-commerce. Hefty Ultra Strong trash bags ranked among the five top-selling products across all categories on Amazon Prime Day, according to Huckins. Hefty food bags grew e-commerce sales by about 30% from a year earlier, outpacing category growth.
In the Reynolds Cooking & Kitchen Essentials segment, the company continued pricing efforts to recover commodity costs, particularly in foil. Huckins said Reynolds Wrap had performed broadly in line with its category on a year-to-date basis. He attributed variability between the first and second quarters partly to the Easter timing shift and promotions that occurred in the second quarter of 2025 but shifted into the first quarter of 2026.
He said retail trends over the most recent four weeks, after the effects of those timing differences had passed, looked more consistent with year-to-date results. Across the broader portfolio, the company said it gained share in food bags, party cups, parchment and Reynolds Kitchens, while holding share in foil and waste bags.
Pricing and commodity costs
The company said it has taken several consecutive quarters of smaller pricing increases in foil, with the latest increase reaching the market in July. Pricing actions for resin-based products also began in July, representing the company’s first broader round of cost-recovery pricing for those products.
Huckins said the company recorded roughly 20 points of pricing in aluminum products during both the first and second quarters. Based on the company’s estimated $400 million of incremental commodity exposure and its retail revenue base, he said the company’s pricing actions across the business implied a low-double-digit level of pricing.
Reynolds now expects approximately $400 million in annualized commodity headwinds, up from the $200 million estimate it gave in April. Lowe said the increase reflected changes in commodity rates between the end of March and the end of June. He added that commodity prices eased somewhat late in the second quarter from their peak levels during the period, though they still ended the quarter above where they started it.
Management said it expects its supply-chain productivity efforts to provide incremental benefits that offset commodity inflation and potential demand elasticity associated with second-half pricing. Lowe cautioned, however, that pricing taking effect in July would be a numerical headwind to margin rate in the second half.
In foil, Huckins said price gaps with private-label products remained “constructive,” generally below $1, although those gaps expanded somewhat during the second quarter. He said category volumes over the latest four weeks were down 4% to 5%, while retail takeaway dollars rose by low double digits, which he said demonstrated resilience following pricing actions.
Outlook and cash flow
Reynolds raised its full-year 2026 revenue outlook to growth of 1% to 3% from 2025 revenue of $3.721 billion. The prior guidance midpoint called for a 1% decline. The updated outlook reflects higher pricing to address commodity costs and first-half retail volume outperformance. The company continues to expect non-retail revenue to be flat for the year.
The company maintained its full-year earnings guidance, including:
- Net income and adjusted net income of $331 million to $343 million.
- EPS and adjusted EPS of $1.57 to $1.63.
- Adjusted EBITDA of $660 million to $675 million.
For the third quarter, Reynolds expects revenue to be approximately flat compared with third-quarter 2025 revenue of $931 million. It forecast net income and adjusted net income of $79 million to $83 million, adjusted EBITDA of $160 million to $165 million and adjusted EPS of $0.37 to $0.39.
Operating cash flow totaled $173 million in the first half, compared with $147 million a year earlier, driven by stronger net income. Capital expenditures increased 25% year over year as the company invested in growth, automation and cost-reduction projects. Lowe said leverage stood at 2.1 times net debt to EBITDA, at the lower end of the company’s target range.
Huckins said Reynolds plans to remain agile as it monitors consumer demand, competitor pricing and private-label activity. The company said its focus for the second half remains improving performance across its businesses while using productivity savings to fund investment in innovation, research and development, and growth initiatives.
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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