Reynolds Consumer Products Inc. (REYN): Results of Operations and Financial Condition
Reynolds Consumer Products Inc. (REYN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Reynolds Consumer Products Reports Second Quarter 2026 Financial Results Delivering Earnings Growth in Dynamic Consumer & Cost Environment Productivity Initiatives Fueling Investments In The Business Reiterates Full Year 2026 Earnings Outlook LAKE FOREST, Ill., July
How this was made
The 30-second read
Why it matters
Traders can update expectations for revenue growth and profitability trajectory based on the reported Q2 figures and the raised full-year net revenues outlook (+1% to +3%).
Market read
A primary earnings and guidance update with specific Q2 profitability metrics and an increased full-year net revenue outlook is likely to drive near-term positioning and revisions to consensus estimates.
What to watch
Net debt remains elevated at $1,464M (2.1x net debt to TTM adjusted EBITDA), so equity upside may be capped if leverage or cash generation disappoints despite earnings growth.
Reynolds Consumer Products Reports Second Quarter 2026 Financial Results Delivering Earnings Growth in Dynamic Consumer & Cost Environment Productivity Initiatives Fueling Investments In The Business Reiterates Full Year 2026 Earnings Outlook
Second-quarter Net Income increased 22% to $89 million and Adjusted EBITDA increased $8 million to $171 million despite a 5% decrease in Retail volumes. Net Revenues increased to $944 million, supported by pricing and Non-Retail growth, while productivity gains supported earnings and full-year earnings outlooks were maintained.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net RevenuesGAAP | $944 million | – | – |
| Retail Net RevenuesGAAP | $888 million | – | – |
| Non-Retail Net RevenuesGAAP | $56 million | – | – |
| Retail volumesother | decreased 5% | – | decreased 5% |
| Retail volumes excluding foamother | decreased 2% | – | decreased 2% |
| Net IncomeGAAP | $89 million | – | increased 22% |
| Adjusted Net Incomenon-GAAP | $89 million | – | increased $6 million |
| Earnings Per ShareGAAP | $0.42 | – | increased 20% |
| Adjusted Earnings Per Sharenon-GAAP | $0.42 | – | increased 8% |
| Adjusted EBITDAnon-GAAP | $171 million | – | increased $8 million |
| Year to Date Net RevenuesGAAP | $1,821 million | – | – |
| Year to Date Retail Net RevenuesGAAP | $1,692 million | – | – |
| Year to Date Non-Retail Net RevenuesGAAP | $129 million | – | – |
| Year to Date Retail volumesother | decreased 1% | – | decreased 1% |
| Year to Date Retail volumes excluding foamother | increased 1% | – | increased 1% |
| Year to Date Net IncomeGAAP | $148 million | – | – |
| Year to Date Adjusted Net Incomenon-GAAP | $148 million | – | – |
| Year to Date Earnings Per ShareGAAP | $0.70 | – | – |
| Year to Date Adjusted Earnings Per Sharenon-GAAP | $0.70 | – | – |
| Year to Date Adjusted EBITDAnon-GAAP | $302 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Reynolds Cooking & Kitchen EssentialsIncreases in both Retail and Non-retail Revenues, including 19 points of pricing to offset commodity cost increases; Retail volumes decreased 8%, in part from promotional timing differences in foil. | $314 million | – | increased $19 million |
| Hefty® Waste & Clean-UpRetail volumes remained flat and branded volume gains offset previously communicated private label distribution losses. | $233 million | – | decreased $3 million |
| Hefty® Home & TablewareLower volumes driven primarily by foam declines, partially offset by reduced promotional activity. | $217 million | – | decreased $25 million |
| Hefty® Storage & OrganizationStronger volumes; Retail volumes increased 8%, driven by strong performance of Hefty® and store brand food bags. | $176 million | – | increased $9 million |
Full Year 2026 and Third Quarter 2026 outlook
- RevenueFull year 2026 Net Revenues: range of +1% to +3%, compared to 2025 Net Revenues of $3,721 million
- NoteFull year 2026 Net Income and Adjusted Net Income: range of $331 million to $343 million
- NoteFull-year EPS and Adjusted EPS: range of $1.57 to $1.63
- NoteFull-year Adjusted EBITDA: range of $660 million and $675 million
- NoteThird quarter 2026 Net Revenues: expected to be approximately flat compared to third quarter 2025 Net Revenues of $931 million
- NoteThird quarter Net Income and Adjusted Net Income: range of $79 million to $83 million
- NoteThird quarter EPS and Adjusted EPS: range of $0.37 to $0.39
- NoteThird quarter Adjusted EBITDA: range of $160 million to $165 million
Capital returns
- Quarterly dividend of $0.23 per common share
- The Company expects to pay this dividend on August 31, 2026, to shareholders of record as of August 17, 2026.
What drove it
- Manufacturing efficiency gains supported second-quarter Adjusted EBITDA.
- Pricing included 19 points in Reynolds Cooking & Kitchen Essentials to offset commodity cost increases.
- Non-Retail Revenues increased to $56 million from $51 million in Q2 2025.
- Hefty® Storage & Organization Retail volumes increased 8%, driven by Hefty® and store brand food bags.
- Year-to-date Adjusted EBITDA benefited from the timing of pricing actions in relation to input cost increases and lower operational costs.
Concerns
- Retail volumes decreased 5%; excluding foam Retail volumes decreased 2%.
- Hefty® Home & Tableware Net Revenues decreased $25 million due to lower volumes driven primarily by foam declines.
- Reynolds Cooking & Kitchen Essentials Retail volumes decreased 8%, in part from promotional timing differences in foil.
- Hefty® Waste & Clean-Up Adjusted EBITDA decreased $3 million due to the impact of lower revenues.
- Hefty® Storage & Organization Adjusted EBITDA decreased $3 million, driven primarily by costs associated with the ramp up of new business and promoting behind new distribution.
- Adjusted EBITDA growth was partially offset by lower volumes and increased selling, general and administrative costs.
What to watch
- Third quarter 2026 Net Revenues are expected to be approximately flat compared to third quarter 2025 Net Revenues of $931 million.
- The Company increased its full year 2026 Net Revenues outlook to a range of +1% to +3% to account for increased pricing net of elasticity.
- Full-year Adjusted EBITDA outlook is a range of $660 million and $675 million.
- The Company continues to expect full-year EPS and Adjusted EPS in the range of $1.57 to $1.63.
- Retail volume trends, including foam declines and promotional timing differences in foil.
Balance sheet and cash flow
- Cash and cash equivalents were $66 million at June 30, 2026.
- Debt was $1,530 million.
- Net Debt was $1,464 million.
- Net Debt to Trailing Twelve Months Adjusted EBITDA was 2.1x on June 30, 2026.
- During the six months ended June 30, 2026, we made a voluntary principal repayment of $50 million.
Analysis
Reynolds Consumer Products reported second-quarter Net Revenues of $944 million compared with $938 million in Q2 2025. Retail Net Revenues were $888 million compared with $887 million, while Non-Retail Net Revenues were $56 million compared with $51 million. Retail volumes decreased 5%, or decreased 2% excluding foam, indicating that the modest consolidated revenue increase reflected pricing and Non-Retail growth rather than broad retail volume expansion.
Profitability improved despite the volume pressure. Net Income increased 22% to $89 million from $73 million, Adjusted Net Income increased $6 million to $89 million, and Adjusted EBITDA increased $8 million to $171 million. The company attributed the Adjusted EBITDA increase primarily to manufacturing efficiency gains, partially offset by lower volumes and increased SG&A costs. It characterized the results as continued margin expansion through productivity initiatives that supported investments in growth and strategic initiatives.
Segment trends were varied following the realignment of the former Hefty Waste & Storage and Presto Products operating segments, with prior periods recast. Reynolds Cooking & Kitchen Essentials grew revenue by $19 million to $314 million, including 19 points of pricing, but Retail volumes decreased 8%. Hefty® Home & Tableware revenue decreased $25 million to $217 million amid foam-related volume declines, while Hefty® Storage & Organization grew revenue by $9 million to a record second quarter of $176 million and delivered 8% Retail volume growth. Storage & Organization EBITDA nevertheless declined $3 million because of ramp-up and promotional costs for new business and distribution.
For the first six months, Net Revenues were $1,821 million compared with $1,756 million, Adjusted EBITDA was $302 million compared with $279 million, and Adjusted Net Income was $148 million compared with $132 million. The company cited pricing timing relative to input-cost increases and lower operational costs as primary year-to-date EBITDA contributors, partly offset by higher SG&A. Cash and cash equivalents were $66 million, debt was $1,530 million, and Net Debt to Trailing Twelve Months Adjusted EBITDA was 2.1x. The company also made a voluntary principal repayment of $50 million during the six months ended June 30, 2026.
The company increased its full-year Net Revenues outlook to a range of +1% to +3% compared to 2025 Net Revenues of $3,721 million, citing increased pricing net of elasticity. It maintained full-year Net Income and Adjusted Net Income guidance of $331 million to $343 million, EPS and Adjusted EPS of $1.57 to $1.63, and Adjusted EBITDA of $660 million and $675 million. Third-quarter Net Revenues are expected to be approximately flat versus third-quarter 2025, making retail-volume trends, pricing net of elasticity, commodity costs, promotional activity, and execution of productivity initiatives central reported items to monitor.
Management, verbatim
Our solid second quarter and year-to-date results reflect the consistency of our execution against our priorities,
Scott Huckins, President and Chief Executive Officer
We held or gained share across the majority of our categories, delivered operational efficiencies, and invested behind our brands, innovation and strategic initiatives.
Scott Huckins, President and Chief Executive Officer
We grew earnings through improved profitability, maintained leverage at the low end of our target range and continued investing behind initiatives that support long-term growth and cash generation, while remaining focused on managing through a dynamic consumer and cost environment.
Nathan Lowe, Chief Financial Officer
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income and operating margin
- Operating expenses
- Tax rate
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Prior-quarter comparisons for reported metrics
- Prior-period gross margin, operating income, operating expenses, tax rate, operating cash flow, free cash flow, and capital expenditures
- Previous-release outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K reports Q2 2026 financial results and reiterates/updates the company’s full-year 2026 outlook, including a segment realignment effective Jan. 1 with recast prior periods.
Ticker impact
Reynolds Consumer Products reported Q2 2026 results, including net revenues of $944M and EPS of $0.42, and raised full-year net revenue outlook to +1% to +3%.
Moderately positive bias for the next session and into guidance digestion, with follow-through dependent on volume and SG&A commentary.
The filing is a primary earnings/guidance update (8-K Item 2.02) with specific financial datapoints and an explicit outlook increase, which typically drives repricing versus prior expectations.
Market effects
Provides a read-through for packaged food and household consumables packaging peers on pricing versus volume tradeoffs and productivity initiatives.
Primarily US-listed consumer packaging exposure; limited direct regional spillover beyond North American consumer demand signals.
Limited direct global macro linkage, though commodity-cost pass-through and pricing elasticity are broadly relevant to global packaging supply chains.
Counterpoint
Segment volume softness (e.g., retail volumes down in multiple categories, foam declines) could indicate demand pressure that may reappear after pricing actions.
Key entities
- companyReynolds Consumer Products Inc.
Nasdaq-listed consumer packaging company reporting Q2 2026 results and raising full-year net revenues outlook.
- executiveScott Huckins
CEO quoted on execution, share gains, productivity, and investment behind brands and initiatives.
- executiveNathan Lowe
CFO quoted on disciplined execution, leverage at the low end of target range, and capital deployment.
