REYN

A month has gone by since the last earnings report for Reynolds Consumer Products (REYN). Shares have lost about 4.2% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Reynolds Consumer Products due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Reynolds Consumer Products Inc. before we dive into how investors and analysts have reacted as of late. Reynolds Consumer Products posted second-quarter 2026 adjusted earnings of 42 cents per share, up 7.7% year over year, and beating the Zacks Consensus Estimate of 41 cents. Manufacturing efficiencies and supply-chain productivity supported the earnings improvement.Net revenues rose 0.6% year over year to $944 million, surpassing the consensus estimate of $942 million. Retail volumes declined 5%, but the drop narrowed to 2% excluding foam products. Adjusted EBITDA increased 4.9% to $171 million. Gross profit increased 8.4% year over year to $245 million. Gross margin expanded 180 basis points to 26%, reflecting manufacturing efficiencies and broader supply-chain productivity initiatives.Selling, general and administrative expenses rose 11.5% to $107 million. Still, operating income advanced 16.9% to $138 million as gross-profit growth more than offset the higher expenses. Net income climbed 21.9% to $89 million. Reynolds Cooking & Kitchen Essentials revenues increased 6.4% year over year to $314 million. Pricing contributed 19 percentage points as the company sought to offset elevated commodity costs, while retail volumes declined 8%. Promotional timing differences in foil weighed on volumes. However, Reynolds parchment paper, oven bags and slow-cooker liners gained market share. Adjusted EBITDA rose 8.2% to $53 million, aided by manufacturing efficiency gains despite lower volumes.Hefty Waste & Clean-Up revenues slipped 1.3% year over year to $233 million. Retail volumes were flat as branded gains offset previously disclosed private-label distribution losses. The Hefty waste brand maintained share despite heightened promotional activity. Adjusted EBITDA for the segment declined 4.2% to $69 million due to lower revenues. Management noted that Hefty branded waste achieved low-double-digit distribution growth during the first half, while branded volumes and sales each increased 2%.Hefty Home & Tableware revenues decreased 10.3% year over year to $217 million. Retail volumes fell 14%, largely due to continued weakness in foam products. Excluding foam, volumes declined 8%. Despite the top-line pressure, adjusted EBITDA increased 22.9% to $43 million. Manufacturing productivity and lower promotional spending offset the impact of weaker volumes. Hefty party cups also delivered market-share gains during the quarter.Hefty Storage & Organization revenues advanced 5.4% to a second-quarter record of $176 million. Retail volumes grew 8%, supported by strength in Hefty and store-brand food bags and expanded distribution at key retailers. Adjusted EBITDA declined 10% to $27 million. The decrease primarily reflected costs tied to ramping up new business and promotional spending behind distribution gains. Management said Hefty food-bag e-commerce sales increased approximately 30% from the prior-year period. Operating cash flow increased to $173 million in the first six months of 2026 from $147 million a year earlier, supported by higher net income. Capital expenditures rose 27.8% to $101 million as Reynolds invested in automation, growth and cost-reduction projects.At quarter-end, cash and cash equivalents totaled $66 million, while debt stood at $1.53 billion. Net debt was $1.46 billion, and the net debt-to-adjusted EBITDA ratio remained at 2.1 times. The company also made a voluntary $50 million debt repayment during the first half. Reynolds increased its 2026 net revenue outlook to growth of 1-3% from the prior guidance midpoint of a 1% decline. The revision reflects additional pricing to recover commodity inflation and better-than-expected first-half retail volumes.The company reiterated adjusted earnings guidance of $1.57-$1.63 per share and adjusted EBITDA guidance of $660-$675 million. Management now expects roughly $400 million in annualized commodity headwinds, up from the $200 million cited in April.For the third quarter of 2026, net revenues are expected to remain approximately flat compared with $931 million in the year-ago period. Adjusted earnings are projected between 37 cents and 39 cents per share.Adjusted EBITDA is anticipated in the range of $160-$165 million, compared with $168 million a year earlier. Management expects second-half pricing to support revenues, though related demand elasticity could pressure volumes and reported margin rates. Investors have witnessed a downward trend in estimates review over the past two months. The consensus estimate has shifted 5.56% due to these changes. Currently, Reynolds Consumer Products has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Reynolds Consumer Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reynolds Consumer Products Inc. (REYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Director of Investor Relations - Jill Koval President and Chief Executive Officer - Scott Huckins Chief Financial Officer - Nathan Lowe Operator: Greetings. Welcome to Reynolds Consumer Products, Inc. Second Quarter 2026 Earnings Call. [Operator Instructions] 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: Thank you, operator, and 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. 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. 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 non-GAAP to 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: Thank you, Jill, and 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. 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. 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 5 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. 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 2 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 and Q2 is largely a function of shifts in promotional timing. We attribute the resilience of our performance in the foil category to both our strategy of more frequent but smaller pricing changes and the fact that Reynolds Wrap consumers use foil for many applications across cooking, prep, storage, and portability resulting in a lack of one-for-one product substitutability. At the same time, Reynolds Parchment Paper and several other products across the Reynolds Kitchens portfolio delivered share gains, highlighting the strength of our broader cooking portfolio. Sales performance in our Hefty Waste & Clean-Up business remained resilient despite ongoing competitive pressure. Hefty branded growth and distribution gains offset the impact of previously communicated private label distribution losses, resulting in stable retail volume performance. Importantly, the Hefty brand maintained share in a highly promotional environment, supported by strong consumer loyalty, improved distribution and velocities across key retail partners and momentum in e-commerce. Hefty Home & Tableware delivered strong profitability in the quarter with adjusted EBITDA increasing despite continued volume pressure in foam. Ongoing manufacturing productivity and the disciplined execution of our RGM capabilities drove meaningful margin expansion and top-line growth in other areas of our portfolio. We continue to enjoy the strong performance of the Hefty brand with solid market share gains in party cups. Zoo Pals delivered a strong consumer response during Amazon Prime Day, and our John Cena Strong Choice marketing campaign continues to reinforce Hefty's value proposition with consumers, carrying the message of strength and reliability across the broader portfolio. Our Hefty Storage & Organization business continued to build on its momentum, delivering record second quarter revenues and strong volume growth. Retail volumes increased 8%, driven by the strength of both our Hefty and store brand food bag businesses with Hefty food bags gaining share during the quarter. Through expanded distribution across key customers, we more than offset the impact of previously communicated private label distribution losses, which were the most pronounced in this business. Turning to the broader environment. The consumer backdrop remains largely consistent with what we described in April and at the beginning of the year with some incremental signs of strength. Employment remains relatively healthy, but consumers are navigating real spending pressure as evidenced by higher borrowing costs, rising credit card delinquencies and meaningful trade-offs across household budgets. What we're seeing across the marketplace is a consumer who is deliberate and value-oriented with purchasing behavior that varies by income level. Even consumers who are willing to spend are concentrating their purchases on products that deliver value through a clear combination of functionality, convenience, and affordability. We believe our portfolio is well positioned for this environment given the nature of our categories and the everyday value our products provide. The continuing deployment of our revenue growth management capabilities gives us the tools to respond to this environment while preserving strong value propositions for consumers and helping our retail partners drive traffic. During the second quarter, we supported our retail partners through a series of in-store and online activations and seasonal programs. These include our America 250 limited edition products in foil and tableware as well as Reynolds Kitchens countertop prep paper in-store demo campaigns. Together, these efforts increase the visibility of our brands, encouraged trial and helped drive traffic in our categories. While value remains paramount, consumers continue to respond meaningfully to innovation. Fun Foil and our color and scent platforms in Waste are resonating with consumers seeking differentiated solutions. We are focused on winning the highest value occasions with our core and growth consumers, and we see real evolution in occasion-based purchasing behavior versus product-based purchasing behavior. This is likely linked to the ongoing increases in omnichannel and now agentic shopping. This is one factor leading to our expanded investment in our digital capabilities with some strong early proof points in our results that I described earlier. Looking ahead, we expect the consumer and operating environment to remain pressured through the second half of the year. Commodity markets remain volatile, consumers continue to make deliberate value choices and the promotional intensity remains elevated. What gives us confidence is the resilience of our categories, our brands and the strength of our execution. Consumers continue to need the products we make. And when they look for value, both our Reynolds and Hefty brands, along with the store brands we supply are positioned to meet these needs. Our strong retail partnerships, industry-leading service levels in the high 90s and continued investments in our brands and capabilities remain important points of differentiation. Our priorities for the back half of 2026 are straightforward. We're focused on capturing the growth opportunities in front of us, monitoring the pricing actions already in market and continuing to drive productivity and operational improvements across the business. Given the combination of pricing actions for commodities and the state of the consumer, we remain nimble in our management of the business as demonstrated in the first half of the year. We remain focused on controlling what we can control, supporting our customers, investing in our brands, driving incremental productivity, and executing our plans. These priorities have served us well through this dynamic environment, and they continue to position us to deliver profitable growth and long-term value creation. I will now turn the call over to Nathan to cover the financials in more detail. Nathan? Nathan Lowe: Thanks, Scott, and good morning. Second quarter results were in line with our expectations and reflect solid execution in a challenging environment. Productivity gains across the supply chain with particularly strong performance in our manufacturing operations allowed us to fund investments in growth and other business priorities while delivering strong year-on-year increases in gross profit, EBITDA, and EPS in the quarter. Our supply chain initiatives have helped drive a 200 basis point gross margin improvement, continuing to build from the 50 basis points we delivered in the first quarter. We are now over 12 months into executing against our automation pipeline, and this is also contributing to our improved profitability. Adjusted EBITDA of $171 million increased $8 million or approximately 5% versus the prior year. This marks 3 consecutive quarters of EBITDA growth against a backdrop of rising raw material costs and a challenging consumer environment. Q2 revenue of $944 million was up 1% versus the second quarter of 2025, reflecting price increases and retail sales volumes in line with category performance or 1 point better than our 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. For 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%. 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. 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 outperformed the categories by 1 point on volume, more than overcoming a 2-point headwind from private label distribution losses that took effect in January. 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. 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. 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. We are increasing our full-year '26 net revenues outlook to low single-digit 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. 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 to $343 million, EPS and adjusted EPS of $1.57 to $1.63 and adjusted EBITDA of $660 million to $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. 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 to $83 million in the third quarter. 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 to $0.39. Turning to capital allocation. Our leverage sits at the lower end of our target at 2.1x net debt to EBITDA, and we maintained a disciplined, albeit unchanged approach. 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. 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. We are also investing in the future. Productivity gains from lean deployment and automation are expanding margins and 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: [Operator Instructions] Our first question is from Peter Grom with UBS. Peter Grom: So Scott, maybe just to start, I'd 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? And then 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. So I'd just be curious how you see gross margin evolving from here, just given the moving pieces? Scott Huckins: Good morning, Peter. Thanks for the questions. I'll start with waste and then Nathan will comment on your second question. But I'd say as we reflect on the first half, we feel good about the strategy that we've deployed in waste. And 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. Third, we drove 2 points of both volume and sales growth in the branded business. And lastly and importantly, during this period of time, velocities are actually up in both dollars and units. And so 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: Yes, absolutely. It's probably good to just go back to the start of the year and think about what we guided to. So 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. But what underpinned all of that was improvement in the profitability of the business in the form of expanded gross profit on lower volumes. So 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. Operator: Our next question is from Andrea Teixeira with JPMorgan. Andrea Teixeira: 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? And then my real question is regarding the pricing that you took and then how the elasticity has played out? I understand that this has been 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: Sure. So I think your first question -- and good morning, Andrea, your first question is about waste and share and distribution. So 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. So we like that data point in terms of what that suggests for the future. 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. So 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. So we need to be on the lookout and see how that evolves, both on the brands and store brands. I think your second question is really about pricing generally, private label, and gap. So 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. So essentially, the full portfolio, we've attempted to price to level against the input costs in the business. And so 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. But I think as we look back using foil as at least a proxy because we've been doing this for 6, 7 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: Scott, this is super helpful. Can I just double-click on the pricing front? And 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 6 to 7 quarters that you put it out? And then in resin, how much was your price increase in July? Scott Huckins: 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. And then I'd say, as we look at total company, we kind of 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: Okay. Super helpful. And then it's -- 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: I'd say it's -- you probably have 2 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. So food bags, party cups, parchment, and Reynolds Kitchens would be the share gainers. And so 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. Operator: Our next question is from Lauren Lieberman with Barclays. Lauren Lieberman: Great. I 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: Sure, Lauren. Thanks for the question. So I think what we're trying to relay is you had 2 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 really ran in the first quarter of this year. So 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. And then I think a really important data point, which you may have already looked at is if you look at the last 4 weeks, so 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. So 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: Okay. Okay. Great. And then just one more question was on recent aluminum weakness. So I know you talked about incremental pricing as part of the plan. You gave us the $400 million as a commodity cost inflation number. But just broadly curious on your thoughts on recent aluminum weakness and if that impact has been factored into your pricing plans at all? And how does private label manage through that, do you expect? Nathan Lowe: Yes. I mean 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, but relative to the high 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 just got to stay agile as we see how any elasticities play out and respond accordingly. Operator: [Operator Instructions] Our next question is from Brian McNamara with Canaccord Genuity. Brian McNamara: I wanted to drill down on elasticities, particularly in 75 square foot foil. Scott, I know you mentioned earlier in the year that the, kind of, the $5 tipping point from 2022 is more like $6 at the time. I think you said that in February. And we've observed foil prices at retail kind of move from the high $4 to high $5 range in January to about $6 to $7 range broadly today. Has that goalpost moved again? And how does that factor into your pricing plans and expected volumes in H2? And related, how are price gaps to private label today? And has there been any movement there? Scott Huckins: 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 plus 30%, plus 40%. So 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 as the absolute price point would be the gap to private label, which I know we've commented on several times. 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 watched the second quarter. But again, as I was saying a moment ago, what we've seen is the last 4 weeks, which would pick up the period of time we had our last round of pricing, we've seen the category remain really, really resilient. I think the math is volumes are down 4%, 5%. Retail takeaway dollars are up low-double-digits. And so I think that suggests that our strategy has been proven resilient and somewhat successful so far. But 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. Operator: There are no further questions in the queue. I would like to turn the conference back over to management for closing remarks. Scott Huckins: Thank you, operator. And we appreciate everyone's interest in Reynolds Consumer Products. And 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. Before you buy stock in Reynolds Consumer Products, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reynolds Consumer Products wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Reynolds (REYN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Reynolds Consumer Products Inc. REYN posted second-quarter 2026 adjusted earnings of 42 cents per share, up 7.7% year over year, and beating the Zacks Consensus Estimate of 41 cents by 2.4%. Manufacturing efficiencies and supply-chain productivity supported the earnings improvement. Reynolds Consumer Products Inc. price-consensus-chart | Reynolds Consumer Products Inc. Quote Net revenues rose 0.6% year over year to $944 million, surpassing the consensus estimate of $942 million by 0.2%. Retail volumes declined 5%, but the drop narrowed to 2% excluding foam products. Adjusted EBITDA increased 4.9% to $171 million. Gross profit increased 8.4% year over year to $245 million. Gross margin expanded 180 basis points to 26%, reflecting manufacturing efficiencies and broader supply-chain productivity initiatives.Selling, general and administrative expenses rose 11.5% to $107 million. Still, operating income advanced 16.9% to $138 million as gross-profit growth more than offset the higher expenses. Net income climbed 21.9% to $89 million. Reynolds Cooking & Kitchen Essentials revenues increased 6.4% year over year to $314 million. Pricing contributed 19 percentage points as the company sought to offset elevated commodity costs, while retail volumes declined 8%. Promotional timing differences in foil weighed on volumes. However, Reynolds parchment paper, oven bags and slow-cooker liners gained market share. Adjusted EBITDA rose 8.2% to $53 million, aided by manufacturing efficiency gains despite lower volumes.Hefty Waste & Clean-Up revenues slipped 1.3% year over year to $233 million. Retail volumes were flat as branded gains offset previously disclosed private-label distribution losses. The Hefty waste brand maintained share despite heightened promotional activity. Adjusted EBITDA for the segment declined 4.2% to $69 million due to lower revenues. Management noted that Hefty branded waste achieved low-double-digit distribution growth during the first half, while branded volumes and sales each increased 2%.Hefty Home & Tableware revenues decreased 10.3% year over year to $217 million. Retail volumes fell 14%, largely due to continued weakness in foam products. Excluding foam, volumes declined 8%. Despite the top-line pressure, adjusted EBITDA increased 22.9% to $43 million. Manufacturing productivity and lower promotional spending offset the impact of weaker volumes. Hefty party cups also delivered market-share gains during the quarter.Hefty Storage & Organization revenues advanced 5.4% to a second-quarter record of $176 million. Retail volumes grew 8%, supported by strength in Hefty and store-brand food bags and expanded distribution at key retailers. Adjusted EBITDA declined 10% to $27 million. The decrease primarily reflected costs tied to ramping up new business and promotional spending behind distribution gains. Management said Hefty food-bag e-commerce sales increased approximately 30% from the prior-year period. Operating cash flow increased to $173 million in the first six months of 2026 from $147 million a year earlier, supported by higher net income. Capital expenditures rose 27.8% to $101 million as Reynolds invested in automation, growth and cost-reduction projects.At quarter-end, cash and cash equivalents totaled $66 million, while debt stood at $1.53 billion. Net debt was $1.46 billion, and the net debt-to-adjusted EBITDA ratio remained at 2.1 times. The company also made a voluntary $50 million debt repayment during the first half. Reynolds increased its 2026 net revenue outlook to growth of 1-3% from the prior guidance midpoint of a 1% decline. The revision reflects additional pricing to recover commodity inflation and better-than-expected first-half retail volumes.The company reiterated adjusted earnings guidance of $1.57-$1.63 per share and adjusted EBITDA guidance of $660-$675 million. Management now expects roughly $400 million in annualized commodity headwinds, up from the $200 million cited in April.For the third quarter of 2026, net revenues are expected to remain approximately flat compared with $931 million in the year-ago period. Adjusted earnings are projected between 37 cents and 39 cents per share.Adjusted EBITDA is anticipated in the range of $160-$165 million, compared with $168 million a year earlier. Management expects second-half pricing to support revenues, though related demand elasticity could pressure volumes and reported margin rates.The Zacks Rank #3 (Hold) company's shares have gained 23.7% in the past three months compared with the industry’s 8.3% growth. Image Source: Zacks Investment Research Some better-ranked stocks are discussed below: Duluth Holdings Inc. DLTH sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. It offers shirts, pants, shorts, underwear, outerwear, footwear, accessories and hard goods. At present, DLTH sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 9.6% and 267%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 11.1% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.The Zacks Consensus Estimate for current fiscal-year sales implies growth of 10.6%, while the same for earnings implies a 28.9% decline from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reynolds Consumer Products Inc. (REYN) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Household products company Reynolds (NASDAQ:REYN) reported Q2 CY2026 results beating Wall Street’s revenue expectations , but sales were flat year on year at $944 million. Guidance for next quarter’s revenue was better than expected at $931 million at the midpoint, 1.6% above analysts’ estimates. Its non-GAAP profit of $0.42 per share was 4% above analysts’ consensus estimates. Is now the time to buy Reynolds? Find out in our full research report. Revenue: $944 million vs analyst estimates of $933.8 million (flat year on year, 1.1% beat) Adjusted EPS: $0.42 vs analyst estimates of $0.40 (4% beat) Adjusted EBITDA: $171 million vs analyst estimates of $168.5 million (18.1% margin, 1.5% beat) Revenue Guidance for Q3 CY2026 is $931 million at the midpoint, above analyst estimates of $916.2 million Management reiterated its full-year Adjusted EPS guidance of $1.60 at the midpoint EBITDA guidance for the full year is $667.5 million at the midpoint, in line with analyst expectations Operating Margin: 14.6%, up from 12.6% in the same quarter last year Free Cash Flow Margin: 4.8%, similar to the same quarter last year Market Capitalization: $5.44 billion “Our solid second quarter and year-to-date results reflect the consistency of our execution against our priorities," said Scott Huckins, President and Chief Executive Officer. Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste. A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $3.79 billion in revenue over the past 12 months, Reynolds carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. As you can see below, Reynolds struggled to increase demand as its $3.79 billion of sales for the trailing 12 months was close to its revenue three years ago. This is mainly because it failed to grow its volumes. This quarter, Reynolds’s $944 million of revenue was flat year on year but beat Wall Street’s estimates by 1.1%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and indicates its newer products will not accelerate its top-line performance yet. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Reynolds has shown impressive cash profitability, driven by its attractive business model that gives it the option to reinvest or return capital to investors. The company’s free cash flow margin averaged 8.3% over the last two years, better than the broader consumer staples sector. Reynolds’s free cash flow clocked in at $45 million in Q2, equivalent to a 4.8% margin. This cash profitability was in line with the comparable period last year but below its two-year average. In a silo, this isn’t a big deal because investment needs can be seasonal, but we’ll be watching to see if the trend extrapolates into future quarters. It was encouraging to see Reynolds beat analysts’ revenue and EPS expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. Full-year EBITDA guidance was just in line, though, and despite the beat, full-year EPS guidance was just maintained. Still, this print had some key positives. Investors were likely hoping for more, and shares traded down 1.2% to $25.50 immediately following the results. Big picture, is Reynolds a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a strategy of frequent but small pricing changes in foil and the initiation of cost recovery pricing for resin-based products in July. Management attributes the resilience of Reynolds Wrap to its multi-application use cases, which limits one-for-one product substitutability even as prices rise. Significant manufacturing and supply chain productivity gains drove a 200 basis point gross margin improvement, helping to fund R&D and innovation investments. The company successfully offset previously communicated private label distribution losses through branded growth and new distribution wins in Waste & Clean-Up and Storage & Organization. E-commerce performance significantly outpaced categories, with Hefty food bags growing approximately 30% and trash bags ranking as a top-5 product during Amazon Prime Day. Management observes a shift toward occasion-based purchasing behavior over product-based behavior, influenced by the rise of omnichannel and agentic shopping. The consumer environment is characterized as deliberate and value-oriented, with spending concentrated on products offering a clear combination of functionality and affordability. Full-year revenue guidance was increased to reflect higher pricing for commodity recovery and first-half volume outperformance, despite expected demand pressure from elasticities. Management now anticipates $400 million in annualized commodity headwinds, a significant increase from the $200 million projected in April due to market shifts through June. The company expects pricing to be a larger revenue contributor in the second half of 2026, while monitoring the impact of July pricing actions on consumer behavior. Guidance assumes the consumer and operating environment will remain pressured through the second half of the year due to volatile commodity markets and elevated promotional intensity. Strategic focus remains on a 'self-reinforcing cycle' where productivity gains from automation and lean deployment fund reinvestment into brand growth. The Iran conflict is identified as a risk factor primarily through its potential to drive higher commodity costs and create an uncertain environment for consumer demand. Private label distribution losses that took effect in January created a 2-point volume headwind in the first half, which the company successfully overcame through branded gains. Promotional timing shifts and the Easter calendar move caused significant variability in share performance between Q1 and Q2, particularly in the foil category. Leverage remains at the lower end of the target at 2.1x net debt to EBITDA, providing flexibility for potential organic and inorganic growth opportunities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported low-double-digit increases in distribution for Hefty branded waste bags and 2 points of volume growth despite a highly promotional environment. Branded velocities are up in both dollars and units, validating the 'performance brand' philosophy and current consumer value proposition. While productivity initiatives expanded margins in the first half, the incremental pricing taking effect in July is expected to be a numerical headwind to the margin rate. Management intends to remain agile, using productivity gains to offset inflation while monitoring potential elasticity from second-half pricing actions. Price gaps to private label remain 'constructive' at generally less than $1, though gaps expanded slightly during the second quarter. Management noted that the $5 price threshold for foil is less absolute now given that average grocery items have increased 30% to 40% in price over recent years. Recent retail data shows the foil category remains resilient, with volumes down 4% to 5% but retail takeaway dollars up in the low-double-digits.

Interested in Reynolds Consumer Products Inc.? Here are five stocks we like better. Second-quarter performance improved: Adjusted EPS rose 7% to $0.42, while first-half revenue increased 4% to $1.8 billion and adjusted EBITDA grew 8% to $302 million. Productivity gains, pricing actions and market-share stability helped offset higher commodity costs. Commodity pressures intensified: Reynolds raised its estimated annualized commodity headwind to approximately $400 million from $200 million and implemented additional pricing for foil and resin-based products. Management expects supply-chain productivity to help offset inflation and pricing-related demand pressure. Full-year revenue outlook raised: The company now expects 2026 revenue to grow 1% to 3%, up from prior guidance calling for a 1% decline, while maintaining adjusted EPS guidance of $1.57 to $1.63 and adjusted EBITDA guidance of $660 million to $675 million. 3 Consumer Staples Stocks Breaking Out This Month 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. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Near 52-Week Lows, These 3 Mid-Cap Stocks Are Worth a Look 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. 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. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Reynolds Consumer Products High Yield Bought on the Dip 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. → Innovative ETF Strategies That Are Paying Off This Summer 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Reynolds Consumer Products Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

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 29, 2026--(BUSINESS WIRE)--Reynolds Consumer Products Inc. (the "Company") (Nasdaq: REYN) today reported financial results for the second quarter ended June 30, 2026. "Our solid second quarter and year-to-date results reflect the consistency of our execution against our priorities," said 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. Our trusted brands, compelling consumer value, and strong retail partnerships position us well to execute in a tough operating environment and against our longer-term strategic priorities to drive shareholder value." Second Quarter 2026 Highlights Net Revenues of $944 million compared to $938 million in Q2 2025 Net Income of $89 million compared to $73 million in Q2 2025, and Adjusted Net Income of $89 million compared to $83 million in Q2 2025 Adjusted EBITDA of $171 million compared to $163 million in Q2 2025 Earnings Per Share increased 20% to $0.42 compared to $0.35 in Q2 2025, and Adjusted Earnings Per Share increased 8% to $0.42 vs. $0.39 in Q2 2025 Net Income increased 22% to $89 million from $73 million in Q2 2025 and Adjusted Net Income increased $6 million compared to Adjusted Net Income of $83 million for the second quarter of 2025, reflecting improved operating performance. Adjusted EBITDA increased $8 million to $171 million compared to the prior year period, primarily driven by manufacturing efficiency gains, partially offset by the impact of lower volumes and increased selling, general and administrative (SG&A) costs. These results reflect continued margin expansion through productivity initiatives, supporting ongoing investment in growth and other strategic initiatives. Second Quarter Key Business Segment Results As outlined in our first quarter earnings release, effective January 1, the Company realigned its former Hefty Waste & Storage and Presto Products operating segments to enhance efficiency, sharpen its innovation focus, and better support future expansion into adjacent categories. These changes did not impact previously reported consolidated results. All prior periods are recast to conform with current year presentation. Reynolds Cooking & Kitchen Essentials Net Revenues increased $19 million to $314 million, reflecting increases in both Retail and Non-retail Revenues, and includes 19 points of pricing to offset commodity cost increases. Retail volumes decreased 8%, in part from promotional timing differences in foil, while Reynolds parchment, oven bags and slow cooker liners drove share gains. Adjusted EBITDA increased $4 million to $53 million, primarily driven by manufacturing efficiency gains, partially offset by the impact of lower volumes. Hefty® Waste & Clean-Up Net Revenues decreased $3 million to $233 million. Retail volumes remained flat and branded volume gains offset previously communicated private label distribution losses. Hefty® waste maintained share, despite a heightened promotional environment. Hefty® Ultra Strong trash bags were listed as a top 5 selling item on Amazon Prime Day 2026. Adjusted EBITDA decreased $3 million to $69 million due to the impact of lower revenues. Hefty® Home & Tableware Net Revenues decreased $25 million to $217 million, due to the impact of lower volumes driven primarily by foam declines, partially offset by reduced promotional activity. Retail volumes decreased 14%; excluding foam Retail volumes decreased 8%. Adjusted EBITDA increased $8 million to $43 million, driven by manufacturing efficiency gains. The impact of lower volumes was offset by decreased promotional activity. Hefty® Storage & Organization Net Revenues increased $9 million to a record second quarter of $176 million, reflecting stronger volumes. Retail volumes increased 8%, driven by strong performance of Hefty® and store brand food bags. Adjusted EBITDA decreased $3 million to $27 million, driven primarily by costs associated with the ramp up of new business and promoting behind new distribution. Year to Date 2026 Highlights Net Revenues of $1,821 million compared to $1,756 million in the comparable prior year period Net Income of $148 million compared to $105 million in the comparable prior year period, and Adjusted Net Income of $148 million compared to $132 million in the comparable prior year period Adjusted EBITDA of $302 million compared to $279 million in the comparable prior year period Earnings Per Share of $0.70 compared to $0.50 in the comparable prior year period, and Adjusted Earnings Per Share of $0.70 vs. $0.63 in the comparable prior year period Net Income was $148 million compared to $105 million in the comparable period of 2025, which included $27 million of after-tax debt refinancing costs, CEO transition costs, and strategic investments in cost savings and revenue growth initiatives that did not repeat. Adjusted Net Income was $148 million compared to Adjusted Net Income of $132 million in the comparable period of 2025. Adjusted EBITDA was $302 million compared to $279 million in the comparable period of 2025, primarily attributable to the timing of pricing actions in relation to input cost increases and lower operational costs, partially offset by higher SG&A costs. Balance Sheet and Cash Flow Highlights Cash and cash equivalents were $66 million at June 30, 2026 and debt was $1,530 million, resulting in Net Debt of $1,464 million. Net Debt to Trailing Twelve Months Adjusted EBITDA1 was 2.1x on June 30, 2026 and at the lower end of the Company’s target leverage range. During the six months ended June 30, 2026, we made a voluntary principal repayment of $50 million. "Our second quarter results demonstrate disciplined execution across the business, targeted productivity initiatives and prudent capital deployment," said Nathan Lowe, Chief Financial 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." Full Year 2026 and Third Quarter Outlook The Company is increasing its full year 2026 Net Revenues outlook to a range of +1% to +3%, compared to 2025 Net Revenues of $3,721 million, to account for increased pricing net of elasticity. The Company continues to expect Net Income and Adjusted Net Income to be in the range of $331 million to $343 million, full-year EPS and Adjusted EPS to be in the range of $1.57 to $1.63, and full-year Adjusted EBITDA to be in the range of $660 million and $675 million. Third quarter 2026 Net Revenues are expected 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 to $83 million in the third quarter, with EPS and Adjusted EPS expected to be in the range of $0.37 to $0.39. The Company expects third quarter Adjusted EBITDA to be in the range of $160 million to $165 million. Quarterly Dividend The Company’s Board of Directors has approved a 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. Earnings Webcast The Company will host a live webcast this morning at 7:00 a.m. CT (8:00 a.m. ET). A link to the webcast and all related earnings materials will be available on the Company’s Investor Relations website at https://investors.reynoldsconsumerproducts.com. About Reynolds Consumer Products Inc. Reynolds Consumer Products is a leading provider of household essentials designed to simplify daily life, so consumers can enjoy what matters most. Found in 95% of U.S. homes, the Company offers trusted solutions for cooking, serving, clean-up, and storage. Its portfolio features iconic brands like Reynolds® and Hefty®, along with store brand products tailored to retail partners. Reynolds holds the No. 1 or No. 2 market share in most of the categories it serves. Learn more at: investors.reynoldsconsumerproducts.com. Forward Looking Statements This press release contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our priorities to realize benefits from past initiatives and invest in future growth, and our expectations for sustainable earnings growth and long-term shareholder value, and our anticipated Net Revenue, Net Income, Adjusted Net Income, EPS, Adjusted EPS and Adjusted EBITDA for third quarter and fiscal year 2026 guidance. In some cases, you can identify these statements by forward-looking words such as "anticipate," "believe," "estimate," "expect," "will," "should," "may," "might," "intends," "outlook," "forecast", "position," "committed," "plans," "predicts," "model," "assumes," "confident," "look forward," "potential," "on track," or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and profitability, management of costs and other disruptions and other strategies, the impact of the imposition of tariffs, consumer demand trends, retailer inventory and promotional decisions, inflationary pressures, our ability to recover commodity cost increases through pricing actions, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. REYN-F Use of Non-GAAP Financial Measures We use non-GAAP financial measures "Adjusted EBITDA," "Adjusted Net Income," "Adjusted Earnings Per Share," "Net Debt," and "Net Debt to Trailing Twelve Months Adjusted EBITDA" in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, debt refinancing expense, depreciation and amortization, costs to execute strategic initiatives and CEO transition costs. We define Adjusted Net Income and Adjusted Earnings Per Share ("Adjusted EPS") as Net Income and Earnings Per Share ("EPS") calculated in accordance with GAAP, plus the after-tax impact of debt refinancing expense, costs to execute strategic initiatives and CEO transition costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above) for the period. We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted EPS as supplemental measures to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies. Guidance for fiscal year and third quarter 2026, where adjusted, is provided on a non-GAAP basis. Please see reconciliations of non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729659973/en/ Contacts Investor Contact Jill [email protected] (203) 832-4449

Reynolds Consumer Products (REYN) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.44%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.28, delivering a surprise of +12%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Reynolds Consumer Products, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $944 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $938 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Reynolds Consumer Products shares have added about 12.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Reynolds Consumer Products has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Reynolds Consumer Products was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $915.46 million in revenues for the coming quarter and $1.59 on $3.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Honest (HNST), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This consumer products company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Honest's revenues are expected to be $77.65 million, down 16.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reynolds Consumer Products Inc. (REYN) : Free Stock Analysis Report The Honest Company, Inc. (HNST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research