Key Highlights

  • Adjusted EPS of USD 0.39 beat the USD 0.38 estimate but fell from USD 0.42 a year earlier.
  • Net revenues rose to USD 944 million from USD 931 million, while retail volumes declined 7%.
  • Adjusted EBITDA slipped USD 5 million to USD 163 million, and GAAP Net Income fell to USD 58 million.
  • Full year adjusted EPS guidance of USD 1.57 to USD 1.63 was reiterated, alongside Revenue growth of 1% to 3%.

Reynolds Consumer Products Inc. (NASDAQ:REYN) reported third quarter adjusted EPS of USD 0.39, one cent above the USD 0.38 estimate but below USD 0.42 a year earlier. Net revenues of USD 944 million rose from USD 931 million and topped the USD 939.2 million estimate. GAAP net income was USD 58 million, or USD 0.28 per share, compared with USD 79 million a year earlier.

Pricing Offsets Volume Elasticity

Retail revenues of USD 865 million were roughly flat with USD 864 million a year ago, with the remaining growth from non-retail revenue. Significant commodity-driven price increases led to Demand elasticity, and retail volumes fell 7%. Pricing more than offset the volume decline on the Top Line and neutralized the Commodity headwind, while Supply chain productivity lifted Gross Profit to USD 236 million from USD 233 million.

By segment, Reynolds Cooking and Kitchen Essentials revenue rose to USD 337 million from USD 308 million as foil pricing recovered higher aluminum costs, though segment adjusted EBITDA slipped to USD 49 million from USD 53 million. Hefty Waste and Clean-Up revenue edged up to USD 248 million, and its adjusted EBITDA rose to USD 76 million from USD 72 million. Hefty Home and Tableware revenue fell to USD 186 million from USD 200 million, and Hefty Storage and Organization declined to USD 172 million from USD 180 million.

Chief executive Scott Huckins said consumers remain under budget pressure, shifting toward promotions, opening price points and larger pack sizes. He noted that retail dollar takeaway for Reynolds Wrap grew by double digits despite higher prices.

Profit, Cash and Balance Sheet

Adjusted EBITDA of USD 163 million was USD 5 million lower than a year earlier, and adjusted net income fell to USD 83 million from USD 88 million as the company kept investing in research, innovation and advertising. Over nine months, gross profit rose about 6% while retail volumes fell 3%.

Cash provided by operations was USD 224 million for nine months, compared with USD 240 million a year earlier. Cash stood at USD 25 million, down from USD 147 million at the end of 2025, and long-term Debt was USD 1,531 million after USD 50 million of repayments. The company paid a quarterly Dividend of USD 0.23 per share. It completed the Owl's Head Alloys Acquisition in October, adding aluminum processing capabilities and about 300 employees, and said it has limited effect on 2026 guidance.

Full Year and Fourth Quarter Guidance

Reynolds reiterated 2026 revenue growth of 1% to 3% from USD 3.721 billion, adjusted EBITDA of USD 660 million to USD 675 million, adjusted net income of USD 332 million to USD 345 million and adjusted EPS of USD 1.57 to USD 1.63. It estimates the incremental annualized commodity headwind at about USD 400 million.

The full year range implies fourth quarter revenue within low single digits of USD 1.034 billion. The company guided to fourth quarter net income of USD 101 million to USD 114 million, EPS of USD 0.48 to USD 0.54 and adjusted EBITDA of USD 196 million to USD 211 million.

Key Figures Side by Side

Third quarter adjusted EBITDA of USD 163 million compares with the fourth quarter guide of USD 196 million to USD 211 million, and quarterly adjusted EPS of USD 0.39 compares with USD 0.48 to USD 0.54 of fourth quarter EPS. Retail volumes down 7% in the quarter compare with a 3% decline year to date. Revenue of USD 944 million compares with USD 1.034 billion in the year-earlier fourth quarter.