Reynolds Consumer Products Reports Second Quarter 2026 Financial Results

About this update from Reynolds Consumer Products Inc.

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 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 Hefty® Waste & Clean-Up Hefty® Home & Tableware Hefty® Storage & Organization Year to Date 2026 Highlights 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 Koval [email protected] (203) 832-4449

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