Reynolds Consumer Products (NASDAQ:REYN) reported third-quarter revenue growth as pricing actions offset lower retail volumes tied to commodity-driven price increases and a pressured consumer environment. The company maintained its full-year outlook while highlighting continued investment in brands, innovation, digital capabilities and supply-chain productivity.
Third-quarter net revenue rose to $944 million from $931 million a year earlier. Retail revenue was essentially flat at $865 million, compared with $864 million in the prior-year period, while non-retail revenue accounted for the remaining increase.
Retail volumes declined 7% during the quarter, which Chief Financial Officer Nathan Lowe attributed to significant commodity-driven pricing and resulting consumer elasticity. Pricing more than offset the volume decline on the top line and neutralized the commodity headwind, while supply-chain productivity contributed to gross-profit-dollar growth, Lowe said.
Adjusted EBITDA was $163 million, down $5 million from a year earlier. Adjusted net income declined to $83 million from $88 million, while adjusted earnings per share fell to $0.39 from $0.42. On a GAAP basis, net income was $58 million, or $0.28 per share.
Pricing, consumer pressure and productivity
President and Chief Executive Officer Scott Huckins said Reynolds led pricing across its categories to recover commodity inflation. He said the company had expected higher prices to result in volume elasticity, particularly as consumers continue seeking value through promotions, opening-price-point products and larger pack sizes.
“Household budgets remain under pressure,” Huckins said, adding that shoppers are increasingly using mass, club and e-commerce channels. The company also said consumers are increasingly organizing purchases around occasions, rather than solely by individual product categories.
Lowe said commodity inflation increased sequentially during the year and that pricing actions increased in each quarter. Year to date, retail volumes were down 3%, while gross profit was up 6%. He said gross-profit-dollar growth outpaced retail volume performance by at least 8 percentage points in each quarter.
The company estimates that its incremental annualized commodity headwind remains approximately $400 million. Management said it would continue to use pricing and productivity measures to manage inflation, while taking what Huckins described as a disciplined and “surgical” approach to any further pricing actions.
During the question-and-answer session, Huckins said private-label share gains across the company’s portfolio had been limited. In the waste-bag business, he said share changes were within a point, while Reynolds Wrap was down just over a point year to date. He also said the cups category was down roughly 4% to 5% year to date, while Reynolds’ business in that category had grown volume, retail dollar takeaway and share.
Segment developments and Owl’s Head acquisition
In Reynolds Cooking & Kitchen Essentials, aluminum foil demand reflected elasticity from higher prices, but Huckins said both the category and Reynolds Wrap posted double-digit retail dollar takeaway growth. The company plans holiday merchandising, display activity and sharper promotional price points in the fourth quarter to support volume.
Reynolds said parchment paper benefited from increased velocities, while seasonal products continued to create engagement with the Reynolds brand. In October, the company completed its acquisition of Owl’s Head Alloys, an aluminum processor that further vertically integrates its foil business and complements its manufacturing network.
The transaction adds nearly 300 Owl’s Head employees, according to Huckins. Lowe said the deal would have a limited effect on fiscal 2026 due to its timing and did not require a revision to the company’s guidance. Over time, Reynolds expects the acquired capabilities to support growth and margin expansion in consumer foil.
Hefty Waste & Clean-Up posted what management called a solid quarter, supported by commercial execution and innovation. The company cited consumer response to Hefty Ultra Strong Fabuloso Peach and Tea Tree and Eucalyptus scented bags, which it plans to scale nationally in 2027. Colored waste bags are growing more than 40% in the category, Huckins said, with the Hefty Color Series leading that growth. The business also added 10 points of distribution growth and gained several points of digital penetration.
Hefty Home & Tableware continued to face challenging market conditions, which management attributed to tableware’s more discretionary nature. However, the company reported growth and share gains in party cups and cutlery, and it cited launches including coordinated Halloween sets and Chill-to-Go cups for portable drinkware needs.
Hefty Storage & Organization experienced lower third-quarter volumes, partly due to promotional timing shifts after 8% volume growth in the second quarter. Management said the segment has nevertheless delivered year-to-date growth and share gains despite private-label dual-sourcing headwinds.
Digital investment and full-year outlook
Management said it is investing in digital talent and capabilities as product discovery expands through retailer search, social platforms and AI-enabled shopping tools. Huckins said the company’s categories are well positioned for digital shopping because they are regularly replenished products that can fit subscription models.
Reynolds said its digital priorities include making products easier to discover, improving conversion to purchase, using data to improve investment returns and scaling successful capabilities. Huckins said innovation can also be particularly suited to digital channels because online platforms can provide more detailed product descriptions, features and use cases.
The company reiterated its full-year 2026 outlook, including:
- Net revenue growth of 1% to 3% from 2025 revenue of $3.721 billion, including flat non-retail revenue year over year.
- Adjusted EBITDA of $660 million to $675 million.
- Adjusted net income of $332 million to $345 million.
- Adjusted EPS of $1.57 to $1.63.
For the fourth quarter, the company’s full-year outlook implies net revenue ranging from down low single digits to up low single digits from fourth-quarter 2025 revenue of $1.034 billion. Reynolds expects fourth-quarter net income of $101 million to $114 million, EPS of $0.48 to $0.54, and adjusted EBITDA of $196 million to $211 million.
Lowe said fourth-quarter results will remain dependent on commodity costs, consumer conditions, retail-volume trends and productivity benefits. The company expects net leverage to remain within its target range of 2 times to 2.5 times while it continues investing in automation, innovation, growth opportunities and its quarterly dividend.
About Reynolds Consumer Products (NASDAQ:REYN)
Reynolds Consumer Products Inc (NASDAQ:REYN) manufactures and markets household products used for food preparation, storage, cleanup and waste management. Its portfolio includes aluminum foil, parchment paper, plastic wrap, disposable cookware, trash bags, food-storage bags and other everyday consumer products.
The company sells products under well-known brands including Reynolds and Reynolds Kitchens, Hefty, Presto, Diamond and Fresh. Its offerings are distributed through grocery stores, mass merchants, club stores, e-commerce channels and other retail outlets, as well as through foodservice and other commercial customers.
Reynolds Consumer Products serves consumers primarily in the United States and Canada.
