Reynolds Consumer Products Stock Earnings Reports

Reynolds Consumer Products reported a strong start to 2026 with Q1 net revenue of $877 million, up 7% year-over-year, outpacing its categories by ~2 points and delivering share gains across most of the portfolio. Adjusted EBITDA was $131 million (vs. $117M a year ago) and adjusted EPS rose more than 20%. Management highlighted durable service levels (case fill in the high 80% range), double-digit e-commerce growth, and successful commercial execution despite heightened promotional activity and private-label bid losses that acted as an approximate 3-point headwind in the quarter. The company reorganized its segments (creating Hefty Waste & Cleanup and Hefty Storage & Organization; renaming two others) to sharpen commercial and R&D focus and said early benefits are being realized. Product innovation (e.g., Reynolds countertop prep paper; new foil designs) and expanded distribution drove outperformance in foil, parchment, and food bags. CFO noted commodity cost pressure—primarily aluminum, polyethylene and other resins—amounting to roughly a $200 million annualized headwind based on settled rates, which the company plans to offset with pricing, productivity and other cost measures. Management reiterated full‑year 2026 guidance: net revenue growth of -3% to +1% versus 2025 ($3.7B), adjusted EBITDA $660M–$675M, net income $331M–$343M, and EPS / adjusted EPS $1.57–$1.63. Q2 revenue guidance is -2% to +1% vs. prior-year Q2, with adjusted EBITDA $165M–$175M and EPS $0.39–$0.43. Balance sheet remains healthy with net leverage ~2.1x as of 3/31/26. Management expects the year to play out as a tale of two halves — continued momentum in H1, with pricing and consumer elasticity considerations more prominent in H2 — but remains confident in meeting guidance.