Reynolds Consumer Products beats Q2 estimates, reiterates 2025 outlook

Published 30/07/2025, 12:56
 Reynolds Consumer Products beats Q2 estimates, reiterates 2025 outlook

LAKE FOREST, Ill. - On Wednesday, Reynolds Consumer Products Inc . (NASDAQ:REYN) reported second-quarter earnings that exceeded analyst expectations, as the household essentials provider navigated a challenging operating environment.

The company’s stock rose 0.70% in pre-market trading following the announcement.

The company posted adjusted earnings per share of $0.39, beating the analyst estimate of $0.38, while revenue reached $938 million, significantly above the consensus estimate of $898.95 million. Despite the revenue increase of 0.9% compared to $930 million in the same quarter last year, net income fell to $73 million from $97 million in Q2 2024, reflecting higher costs and strategic investments.

"We are executing well in a challenging operating environment while also investing in the long-term potential of our business," said Scott Huckins, President and Chief Executive Officer. "We believe our US-centric business model is a competitive advantage, and we are building on that advantage by implementing programs to drive additional growth, margin and returns."

Retail volume decreased 1% during the quarter, consistent with overall category performance, while Adjusted EBITDA declined to $163 million from $172 million in the prior-year period. The company attributed this decrease to lower retail volume and the timing of pricing actions relative to input cost increases.

Performance varied across segments, with Hefty Waste & Storage showing strength as retail volume increased 6%, driven by strong growth in Hefty Fabuloso waste bags and Hefty Press to Close food bags. Meanwhile, Hefty Tableware experienced a 5% retail volume decline, driven exclusively by foam product declines.

Reynolds Consumer Products reiterated its full-year 2025 outlook, expecting net revenues to be down low single digits compared to 2024, with adjusted EBITDA between $650 million and $670 million, and adjusted EPS of $1.54 to $1.61. For the third quarter, the company forecasts adjusted EPS of $0.37 to $0.41, in line with the analyst consensus of $0.40.

"We delivered results in line with our expectations, while implementing pricing and other proven tools to offset cost inflation," said Nathan Lowe, Chief Financial Officer. "We continue to make progress on the programs to strengthen our revenue and margin potential, and we are on track to begin realizing those benefits late this year."

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