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REYN guided 2026 adjusted EPS of $1.57-$1.63, while projecting adjusted EBITDA of $660-$675 million.
Reynolds Consumer Products Inc. (REYN - Free Report) reported third-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimates. Revenues increased year over year, while adjusted earnings declined.
REYN posted adjusted earnings of 39 cents per share declined 7.1% year over year but beat the Zacks Consensus Estimate of 38 cents by 2.6%. Pricing actions helped offset higher input costs, while productivity gains provided support amid weaker retail demand.
Net revenues increased 1.4% to $944 million, surpassing the Zacks Consensus Estimate of $933 million by 1.2%. Retail volumes declined 7%, while pricing contributed 9 percentage points to revenue growth.
Reynolds Consumer Products Inc. Price, Consensus and EPS Surprise
Gross profit increased 1.3% year over year to $236 million. Gross margin remained largely unchanged at 25%, even as the company faced higher input costs. Cost of sales increased 1.4% to $708 million.
Selling, general and administrative expenses rose 7.1% to $106 million as the company continued reinvesting in its business. Adjusted EBITDA declined 3% to $163 million, while adjusted EBITDA margin contracted approximately 78 basis points to 17.3%. Lower retail volumes and increased expenses weighed on profitability.
Adjusted net income declined 5.7% year over year to $83 million from $88 million. The company also reported lower retail volumes and higher selling, general and administrative expenses, partially offset by productivity gains.
Reynolds' Cooking and Waste Businesses Show Growth
Reynolds Cooking & Kitchen Essentials revenues increased 9.4% year over year to $337 million, beating the Zacks Consensus Estimate of $320 million. Pricing contributed 18 percentage points as the company sought to recover higher input costs. However, retail volumes declined 6%, while non-retail volume and mix contributed a 3-percentage-point headwind.
Adjusted EBITDA declined 7.5% to $49 million. Although pricing actions fully offset higher input costs, weaker volumes pressured profitability.
Hefty Waste & Clean-Up revenues increased 1.6% year over year to $248 million, missing the Zacks Consensus Estimate of $258 million. Pricing contributed 5 percentage points, while retail volumes declined 3%. Adjusted EBITDA increased 5.6% to $76 million, supported by productivity gains across the supply chain.
Productivity gains supported profitability in Hefty Waste & Clean-Up, while lower volumes weighed on Reynolds Cooking & Kitchen Essentials.
REYN Sees Weakness in Home, Tableware and Storage
Hefty Home & Tableware revenues declined 7% year over year to $186 million, in line with the Zacks Consensus Estimate. Retail volumes decreased 11%, reflecting pricing-related demand elasticity and continued weakness in foam products. Pricing contributed 4 percentage points, partially offsetting lower volumes.
Hefty Storage & Organization revenues decreased 4.4% year over year to $172 million, missing the Zacks Consensus Estimate of $175 million. Retail volumes declined 8%, reflecting demand timing following strong second-quarter promotional activity. Pricing contributed 4 percentage points.
Adjusted EBITDA fell 16.7% to $30 million. Management attributed the revenues decline to volume timing following strong second-quarter promotions, while lower volumes pressured adjusted EBITDA.
Reynolds' Operating Cash Flow Declines
Operating cash flow totaled $224 million during the first nine months of 2026, down 6.7% from $240 million a year earlier. Capital expenditures increased 15.3% year over year to $143 million.
At quarter-end, cash and cash equivalents totaled $25 million compared with $147 million at the end of 2025. Debt stood at $1,531 million, resulting in net debt of $1,506 million. The net debt-to-trailing-12-month adjusted EBITDA ratio increased to 2.2 times from 2.1 times at year-end.
Following the quarter, Reynolds completed the $110 million acquisition of Owl's Head Alloys, funded through borrowings under its revolving credit facility. The acquisition adds specialized aluminum processing capabilities and expands the company's vertical integration.
REYN Reaffirms 2026 Adjusted Earnings Outlook
Reynolds reiterated its 2026 net revenue outlook of 1-3% growth compared with 2025 revenues of $3,721 million. The company maintained adjusted earnings guidance of $1.57-$1.63 per share and adjusted EBITDA expectations of $660-$675 million.
Management expects full-year adjusted net income of $332-$345 million. The company continues to focus on productivity initiatives and reinvestment in brands, innovation and strategic priorities.
For the fourth quarter of 2026, revenues are projected to range from a 3% decline to a 3% increase compared with the year-ago level of $1,034 million. Adjusted earnings are expected to be between 48 cents and 54 cents per share.
Adjusted EBITDA is projected at $196-$211 million. Management remains focused on productivity improvements and disciplined execution amid commodity inflation and weaker retail volumes.
This Zacks Rank 3 (Hold) company’s shares have gained 16.3% in the past six months compared with the industry's 9.7% growth.
Image Source: Zacks Investment Research
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ACCO Brands Corporation (ACCO - Free Report) is a global consumer and business products company that designs, manufactures and markets office, school, technology and workspace products. It currently sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ACCO Brands’ current fiscal-year sales and earnings suggests growth of 3.2% and 7.1%, respectively, from the year-ago actuals. ACCO delivered a trailing four-quarter average earnings surprise of 35.7%.
SharkNinja, Inc. (SN - Free Report) is a global product design and technology company focused on small household appliances. It also carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for SharkNinja’s current fiscal-year sales and earnings indicates growth of 16.9% and 24.1%, respectively, from the year-ago actuals. SN delivered a trailing four-quarter average earnings surprise of 11.4%.
The RealReal, Inc. (REAL - Free Report) operates an online marketplace for consigned luxury goods. It offers resale product categories, including women's, men's, kids', jewelry and watches, as well as home and art products. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for RealReal’s current fiscal-year earnings and sales indicates growth of 15.4% and 183.3%, respectively, from the year-ago actuals. REAL delivered a trailing four-quarter average negative earnings surprise of 50%.
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Reynolds' Q3 Earnings Beat Estimates as Pricing Offsets Inflation
Key Takeaways
Reynolds Consumer Products Inc. (REYN - Free Report) reported third-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimates. Revenues increased year over year, while adjusted earnings declined.
REYN posted adjusted earnings of 39 cents per share declined 7.1% year over year but beat the Zacks Consensus Estimate of 38 cents by 2.6%. Pricing actions helped offset higher input costs, while productivity gains provided support amid weaker retail demand.
Net revenues increased 1.4% to $944 million, surpassing the Zacks Consensus Estimate of $933 million by 1.2%. Retail volumes declined 7%, while pricing contributed 9 percentage points to revenue growth.
Reynolds Consumer Products Inc. Price, Consensus and EPS Surprise
Reynolds Consumer Products Inc. price-consensus-eps-surprise-chart | Reynolds Consumer Products Inc. Quote
REYN Faces Margin Pressure Amid Higher Costs
Gross profit increased 1.3% year over year to $236 million. Gross margin remained largely unchanged at 25%, even as the company faced higher input costs. Cost of sales increased 1.4% to $708 million.
Selling, general and administrative expenses rose 7.1% to $106 million as the company continued reinvesting in its business. Adjusted EBITDA declined 3% to $163 million, while adjusted EBITDA margin contracted approximately 78 basis points to 17.3%. Lower retail volumes and increased expenses weighed on profitability.
Adjusted net income declined 5.7% year over year to $83 million from $88 million. The company also reported lower retail volumes and higher selling, general and administrative expenses, partially offset by productivity gains.
Reynolds' Cooking and Waste Businesses Show Growth
Reynolds Cooking & Kitchen Essentials revenues increased 9.4% year over year to $337 million, beating the Zacks Consensus Estimate of $320 million. Pricing contributed 18 percentage points as the company sought to recover higher input costs. However, retail volumes declined 6%, while non-retail volume and mix contributed a 3-percentage-point headwind.
Adjusted EBITDA declined 7.5% to $49 million. Although pricing actions fully offset higher input costs, weaker volumes pressured profitability.
Hefty Waste & Clean-Up revenues increased 1.6% year over year to $248 million, missing the Zacks Consensus Estimate of $258 million. Pricing contributed 5 percentage points, while retail volumes declined 3%. Adjusted EBITDA increased 5.6% to $76 million, supported by productivity gains across the supply chain.
Productivity gains supported profitability in Hefty Waste & Clean-Up, while lower volumes weighed on Reynolds Cooking & Kitchen Essentials.
REYN Sees Weakness in Home, Tableware and Storage
Hefty Home & Tableware revenues declined 7% year over year to $186 million, in line with the Zacks Consensus Estimate. Retail volumes decreased 11%, reflecting pricing-related demand elasticity and continued weakness in foam products. Pricing contributed 4 percentage points, partially offsetting lower volumes.
Adjusted EBITDA declined 13.8% to $25 million, primarily reflecting weaker sales volumes.
Hefty Storage & Organization revenues decreased 4.4% year over year to $172 million, missing the Zacks Consensus Estimate of $175 million. Retail volumes declined 8%, reflecting demand timing following strong second-quarter promotional activity. Pricing contributed 4 percentage points.
Adjusted EBITDA fell 16.7% to $30 million. Management attributed the revenues decline to volume timing following strong second-quarter promotions, while lower volumes pressured adjusted EBITDA.
Reynolds' Operating Cash Flow Declines
Operating cash flow totaled $224 million during the first nine months of 2026, down 6.7% from $240 million a year earlier. Capital expenditures increased 15.3% year over year to $143 million.
At quarter-end, cash and cash equivalents totaled $25 million compared with $147 million at the end of 2025. Debt stood at $1,531 million, resulting in net debt of $1,506 million. The net debt-to-trailing-12-month adjusted EBITDA ratio increased to 2.2 times from 2.1 times at year-end.
Following the quarter, Reynolds completed the $110 million acquisition of Owl's Head Alloys, funded through borrowings under its revolving credit facility. The acquisition adds specialized aluminum processing capabilities and expands the company's vertical integration.
REYN Reaffirms 2026 Adjusted Earnings Outlook
Reynolds reiterated its 2026 net revenue outlook of 1-3% growth compared with 2025 revenues of $3,721 million. The company maintained adjusted earnings guidance of $1.57-$1.63 per share and adjusted EBITDA expectations of $660-$675 million.
Management expects full-year adjusted net income of $332-$345 million. The company continues to focus on productivity initiatives and reinvestment in brands, innovation and strategic priorities.
For the fourth quarter of 2026, revenues are projected to range from a 3% decline to a 3% increase compared with the year-ago level of $1,034 million. Adjusted earnings are expected to be between 48 cents and 54 cents per share.
Adjusted EBITDA is projected at $196-$211 million. Management remains focused on productivity improvements and disciplined execution amid commodity inflation and weaker retail volumes.
This Zacks Rank 3 (Hold) company’s shares have gained 16.3% in the past six months compared with the industry's 9.7% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
ACCO Brands Corporation (ACCO - Free Report) is a global consumer and business products company that designs, manufactures and markets office, school, technology and workspace products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ACCO Brands’ current fiscal-year sales and earnings suggests growth of 3.2% and 7.1%, respectively, from the year-ago actuals. ACCO delivered a trailing four-quarter average earnings surprise of 35.7%.
SharkNinja, Inc. (SN - Free Report) is a global product design and technology company focused on small household appliances. It also carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for SharkNinja’s current fiscal-year sales and earnings indicates growth of 16.9% and 24.1%, respectively, from the year-ago actuals. SN delivered a trailing four-quarter average earnings surprise of 11.4%.
The RealReal, Inc. (REAL - Free Report) operates an online marketplace for consigned luxury goods. It offers resale product categories, including women's, men's, kids', jewelry and watches, as well as home and art products. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for RealReal’s current fiscal-year earnings and sales indicates growth of 15.4% and 183.3%, respectively, from the year-ago actuals. REAL delivered a trailing four-quarter average negative earnings surprise of 50%.