Reynolds Consumer Products Reports Third Quarter 2025 Financial Results
LAKE FOREST, Ill.--( BUSINESS WIRE)--Reynolds Consumer Products Inc. (the “Company” or “RCP”) (Nasdaq: REYN) today reported financial results for the third quarter ended September 30, 2025.
“Our people, brands and products are winning in a challenging environment, with all four business units delivering improved results driven by share gains in the majority of our categories,” said Scott Huckins, President and Chief Executive Officer. “We are becoming a more agile organization, while implementing programs that leverage the growth and earnings potential of our US-centric business model.”
Third Quarter 2025 Highlights
Net Income was $79 million, including $9 million of after-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income was $88 million compared to Adjusted Net Income of $86 million for the third quarter of 2024. Adjusted EBITDA was $168 million compared to $171 million in the prior year period, reflecting lower volumes, partially offset by increased alignment of pricing with higher costs.
Reynolds Cooking & Baking
Retail volume decreased 3% and improved sequentially, driven by Reynolds Wrap share gains and strong growth of Reynolds Kitchens products.
Adjusted EBITDA increased on better alignment of pricing and input costs, as well as lower operating costs.
Hefty Waste & Storage
Retail volume increased 5% driven by strong distribution gains and innovation.
The Adjusted EBITDA increase was driven by higher revenue, partially offset by higher operating costs.
Hefty Tableware
Retail volume decreased 13%, driven primarily by continued foam declines.
The Adjusted EBITDA increase was driven by better alignment of pricing and input costs, as well as promotional discipline partially offset by lower volume.
Presto Products
Retail volume increased 9% as Presto’s portfolio gained additional share in store brand food bags.
The Adjusted EBITDA increase was driven by volume growth.
Year to Date 2025 Highlights
Net Income was $184 million, including $10 million of after-tax debt refinancing costs in the first quarter and $26 million of after-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income was $220 million compared to Adjusted Net Income of $231 million in the comparable prior year period, which included a discrete tax benefit of $10 million in the second quarter of 2024. Adjusted EBITDA was $447 million, compared to $465 million in the comparable prior year period, driven by lower retail volume, including first quarter retailer inventory destocking, and higher operational costs, partially offset by pricing actions as well as promotional and SG&A discipline driving reductions in spending. Pricing actions fully offset input cost increases.
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $53 million at September 30, 2025 and debt was $1,629 million resulting in Net Debt of $1,576 million.
Net Debt to Trailing Twelve Months Adjusted EBITDA 1 was 2.4x on September 30, 2025 and within the Company’s target leverage range.
Subsequent to quarter end, the Company made a voluntary principal payment of $50 million on its term loan facility.
“We delivered another quarter of results above our previously communicated expectations, demonstrating continued leadership of our categories, pricing, and cost discipline in a challenging environment,” said Nathan Lowe, Chief Financial Officer. “We are becoming more effective pulling all available levers to drive earnings, while also starting to realize financial benefits from initiatives that unlock more of our growth and earnings potential.”
Full Year 2025 and Fourth Quarter Outlook
The Company now expects 2025 Net Revenues to be flat to down 1% by comparison to 2024 Net Revenues of $3,695 million, Net Income of $294 million to $302 million, Adjusted Net Income of $337 million to $345 million, EPS of $1.40 to $1.44, Adjusted EPS of $1.60 to $1.64 and Adjusted EBITDA of $655 million to $665 million.
The Company expects fourth quarter 2025 Net Revenues to be down 1% to down 5% by comparison to fourth quarter 2024 Net Revenues of $1,021 million, Net Income of $110 million to $118 million, Adjusted Net Income of $117 million to $125 million, EPS of $0.52 to $0.56, Adjusted EPS of $0.56 to $0.60 and Adjusted EBITDA of $208 million to $218 million.
Full-year 2025 expected Adjusted Net Income reflects the following estimated adjustments from Net Income: $13 million of debt refinancing costs recognized in the first quarter of 2025 and approximately $40 million of pre-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives recognized in the full year.
1Net Debt is defined as current portion of long-term debt plus long-term debt less cash and cash equivalents. Net Debt Leverage is defined as Net Debt divided by Trailing Twelve Months Adjusted EBITDA. See “Use of Non-GAAP Financial Measures” for additional information.
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 November 28, 2025, to shareholders of record as of November 14, 2025.
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, cleanup, food storage, and more. Its portfolio features iconic brands like Reynolds Wrap® aluminum foil and Hefty® trash bags and disposable tableware, 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 ability to implement programs and make progress to drive additional growth, margin and returns, and our anticipated Net Revenue, Net Income, Adjusted Net Income, EPS, Adjusted EPS and Adjusted EBITDA for full year and fourth quarter 2025. 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 recovery of profitability, management of costs and other disruptions and other strategies, the impact of the imposition of tariffs, 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
Reynolds Consumer Products Inc.
Consolidated Statements of Income
(amounts in millions, except for per share data)
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Net revenues
$
931
$
892
$
2,670
$
2,618
Related party net revenues
—
18
17
57
Total net revenues
931
910
2,687
2,675
Cost of sales
(698
)
(671
)
(2,039
)
(1,977
)
Gross profit
233
239
648
698
Selling, general and administrative expenses
(99
)
(101
)
(300
)
(329
)
Other expense, net
(11
)
—
(32
)
—
Income from operations
123
138
316
369
Interest expense, net
(21
)
(25
)
(63
)
(76
)
Debt refinancing expense
—
—
(13
)
—
Income before income taxes
102
113
240
293
Income tax expense
(23
)
(27
)
(56
)
(62
)
Net income
$
79
$
86
$
184
$
231
Earnings per share:
Basic
$
0.38
$
0.41
$
0.87
$
1.10
Diluted
$
0.38
$
0.41
$
0.87
$
1.10
Weighted average shares outstanding:
Basic
210.3
210.1
210.3
210.1
Diluted
210.4
210.3
210.3
210.2
Reynolds Consumer Products Inc.
Consolidated Balance Sheets
(amounts in millions, except for per share data)
(Unaudited)
As of September 30,
2025
As of December 31,
2024
Assets
Cash and cash equivalents
$
53
$
137
Accounts receivable (net of allowance for doubtful accounts of $1 and $1)
351
337
Other receivables
14
7
Related party receivables
—
6
Inventories
639
567
Other current assets
27
47
Total current assets
1,084
1,101
Property, plant and equipment (net of accumulated depreciation of $1,022 and $961)
801
758
Operating lease right-of-use assets, net
104
90
Goodwill
1,895
1,895
Intangible assets, net
951
972
Other assets
61
57
Total assets
$
4,896
$
4,873
Liabilities
Accounts payable
$
364
$
319
Related party payables
—
34
Current portion of long-term debt
16
—
Current operating lease liabilities
23
20
Income taxes payable
1
5
Accrued and other current liabilities
155
161
Total current liabilities
559
539
Long-term debt
1,613
1,686
Long-term operating lease liabilities
86
73
Deferred income taxes
350
342
Long-term postretirement benefit obligation
14
14
Other liabilities
94
77
Total liabilities
$
2,716
$
2,731
Stockholders’ equity
Common stock, $0.001 par value; 2,000 shares authorized; 210.3 shares issued and outstanding
—
—
Additional paid-in capital
1,429
1,413
Accumulated other comprehensive income
18
35
Retained earnings
733
694
Total stockholders’ equity
2,180
2,142
Total liabilities and stockholders’ equity
$
4,896
$
4,873
Reynolds Consumer Products Inc.
Consolidated Statements of Cash Flows
(amounts in millions)
Nine Months Ended September 30,
2025
2024
Cash provided by operating activities
Net income
$
184
$
231
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization
100
96
Deferred income taxes
12
(10
)
Stock compensation expense
18
14
Change in assets and liabilities:
Accounts receivable, net
(7
)
8
Other receivables
(7
)
4
Related party receivables
(1
)
1
Inventories
(73
)
(100
)
Accounts payable
23
119
Related party payables
(9
)
(6
)
Income taxes payable / receivable
(4
)
(20
)
Accrued and other current liabilities
(5
)
(26
)
Other assets and liabilities
9
(4
)
Net cash provided by operating activities
240
307
Cash used in investing activities
Acquisition of property, plant and equipment
(124
)
(79
)
Net cash used in investing activities
(124
)
(79
)
Cash used in financing activities
Repayment of long-term debt
(58
)
(100
)
Dividends paid
(144
)
(144
)
Proceeds from term loan refinancing
743
—
Repayments of existing term loan
(743
)
—
Other financing activities
2
(3
)
Net cash used in financing activities
(200
)
(247
)
Net decrease in cash and cash equivalents
(84
)
(19
)
Cash and cash equivalents at beginning of period
137
115
Cash and cash equivalents at end of period
$
53
$
96
Cash paid:
Interest - long-term debt, net of interest rate swaps
62
76
Income taxes
47
91
Reynolds Consumer Products Inc.
Segment Results
(amounts in millions)
Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Unallocated (1)
Total
Revenues
Three Months Ended September 30, 2025
$
308
$
266
$
200
$
163
$
(6
)
$
931
Three Months Ended September 30, 2024 (2)
294
253
222
150
(9
)
910
Nine Months Ended September 30, 2025
$
862
$
761
$
622
$
460
$
(18
)
$
2,687
Nine Months Ended September 30, 2024 (2)
841
732
681
444
(23
)
2,675
Adjusted EBITDA
Three Months Ended September 30, 2025
$
53
$
74
$
29
$
35
$
(23
)
$
168
Three Months Ended September 30, 2024 (2)
50
72
26
33
(10
)
171
Nine Months Ended September 30, 2025
140
203
81
94
(71
)
447
Nine Months Ended September 30, 2024 (2)
136
210
95
99
(75
)
465
(1)
The unallocated net revenues include elimination of inter-segment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments.
(2)
During the three and nine months ended September 30, 2025, we reassigned certain product lines supporting international distribution across our segments to better align with our strategic objectives. All prior period segment disclosures have been recast to reflect this reassignment. Our composition of operating segments and reportable segments did not change, and this reassignment had no effect on our previously reported consolidated results of operations.
Components of Change in Net Revenues for the Three Months Ended September 30, 2025 vs. the Three Months Ended September 30, 2024
Price
Volume/Mix
Total
Retail
Non-Retail
Reynolds Cooking & Baking
9
%
(3)
%
(1)
%
5
%
Hefty Waste & Storage
—
%
5
%
—
%
5
%
Hefty Tableware
3
%
(13)
%
—
%
(10)
%
Presto Products
—
%
9
%
—
%
9
%
Total RCP
4
%
(2)
%
—
%
2
%
Components of Change in Net Revenues for the Nine Months Ended September 30, 2025 vs. the Nine Months Ended September 30, 2024
Price
Volume/Mix
Total
Retail
Non-Retail
Reynolds Cooking & Baking
5
%
(4)
%
1
%
2
%
Hefty Waste & Storage
(1)
%
5
%
—
%
4
%
Hefty Tableware
2
%
(11)
%
—
%
(9)
%
Presto Products
1
%
3
%
—
%
4
%
Total RCP
2
%
(2)
%
—
%
—
%
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 fourth quarter 2025, 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.
Reynolds Consumer Products Inc.
Reconciliation of Net Income to Adjusted EBITDA
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
(in millions)
(in millions)
Net income – GAAP
$
79
$
86
$
184
$
231
Income tax expense
23
27
56
62
Interest expense, net
21
25
63
76
Debt refinancing expense (1)
—
—
13
—
Depreciation and amortization
34
33
100
96
Costs to execute strategic initiatives (2)
5
—
17
—
CEO transition costs (3)
6
—
14
—
Adjusted EBITDA (Non-GAAP)
$
168
$
171
$
447
$
465
(1)
Reflects the expense recorded related to our March 2025 Term Loan Facility refinancing.
(2)
Reflects costs related to the execution of cost savings and revenue growth strategic initiatives.
(3)
Reflects compensation and other costs related to the CEO transition effective January 1, 2025.
Reynolds Consumer Products Inc.
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
Three Months Ended September 30, 2025
Three Months Ended September 30, 2024
(in millions, except for per share data)
Net Income
Diluted Shares
Diluted EPS
Net Income
Diluted Shares
Diluted EPS
As Reported - GAAP
$
79
210.4
$
0.38
$
86
210.3
$
0.41
Adjustments:
Costs to execute strategic initiatives (1)
4
210.4
0.02
—
210.3
—
CEO transition costs (1)
5
210.4
0.02
—
210.3
—
Adjusted (Non-GAAP)
$
88
210.4
$
0.42
$
86
210.3
$
0.41
(1)
Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.7% for deductible items and 0% for non-deductible items.
Nine Months Ended September 30, 2025
Nine Months Ended September 30, 2024
(in millions, except for per share data)
Net Income
Diluted Shares
Diluted EPS
Net Income
Diluted Shares
Diluted EPS
As Reported - GAAP
$
184
210.3
$
0.87
$
231
210.2
$
1.10
Adjustments:
Debt refinancing expense (1)
10
210.3
0.05
—
210.2
—
Costs to execute strategic initiatives (1)
13
210.3
0.06
—
210.2
—
CEO transition costs (1)
13
210.3
0.06
—
210.2
—
Adjusted (Non-GAAP)
$
220
210.3
$
1.05
$
231
210.2
$
1.10
(1)
Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.7% for deductible items and 0% for non-deductible items.
Reynolds Consumer Products Inc.
Reconciliation of Trailing Twelve Months Net Income to Trailing Twelve Months Adjusted EBITDA
(amounts in millions)
Twelve Months Ended
September 30, 2025
Twelve Months Ended
December 31, 2024
Net income – GAAP
$
305
$
352
Income tax expense
93
99
Interest expense, net
86
98
Debt refinancing expense
13
—
Depreciation and amortization
133
129
Costs to execute strategic initiatives
17
—
CEO transition costs
14
—
Adjusted EBITDA (Non-GAAP)
$
661
$
678
Reynolds Consumer Products Inc.
Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA
(amounts in millions, except for Net Debt to Trailing Twelve Months Adjusted EBITDA)
As of September 30, 2025
Current portion of long-term debt
$
16
Long-term debt
1,613
Total debt
1,629
Cash and cash equivalents
(53
)
Net debt (Non-GAAP)
$
1,576
For the twelve months ended September 30, 2025
Adjusted EBITDA (Non-GAAP)
$
661
Net Debt to Trailing Twelve Months Adjusted EBITDA
2.4x
As of December 31, 2024
Current portion of long-term debt
$
—
Long-term debt
1,686
Total debt
1,686
Cash and cash equivalents
(137
)
Net debt (Non-GAAP)
$
1,549
For the twelve months ended December 31, 2024
Adjusted EBITDA (Non-GAAP)
$
678
Net Debt to Trailing Twelve Months Adjusted EBITDA
2.3x
Reynolds Consumer Products Inc.
Reconciliation of Q4 2025 and FY2025 Net Income Guidance to Adjusted EBITDA Guidance
(amounts in millions)
Three Months Ended December 31, 2025
Year Ended December 31, 2025
Low
High
Low
High
Net income (GAAP)
$
110
$
118
$
294
$
302
Income tax expense
33
35
89
91
Interest expense, net
21
21
84
84
Debt refinancing expense
—
—
13
13
Depreciation and amortization
35
35
135
135
CEO transition and strategic initiatives costs
9
9
40
40
Adjusted EBITDA
$
208
$
218
$
655
$
665
Reynolds Consumer Products Inc.
Reconciliation of Q4 2025 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance
(amounts in millions, except per share data)
Net Income
Diluted Shares Outstanding
Diluted Earnings Per Share
Low
High
Low
High
Q4 2025 - Guidance
$
110
$
118
210.3
$
0.52
$
0.56
Adjustments:
CEO transition and strategic initiatives costs (1)
7
7
210.3
0.03
0.03
Q4 2025 - Adjusted Guidance
$
117
$
125
210.3
$
0.56
$
0.60
Reynolds Consumer Products Inc.
Reconciliation of Fiscal Year 2025 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance
(amounts in millions, except per share data)
Net Income
Diluted Shares Outstanding
Diluted Earnings Per Share
Low
High
Low
High
Fiscal Year 2025 - Guidance
$
294
$
302
210.3
$
1.40
$
1.44
Adjustments:
Debt refinancing expense (1)
10
10
210.3
0.05
0.05
CEO transition and strategic initiatives costs (1)
33
33
210.3
0.16
0.16
Fiscal Year 2025 - Adjusted Guidance
$
337
$
345
210.3
$
1.60
$
1.64
(1)Amounts are after tax calculated using a tax rate of 23.7%, which is the Company’s expected tax rate for Q4 and FY 2025.