Reynolds matches Q3 EPS estimate, keeps 2026 revenue outlook

Reynolds (REYN) reported adjusted earnings of 39 cents per share for the third quarter ended Sept. 30, in line with the 39 cents consensus estimate, the company said on Nov. 4 in its press release. Shares were little changed in regular trading as of 9:58 a.m. ET.

Net revenues were $944 million, in line with the $953.46 million consensus estimate. The company said the figure was up from $931 million a year earlier.

Reynolds sells household essentials under its Reynolds and Hefty brands, for cooking, serving, clean-up and storage. The company says its products are found in 95% of U.S. homes.

Here's how the company did:

• Adjusted EPS: 39 cents vs. 42 cents a year earlier, in line with the 39 cents expected
• GAAP EPS: 28 cents vs. 38 cents a year earlier
• Net revenues: $944 million vs. $931 million a year earlier, in line with the $953.46 million expected
• Adjusted EBITDA: $163 million vs. $168 million a year earlier
• Net income: $58 million vs. $79 million a year earlier

Scott Huckins, President and Chief Executive Officer, said: "We delivered a solid third quarter in a volatile operating environment, acting decisively to address significant commodity inflation and delivering earnings in-line with our guidance." He added that the company made further progress on its productivity initiatives.

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, fell $5 million to $163 million. The company said the decline was driven by 7% lower retail volumes and higher selling, general and administrative costs, as it continues to reinvest in the business.

Segment results

Reynolds Cooking & Kitchen Essentials net revenues rose $29 million, or 9%, to $337 million, including an 18% price increase to recover input cost increases. Its adjusted EBITDA fell $4 million to $49 million.

Hefty Waste & Clean-Up net revenues increased $4 million to $248 million, including a 5% price increase. Adjusted EBITDA rose $4 million to $76 million, which the company attributed to productivity gains across the supply chain.

Hefty Home & Tableware net revenues decreased $14 million to $186 million, due to lower volumes driven by elasticities and continued foam declines. Hefty Storage & Organization net revenues decreased $8 million to $172 million, reflecting volume timing after strong second-quarter promotions.

2026 guidance

The company reiterated its full-year 2026 net revenue outlook of +1% to +3%, compared with 2025 net revenues of $3.72 billion. It now expects adjusted net income of $332 million to $345 million, up from the $331 million to $343 million range it gave on July 29.

Full-year adjusted EPS guidance is unchanged at $1.57 to $1.63. The company reiterated its full-year adjusted EBITDA outlook of $660 million to $675 million.

For the fourth quarter, the company expects adjusted EPS of 48 cents to 54 cents and adjusted EBITDA of $196 million to $211 million.

Acquisition, balance sheet and dividend

After the quarter ended, the company completed its acquisition of Owl's Head Alloys for $110 million on a cash-free, debt-free basis, subject to customary post-closing adjustments. It paid in cash from borrowings under its revolving credit facility. The company said the business adds specialized aluminum processing capabilities.

Cash and cash equivalents were $25 million at Sept. 30, and debt was $1.53 billion, resulting in net debt of $1.51 billion. Net debt to trailing twelve months adjusted EBITDA was 2.2 times, at the lower end of the company's target range.

Nathan Lowe, Chief Financial Officer, said: "With leverage at the low end of our target range, we are well positioned to continue investing across the business."

The board approved a quarterly dividend of 23 cents per common share, payable on Nov. 30 to shareholders of record as of Nov. 16.