Reynolds Consumer Products Inc.
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
REYN$24.11-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001628280-26-030951
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050419
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 136 current paragraphs.
79 unchanged; 27 reworded; 19 added; 4 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 10 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Total net revenues increased 4% in the six months ended June 30, 2026 compared to the same period in 2026. The increase was primarily driven by higher pricing in response to higher input costs, partially offset by lower volume.
Current report
Cost of Sales. Cost of sales decreased by $13 million, or 2%, to $699 million. The decrease was primarily driven by lower operational costs and lower volume.
Current report
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $11 million, or 11%, to $107 million, primarily driven by higher personnel costs, higher professional fees and higher advertising costs.
Current report
Adjusted EBITDA. Hefty Storage & Organization Adjusted EBITDA decreased by $3 million, or 10%, to $27 million. The decrease in Adjusted EBITDA was primarily driven by costs associated with the ramp up of new business and higher promotional activity.
Current report
Results of Operations – Six Months Ended June 30, 2026
Current report
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Current report
Total Reynolds Consumer Products
Current report
Total Net Revenues. Total net revenues increased by $65 million, or 4% to $1,821 million. The increase was primarily driven by higher pricing in response to higher input costs, partially offset by lower volume.
Current report
Interest Expense, Net. Interest expense, net increased by $2 million, or 5%, to $44 million.
Current report
Debt Refinancing Expense. In connection with the refinancing of our senior secured term loan facility in March 2025, we recorded debt refinancing expense of $13 million in the six months ended June 30, 2025.
Current report
Adjusted EBITDA. Adjusted EBITDA increased by $23 million, or 8%, to $302 million. The increase in Adjusted EBITDA was primarily attributable to the timing of pricing actions in relation to input cost increases and lower operational costs, partially offset by higher selling, general and administrative expenses.
Current report
Segment Information
Current report
Total Segment Net Revenues. Reynolds Cooking & Kitchen Essentials total segment net revenues increased by $75 million, or 14%, to $629 million. The increase in net revenues was primarily due to higher pricing in response to higher input costs, partially offset by lower volume.
Current report
Adjusted EBITDA. Reynolds Cooking & Kitchen Essentials Adjusted EBITDA increased by $10 million, or 11%, to $97 million. The increase in Adjusted EBITDA was primarily driven by lower operational costs and the timing of pricing actions in relation to input cost increases and lower operational costs.
Current report
Total Segment Net Revenues. Hefty Waste & Clean-Up total segment net revenues decreased by $5 million, or 1%, to $457 million. The decrease in net revenues was primarily driven by the timing of promotional activities and lower volume.
Current report
Adjusted EBITDA. Hefty Waste & Clean-Up Adjusted EBITDA decreased by $3 million, or 2%, to $131 million. The decrease in Adjusted EBITDA was primarily driven by lower revenue and higher logistics costs, partially offset by lower operational costs.
Current report
Total Segment Net Revenues. Hefty Home & Tableware total segment net revenues decreased by $24 million, or 6%, to $397 million. The decrease in net revenues was primarily due to lower foam volume, partially offset by the wrap-around of prior year price increases.
Current report
Adjusted EBITDA. Hefty Home & Tableware Adjusted EBITDA increased by $20 million, or 38%, to $72 million. The increase in Adjusted EBITDA was primarily due to lower operational costs. The impact of lower volume was partially offset by reduced promotional activity.
Current report
Total Segment Net Revenues. Hefty Storage & Organization total segment net revenues increased by $15 million, or 5%, to $335 million. The increase in net revenues was primarily driven by higher volume, partially offset by the timing of promotional activities.
Removed paragraphs (4)
Previous report
Reynolds Cooking & Kitchen Essentials
Previous report
Hefty Waste & Clean-Up
Previous report
Hefty Home & Tableware
Previous report
Hefty Storage & Organization
Reworded paragraphs (27)
Previous wording
In January 2026, we reorganized the previous Hefty Waste & Storage and Presto Products segments by consolidating waste bags into the new Hefty Waste & Clean-Up segment and food bags and storage products into the new Hefty Storage & Organization segment in an effort to increase efficiencies, sharpen focus on innovation and establish a structure that can better facilitate entry into adjacent categories. Comparative segment disclosures have been recast to reflect this realignment. Prior periods will be similarly recast in each quarterly update during 2026. These changes had no effect on our previously reported condensed consolidated results of operations. In addition to the segment realignment, we have renamed our existing Reynolds Cooking & Baking segment and Hefty Tableware segment to Reynolds Cooking & Kitchen Essentials and Hefty Home & Tableware, respectively.
Current wording
In January 2026, we reorganized the previous Hefty Waste & Storage and Presto Products segments by consolidating waste bags into the new Hefty Waste & Clean-Up segment and food bags and storage products into the new Hefty Storage & Organization segment in an effort to increase efficiencies, sharpen focus on innovation and establish a structure that can better facilitate entry into adjacent categories. Comparative segment disclosures have been recast to reflect this realignment. Prior periods will be similarly recast in our future reports for the remainder of 2026. These changes had no effect on our previously reported condensed consolidated results of operations. In addition to the segment realignment, we have renamed our existing Reynolds Cooking & Baking segment and Hefty Tableware segment to Reynolds Cooking & Kitchen Essentials and Hefty Home & Tableware, respectively.
Previous wording
Total net revenues increased 7% in thethree months ended March 31, 2026 compared to the same period in 2025. The revenue increase wasdue to higher pricing and higher retail volume.
Current wording
Total net revenues increased 1% in thethree months ended June 30, 2026 compared to the same period in 2025. The increase was primarilydue tohigher pricing in response to higher input costs and the timing of promotional activity partially offset by lower volume.
Previous wording
During the three months ended March 31, 2026, our net income increased by 90% compared to the same period in 2025, primarily driven by costs related to strategic initiatives and our CEO transition in the prior year period that did not repeat and higher revenue, partially offset by higher input costs.
Current wording
During thesix months ended June 30, 2026, our net income increased by 41% compared to the same period in 2025, primarily driven by higher revenue, lower operational costs, and costs related to strategic initiatives and our CEO transition in the prior year period that did not repeat, partially offset by higher input costs and higher selling, general and administrative expenses.
Previous wording
The following table presents a reconciliation of our net income and diluted EPS, the most directly comparable GAAP financial measure, to Adjusted Net Income and Adjusted Diluted EPS:
Current wording
The following tables present reconciliations of our net income and diluted EPS, the most directly comparable GAAP financial measure, to Adjusted Net Income and Adjusted Diluted EPS:
Previous wording
(1) Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.9% for deductible items and 0% for non-deductible items.
Current wording
(1) Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.5% for deductible items and 0% for non-deductible items.
Previous wording
Total Net Revenues. Total net revenues increased by $59 million, or 7%, to $877 million. The increase was drivenby higher pricing, reflecting pricing actions to recover higher input costs, and higher retail volume.
Current wording
Total Net Revenues. Total net revenues increased by $6 million, or 1%, to $944 million. The increase was drivenby higher pricing in response to higher input costs and the timing of promotional activity, partially offset by lower volume.
Previous wording
Other Expense, Net. Other expense, net decreased by $9 million, or 100%, reflecting costs to execute strategic initiatives and costs associated with our CEO transition in the prior year period that did not repeat in the current year.
Current wording
Other Expense, Net. Other expense, net decreased by $12 million, or 100%, reflecting costs to execute strategic initiatives and costs associated with our CEO transition in the prior year period that did not repeat in the current year period.
Previous wording
Income Tax Expense. We recognized income tax expense of $18 million on income before income taxes of $77 million (an effective tax rate of 23.6%) for the three months ended March 31, 2026 compared to income tax expense of $11 million on income before income taxes of $42 million (an effective tax rate of 24.5%) for the three months ended March 31, 2025.
Current wording
Income Tax Expense. We recognized income tax expense of $27 million on income before income taxes of $116 million (an effective tax rate of 23.6%) for the three months ended June 30, 2026 compared to income tax expense of $23 million on income before income taxes of $96 million (an effective tax rate of 23.7%) for the three months ended June 30, 2025.
Previous wording
Adjusted EBITDA. Adjusted EBITDA increased by $14 million, or 12%, to $131 million. The increase in Adjusted EBITDA was driven by higher retail volume and manufacturing efficiencies, partially offset by higher selling, general and administrative costs. The impact of higher pricing was offset by higher material costs.
Current wording
Adjusted EBITDA. Adjusted EBITDA increased by $8 million, or 5%, to $171 million. The increase in Adjusted EBITDA was driven by lower operational costs, partially offset by lower volume and higher selling, general and administrative expenses.
Previous wording
Total Segment Net Revenues. Reynolds Cooking & Kitchen Essentials total segment net revenues increased by $55 million, or 21%, to $314 million. The increase in net revenues was primarily due to higher pricing, reflecting pricing actions to recover higher input costs, and higher retail volume.
Current wording
Total Segment Net Revenues. Reynolds Cooking & Kitchen Essentials total segment net revenues increased by $19 million, or 6%, to $314 million. The increase in net revenues was primarily due to higher pricing, in response to higher input costs, partially offset by lower volume.
Previous wording
Adjusted EBITDA. Reynolds Cooking & Kitchen Essentials Adjusted EBITDA increased by $6 million, or 16%, to $44 million. The increase was primarily driven by increased volume as the pricing actions were offset higher material costs.
Current wording
Adjusted EBITDA. Reynolds Cooking & Kitchen Essentials Adjusted EBITDA increased by $4 million, or 8%, to $53 million. The increase was primarily driven by lower operational costs, partially offset by the impact of lower volume.
Previous wording
Total Segment Net Revenues. Hefty Waste & Clean-Up total segment net revenues decreased by $2 million, or 1%, to $224 million. The decrease in net revenues was due to slightly lower volume.
Current wording
Total Segment Net Revenues. Hefty Waste & Clean-Up total segment net revenues decreased by $3 million, or 1%, to $233 million. The decrease in net revenues was due to the timing of promotional activities.
Previous wording
Adjusted EBITDA. Hefty Waste & Clean-Up Adjusted EBITDA was flat at $62 million as manufacturing efficiencies offset the impact of lower revenue.
Current wording
Adjusted EBITDA. Hefty Waste & Clean-Up Adjusted EBITDA decreased by $3 million, or 4%, to $69 million. The decrease was due to the impact of lower revenue.
Previous wording
Total Segment Net Revenues. Hefty Home & Tableware total segment net revenues increased by $1 million, or 1%, to $180 million. The increase in net revenues was primarily due to higher pricing, including a reduction in certain promotional activities, partially offset by lower foam volume.
Current wording
Total Segment Net Revenues. Hefty Home & Tableware total segment net revenues decreased by $25 million, or 10%, to $217 million. The decrease in net revenues was primarily due to lower volume, primarily foam, partially offset by reduced promotional activity.
Previous wording
Adjusted EBITDA. Hefty Home & Tableware Adjusted EBITDA increased by $11 million, or 65%, to $28 million. The increase in Adjusted EBITDA was primarily driven by the timing of pricing actions relative to input costs and lower logistics costs.
Current wording
Adjusted EBITDA. Hefty Home & Tableware Adjusted EBITDA increased by $8 million, or 23%, to $43 million. The increase in Adjusted EBITDA was primarily driven by lower operational costs. The impact of lower volume was offset by reduced promotional activity.
Previous wording
Total Segment Net Revenues. Hefty Storage & Organization total segment net revenues increased by $6 million, or 4%, to $159 million. The increase in net revenues was due to higher volume.
Current wording
Total Segment Net Revenues. Hefty Storage & Organization total segment net revenues increased by $9 million, or 5%, to $176 million. The increase in net revenues was due to higher volume, partially offset by the timing of promotional activities.
Previous wording
Cost of Sales. Cost of sales increased by $41 million, or 7%, to $670 million. The increase was primarily driven by higher material costs, partially offset by manufacturing efficiencies.
Current wording
Cost of Sales. Cost of sales increased by $27 million, or 2%, to $1,368 million. The increase was primarily driven by higher input costs, partially offset by lower operational costs and lower volume.
Previous wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $5 million, or 5%, to $109 million, primarily driven by higher professional fees.
Current wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $15 million, or 7%, to $216 million, primarily driven by higher personnel costs and higher professional fees.
Previous wording
Adjusted EBITDA. Hefty Storage & Organization Adjusted EBITDA increased by $6 million, or 29%, to $27 million. The increase in Adjusted EBITDA was primarily driven by higher volume and manufacturing efficiencies.
Current wording
Adjusted EBITDA. Hefty Storage & Organization Adjusted EBITDA increased by $3 million, or 6%, to $54 million. The increase in Adjusted EBITDA was primarily driven by lower operational costs and higher volume, partially offset by the timing of promotional activities.
Previous wording
Net cash from operating activities increased by $15 million to $71 million in the three months ended March 31, 2026. The increase was primarily driven by higher net income.
Current wording
Net cash from operating activities increased by $26 million to $173 million in the six months ended June 30, 2026. The increase was primarily driven by higher net income partially offset by higher working capital.
Previous wording
Net cash used in investing activities increased by $5 million to $44 million. The increase was driven by higher cash outlays for capital expenditures.
Current wording
Net cash used in investing activities increased by $22 million to $101 million. The increase was driven by higher cash outlays for capital expenditures.
Previous wording
Net cash used in financing activities increased by $7 million to $103 million. The increase was primarily attributable to tax withholdings on stock awards.
Current wording
Net cash used in financing activities increased by $5 million to $153 million. The increase was primarily attributable to highertax withholdings on stock awards.
Previous wording
As of March 31, 2026, the outstanding balance under the Term Loan Facility was $1,536 million. As of March 31, 2026, we had no outstanding borrowings under the Revolving Facility, and we had $7 million of letters of credit outstanding, which reduces the borrowing capacity under the Revolving Facility.
Current wording
As of June 30, 2026, the outstanding balance under the Term Loan Facility was $1,536 million. As of June 30, 2026, we had no outstanding borrowings under the Revolving Facility, and we had $8 million of letters of credit outstanding, which reduces the borrowing capacity under the Revolving Facility.
Previous wording
During the three months ended March 31, 2026, we made voluntary principal payments of $50 million related to our Term Loan Facility.
Current wording
During the six months ended June 30, 2026, we made voluntary principal payments of $50 million related to our Term Loan Facility.
Previous wording
We are party to a factoring agreement with a global financial institution to sell certain accounts receivable up to $95 million. We had no factored receivables as of March 31, 2026. Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the condensed consolidated balance sheet at the time of the sales transaction. We classify proceeds received from sales of accounts receivable as an operating cash flow in the condensed consolidated statement of cash flows. We record the discount as other expense, net in the condensed consolidated statement of income.
Current wording
We are party to a factoring agreement with a global financial institution to sell certain accounts receivable up to $95 million. Factored receivables as of June 30, 2026 were$38 million. Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the condensed consolidated balance sheet at the time of the sales transaction. We classify proceeds received from sales of accounts receivable as an operating cash flow in the condensed consolidated statement of cash flows. We record the discount as other expense, net in the condensed consolidated statement of income.
Previous wording
All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable in our condensed consolidated balance sheet and associated payments are included as an operating cash flow in the condensed consolidated statement of cash flows. The amount of obligations outstanding that we have confirmed as valid under the SCF was $9 million as of each of March 31, 2026 and December 31, 2025.
Current wording
All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable in the condensed consolidated balance sheet and associated payments are included as an operating cash flow in the condensed consolidated statement of cash flows. As of June 30, 2026 and December 31, 2025, the amount of obligations outstanding that we have confirmed as valid under the SCF was $8 million and $9 million, respectively.
Previous wording
During the three months ended March 31, 2026, cash dividends of $0.23 per share, were declared and paid. On April 30, 2026, a quarterly cash dividend of $0.23 per share was declared and is to be paid on May 29, 2026. We expect to continue paying cash dividends on a quarterly basis; however, future dividends are at the discretion of our Board of Directors and will depend upon our earnings, capital requirements, financial condition, contractual limitations (including under the External Debt Facilities) and other factors.
Current wording
During the three and six months ended June 30, 2026, cash dividends of $0.23 and $0.46 per share, respectively, were declared and paid. On July 23, 2026, a quarterly cash dividend of $0.23 per share was declared and is to be paid on August 31, 2026. We expect to continue paying cash dividends on a quarterly basis; however, future dividends are at the discretion of our Board of Directors and will depend upon our earnings, capital requirements, financial condition, contractual limitations (including under the External Debt Facilities) and other factors.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
During the three months ended June 30, 2026, our net income increased by 22% compared to the same period in 2025, primarily driven by lower operational costs.
Current report — wording carried from elsewhere
(1) Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.5% for deductible items and 0% for non-deductible items.
Current report — wording carried from elsewhere
The following discussion should be read in conjunction with our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Detailed comparisons of revenue and results are presented in the discussions of the operating segments, which follow our consolidated results discussion.
Current report — wording carried from elsewhere
Certain discussions in this section provide a breakdown of net revenues between our retail and non-retail businesses. Our retail business net revenues consist of sales to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets and eCommerce retailers. Our non-retail business net revenues consist of aluminum sales to food service customers, which were classified as related party revenues through March 31, 2025, and industrial customers.
Current report — wording carried from elsewhere
Aggregation of Segment Revenue and Adjusted EBITDA
Current report — wording carried from elsewhere
(1)The unallocated net revenues include 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.
Current report — wording carried from elsewhere
(2)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.
Current report — wording carried from elsewhere
(1)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.
Current report — wording carried from elsewhere
Components of Change in Net Revenues for the Six Months Ended June 30, 2026 vs. the Six Months Ended June 30, 2025
Current report — wording carried from elsewhere
Other Expense, Net. Other expense, net decreased by $21 million, or 100%, to zero in the six months ended June 30, 2026, reflecting costs to execute strategic initiatives and costs associated with our CEO transition in the prior year period that did not repeat in the current year period.
Current report — wording carried from elsewhere
Income Tax Expense. We recognized income tax expense of $45 million on income before taxes of $193 million (an effective tax rate of 23.6%) for the six months ended June 30, 2026 compared to income tax expense of $33 million on income before taxes of $138 million (an effective tax rate of 23.9%) for the six months ended June 30, 2025.