Reynolds Consumer Products Inc. (NASDAQ:REYN) reported stronger-than-expected second-quarter earnings on Wednesday, as the household goods maker continued to navigate a tough market environment. Shares rose 0.70% in premarket trading after the announcement.
For Q2, the company delivered adjusted earnings per share of $0.39, edging past the $0.38 consensus forecast. Revenue totaled $938 million, also exceeding Wall Street’s estimate of $898.95 million and showing a slight increase from $930 million in the same period a year earlier.
Despite the revenue gain, net income dropped to $73 million from $97 million in Q2 2024, a decline attributed to elevated costs and ongoing 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 CEO. “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 fell 1%, matching broader category trends. Adjusted EBITDA slipped to $163 million, compared to $172 million in the same quarter last year, due to lighter retail volumes and pricing actions not yet fully aligned with rising input costs.
Segment performance was mixed: the Hefty Waste & Storage division saw a 6% increase in retail volume, buoyed by strong sales of Hefty Fabuloso waste bags and Hefty Press to Close food storage bags. In contrast, Hefty Tableware posted a 5% decline in volume, stemming entirely from reduced demand for foam products.
The company reaffirmed its full-year 2025 guidance, projecting net sales to decline in the low single digits compared to 2024. It maintained its adjusted EBITDA outlook of $650 million to $670 million, with adjusted EPS expected to range between $1.54 and $1.61. For Q3, the company anticipates adjusted EPS of $0.37 to $0.41, in line with analyst expectations.
“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.”
Reynolds Consumer Products stock price
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