Reynolds Consumer Products Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 4 raised, 10 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 2% to $931 million: Net revenues were $931 million against $910 million a year earlier. Retail net revenues rose 1% to $864 million. Source
• Adjusted EBITDA fell to $168 million: Adjusted EBITDA was $168 million against $171 million a year earlier. Diluted EPS was $0.38 against $0.41. Source
• Tableware revenue and volume fell: Net revenues fell $22 million to $200 million. Adjusted EBITDA rose $3 million to $29 million on better pricing and input-cost alignment and promotional discipline, partly offset by lower volume. Source
• Share gains in most categories: All four business units improved, management said, with share gains in most categories. The CEO described the company as winning in a challenging environment. Source
• Pricing fully offset input cost increases: Year-to-date, pricing actions fully offset input cost increases. Promotional and SG&A discipline reduced spending; year-to-date SG&A was $300 million against $329 million. Source
• Full-year adjusted EPS raised: The adjusted EPS range is $1.60 to $1.64, up from $1.54 to $1.61. The release headline described this as lifting the full-year revenue and adjusted EPS guide. Source
• Fourth-quarter revenue down 1% to 5%: Fourth-quarter 2025 net revenues are expected down 1% to 5% against $1,021 million a year earlier. Net income is expected at $110 million to $118 million. Source

“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”

Scott Huckins, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year net revenues range moved from down low single digits to flat to down 1%. Source
• Guidance raised: Full-year adjusted EPS range raised to $1.60 to $1.64 from $1.54 to $1.61. Source
• New guidance: Fourth-quarter 2025 guidance given for the first time; the prior release gave third-quarter guidance only. Source
• New: Voluntary $50 million principal payment on the term loan facility after quarter end. Source
• New: Certain international-distribution product lines moved between segments; prior-period segment figures recast. Source

Quarter results and growth drivers

• Revenue rose 2% to $931 million: Net revenues were $931 million against $910 million a year earlier. Retail net revenues rose 1% to $864 million. Source
• Retail volume fell 2% in total: Total retail volume decreased 2%, ahead of category performance. Excluding a 3-point foam headwind, retail volume rose 1%. Source
• Adjusted net income rose to $88 million: Adjusted net income was $88 million against $86 million. GAAP net income was $79 million against $86 million, including $9 million of after-tax CEO transition costs and strategic investments. Source
• Adjusted EBITDA fell to $168 million: Adjusted EBITDA was $168 million against $171 million a year earlier. Diluted EPS was $0.38 against $0.41. Source
• Year-to-date revenue nearly flat: Year-to-date net revenues were $2,687 million against $2,675 million, and year-to-date adjusted EBITDA was $447 million against $465 million. Source
• Year-to-date net income fell: Net income was $184 million against $231 million, with after-tax debt refinancing costs and CEO transition and strategic costs included. Adjusted EPS was $1.05 against $1.10. Source

Segment results

• Cooking & Baking revenue rose $14 million: Net revenues rose to $308 million and adjusted EBITDA rose $3 million to $53 million. Retail volume fell 3%, improving sequentially on Reynolds Wrap share gains and Reynolds Kitchens growth. Source
• Waste & Storage retail volume rose 5%: Net revenues rose $13 million to $266 million and adjusted EBITDA rose $2 million to $74 million. Higher revenue drove the EBITDA gain, partly offset by higher operating costs. Source
• Tableware revenue and volume fell: Net revenues fell $22 million to $200 million. Adjusted EBITDA rose $3 million to $29 million on better pricing and input-cost alignment and promotional discipline, partly offset by lower volume. Source
• Presto retail volume rose 9%: Net revenues rose $13 million to $163 million and adjusted EBITDA rose $2 million to $35 million, driven by volume growth. Presto gained share in store-brand food bags. Source
• Unallocated adjusted EBITDA was negative: Unallocated adjusted EBITDA was negative $23 million against negative $10 million a year earlier, covering corporate expenses not allocated to segments. Source

“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”

Nathan Lowe, Chief Financial Officer

Products, customers and share

• Share gains in most categories: All four business units improved, management said, with share gains in most categories. The CEO described the company as winning in a challenging environment. Source
• Non-retail aluminum sales rose $13 million: Non-retail revenues, which are aluminum sales to food service and industrial customers, rose to $67 million in the quarter. Source
• First-quarter retailer destocking hit year-to-date volume: The year-to-date adjusted EBITDA decline was attributed partly to first-quarter retailer destocking, along with higher operational costs. Source

Costs, pricing and margins

• Lower volumes partly offset by pricing: Management attributed the quarter's adjusted EBITDA decline to lower volumes, partly offset by pricing aligned with higher costs. Cooking & Baking cited lower operating costs, and Tableware cited promotional discipline. Source
• Gross profit fell to $233 million: Gross profit was $233 million against $239 million, with cost of sales at $698 million against $671 million. Year-to-date gross profit was $648 million against $698 million. Source
• Pricing fully offset input cost increases: Year-to-date, pricing actions fully offset input cost increases. Promotional and SG&A discipline reduced spending; year-to-date SG&A was $300 million against $329 million. Source

“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.”

Nathan Lowe, Chief Financial Officer

Full-year and fourth-quarter guidance

• Full-year revenue now flat to down 1%: Full-year 2025 net revenues are now expected flat to down 1% against $3,695 million in 2024, compared with down low single digits previously. Source
• Full-year adjusted EPS raised: The adjusted EPS range is $1.60 to $1.64, up from $1.54 to $1.61. The release headline described this as lifting the full-year revenue and adjusted EPS guide. Source
• Full-year adjusted EBITDA range set: Adjusted EBITDA is now $655 million to $665 million, against $650 million to $670 million before. Net income is $294 million to $302 million and EPS $1.40 to $1.44. Source
• Adjustments include about $40 million: Adjusted items include about $40 million of pre-tax CEO transition and strategic-investment costs, up from $25 million to $35 million earlier. Depreciation and amortization is estimated at $135 million. Source
• Fourth-quarter revenue down 1% to 5%: Fourth-quarter 2025 net revenues are expected down 1% to 5% against $1,021 million a year earlier. Net income is expected at $110 million to $118 million. Source
• Fourth-quarter earnings ranges set: Fourth-quarter GAAP EPS is expected at $0.52 to $0.56 and adjusted EPS at $0.56 to $0.60, with adjusted EBITDA of $208 million to $218 million. Source

Balance sheet, cash and dividend

• Net debt of $1,576 million: At September 30, 2025, cash was $53 million and total debt $1,629 million, with net debt of $1,576 million against $1,549 million at December 31, 2024. Source
• Leverage 2.4x within target range: Net debt to trailing twelve-month adjusted EBITDA was 2.4x, within the Company's target leverage range, compared with 2.3x at December 31, 2024. Source
• Operating cash flow lower, capex higher: Operating cash flow was $240 million for the nine months against $307 million, and capital expenditure was $124 million against $79 million. Source
• Dividend approved, unchanged: The Board approved a quarterly dividend unchanged from the prior quarter. Dividends paid for the nine months were $144 million, the same as a year earlier. Source

Strategy, programs and leadership

• Becoming a more agile organization: The CEO said the company is becoming a more agile organization while implementing programs that leverage its US-centric business model. Source
• Programs to add growth and margin: The prior release said programs were being implemented to drive additional growth, margin and returns.
• Strategic initiative costs in quarter: Costs to execute cost-savings and revenue-growth initiatives were $5 million pre-tax in the quarter and $17 million year to date. Source
• CEO transition costs in quarter: CEO transition costs were $6 million pre-tax in the quarter and $14 million year to date, following the transition effective January 1, 2025. Source
• International product lines moved between segments: Product lines supporting international distribution were reassigned across segments. Prior periods were recast; consolidated results were not affected. Source

Coming up, as management said on 29 October 2025

• Dividend payment and record date: Payment is set for November 28, 2025, to holders of record on November 14, 2025. Source

Figures management reported

Risks management discussed

• Demand: Continued foam declines are cited as the main driver of the Hefty Tableware retail volume decline. Source
• External: Higher costs require pricing alignment, and lower volumes absorbed part of that benefit in the quarter. Source
• Operational: Higher operating costs in Hefty Waste & Storage offset part of the revenue-driven EBITDA gain. Source

Earlier plans management reported on

• Ahead: Management said the quarter's results were above expectations it had previously communicated. Source
• On track: The prior release said the company was on track to begin realizing program benefits late in 2025. This release says benefits are starting to come through.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.