Reynolds Consumer Products Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 raised, 3 lowered, 7 new, 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue edged up, earnings fell: Net revenues were $944 million against $931 million a year earlier. Net income fell to $58 million from $79 million, and diluted EPS to $0.28 from $0.38. Source
• Adjusted EBITDA down on lower volume: Adjusted EBITDA was $163 million against $168 million. The company attributed the decline mainly to 7% lower retail volumes and higher SG&A as it reinvested. Source
• Full-year guidance adjusted in Q3: Net income and diluted EPS guidance were lowered after third-quarter adjustments, while adjusted net income guidance was raised and adjusted EPS and EBITDA ranges held. Source
• Productivity funds reinvestment: Management said productivity progress allowed continued investment in brands, innovation and strategic initiatives. SG&A rose to $106 million from $99 million. Source
• Environmental reserve excluded from adjusted: A $25 million pre-tax environmental remediation reserve was recorded and excluded from adjusted results. After tax it was $19 million, or $0.09 per diluted share. Source
• Owl’s Head Alloys acquired for $110 million: After quarter end the company completed the Owl’s Head Alloys acquisition for $110 million, cash-free and debt-free, funded by revolving credit borrowings. Source
• Leverage at low end of target: Net debt to trailing twelve-month adjusted EBITDA was 2.2x, at the lower end of the target leverage range. Source

“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”

Scott Huckins, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance lowered: Full-year net income and diluted EPS guidance were lowered, attributed to third-quarter adjustments; previously $331 million to $343 million and $1.57 to $1.63. Source
• Guidance raised: Full-year adjusted net income guidance raised from $331 million to $343 million to $332 million to $345 million. Source
• New guidance: Fourth-quarter 2026 guidance provided for net revenues, net income, EPS, adjusted net income and adjusted EBITDA. Source
• Guidance kept: Full-year adjusted EPS guidance unchanged; full-year net revenue and adjusted EBITDA ranges reiterated. Source
• New: Owl’s Head Alloys acquisition completed after quarter end for $110 million, cash-free and debt-free. Source
• New: Environmental remediation reserve recorded this quarter at one manufacturing facility, excluded from adjusted results. Source

Third-quarter results and guidance

• Revenue edged up, earnings fell: Net revenues were $944 million against $931 million a year earlier. Net income fell to $58 million from $79 million, and diluted EPS to $0.28 from $0.38. Source
• Adjusted EBITDA down on lower volume: Adjusted EBITDA was $163 million against $168 million. The company attributed the decline mainly to 7% lower retail volumes and higher SG&A as it reinvested. Source
• Adjusted net income at high end: Adjusted net income was $83 million against $88 million, and adjusted EPS $0.39 against $0.42. Management described adjusted net income as at the high end of its earlier range. Source
• Full-year guidance adjusted in Q3: Net income and diluted EPS guidance were lowered after third-quarter adjustments, while adjusted net income guidance was raised and adjusted EPS and EBITDA ranges held. Source
• Fourth-quarter ranges introduced: Fourth-quarter guidance was given for the first time in this release for net revenues, net income, EPS and adjusted EBITDA. Implied revenue change is -3% to +3%. Source

Segment results

• Cooking and Kitchen Essentials revenue rose: Revenue rose $29 million to $337 million on an 18% price increase. Adjusted EBITDA fell $4 million to $49 million, as pricing offset input costs but lower volumes reduced profit. Source
• Waste and Clean-Up profit improved: Adjusted EBITDA rose $4 million to $76 million on supply-chain productivity gains. Revenue rose $4 million to $248 million, including a 5% price increase. Source
• Home and Tableware volumes declined: Revenue fell $14 million to $186 million on lower volumes from elasticities and continued foam declines. Adjusted EBITDA fell $4 million to $25 million. Source
• Storage and Organization fell on timing: Revenue fell $8 million to $172 million, reflecting volume timing after strong second-quarter promotions. Adjusted EBITDA fell $6 million to $30 million on lower volumes. Source

“With leverage at the low end of our target range, we are well positioned to continue investing across the business to strengthen our capabilities and extend our competitive position, while supporting long-term cash generation and returns to shareholders.”

Nathan Lowe, Chief Financial Officer

Pricing, volume and demand

• Retail sales flat on volume decline: Retail net revenues were $865 million against $864 million. Price increases offset a 7% decline in total volume/mix, according to the components table. Source
• Price increases recovered input costs: Cooking and Kitchen Essentials took an 18% price increase and Hefty Waste and Clean-Up 5%, both to recover input cost increases. Company-wide price rose 9%. Source
• Non-retail aluminum sales increased: Non-retail revenues were $79 million against $67 million, from aluminum sales to food service and industrial customers. Source

Costs and margins

• Productivity funds reinvestment: Management said productivity progress allowed continued investment in brands, innovation and strategic initiatives. SG&A rose to $106 million from $99 million. Source
• Gross profit rose modestly: Gross profit was $236 million against $233 million, with cost of sales at $708 million against $698 million. Commodity inflation was discussed as a significant pressure. Source
• Environmental reserve excluded from adjusted: A $25 million pre-tax environmental remediation reserve was recorded and excluded from adjusted results. After tax it was $19 million, or $0.09 per diluted share. Source

“Disciplined execution remains critical as we navigate the balance of the year, and we remain focused on delivering against our full-year 2026 outlook and establishing a strong foundation for future growth.”

Scott Huckins, President and Chief Executive Officer

Acquisition and strategy

• Owl’s Head Alloys acquired for $110 million: After quarter end the company completed the Owl’s Head Alloys acquisition for $110 million, cash-free and debt-free, funded by revolving credit borrowings. Source
• Aluminum processing capability added: OHA adds specialized aluminum processing that complements the manufacturing network and extends vertical integration. Source
• Segments realigned for adjacent categories: Effective January 1, Hefty Waste & Storage and Presto Products were realigned to improve efficiency, sharpen innovation and support adjacent categories. Prior periods were recast. Source

Cash, balance sheet and leverage

• Net debt rose to $1,506 million: Cash was $25 million and debt $1,531 million at September 30, against net debt of $1,464 million at June 30. Source
• Leverage at low end of target: Net debt to trailing twelve-month adjusted EBITDA was 2.2x, at the lower end of the target leverage range. Source
• Capital spending rose for nine months: Nine-month capital expenditures were $143 million, against $124 million a year earlier. Source
• Operating cash flow lower year on year: Nine-month net cash provided by operating activities was $224 million, against $240 million a year earlier. Source

Coming up, as management said on 4 November 2026

• Dividend payment date set: The $0.23 quarterly dividend is payable November 30, 2026, to holders of record on November 16, 2026. Source
• Continued investment planned: With leverage at the low end of its target range, management said it is well positioned to keep investing across the business. Source

Figures management reported

Risks management discussed

• External: Management described a volatile operating environment and significant commodity inflation, which the company acted to address through pricing. Source
• Demand: Hefty Home and Tableware revenue fell on lower volumes from price elasticities and continued foam declines. Source
• Demand: Retail volumes were 7% lower, which management cited as the main driver of the adjusted EBITDA decline. Source
• Regulatory: An estimated environmental remediation reserve was recorded for one manufacturing facility and excluded from adjusted results. Source

Earlier plans management reported on

• Met: Management said third-quarter earnings were in line with guidance. Source
• Met: Management said third-quarter adjusted net income was at the high end of its earlier range. Source
• Met: The segment realignment described in the first-quarter release took effect January 1. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.