Reynolds Consumer Products Reports Second Quarter 2025 Financial Results

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 Reiterating Fiscal 2025 Outlook

Reynolds Consumer Products Inc. (the "Company" or "RCP") (NASDAQ:REYN) today reported financial results for the second quarter ended June 30, 2025.

"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 Chief Executive Officer. "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."

Second Quarter 2025 Highlights

• Net Revenues of $938 million vs. $930 million in Q2 2024
  • Retail Net Revenues of $887 million was flat with the prior year
  • Retail volume decreased 1%, consistent with overall category performance, and increased modestly after accounting for a more than 1 point headwind from foam
  • Non-Retail Revenues, which comprises aluminum sales to food service and industrial customers, increased $12 million to $51 million
• Net Income of $73 million vs. $97 million in Q2 2024; Adjusted Net Income of $83 million vs. $97 million in Q2 2024 which included a discrete tax benefit of $10 million
• Adjusted EBITDA of $163 million vs. $172 million in Q2 2024
• Earnings Per Share of $0.35 vs. $0.46 in Q2 2024; Adjusted Earnings Per Share of $0.39 vs. $0.46 in Q2 2024 which included a discrete tax benefit of $0.05

Net Income was $73 million, including $10 million of after-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income was $83 million compared to Adjusted Net Income of $97 million for the second quarter of 2024, or $87 million excluding a discrete tax benefit of $10 million. Adjusted EBITDA decreased to $163 million year over year, driven by lower retail volume and the timing of pricing actions relative to input cost increases, which were partially offset by reductions in SG&A.

Reynolds Cooking & Baking

• Net Revenues increased $4 million to $295 million, reflecting higher Non-retail Revenues, partially offset by a 3% decline in Retail Net Revenues
• Adjusted EBITDA decreased $5 million to $49 million

Retail volume decreased 5% primarily reflecting promotional timing.

The Adjusted EBITDA decrease was driven by lower retail volumes and the timing of pricing actions relative to input cost increases.

Hefty Waste & Storage

• Net Revenues increased $11 million to $255 million
• Adjusted EBITDA was unchanged at $71 million

Retail volume increased 6%. Hefty Fabuloso® waste bags, Hefty Press to Close food bags and other new products continued to deliver strong growth.

Adjusted EBITDA was unchanged, as the benefit of higher revenue was offset by higher operational costs. Investment in new product launches in food bags and waste bags contributed to a 1% decrease in pricing.

Hefty Tableware

• Net Revenues decreased $9 million to $242 million
• Adjusted EBITDA decreased $4 million to $35 million

Retail volume decreased 5%, driven exclusively by foam declines.

The Adjusted EBITDA decrease was driven by lower foam volume and related costs.

Presto Products

• Net Revenues increased $2 million to $153 million
• Adjusted EBITDA decreased $4 million to $33 million

Retail volume increased 1% as Presto's portfolio gained additional share in store brand food bags.

The Adjusted EBITDA decrease was driven by higher operational costs associated with scaling new distribution.

Year to Date 2025 Highlights

• Net Revenues of $1,756 million vs. $1,764 million in the comparable prior year period
  • Retail Net Revenues decreased 2%
  • Retail volume decreased 2% driven by retailer destocking in the first quarter
  • Non-retail Revenues increased to $104 million
• Net Income of $105 million vs. $145 million in the comparable prior year period; Adjusted Net Income of $132 million vs. $145 million in the comparable prior year period, which included a discrete tax benefit of $10 million
• Adjusted EBITDA of $279 million vs. $294 million in the comparable prior year period
• Earnings Per Share of $0.50 vs. $0.69 in the comparable prior year period; Adjusted Earnings Per Share of $0.63 vs. $0.69 in the comparable prior year period, which included a discrete tax benefit of $0.05

Net Income was $105 million, including $27 million of after-tax debt refinancing costs, CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income was $132 million compared to Adjusted Net Income of $145 million for the first half of 2024, or $135 million excluding a discrete tax benefit of $10 million. Adjusted EBITDA was $279 million, driven by lower retail volume, including first quarter retailer inventory destocking, and the timing of pricing actions relative to input cost increases, which were partially offset by reductions in SG&A.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents were $57 million at June 30, 2025 and debt was $1,633 million resulting in Net Debt of $1,576 million.

Net Debt to Trailing Twelve Months Adjusted EBITDA¹ was 2.4x on June 30, 2025 and within the Company's target leverage range.

"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."

Full Year 2025 and Third Quarter Outlook

We are reiterating our full year 2025 guide. The Company continues to expect 2025 Net Revenues to be down low single digits by comparison to 2024 Net Revenues, Adjusted EBITDA of $650 million to $670 million, and Adjusted EPS of $1.54 to $1.61 for the year.

Third quarter 2025 Net Revenues are expected to be down low single digits versus third quarter 2024 Net Revenues of $910 million. Third quarter 2025 Adjusted EBITDA is expected to be in a range of $160 million to $170 million. Third quarter Adjusted EPS is expected to be $0.37 to $0.41.

Full-year 2025 expected Adjusted Net Income reflects the following estimated adjustments from Net Income: Debt refinancing costs recognized in the first quarter and approximately $25 to $35 million of pre-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. In addition, full-year 2025 expected Adjusted EBITDA excludes estimated depreciation and amortization of approximately $130 million.

Quarterly Dividend

The Company's Board of Directors has approved a quarterly dividend of $0.23 per common share. The Company expects to pay this dividend on August 29, 2025, to shareholders of record as of August 15, 2025.

Earnings Webcast

The Company will host a live webcast this morning at 7:00 a.m. CT (8:00 a.m. ET). A link to the webcast and all related earnings materials will be available on the Company's Investor Relations website at https://investors.reynoldsconsumerproducts.com.

About Reynolds Consumer Products Inc.

Reynolds Consumer Products is a leading provider of household essentials designed to simplify daily life, so consumers can enjoy what matters most. Found in 95% of U.S. homes, the Company offers trusted solutions for cooking, cleanup, food storage, and more. Its portfolio features iconic brands like Reynolds Wrap® aluminum foil and Hefty® trash bags and disposable tableware, along with store brand products tailored to retail partners. Reynolds holds the No. 1 or No. 2 market share in most of the categories it serves. Learn more at: investors.reynoldsconsumerproducts.com

Forward Looking Statements

This press release contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our ability to implement programs and make progress to drive additional growth, margin and returns, and our anticipated Net Revenue, Adjusted EBITDA, Adjusted EPS and Adjusted Net Income for full year and third quarter 2025. In some cases, you can identify these statements by forward-looking words such as "believe," "expect," "will," "should," "may," "might," "intends," "outlook," "forecast", "position," "committed," "plans," "anticipates," "estimates," "predicts," "model," "assumes," "confident," "look forward," "potential," "on track," or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and recovery of profitability, management of costs and other disruptions and other strategies, the impact of the imposition of tariffs, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q.

For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

REYN-F

Use of Non-GAAP Financial Measures

We use non-GAAP financial measures "Adjusted EBITDA," "Adjusted Net Income," "Adjusted Earnings Per Share," "Net Debt," and "Net Debt to Trailing Twelve Months Adjusted EBITDA" in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, debt refinancing expense, depreciation and amortization, costs to execute strategic initiatives and CEO transition costs. We define Adjusted Net Income and Adjusted Earnings Per Share ("Adjusted EPS") as Net Income and Earnings Per Share ("EPS") calculated in accordance with GAAP, plus the after-tax impact of debt refinancing expense, costs to execute strategic initiatives and CEO transition costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above) for the period.

We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted EPS as supplemental measures to evaluate our business' performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. We present Conversion of Adjusted EBITDA as it measures our management of working capital and profit conversion to cash. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.

Guidance for fiscal year and third quarter 2025, where adjusted, is provided on a non-GAAP basis. While the Company is providing estimated amounts for certain of the expected adjustments in this release, the Company cannot provide full reconciliations for its expected third quarter and fiscal year 2025 Adjusted EBITDA and Adjusted EPS to expected Net Income and expected EPS under "Full Year 2025 and Third Quarter Outlook" without unreasonable effort because certain items that impact Net Income and EPS and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information is not expected to have a significant impact on the Company's GAAP financial results.

Please see reconciliations of non-GAAP measures used in this release (with the exception of our full year and third quarter 2025 Adjusted EBITDA and Adjusted EPS outlook, as described above) to the most directly comparable GAAP measures, beginning on the following page.

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Investor Contact

Mark Swartzberg

[email protected]

(847) 482-4081