Reynolds Consumer Products narrowly beat Wall Street expectations in the third quarter of 2026, reporting adjusted earnings of $0.39 per share against a $0.38 estimate. Revenue reached $944 million, above the $934.89 million forecast and up 1.4% from $931 million a year earlier.
The results came amid continued pressure from higher commodity costs and softer demand. Retail volumes fell 7% during the quarter, while retail revenue was broadly flat at $865 million. Adjusted net income declined to $83 million from $88 million a year ago, and adjusted EBITDA fell to $163 million from $168 million. Adjusted earnings were down from $0.42 per share in the prior-year quarter.
Chief Executive Scott Huckins said pricing actions and supply-chain productivity helped the company address inflation while continuing to invest in its brands. He also noted that consumers remain under pressure, with shoppers increasingly seeking promotions, lower-priced products and larger value packs.
Reynolds said gross profit growth continued to outpace volume declines. Year to date, retail volumes were down 3%, while gross profit increased 6%. The company highlighted double-digit retail dollar takeaway growth for Reynolds Wrap despite higher aluminum costs, as well as distribution gains for Hefty waste bags and share gains in selected tableware and storage products.
The company kept its 2026 guidance unchanged, forecasting revenue growth of 1% to 3%, adjusted EBITDA of $660 million to $675 million, adjusted net income of $332 million to $345 million, and adjusted earnings of $1.57 to $1.63 per share. For the fourth quarter, it expects revenue of $1.024 billion to $1.044 billion and adjusted EBITDA of $196 million to $211 million, with earnings per share projected at $0.48 to $0.54.
Management cited commodity costs and consumer behavior as key uncertainties behind the fourth-quarter range. It also said aluminum inflation represents an estimated annualized headwind of about $400 million. Reynolds completed its acquisition of Owl’s Head Alloys in October, which it expects to support its aluminum supply chain over time but to have only a limited effect on 2026 results.
Reynolds shares closed at $24.09, down 2.27% during the regular session, and were unchanged in after-hours trading. The company said it plans to focus on merchandising and seasonal promotions, product innovation, supply-chain productivity and digital commerce.
Sources: Investing.com News.