Reynolds Consumer Products Inc (NASDAQ:REYN) Q3 2025 Earnings Top Estimates, Shares Rise

Reynolds Consumer Products Inc (NASDAQ:REYN) has reported financial results for the third quarter of 2025 that surpassed analyst expectations, leading to a positive market reaction in pre-market trading.

Earnings and Revenue Performance

The household essentials company posted revenue of $931 million for the quarter, representing a 2.3% increase compared to the same period last year. This figure came in ahead of Wall Street's consensus estimate of approximately $916.7 million. The company's performance was particularly notable given the challenging operating environment highlighted in its earnings release.

On the profitability front, Reynolds delivered adjusted earnings per share of $0.42, exceeding analyst projections of $0.40. The company's ability to outperform on both top and bottom-line metrics demonstrates effective execution amid market headwinds.

Key financial highlights from the quarter include:

• Net revenues of $931 million versus $910 million in Q3 2024
• Adjusted net income of $88 million compared to $86 million in the prior year period
• Adjusted EBITDA of $168 million versus $171 million in Q3 2024

Business Segment Performance

The company's results were driven by varied performance across its four business units, with three of the four segments showing revenue growth:

• Hefty Waste & Storage: Net revenues increased $13 million to $266 million, with retail volume growing 5% driven by distribution gains and innovation
• Presto Products: Net revenues increased $13 million to $163 million, with retail volume up 9% as the portfolio gained market share
• Reynolds Cooking & Baking: Net revenues increased $14 million to $308 million despite a 3% decrease in retail volume
• Hefty Tableware: Net revenues decreased $22 million to $200 million, primarily driven by a 13% decline in retail volume due to continued foam product declines

Forward Guidance and Market Reaction

Management provided fourth quarter and full-year 2025 guidance that suggests confidence in the company's trajectory. For the upcoming fourth quarter, the company expects net revenues of $1.05 billion at the midpoint, which stands approximately 6.3% above analyst estimates of $1.01 billion.

The market responded positively to these results and outlook, with shares rising approximately 1.3% in pre-market trading following the earnings announcement. This price action indicates investor approval of the company's ability to exceed expectations and maintain a positive growth outlook amid current economic challenges.

Financial Position and Capital Allocation

The company maintained a solid financial position, ending the quarter with net debt to trailing twelve months adjusted EBITDA of 2.4x, within its target leverage range. Subsequent to quarter end, Reynolds made a voluntary principal payment of $50 million on its term loan facility. The Board of Directors also approved a quarterly dividend of $0.23 per common share, demonstrating commitment to shareholder returns.

CEO Scott Huckins commented on the results, stating, "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."

For investors seeking more detailed analysis of Reynolds Consumer Products' earnings and future estimates, additional information is available through the company's earnings and estimates portal.

Disclaimer: This article presents financial information for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with financial advisors before making investment decisions.