REYN Q3 Revenue Reaches $944 Million as Lower Volumes Pressure Segment Earnings

REYN reported third-quarter 2026 net revenue of $944 million and adjusted EBITDA of $163 million, with a 17% adjusted EBITDA margin, as pricing helped counter significant commodity inflation but weaker volumes pressured earnings across several businesses. The company said results were in line with its guidance and provided full-year adjusted EBITDA guidance of $660 million to $675 million.

Pricing was most pronounced in Reynolds Cooking & Kitchen Essentials, where net revenue rose 9% to $337 million, including an 18% price increase intended to recover higher input costs. Pricing fully offset those costs, but lower volumes reduced adjusted EBITDA by $4 million to $49 million, producing a 15% margin.

Hefty Waste & Clean-Up generated $248 million in revenue, up $4 million and including a 5% price increase to recover input-cost inflation. Adjusted EBITDA increased $4 million to $76 million, supported by supply-chain productivity gains, while the segment’s margin reached 31%.

Results weakened in the other two businesses. Hefty Home & Tableware revenue fell $14 million to $186 million as volume was affected by price elasticities and continued declines in foam products. Adjusted EBITDA decreased $4 million to $25 million, primarily because of lower volume.

Hefty Storage & Organization revenue declined $8 million to $172 million, reflecting the timing of volume following strong second-quarter promotions. Adjusted EBITDA fell $6 million to $30 million, also mainly due to lower volumes.

Year-to-Date Performance

For the first nine months of 2026, REYN recorded net revenue of $2.77 billion and adjusted EBITDA of $464 million, representing a 17% margin.

Excluding corporate and unallocated amounts, year-to-date revenue in Reynolds Cooking & Kitchen Essentials increased to $966 million from $862 million, while adjusted EBITDA rose to $147 million from $140 million. Hefty Waste & Clean-Up revenue remained at $705 million and adjusted EBITDA was unchanged at $206 million.

Hefty Home & Tableware revenue declined to $583 million from $622 million, although adjusted EBITDA increased to $96 million from $81 million. Hefty Storage & Organization revenue edged up to $506 million from $500 million, while adjusted EBITDA decreased to $84 million from $86 million.

The company realigned two business segments at the start of 2026 to support operating and commercial efficiencies, sharpen its innovation focus and facilitate expansion into adjacent categories. The waste-bag business was moved into Hefty Waste & Clean-Up, while the food-bag business was transferred to Hefty Storage & Organization. Prior-period segment results were recast for comparability, with no change to previously reported consolidated results.

2026 Outlook

For full-year 2026, REYN expects net revenue growth of 1% to 3%. It projects GAAP net income of $307 million to $320 million and adjusted net income of $332 million to $345 million. GAAP earnings per share are expected to range from $1.45 to $1.51, with adjusted EPS of $1.57 to $1.63.

Fourth-quarter net revenue is expected to range from a 3% decline to 3% growth. The company forecasts net income and adjusted net income of $101 million to $114 million, EPS and adjusted EPS of $0.48 to $0.54, and adjusted EBITDA of $196 million to $211 million.

Management said it remains focused on productivity initiatives while continuing to invest in brands, innovation and other strategic priorities. Execution will remain important as the company manages commodity inflation and uneven volume trends through the remainder of the year.

The outlook is subject to risks including changes in commodity costs, tariffs, consumer demand, retailer inventory and promotional decisions, inflation, and the company’s ability to recover higher costs through pricing. Other uncertainties cited include acquisition integration, environmental obligations and broader volume trends. Adjusted EBITDA, adjusted net income and adjusted EPS are non-GAAP measures and may not be comparable with similarly named measures reported by other companies.