Reynolds Consumer Products Inc.

What they do

RCP produces and sells aluminum foil, parchment paper, disposable bakeware, trash bags, food storage bags and disposable tableware. It sells branded products under Reynolds, Hefty, Reynolds Wrap, Reynolds Kitchens, EZ Foil, ALCAN, Diamond and Brute, alongside store brands for retail partners. Products are sold through grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets and eCommerce retailers.

Revenue drivers

• Reynolds Cooking & Kitchen Essentials — Sells branded and store brand foil, pans, parchment, freezer paper, wax paper, plastic wrap, oven bags and slow cooker liners; Q2 2026 net revenues were $314 million and it holds the #1 U.S. consumer foil position.
• Hefty Waste & Clean-Up — Produces branded and store brand trash bags under Hefty Ultra Strong, Hefty Strong, Hefty Essentials and Brute; Q2 2026 net revenues were $233 million, with #1 branded share in large black trash bags.
• Hefty Home & Tableware — Sells disposable and compostable plates, bowls, platters, containers, cups and cutlery; Q2 2026 net revenues were $217 million, led by Hefty party cups.
• Hefty Storage & Organization — Sells branded and store brand food bags and storage products; Q2 2026 net revenues were a record second quarter $176 million, with retail volumes up 8%.

Recent performance

Q2 2026 net revenues were $944 million versus $938 million in Q2 2025, with retail net revenues of $888 million and non-retail revenues of $56 million. Net income rose 22% to $89 million and Adjusted EBITDA rose to $171 million from $163 million. Diluted EPS increased 20% to $0.42, and Adjusted EPS rose 8% to $0.42 from $0.39. Retail volumes fell 5%, or 2% excluding foam, while manufacturing efficiency gains and lower volumes shaped segment results. Hefty Storage & Organization posted record second quarter revenues of $176 million.

Strategy

Management is executing a segment realignment effective January 1, 2026, consolidating waste bags into Hefty Waste & Clean-Up and food bags and storage into Hefty Storage & Organization, and renaming Reynolds Cooking & Baking to Reynolds Cooking & Kitchen Essentials and Hefty Tableware to Hefty Home & Tableware. The company is investing behind brands, innovation, strategic initiatives and entry into adjacent categories. Productivity initiatives are funding these investments while supporting margin expansion. Hefty partnerships include John Cena, Arm & Hammer and Fabuloso for odor control and scent. Reynolds offers sustainable options such as 100% recycled aluminum and unbleached parchment paper.

Risks

• Consumer preference shifts — Success depends on anticipating and responding to changes in consumer tastes and preferences that are difficult to predict and evolve over time.
• Customer concentration and consolidation — Large customers possess significant market leverage, creating downward pricing pressure and risk from loss of a significant customer or further consolidation.
• Competition and pricing pressure — The company faces competition and pricing pressures that can constrain its ability to pass through price increases.
• Commodity, tariff and supply costs — Costs of raw materials, energy, labor and freight, including tariffs and trade sanctions, can adversely affect results.

Outlook

Management reiterated full-year 2026 earnings outlook in the July 29, 2026 release. It cited a tough operating environment but stated that trusted brands, consumer value and retail partnerships position the company to execute against longer-term strategic priorities. The company expects to continue investing behind growth and strategic initiatives while driving productivity.