REYN Nasdaq Russell 1000 Earnings call
Reynolds Consumer Products (REYN) · Q2 2026 results and valuation
Share price: $24.81 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 6 May 2026
Net income up 50.8% on the previous quarter, guidance raised. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+50.8%
Net income vs Q1 2026
Guidance raised
Net income 89.0M vs 59.0M
Revenue +7.6%
Against the same quarter last year (Q2 2025) it is +21.9% — part of the move on last quarter is seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
New
Second-half revenue will depend more on pricing than volume, with demand expected to face pressure.
Valuation
Is Reynolds Consumer Products undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.8% growth a year (3-year revenue growth), the model's fair value is $9.19 a share — the stock trades 170% above it. Today's price assumes 8.5% growth a year.
Current price
$24.81
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.5% for 10 yrs
Fair value / share
$9.19
Buy below
$6.89
Price vs fair value
Overvalued 170%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Guidance ↑
REYN increased its revenue guidance to reflect higher pricing to recover commodity headwinds and first-half retail volume outperformance.
Source quote
“We are increasing our revenue guidance to reflect higher pricing to recover commodity headwinds as well as reflecting the first half retail volume outperformance.”
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Guidance
The company expects pricing to contribute more to revenue in the back half while accounting for demand pressure from corresponding elasticities.
Source quote
“In the back half, we expect pricing to be a larger contributor to revenue while factoring in incremental demand pressure from corresponding elasticities.”
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Figure
Adjusted EBITDA grew 8% over the prior year period to $302 million for the first half of 2026, reflecting growth on revenue.
Source quote
“For the first half of 2026, adjusted EBITDA of $302 million represents 8% growth versus the prior year period on revenue...”
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Dropped
Commodity exposure totals roughly $400 million, with aluminum adding about 20 points of pricing in Q1.
Source quote
“If you think about our commodities in 3 buckets, aluminum, polyethylene and then other resins, they're all contributing roughly equal... From the start of the year to the end of Q1, we've seen increases across our commodities ranging from $0.15 to $0.40 on a per pound basis. I think Scott wants to cover the stuff.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Productivity gains across the supply chain with particularly strong performance in our manufacturing operations allowed us to fund investments in growth and other business priorities while delivering strong year-on-year increases...”
“Our Hefty Storage & Organization business continued to build on its momentum, delivering record second quarter revenues and strong volume growth.”
“Adjusted EPS of $0.42 increased 7%, reflecting flow-through of improved profitability in the quarter.”
Full figures
USD · ROIC.AI fundamentals (NASDAQ:REYN, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 944.0M | 877.0M | +7.6% | 938.0M | +0.6% |
| Gross profit | 245.0M | 207.0M | +18.4% | 226.0M | +8.4% |
| Operating income | 138.0M | 77.0M | +79.2% | 96.0M | +43.8% |
| Net income | 89.0M | 59.0M | +50.8% | 73.0M | +21.9% |
| EPS | 0.42 | 0.28 | +50.9% | 0.35 | +20.7% |
| P/E today 14.2 | — | 13.6 | — | 14.5 | — |
Topics
Most discussed now
- Reynolds Consumer Products has actually enjoyed low-double-digit increases in distribution in its Hefty branded waste bag business, which…
- As Reynolds Consumer Products reflects on the strategy, it certainly think that its performance brand philosophy is working and the…
- What underpinned all of that was improvement in the profitability of the business in the form of expanded gross profit...
- Yes, that has flown through in the form of margin rate expansion in the first half of the year.
Faded since Q1 2026
- Fading What Reynolds Consumer Products thinks will see some buffer or mitigant elasticities just given the state of the consumer.
- Fading Reynolds Consumer Products would generally expect to see rational player behavior in terms of taking price on resin-related items and what…
- Fading Most of what Reynolds Consumer Products has been reading about, again, on a survey basis suggests that on the order of 3/4 of...
- Fading One of the tools in that would be cost key cost or price points using the Private Brands business to...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
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- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K