Reynolds Consumer Products (REYN) Q2 2025 earnings summary

Executive summary

• Q2 2025 net revenues were $938 million, up slightly year-over-year, with performance driven by product innovation, expanded distribution, and share gains in key categories despite a challenging consumer environment.

• Net income for Q2 2025 declined 25% to $73 million, impacted by input cost increases, CEO transition costs, and the absence of a prior year tax benefit.

• Adjusted EBITDA for Q2 2025 was $163 million (down from $172 million in Q2 2024), reflecting lower retail volume and timing of pricing actions versus input cost increases.

• Strategic focus remains on long-term growth, margin expansion, and cost savings, with ongoing investments in automation, innovation, and new leadership hires.

• The US-centric business model is seen as a competitive advantage, supporting resilience in a value-seeking consumer landscape.

Financial highlights

• Q2 2025 net revenues were $938 million (up 1% year-over-year); adjusted EBITDA was $163 million with a 17% margin; adjusted EPS was $0.39, down from $0.46 in Q2 2024.

• Q2 2025 net income was $73 million, down from $97 million in Q2 2024; adjusted net income was $83 million, down from $97 million (which included a $10 million tax benefit).

• Year-to-date 2025 net revenues were $1,756 million; adjusted EBITDA was $279 million; net income was $105 million, down from $145 million in the prior year period.

• Net debt as of June 30, 2025, was $1,576 million, with net debt to trailing twelve months adjusted EBITDA at 2.4x.

• Quarterly dividend of $0.23 per share declared for Q3 2025.

Outlook and guidance

• Full-year 2025 net revenues expected to be down low single digits versus 2024; adjusted EBITDA guidance is $650–$670 million; adjusted EPS expected at $1.54–$1.61.

• Q3 2025 net revenues expected to be down low single digits year-over-year; adjusted EBITDA guidance is $160–$170 million; adjusted EPS $0.37–$0.41.

• Full-year guidance reflects debt refinancing and $25–$35 million pre-tax for CEO transition and strategic investments.

• Sufficient liquidity projected from cash, operations, and available credit to meet foreseeable needs.