Reynolds delivered a steady second quarter, with flat year-over-year revenue but a notable improvement in operating margin. Management attributed performance to effective pricing actions, productivity initiatives across manufacturing, and resilient consumer demand for core products despite a highly promotional environment. CEO Scott Huckins highlighted, "Significant productivity is being achieved across our entire supply chain with a large portion coming from our manufacturing operations." He also credited the company’s ability to hold or grow share across most categories and noted strong e-commerce momentum, particularly in Hefty Ultra Strong trash bags and food bags during key online sales events.
Is now the time to buy REYN? Find out in our full research report (it’s free for active Edge members).
Reynolds (REYN) Q2 CY2026 Highlights:
- Revenue: $944 million vs analyst estimates of $933.8 million (flat year on year, 1.1% beat)
- Adjusted EPS: $0.42 vs analyst estimates of $0.40 (4% beat)
- Adjusted EBITDA: $171 million vs analyst estimates of $168.5 million (18.1% margin, 1.5% beat)
- Revenue Guidance for Q3 CY2026 is $931 million at the midpoint, above analyst estimates of $916.2 million
- Management reiterated its full-year Adjusted EPS guidance of $1.60 at the midpoint
- EBITDA guidance for the full year is $667.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 14.6%, up from 12.6% in the same quarter last year
- Market Capitalization: $5.55 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Reynolds’s Q2 Earnings Call
- Peter Grom (UBS) asked about the waste bag category strategy and expectations for the second half. CEO Scott Huckins responded that Reynolds' performance brand approach is holding share, growing distribution, and increasing sales and volumes despite a promotional environment.
- Peter Grom (UBS) also questioned the impact of $400 million in annualized commodity cost pressures on gross margin. CFO Nathan Lowe explained that productivity initiatives have supported margin expansion, but incremental pricing in the second half could be a headwind for margin rate.
- Andrea Teixeira (JPMorgan) inquired about shelf space gains in trash bags and consumer trade-offs between Reynolds brands and private label. Huckins confirmed share gains and noted that pricing actions are being closely monitored for elasticity and competitive response.
- Lauren Lieberman (Barclays) sought clarification on promotional timing effects in Cooking & Kitchen and how it impacts elasticity going forward. Huckins explained that year-to-date performance aligns with categories, smoothing out volatility from calendar shifts.
- Brian McNamara (Canaccord Genuity) questioned whether consumer price sensitivity in foil has shifted and if private label price gaps have changed. Huckins said price gaps remain constructive and volumes have held up, but the company is remaining agile to respond to new pricing and consumer behavior.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) how Reynolds’ new pricing actions influence volume and share across branded and private label products; (2) the impact of ongoing automation and productivity initiatives on operating margins; and (3) consumer response to increased promotional intensity and value-driven purchasing. The evolution of commodity costs and management’s ability to adjust pricing and costs in real time will also be key indicators of future performance.
Reynolds currently trades at $26.29, up from $25.81 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.