Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________ _______________________________________________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 ...

Financial Data and Key Metrics Changes - In Q2 2025, net revenues were $938 million, an increase from $930 million in the same period last year [17] - Retail revenue was flat at $887 million compared to 2024, with modest retail volume growth excluding foam products [17] - Adjusted EBITDA for Q2 was $100 million, compared to $172 million in the prior year [18] - Adjusted earnings per share (EPS) was $0.39, down from $0.41 in the previous year [18] - The company expects net revenues to decline low single digits compared to 2024, with adjusted EBITDA projected between $650 million and $670 million for the year [19][20] Business Line Data and Key Metrics Changes - The company gained market share in categories such as Hefty waste bags and private label food bags [6][17] - Product innovation contributed significantly to volume and share gains, with new products like Hefty Fabuloso scented waste bags and Reynolds Kitchens air fryer cups driving growth [7][10] Market Data and Key Metrics Changes - U.S. consumer confidence has decreased by 15 points in 2025, impacting consumer behavior [8] - Approximately 15% of U.S. households utilize SNAP benefits, which are being reduced, influencing purchasing decisions [9] Company Strategy and Development Direction - The company is focused on long-term growth and structural margin expansion, emphasizing product innovation and affordability [7][16] - Strategic initiatives include enhancing revenue growth management and onshoring production for smaller product categories [14][15] - The company is investing in automation and high-return projects to support growth and margin expansion beyond 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing pricing strategies to offset higher input costs, despite a challenging operating environment [16][19] - The outlook for 2025 remains positive, with expectations for continued retail volume performance and disciplined cost management [20][22] Other Important Information - The company is adapting to shifts in shopping behavior, with strong performance in online sales [11] - New leadership appointments are expected to enhance commercial and operational performance [15] Q&A Session Summary Question: Investment areas and capital deployment - The company is prioritizing automation capital investments and onshoring manufacturing for smaller product categories [25] Question: Innovation and branding - Continued investment in Hefty scented waste bags and sustainable product offerings like Hefty EcoSafe cutlery is a focus [27] Question: Gross margin and pricing strategy - The company anticipates 2 to 4 points of cost headwinds and corresponding pricing recovery throughout the year [34][42] Question: Consumer purchase patterns and pricing execution - The company has successfully executed price increases and observed stable promotional levels compared to the previous year [48][50] Question: Retail inventory destocking impact - There was no significant impact from destocking in Q2, with a neutral effect on the company overall [60][66] Question: Promotional environment in trash category - The promotional environment remained stable, with share gains attributed to distribution investments and innovation [70] Question: Tariff headwinds - The company continues to face a 2 to 4 point headwind from tariffs, with aluminum costs being a significant factor [73]

Financial Data and Key Metrics Changes - In Q2 2025, net revenues were $938 million, an increase from $930 million in the same period last year [18] - Adjusted EBITDA for Q2 was $100 million, compared to $172 million in the prior year [20] - Adjusted earnings per share (EPS) was $0.39, down from $0.41 in the previous year [20] - The company expects net revenues to decline low single digits compared to 2024, with adjusted EBITDA projected between $650 million and $670 million for the year [21][22] Business Line Data and Key Metrics Changes - Retail revenue was flat at $887 million, with modest volume growth excluding a headwind from foam products [18][19] - Non-retail revenues increased to $51 million [18] - The company gained market share in hefty waste bags, private label food bags, and hefty party cups [6][7] Market Data and Key Metrics Changes - U.S. consumer confidence decreased by 15 points in 2025, impacting consumer behavior [8] - Approximately 15% of U.S. households utilize SNAP benefits, which are being reduced, affecting affordability and value perception [9] Company Strategy and Development Direction - The company is focusing on product innovation, including Hefty Fabuloso scented waste bags and Reynolds Kitchens air fryer cups, to drive volume and share gains [6][7] - Strategic initiatives are in place to enhance revenue growth management and supply chain efficiency, including onshoring production [14][15] - The company is investing in automation and high-return projects to support growth and margin expansion beyond 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but expressed confidence in executing pricing strategies to offset input cost increases [16][18] - The company is adapting to shifts in consumer behavior, including increased online shopping and demand for affordable products [10][52] - Management reiterated confidence in 2025 earnings expectations and the potential for long-term growth [24] Other Important Information - The company is adding key members to its team to enhance commercial and operational performance [15] - The gross profit decline is attributed to the timing of pricing actions relative to input cost increases, with expectations for recovery in the latter half of the year [20][40] Q&A Session Summary Question: Investment areas and capital deployment - Management highlighted automation capital pipeline and onshoring manufacturing as new investment opportunities [27] Question: Innovation and branding - Continued investment in Hefty scented waste bags and sustainable product offerings like Hefty EcoSafe cutlery was emphasized [28][29] Question: Gross margin and pricing strategy - Management discussed cost headwinds and pricing recovery, expecting a balance in the latter half of the year [34][36] Question: Consumer purchase patterns and pricing execution - Management noted stable promotional levels and consumer behavior, with confidence in executing price increases [48][52] Question: Retail inventory destocking impact - Management indicated that destocking had a neutral impact in Q2, with no significant changes observed [60][66] Question: Promotional environment in trash category - Management clarified that promotional levels remained consistent year-over-year, attributing share gains to distribution and innovation [70][72]

For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as ...

Exhibit 99.1 Reynolds Consumer Products Reports Second Quarter 2025 Financial Results Leading Our Categories Investing in Attractive Growth and Cost Savings Programs Reiterating Fiscal 2025 Outlook LAKE FOREST, Ill., July 30, 2025 – (BUSINESSWIRE) – Reynolds Consumer Products Inc. (the "Company" or "RCP") (Nasdaq: REYN) today reported financial results for the second quarter ended June 30, 2025. "We are executing well in a challenging operating environment while also investing in the long-term potential of ...

Group 1 - The company reported quarterly earnings of 23 cents per share, meeting analyst consensus estimates, while quarterly sales were $818 million, missing the consensus estimate of $820.39 million [1] - The CEO highlighted the company's resilience in a dynamic consumer and retail environment, stating that they outperformed their categories by two points in the quarter and are effectively navigating macro challenges [2] - The company lowered its FY2025 adjusted earnings guidance from a range of $1.61-$1.68 to $1.54-$1.61 [2] Group 2 - Following the earnings announcement, Reynolds Consumer Products shares fell 1% to trade at $22.78 [3] - Analysts adjusted their price targets for the stock, with UBS maintaining a Neutral rating and lowering the target from $26 to $25, and RBC Capital maintaining a Sector Perform rating and lowering the target from $30 to $25 [8]

Core Insights - Reynolds Consumer Products reported revenue of $818 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.8% and a slight miss of 0.48% against the Zacks Consensus Estimate of $821.94 million [1] - The company's EPS remained unchanged at $0.23 compared to the same quarter last year, aligning with the consensus estimate [1] Revenue Performance by Segment - Reynolds Cooking & Baking generated $259 million, below the average estimate of $265.85 million, marking a year-over-year decline of 1.9% [4] - Hefty Waste & Storage reported $240 million, exceeding the average estimate of $229.58 million, with a year-over-year increase of 4.8% [4] - Unallocated revenues were reported at -$3 million, slightly better than the average estimate of -$3.80 million, but reflecting a significant year-over-year decline of 62.5% [4] - Presto Products achieved $143 million, close to the average estimate of $144.81 million, with no year-over-year change [4] - Hefty Tableware recorded $179 million, falling short of the average estimate of $185.53 million, representing a year-over-year decrease of 12.7% [4] Stock Performance - Over the past month, shares of Reynolds Consumer Products have returned -0.7%, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Reynolds Consumer Products reported quarterly earnings of $0.23 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $818 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.48%, and down from $833 million a year ago [2] - The stock has underperformed the market, losing about 12.2% since the beginning of the year compared to the S&P 500's decline of 5.5% [3] 分组2 - The earnings outlook for Reynolds Consumer Products is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $915.73 million, and for the current fiscal year, it is $1.59 on revenues of $3.66 billion [7] - The Consumer Products - Discretionary industry is currently in the bottom 21% of Zacks industries, which may negatively impact stock performance [8]

Financial Performance - Total net revenues decreased by 2% to $818 million for the three months ended March 31, 2025, compared to $833 million in the same period in 2024[95]. - Net income decreased by 37% to $31 million for the three months ended March 31, 2025, down from $49 million in the same period in 2024[80]. - Adjusted EBITDA for the three months ended March 31, 2025, was $117 million, a decrease of 4% from $122 million in the same period in 2024[95]. - Total net revenues decreased by $15 million, or 2%, to $818 million, primarily driven by lower volume, partially offset by higher pricing[97]. - Adjusted EBITDA decreased by $5 million, or 4%, to $117 million, due to lower revenue and higher material, manufacturing, and logistics costs[102]. Segment Performance - The Reynolds Cooking & Baking segment generated $259 million in net revenues, while the Hefty Waste & Storage segment generated $240 million[93]. - Reynolds Cooking & Baking segment net revenues increased by $3 million, or 1%, to $259 million, driven by higher non-retail volume and pricing[104]. - Hefty Waste & Storage segment net revenues increased by $6 million, or 3%, to $240 million, primarily due to higher volume[107]. - Hefty Tableware segment net revenues decreased by $29 million, or 14%, to $179 million, due to lower foam product volume[109]. Expenses and Cash Flow - Cost of sales remained relatively stable at $629 million for the three months ended March 31, 2025, compared to $632 million in the same period in 2024[95]. - Selling, general and administrative expenses decreased by 6% to $104 million for the three months ended March 31, 2025, compared to $111 million in the same period in 2024[95]. - Interest expense decreased by 16% to $21 million for the three months ended March 31, 2025, down from $25 million in the same period in 2024[95]. - Net cash provided by operating activities decreased by $43 million to $56 million, driven by reduced working capital benefits and lower net income[116]. - Net cash used in investing activities increased by $10 million to $39 million, attributed to higher capital expenditures[117]. - Net cash used in financing activities increased by $46 million to $96 million, primarily due to $50 million of voluntary principal payments on the Term Loan Facility[118]. Debt and Liquidity - As of March 31, 2025, the outstanding balance under the Term Loan Facility was $1,645 million, with no outstanding borrowings under the Revolving Facility[120]. - Cash dividends of $0.23 per share were declared and paid during the three months ended March 31, 2025, with expectations to continue quarterly payments[135]. - The company believes its projected cash position and cash flows from operations are sufficient to meet debt service, capital expenditures, and working capital needs for the foreseeable future[137]. - The company cannot ensure that its business will generate sufficient cash flow from operations or that future borrowings will be available in amounts sufficient to pay indebtedness or fund other liquidity needs[137]. Market and Strategic Considerations - The company holds the 1 market position in the U.S. consumer foil market with Reynolds Wrap, maintaining over 50% market share in most categories[76]. - There are no material changes in the company's exposure to market risk during the three months ended March 31, 2025[141]. - Critical accounting policies and estimates have a material impact on the presentation of the company's financial statements[139]. - The company may incur additional indebtedness and guarantee indebtedness as part of its financial strategy[136]. - The company is subject to various restrictions on its ability to engage in mergers, sell assets, or make investments[136]. - Future performance will depend on numerous factors, many of which are beyond the company's control[137]. - The company has not provided specific guidance on new product development or market expansion strategies in the provided content[136][137][139][141]. - The company has not reported any recent mergers or acquisitions in the provided content[136][137][139][141].

Financial Data and Key Metrics Changes - The company reported net revenues of $818 million for Q1 2025, with retail revenues of $767 million, reflecting a decrease of $28 million compared to Q1 2024 due to retailer destocking and declines in the foam category [13][14] - Adjusted EBITDA was $117 million, down from $122 million in the prior year, primarily driven by lower retail sales [14] - Adjusted earnings per share (EPS) remained unchanged at $0.23 compared to Q1 2024 [14] - The company expects 2025 net revenues to decline low single digits compared to 2024 and adjusted EBITDA in the range of $650 million to $670 million [14][15] Business Line Data and Key Metrics Changes - The company outperformed its categories by two points at retail, capturing share in household foil, waste bags, food bags, and non-foam disposable tableware [7] - Non-retail revenues increased by $12 million [14] - The company introduced new products, including hefty compostable cutlery and Reynolds Kitchen air fryer cups, to drive innovation and connect with younger consumers [7][12] Market Data and Key Metrics Changes - Retail volumes are expected to be down 2% to 5% in Q2 2025 compared to Q2 2024, driven by lower volumes and partially offset by pricing [17] - The company anticipates more pressure on its categories, with lower consumer confidence and retailers managing inventory levels contributing to the challenges [15][31] Company Strategy and Development Direction - The company is focused on driving growth at or above its categories, expanding margins, and investing in a more stable earnings growth model [6][7] - Strategic initiatives include targeted distribution gains, prioritizing larger scale innovation, and reallocating promotional spend to higher return opportunities [11][12] - The company is adapting to a dynamic macro environment by investing in high return programs and leveraging competitive advantages [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that retailer destocking is expected to be a permanent change rather than a temporary adjustment [23][24] - The company is not altering its strategic direction despite recent tariff announcements and a challenging retail environment, emphasizing the need to control its own destiny through innovation and distribution gains [12] - Management expressed confidence in the innovation pipeline, highlighting new product launches and the potential for growth [62] Other Important Information - The company successfully refinanced its term loan facility, enhancing financial flexibility [19] - The updated segment reporting now reflects the international business based on product category alignment [18] Q&A Session Summary Question: Can you discuss the retailer destocking piece? - Management indicated that retailer destocking is expected to be a permanent change and will flow through the balance of the year [23][24] Question: Can you clarify the strategic expenses related to revenue growth management? - Management explained that strategic investments focus on evaluating revenue growth management, cost out work, and supply chain efficiency [25][26] Question: What is the guidance for category growth? - The guidance now contemplates a greater quantum of pricing due to lower expectations of retail volumes, with retailer destocking being a significant factor [30][31] Question: Can you elaborate on the tariff pressure? - Management noted that direct tariff exposure is a single-digit percentage of overall COGS, with significant indirect impacts from commodities like aluminum [38][39] Question: How has consumption performed exiting the quarter? - Management reported that retail business performed as expected, with destocking impacting the P&L, but March showed better performance than January and February [49][50] Question: How is the innovation pipeline looking for this year? - Management expressed confidence in the innovation pipeline, highlighting new product launches and the potential for growth [62]