Reynolds Consumer Products Inc: Better Than Expected, But 2H Still Uncertain; Stay Neutral

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Reynolds Consumer Products Inc: Better Than Expected, But 2H Still Uncertain; Stay Neutral

Global Research

29 July 2026ab

Reynolds Consumer Products Inc Equities

AmericasBetter Than Expected, But 2H Still Uncertain;

Stay Neutral Household Products, Non-Durable

12-month rating Neutral

12m price target US$27.00Managing Through The Volatility, But Priced In; Stay Neutral

REYN reported a 2Q beat driven by better top line growth and stronger margin delivery.

From a guidance perspective, the company raised its FY26 revenue outlook to +1% to Price (28 Jul 2026) US$25.81

+3% (from -3% to +1% previously), while maintaining adjusted EBITDA and EPS. While RIC: REYN.O BBG: REYN US

the quarter came in better-than-expected, we think investors will remain focused on the

back half, particularly given the combination of a more challenging commodity Trading data and key metrics

backdrop (~$400M commodity headwind vs. ~$200M previously) and uncertainty 52-wk range US$27.18-20.56

around elasticity impact from incremental pricing. From our perspective, we believe the Market cap. US$5.42b

company's FY26 outlook remains achievable and think management is demonstrating a Shares o/s 210m (COM)

newfound ability to manage cost inflation. However, with shares trading in-line/slightly Free float 74%

above historical averages relative to peers, we think this new reality is priced in and Avg. daily volume ('000) 1,223

would wait for a more attractive entry point and/or greater visibility that there is upside Avg. daily value (m) US$29.1

to estimates before becoming constructive. Common s/h equity (12/26E) US$2.41b

P/BV (12/26E) 2.3x

FY26 Topline Guidance Moves Higher Net debt to EBITDA (12/26E) 2.1x

This morning REYN updated its FY26 outlook and now expects net revenue to be +1%