Reynolds Consumer Products Inc.

Greetings and welcome to the Reynolds Consumer Products Inc. Third Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jill Koval, Director of Investor Relations. Thank you, Jill. You may begin.

Thank you, operator. Good morning, everyone, and thank you for joining us for Reynolds Consumer Products' third quarter earnings call. Joining me today are Scott Huckins, our president and chief executive officer, and Nathan Lowe, our chief financial officer. Scott will begin with highlights from the third quarter, and Nathan will follow with a detailed look at our financial results and outlook. We'll then open the call for a brief question and answer session. Before we begin, a few housekeeping items. Today's call is being webcast and a replay, along with our earnings release and investor presentation, will be available on the investor relations section of our corporate website at ReynoldsConsumerProducts.com. Our discussion today will include forward-looking statements that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those described today. Please refer to the risk factor section of our SEC filings for additional information. The company does not intend to update or alter these statements to reflect events or circumstances arising after the call. We will also reference certain non-GAAP or adjusted financial measures. Reconciliations to the most directly comparable GAAP measures are available in our earnings release, investor presentation, and form 10-Q on our investor relations website. With that, I'd like to turn the call over to Scott.

Thank you, Jill, and good morning, everyone. Our third quarter performance demonstrated the resilience of our brands and the agility of our organization in a dynamic environment. We led pricing across our categories to recover commodity inflation, and we delivered results at or above our outlook while continuing to invest behind our brands. As expected, higher prices led to some volume of elasticity layered on top of a challenged consumer and a backdrop of increased competitive activity. Our commercial teams drove innovation and distribution gains, and we continued to meet consumer needs across the value spectrum. Our work across our supply chain continued to deliver productivity gains despite higher input costs and facilitated ongoing investment in our brands, innovation, and digital capabilities. For me, all of this is an important proof point of our strategy. Over the last two years, we have built a more agile and resilient Reynolds with stronger pricing and RGM capabilities, improved operations and supply chain efficiencies, and disciplined investment behind the opportunities with the greatest potential return. The dynamic operating environment over this time period has certainly tested these capabilities, but the business has gotten stronger each quarter. We remain confident in our strategy and in our foliar outlook. Turning to the consumer. Household budgets remain under pressure, and we continue to see that reflected in purchasing behavior across our categories. Consumers are seeking value in a number of ways, such as purchasing more on promotion, moving toward opening price point items, or choosing larger value-seeking pack sizes. We continue to see the consumer increasingly shopping across mass, club, and e-commerce channels. And shopping is increasingly organized around occasions as retailers and delivery platforms bring tools that let shoppers plan by meal or event, in addition to shopping by individual product categories. Our insights teams are staying close to these trends, and we are focused on meeting consumers wherever and however they shop today. We deliver the value, performance, and quality consumers expect from our brands while providing them with a wide range of price points to fit their household budgets. When consumers choose store brands, our portfolio allows us to serve that need as well. Our ability to serve consumers across the value spectrum is a meaningful advantage, particularly in the current environment. At the same time, we continue to invest behind where the consumer is going. Shopping is increasingly omnichannel, with an estimated 94% of grocery shoppers now buying both online and in-store. Our categories fit this behavior well, as these are products consumers use and replenish regularly, making them a natural fit for both online ordering and reordering through subscription platforms. What matters most to us is not just that more purchases are moving online, but that the discovery process is changing. consumers now find products in more places than ever, whether on the shelf, through retailer search, social platforms, or AI-enabled shopping tools. Our job is to make sure Reynolds and Hefti are present and easy to find wherever that discovery happens. Therefore, digital is becoming an increasingly important growth channel for our categories, and we are seeing encouraging results from our investments. Turning to our business chance. Within Reynolds Cooking and Kitchen Essentials, the foil category continued to reflect the impact of significant commodity-driven pricing. Our pricing actions were necessary to recover substantially higher aluminum costs. As expected, higher price points created demand elasticity. Despite this, we saw double-digit retail dollar takeaway growth in the category and for Reynolds Rep. This demonstrates the essential nature and resilience of the category In the fourth quarter, Reynolds Cooking and Kitchen Essentials will be focused on driving volume through strong merchandising and display execution. Q4 is an important seasonal quarter for our business, supported by holiday-driven demand and significant merchandising activity. We are focused on executing against those opportunities and finishing the year strong. Given the importance of the season, we have strengthened our plans for 2026 with new display vehicles and sharper promotional price points. These are designed to drive category growth, reinforce our leadership position, and maintain brand loyalty during the holiday season. At the same time, we continue to find opportunities beyond the core foil business. Parchment benefited from increased velocities. and our seasonal innovation continues to create incremental consumer engagement with the Reynolds brand. As you might have seen in the release, we also completed the acquisition of Owl's Head Alloys in October, whose aluminum processing capabilities further vertically integrate our aluminum foil business and complement our manufacturing network. Our M&A agenda has several pillars, all oriented toward growth and acquiring capabilities that support growth are one important part of that agenda. We certainly welcome the nearly 300 employees of Owl's Head to the Reynolds family. Hefty Waste and Cleanup delivered a solid quarter in a dynamic environment. We led pricing in the category to address higher input costs, elasticity was in line with our expectations, and strong commercial execution and innovation helped mitigate some of the competitive inelasticity challenges. We continue to be particularly pleased with consumer response to our scent and color innovation. This includes our recent launch of hefty ultra-strong Fabuloso Peach and hefty ultra-strong Tea Tree and Eucalyptus, both of which we plan to scale nationally in 2027. Research shows that in home care, more than half of consumers across generations say scent influences their interest in new products. and we're seeing that in our scented hefty offerings. By pairing the strength hefty is known for with scents consumers love, we've built meaningful growth platforms for the brand. Colored waste bags are a smaller but fast-growing part of the category, up more than 40%, and our hefty color series is leading that growth across the category. Our success in building innovation platforms for waste was certainly an element in delivering 10 points of distribution growth and we picked up several points of digital penetration. Competitive intensity remains high and we will continue to balance consumer value, retailer performance and profitability as we manage the business. Within hefty home and tableware, market conditions remain challenging during the third quarter. As a reminder, tableware is our most discretionary category where the majority of usage occasions are for daily convenience. Despite that, we delivered growth and share gains in key areas such as Hefty party cups and cutlery. We are also seeing an opportunity around gatherings, and we're designing innovation with those occasions in mind. For example, we recently launched coordinated Halloween sets that bring together themed plates, cups, and cutlery, making it easier for consumers to shop for the entire occasion. Hefty is also extending beyond traditional at-home occasions with the launch of Chill to Go Cups, addressing consumer demand for portable, convenient drinkware and expanding the brand into on-the-go usage occasions. Our objective remains straightforward. Strengthen the portfolio, innovate against occasion-based shopping trends, and expand into away-from-home consumer needs while continuing to drive productivity and operating performance across the business. Third quarter performance and our hefty storage and organization business reflected lower volumes due in part to some timing shift between quarters, following 8% volume growth in the second quarter that benefited from some successful promotional activity. On a year-to-date basis, the business has delivered growth and share gains despite private label dual sourcing headwinds, which have been the most pronounced in this segment. We continue to onboard new business as well, demonstrating the strength of our innovation and value proposition across both hefty and store brands. As we enter the final quarter of the year, we continue to operate in a dynamic environment. Commodity costs remain elevated. Consumers remain under pressure. Competitive and promotional activity remains high. These conditions reinforce the importance of staying focused on what we can control as we have done all year long. We will continue to manage pricing with agility, drive productivity across our supply chain with particular emphasis on manufacturing, invest behind our brands, innovation, and digital capabilities, and work closely with our retail partners to deliver the performance and value consumers are looking for. The third quarter demonstrated the continued progress we have made in building a more resilient Reynolds. Our focus remains on disciplined execution, Staying agile as conditions evolve and continuing to deliver against our core priorities. I am very proud of our team for what we have accomplished thus far in 2026, providing continued leadership across our categories while growing earnings against a very dynamic background. I will now turn the call over to Nathan to walk through our financial results and outlook in more detail. Nathan.