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Q3 2025 Earnings Call October 29, 2025
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This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our ability to implement programs and make progress to drive additional growth, margin and returns, and our anticipated Net Revenue, Net Income, Adjusted Net Income, EPS, Adjusted EPS and Adjusted EBITDA for full year and fourth quarter 2025. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “believe,” “estimate,” “expect,” “will,” “should,” “may,” “might,” “intends,” “outlook,” “forecast”, “position,” “committed,” “plans,” “predicts,” “model,” “assumes,” “confident,” “look for ward,” “potential,” “on track,” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and recovery of profitability, management of costs and other disruptions and other strategies, the impact of the imposition of tariffs, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. 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 a result of new information, future events or otherwise. Safe Harbor
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We make cooking, serving, clean-up and storage simpler and easier, providing people a little more time for the things that matter Our products simplify daily life so you can enjoy what matters most
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Advancing our 2025 Priorities Continue treating employee and company safety as our top priority, and build further on our world class safety performance Accelerate growth through distribution wins and product innovation, and build a more sustainable level of low-single-digit growth in the future Execute cost savings to set the stage for margin expansion Deliver a more stable earnings growth model Invest in people and develop our leaders to drive and support a growing business
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Strategy: Accelerate Growth & Drive Elevated Financial Results Revenue Growth ROIMargin Expansion Drive organic retail volume growth Drive distribution wins Higher impact innovation (often catalyst to new distribution) Implementing revenue growth management to benefit RCP and its retail partners Returns based mindset Focus on free cash flow and disciplined capital allocation Increased investment in high return growth and productivity projects Execution of cost reduction initiatives to improve margins and unlock additional growth opportunities Reducing costs to the entire supply chain from raw materials to finished goods
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Q3 2025 Financial Results
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“Our people, brands and products are winning in a challenging environment, with all four business units delivering improved results driven by share gains in the majority of our categories. We are becoming a more agile organization, while implementing programs that leverage the growth and earnings potential of our US-centric business model.” - Scott Huckins, President and CEO
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Q3 2025 Financial Performance Q3 2025 Performance Highlights Gained market share overall and in the vast majority of our categories Demonstrated increased agility and effectiveness managing profitability Delivered improved results in all four business units Reynolds Wrap outperformed the category, reflecting our position as the US’s only vertically integrated foil manufacturer Advanced long-term initiatives that enhance our value, including our strength as a US-centric business Made progress managing manufacturing, supply chain and SG&A costs
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Q3 2025 Financial Highlights Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Performance Highlights Retail volume decreased 13%, driven primarily by continued foam declines. The Adjusted EBITDA increase was driven by better alignment of pricing and input costs, as well as promotional discipline partially offset by lower volume. Retail volume increased 5% driven by strong distribution gains and innovation. The Adjusted EBITDA increase was driven by higher revenue, partially offset by higher operating costs. Third Quarter Ended 9/30/25 Retail volume increased 9% as Presto’s portfolio gained additional share in store brand food bags. The Adjusted EBITDA increase was driven by volume growth. Net Revenues2 $308M Adj. EBITDA $53M % margin 17% Net Revenues2 $266M Adj. EBITDA $74M % margin 28% Net Revenues2 $200M Adj. EBITDA $29M % margin 15% Net Revenues2 $163M Adj. EBITDA $35M % margin 21% $931m Net Revenues $168m Adj. EBITDA1 18% Adj. EBITDA margin1 Retail volume decreased 3% and improved sequentially, driven by Reynolds Wrap share gains and strong growth of Reynolds Kitchens products. Adjusted EBITDA increased on better alignment of pricing and input costs, as well as lower operating costs. 1This is a non-GAAP financial measure. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. 2 Excludes Corporate/Unallocated Revenue and Adjusted EBITDA
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YTD 2025Financial Highlights $2,687m Net Revenues $447m Adj. EBITDA1 17% Adj. EBITDA margin1 1This is a non-GAAP financial measure. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. 2 Excludes Corporate/Unallocated Revenue and Adjusted EBITDA Adj EBITDA by Segment ¹,²
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Q4 and FY 2025 Financial Outlook
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Q4 2025Outlook Adj Net Income1 $110 million to $118 millionNet Income $117 million to $125 million EPS $0.52 to $0.56 1Adjusted Net Income, Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. Adj EPS1 $0.56 to $0.60 Adj EBITDA1 $208 million to $218 million Down 1% to down 5%Net Revenues
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2025 Outlook Adj Net Income1 $294 million to $302 millionNet Income $337 million to $345 million EPS $1.40 to $1.44 1Adjusted Net Income, Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. Adj EPS1 $1.60 to $1.64 Adj EBITDA1 $655 million to $665 million Flat to down 1%Net Revenues
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Non-GAAP Financial Measures
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We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” “Net Debt,” and “Net Debt to Trailing Twelve Months Adjusted EBITDA” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP , plus the sum of income tax expense, net interest expense, debt refinancing expense, depreciation and amortization, costs to execute strategic initiatives and CEO transition costs. We define Adjusted Net Income and Adjusted Earnings Per Share (“Adjusted EPS”) as Net Income and Earnings Per Share (“EPS”) calculated in accordance with GAAP , plus the after-tax impact of debt refinancing expense, costs to execute strategic initiatives and CEO transition costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above) for the period. We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted EPS as supplemental measures to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP . In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies. Guidance for fiscal year and fourth quarter 2025, where adjusted, is provided on a non-GAAP basis. Please see reconciliations of non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page. Non-GAAP Financial Measures
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Reconciliation of Net Income to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in millions) (in millions) Net income – GAAP $ 79 $ 86 $ 184 $ 231 Income tax expense 23 27 56 62 Interest expense, net 21 25 63 76 Debt refinancing expense(1) — — 13 — Depreciation and amortization 34 33 100 96 Costs to execute strategic initiatives(2) 5 — 17 — CEO transition costs(3) 6 — 14 — Adjusted EBITDA (Non-GAAP) $ 168 $ 171 $ 447 $ 465 (1) Reflects the expense recorded related to our March 2025 Term Loan Facility refinancing. (2) Reflects costs related to the execution of cost savings and revenue growth strategic initiatives. (3) Reflects compensation and other costs related to the CEO transition effective January 1, 2025.
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Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
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Reconciliation of Trailing Twelve Months Net Income to Trailing Twelve Months Adjusted EBITDA (amounts in millions) Twelve Months Ended September 30, 2025 Twelve Months Ended December 31, 2024 Net income – GAAP $ 305 $ 352 Income tax expense 93 99 Interest expense, net 86 98 Debt refinancing expense 13 — Depreciation and amortization 133 129 Costs to execute strategic initiatives 17 — CEO transition costs 14 — Adjusted EBITDA (Non-GAAP) $ 661 $ 678
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Reconciliation of Q4 2025 and FY 2025 Net Income Guidance to Adjusted EBITDA Guidance(amounts in millions)
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Reconciliation of Q4 2025 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance (amounts in millions, except per share data)
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Reconciliation of FY 2025 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance(amounts in millions)