Shares of Reynolds Consumer Products (REYN) plunged 5.04% in pre-market trading on Wednesday after the company reported disappointing first-quarter results and lowered its full-year outlook.

The household products maker posted Q1 revenue of $818 million, down 1.8% year-over-year and slightly below analyst estimates of $820.4 million. Adjusted EBITDA came in at $117 million, missing the consensus forecast of $119.5 million. While adjusted earnings per share of $0.23 met expectations, it was unchanged from the prior year.

Investors were particularly concerned by Reynolds' weak sales volumes, which fell 4% compared to Q1 2024. The company cited retailer destocking and a later Easter timing as factors impacting demand. Additionally, Reynolds lowered its full-year 2025 adjusted EPS guidance to a range of $1.54 to $1.61, down from its previous outlook of $1.61 to $1.68. Management now expects full-year net revenues to decrease in the low single digits compared to 2024.

"We are executing well in a dynamic consumer and retail environment, outperforming our categories by two points in the quarter," said Scott Huckins, President and CEO. However, the revised outlook and volume declines suggest ongoing challenges for Reynolds as it navigates a tough macro environment and shifting consumer behaviors.