Reynolds Consumer Products (NASDAQ:REYN) executives said the company closed 2025 with “solid fourth-quarter execution” amid a challenging operating environment that included commodity inflation, tariff pressure, and a value-focused consumer. Management pointed to broad market share gains, improved profitability in the quarter, and continued progress on strategic initiatives spanning innovation, revenue growth management, and manufacturing productivity.
Fourth-quarter results topped guidance as share gains broadened
Chief Executive Officer Scott Huckins said the company delivered sequential quarterly improvement through 2025, aided by innovation and expanding revenue growth management capabilities. He said Reynolds “outperformed our categories by over 1 point in 2025 and by 2 points in the fourth quarter,” driven by share gains across “the overwhelming majority” of categories, including its six largest core categories.
Chief Financial Officer Nathan Lowe reported fourth-quarter net revenues of $1.03 billion, up 1% from $1.02 billion a year earlier. Adjusted EBITDA was $220 million, a 3% year-over-year increase and “the only quarter of EBITDA growth in 2025,” while adjusted EPS was $0.59 versus $0.58 in the prior-year quarter. Lowe said results exceeded all guided metrics.
Management noted that gross margin percentage was pressured by the combination of pricing to recover commodities and tariffs and growth in low-margin non-retail revenue. Lowe said these factors diluted gross margin percentage by about 190 basis points in the quarter, “masking the underlying improvement in profitability.”
Innovation and revenue growth management were key 2025 themes
Huckins described 2025 as a “transition year” as Reynolds aligned the organization and began investing behind strategic priorities. He said the company’s “innovation engine began to deliver,” with a more focused approach emphasizing “fewer ideas, bigger ambition, and better consumer outcomes.”
New products cited on the call included:
- Hefty Waste Bags expansions with new scents and colors, including a watermelon scent
- Reynolds Kitchens Parchment Cooking Bags and Air Fryer Cups
- ECOSAVE Compostable Cutlery
- Seasonal items such as Reynolds Wrap Holiday Fun Foil and festive printed Hefty Party Cups
Huckins also emphasized progress in revenue growth management (RGM), including shifting trade spending away from lower-return programs and improving pricing and price pack architecture “to help offset inflation and minimize elasticity.” In foil, he said price gaps versus store brands narrowed during the year even as the company implemented “substantial price increases” to cover commodity pressure.
Segments, competitive dynamics, and category pressures
Lowe said Hefty Waste and Storage and the Presto segments delivered strong volume growth and share gains in the fourth quarter. Hefty Tableware showed a slight sequential volume improvement and improved profitability, resulting in flat EBITDA, but management said declines in foam and the discretionary nature of the category continued to weigh on the segment’s top line.
On competitive conditions, Huckins said promotional and pricing activity intensified in waste bags and food bags late in the fourth quarter, describing “increased promotional and pricing activity” from competitors that appeared to be “taking dollars out of these categories.” He said Reynolds plans to maintain its current price points and promotional strategy to protect Hefty’s brand equity, while acknowledging that “some near-term volume headwinds are possible” and were reflected in the company’s outlook.
On private label, Huckins said the environment has driven more transactional dynamics with retailers, including more dual sourcing for store brand programs. He said this could create near-term pressure in 2026 as bid activity increases, but added management expects incremental opportunities to offset over time. In Q&A, he said brand/store-brand mix has been “remarkably stable” overall, while noting pronounced growth in the Presto business, particularly in food bags and in club channels.
Cost actions, cash flow, and balance sheet
For full-year 2025, Lowe reported net revenues of $3.7 billion, up 1% year over year. Adjusted EBITDA was $667 million versus $678 million in 2024, and adjusted EPS was $1.64 compared with $1.67, noting the prior year included a one-time $0.05 tax benefit in the second quarter of 2024. Lowe highlighted pricing and cost actions taken to minimize the impact of roughly $100 million in higher tariffs and commodity costs.
SG&A declined 11% for the year and 19% in the fourth quarter. Lowe attributed fourth-quarter SG&A reductions to organizational delayering, a “surgical focus” on optimizing advertising ROI, and tight cost management. In Q&A, management said variable compensation was a significant contributor to lower fourth-quarter SG&A, while delayering was characterized as structural.
Reynolds generated full-year free cash flow of $316 million, which Lowe said was aided by working capital management. The company refinanced its term loan facility, extended debt maturities, made an additional $100 million in voluntary principal payments, and ended 2025 at 2.1x net leverage, at the low end of its target range.
2026 guidance: flat adjusted EBITDA amid continued headwinds
Management said it expects another year of headwinds in 2026, including higher aluminum costs and continued pressure in certain categories. Huckins noted that resin has been relatively stable while aluminum has moved “significantly higher.” He said the company aligned pricing with rising costs in 2025, citing roughly 11 points of pricing in the fourth quarter alongside a two-point decline in retail volumes in scanner data. He added Reynolds implemented a price increase in January and anticipates further adjustments in the second quarter.
For 2026, Lowe guided to net revenues of down 3% to up 1% versus 2025, with retail branded sales expected at or above category performance (down 2%). He said category headwinds are expected to be driven primarily by declines in foam and foil, with foil impacted by elasticities tied to aluminum cost increases. Non-retail revenue is expected to be flat.
Additional 2026 guidance included:
- Net income and adjusted net income: $331 million to $343 million
- EPS and adjusted EPS: $1.57 to $1.63
- Adjusted EBITDA: $660 million to $675 million (described by Huckins as “roughly flat” year over year)
- Effective tax rate: approximately 24.5%
For the first quarter, Reynolds expects net revenues to range from down 3% to up 1% versus the prior-year period, with adjusted EBITDA of $120 million to $125 million and EPS/adjusted EPS of $0.23 to $0.25.
On costs, Lowe said the company expects commodity cost headwinds of roughly 2 to 3 points in 2026 and a similar amount of pricing to offset, compared with 2 to 4 points discussed previously. He added that while profitability is expected to improve, margin percentage can be diluted during periods of pricing to cover commodity inflation. SG&A is expected to rise versus 2025 as Reynolds increases support for innovation and other strategic initiatives.
Reynolds also said it will realign category organization beginning in the first quarter of 2026, consolidating waste bags into one business and food bags and storage into another across the Hefty Waste and Storage and Presto segments. In Q&A, Huckins described the change as aimed at improving “clarity and focus” and end-to-end category management rather than cost takeout, adding that it does not involve substantial changes to organizational design.
Capital spending is expected to remain elevated, with 2026 CapEx projected in the “low 200s,” as the company executes automation and other high-ROI projects extending into 2027. Lowe said Reynolds will continue to explore M&A opportunities “with more rigor” to identify additional growth platforms, while maintaining a bias toward proven-return investments in its automation pipeline.
About Reynolds Consumer Products (NASDAQ:REYN)
Reynolds Consumer Products, Inc (NASDAQ: REYN) is a leading North American manufacturer and marketer of household consumer products. The company specializes in food storage and cooking solutions, including aluminum foil, plastic wrap, food storage containers and disposable tableware. Its core portfolio features well-known brands such as Reynolds Wrap aluminum foil, Hefty storage containers and trash bags, and Fastfold paper plates.
The company operates through a network of manufacturing and distribution facilities across North America, Latin America, Europe and the Asia Pacific region.
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