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.Huckins cited gains in Hefty Waste Bags, Hefty Food Bags, Reynolds Wrap, Reynolds Parchment, Reynolds Bakeware, and Hefty Party Cups, along with strong p ...

Customer Concentration and Sales - In 2025, sales to the top ten customers accounted for 74% of total revenue, with Customer A, B, and C contributing 31%, 17%, and 11% respectively[73] - The company relies on a small number of customers, with three customers accounting for over 10% of total net revenue, increasing vulnerability to customer loss[73] - The company is affected by seasonality, with the strongest sales typically occurring in the fourth quarter due to holiday-related demand[102] Cost and Pricing Pressures - Significant increases in raw material costs, particularly aluminum, negatively impacted results in 2025[78] - The company experienced fluctuations in raw material and energy costs, which represent a significant portion of the cost of sales[78] - Labor costs in the United States continue to rise, potentially impacting operating expenses and growth[84] - The company has implemented price increases, which may slow sales growth or create volume declines as customers react to these changes[99] Regulatory and Compliance Risks - Regulatory changes regarding environmental sustainability could materially affect sales and product offerings, particularly in the Hefty Tableware segment[87] - The lack of a uniform regulatory framework across the U.S. complicates compliance and impacts marketing and product development strategies[90] - The company is subject to various governmental regulations, which may incur material liabilities and compliance costs, potentially affecting its financial condition and operations[123] - Environmental, health, and safety laws impose strict liabilities that could lead to significant fines, penalties, and increased compliance costs, impacting profitability[124] - The company may face increased costs due to new regulations aimed at reducing plastic waste, which could affect demand for certain products[127] - Stakeholder focus on environmental issues, including climate change and sustainability, may hinder access to capital and impact consumer demand for products[128] Financial and Debt Management - As of December 31, 2025, the company had $1,586 million of outstanding indebtedness under its senior secured term loan facility maturing in 2032 and $693 million of borrowing capacity under its senior secured revolving credit facility maturing in 2029[118] - The unhedged portion of the Term Loan Facility was approximately $586 million as of December 31, 2025, exposing the company to interest rate risk[121] - Higher interest rates during the year ended December 31, 2023, increased the company's debt service obligations on unhedged variable rate indebtedness, leading to a decrease in net income and cash flows[122] - As of December 31, 2025, the company had significant variable rate debt commitments outstanding, accruing interest at the SOFR rate plus an applicable margin of 1.75%[292] - The aggregate notional amount of interest rate swaps in effect as of December 31, 2025, was $1,000 million, with fixed rates ranging from 2.66% to 3.40%[293] - Additional interest rate swaps with a notional value of $900 million were entered into, fixing the SOFR to an annual rate of 3.33% to 3.41%[294] - A 100-basis point increase in interest rates under the Term Loan Facility would result in a $6 million increase in interest expense per annum on outstanding borrowings[296] Competition and Market Dynamics - The company faces competitive pressures from both established and new entrants in the market, necessitating continuous innovation[75] - Economic downturns and inflationary pressures have historically led to decreased demand for products, impacting overall sales[92][94] Operational Challenges - Supply chain disruptions, including reduced trucking capacity, have led to increased transportation costs and operational challenges[82] - The company faces intense competition for qualified personnel, which could hinder its ability to conduct research and development activities[104] - The company has quality control measures in place, but any failure to maintain product safety and quality could result in recalls and harm to its reputation[100] - Cybersecurity threats pose risks to the company's IT and operational technology systems, which could disrupt operations and adversely impact financial results[134] Corporate Governance and Ownership - PFL controls approximately 74% of the company's outstanding shares, allowing it to determine the outcome of corporate actions requiring stockholder approval[150] - The concentration of PFL's ownership may discourage other parties from making tender offers, potentially preventing stockholders from receiving a premium for their shares[152] - The company is classified as a "controlled company" under Nasdaq rules, which allows it to rely on exemptions from certain corporate governance requirements[158] Legal and Insurance Risks - Legal claims and proceedings could require significant time and resources to defend, potentially affecting cash flows and financial condition[137] - The company maintains insurance for some risks, but may face uninsured liabilities that could adversely affect cash position and results of operations[141] Strategic Initiatives - The company may pursue acquisitions of brands, businesses, assets, or technologies, which could involve risks such as the assumption of contingent liabilities and potential impairments of acquired intangible assets[105] - The company intends to continue paying quarterly cash dividends on its common stock, but this ability may be limited by various factors including financial condition and capital requirements[148] - The company relies on effective systems to gather and use consumer data for marketing, with risks associated with new product development and market entry[98]

Reynolds Consumer Products (REYN) came out with quarterly earnings of $0.59 per share, missing the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.67%. A quarter ago, it was expected that this company would post earnings of $0.39 per share when it actually produced earnings of $0.42, delivering a surprise of +7.69%.Over the last four quarters, th ...

Reynolds Consumer Products (NasdaqGS:REYN) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsAndrea Teixeira - Managing DirectorJill Koval - Director of Investor RelationsKaumil Gajrawala - Managing DirectorNathan Lowe - CFORob Ottenstein - Senior Managing DirectorScott Huckins - President and CEOConference Call ParticipantsBrian McNamara - Managing Director and Senior AnalystLauren Lieberman - Managing Director and Senior U.S. Equity Research AnalystPeter Grom - Senior Equity Research ...

Reynolds Consumer Products (NasdaqGS:REYN) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsAndrea Teixeira - Managing DirectorJill Koval - Director of Investor RelationsKaumil Gajrawala - Managing DirectorNathan Lowe - CFORob Ottenstein - Senior Managing DirectorScott Huckins - President and CEOConference Call ParticipantsBrian McNamara - Managing Director and Senior AnalystLauren Lieberman - Managing Director and Senior U.S. Equity Research AnalystPeter Grom - Senior Equity Research ...

Reynolds Consumer Products (NasdaqGS:REYN) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Speaker6A 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.Speaker2Thank you, operator, and good morning, everyone. Thank you for joining us for Reynolds Consumer Products' fourth quarter earnings conference call. Today's call is being webcast, and a replay will be available on the investor relation ...

We make cooking, serving, clean-up and storage simpler and easier, providing people a little more time for the things that matter Advanced our 2025 Priorities Q4 2025 Earnings Call February 4, 2026 Safe Harbor This presentation 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-loo ...

Financial Performance - Q4 2025 net revenues were $1,034 million, a 1.3% increase from $1,021 million in Q4 2024[5] - Full-year 2025 net income was $301 million, down from $352 million in 2024, while adjusted net income was $345 million compared to $352 million in the prior year[8] - Revenues for the year ended December 31, 2025, totaled $3,721 million, an increase of 0.7% from $3,695 million in 2024[30] - The company reported a diluted EPS of $0.59 for Q4 2025, compared to $0.58 in Q4 2024, indicating a slight increase of 1.7%[43] - For the year ended December 31, 2025, the net income reported was $301 million, resulting in a diluted EPS of $1.43, compared to a net income of $352 million and diluted EPS of $1.67 for 2024[44] EBITDA and Cash Flow - Q4 2025 adjusted EBITDA increased to $220 million, up from $213 million in Q4 2024, reflecting effective pricing actions and cost reductions[4] - Full-year 2025 adjusted EBITDA was $667 million, a decrease from $678 million in 2024, primarily due to lower retail sales volumes and higher operational costs[8] - Adjusted EBITDA for 2025 was $667 million, slightly down from $678 million in 2024, reflecting a decrease of 1.6%[40] - Cash provided by operating activities was $477 million in 2025, compared to $489 million in 2024, a decline of 2.4%[28] - Free cash flow for the year ended December 31, 2025, was $316 million, a decrease from $369 million in 2024[48] Debt and Leverage - The company reduced net debt leverage from 2.3x in 2024 to 2.1x in 2025, within the target range of 2.0 to 2.5x[9] - Long-term debt decreased to $1,580 million in 2025 from $1,686 million in 2024, a reduction of 6.3%[26] - As of December 31, 2025, total debt stood at $1,580 million, with net debt calculated at $1,433 million, resulting in a net debt to trailing twelve months adjusted EBITDA ratio of 2.1x[46] Future Guidance - For full-year 2026, net revenues are expected to decline by 3% to increase by 1% compared to 2025, with net income projected between $331 million and $343 million[15] - First quarter 2026 net revenues are anticipated to be down 3% to up 1% compared to Q1 2025, with expected net income between $49 million and $53 million[16] - The guidance for fiscal year 2026 indicates a focus on maintaining adjusted EBITDA and managing net debt effectively[38] - For Q1 2026, net income guidance is projected between $49 million and $53 million, with adjusted EBITDA guidance between $120 million and $125 million[50] - For the year ended December 31, 2026, net income guidance is set between $331 million and $343 million, with adjusted EBITDA guidance between $660 million and $675 million[50] Capital Expenditures and Investments - Capital expenditures for 2025 were $161 million, an increase from $120 million in the previous year, aimed at automation and productivity improvements[12] - The company executed strategic initiatives that incurred costs of $25 million in 2025, impacting overall profitability[41] Asset Management - Total assets increased to $4,936 million in 2025, up from $4,873 million in 2024, representing a growth of 1.3%[26] - Cash and cash equivalents at the end of 2025 were $147 million, up from $137 million at the end of 2024, marking a growth of 7.3%[28] Organizational Changes - The company plans to realign its category organization in 2026 to enhance efficiencies and focus on innovation[14]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to ...

The market expects Reynolds Consumer Products (REYN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expecte ...