Reynolds Consumer Products Q4 Earnings Call Highlights

Core Insights - Reynolds Consumer Products reported fourth-quarter net revenues of $1.03 billion, a 1% increase from $1.02 billion year-over-year, with adjusted EBITDA of $220 million, marking a 3% year-over-year growth, and adjusted EPS of $0.59 compared to $0.58 in the prior-year quarter, exceeding all guided metrics [1][6]. Financial Performance - For the full year 2025, net revenues reached $3.7 billion, up 1% year-over-year, while adjusted EBITDA was $667 million, slightly down from $678 million in 2024, and adjusted EPS was $1.64 compared to $1.67, noting a prior year tax benefit [12]. - Free cash flow for 2025 was $316 million, supported by effective working capital management, with a net leverage ratio of 2.1x at year-end [5][14]. Market Dynamics - The company experienced broad market share gains and improved profitability despite challenges such as commodity inflation and tariff pressures, with significant performance in Hefty Waste Bags, Hefty Food Bags, and Reynolds Wrap [2][3]. - Competitive conditions intensified in the fourth quarter, particularly in waste and food bags, prompting the company to maintain its pricing strategy to protect brand equity [10]. Strategic Initiatives - Innovation and revenue growth management were highlighted as key themes for 2025, with new product launches including Hefty Waste Bags with new scents and Reynolds Kitchens Parchment Cooking Bags [7][8]. - The company plans to realign its category organization in 2026 to enhance clarity and focus, consolidating waste bags and food bags into distinct business units [19]. 2026 Outlook - Management anticipates flat adjusted EBITDA for 2026 amid ongoing headwinds, with net revenues expected to decline by 3% to increase by 1% compared to 2025 [4][16]. - Capital expenditures are projected to remain elevated in the low $200 million range to support automation and strategic initiatives [20].