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 ...

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 ...

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [16] - Adjusted EBITDA was $168 million compared to $171 million in the year-ago period, reflecting improved results in all operating segments [17] - Adjusted EPS was $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [17] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [16] - Reynolds Wrap retail sales were up 7%, with volumes outperforming the category [9] - Hefty brand, a nearly $2 billion brand, continues to lead in the scented waste bag segment, driving growth in the waste bag category [11][12] Market Data and Key Metrics Changes - The operating environment remains challenging, with low and middle-income consumers under pressure and retailers facing cost inflation [8] - The company noted that inflation remains above the Fed's target, impacting consumer sentiment negatively [34] Company Strategy and Development Direction - The company is focusing on innovation and revenue growth management to drive share gains and profitability [39] - New leadership, including a Chief Commercial Officer and Chief Operations Officer, is expected to enhance operational capabilities and drive growth [14][39] - The company is investing in high-return projects to support growth and improve margins [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the promotional environment and addressing consumer pressures [31][34] - The company anticipates a flat to down 1% revenue outlook for the full year compared to 2024, with adjusted EBITDA guidance of $655 million to $665 million [19] - Management highlighted the importance of maintaining cost discipline and leveraging U.S.-centric manufacturing advantages [8][19] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [7] - New product innovations, such as Reynolds Kitchens Air Fryer Liners, have been recognized for their growth potential [10] Q&A Session Summary Question: How do you see the setup for the important holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste and food bags but feels confident in navigating the environment, with Hefty Waste Bags outperforming the category [31][32][34] Question: Why did you flag the risk of retailers shifting store brands to other suppliers? - Management indicated that economic challenges and tariff uncertainties could lead retailers to seek value through private label business, but they expect to win more than they lose as a U.S.-centric manufacturer [35] Question: Can you discuss the long-term strategy related to operational capabilities and growth? - Management emphasized the focus on innovation, revenue growth management, and driving additional share at the customer level as key components of their strategy [39][40] Question: What is the outlook for the tableware business and foam headwinds? - Management stated that foam headwinds are expected to lessen next year, and they are pleased with how profitability is being managed despite volume declines [45] Question: Can you comment on the promotional impact in the Hefty Waste and Storage segment? - Management acknowledged increased promotional intensity but highlighted that their promotional activity aligns with overall company levels, contributing to strong performance [48] Question: What is the current state of consumer behavior and its impact on Reynolds Cooking and Baking? - Management noted modest tailwinds from increased cooking at home but also acknowledged the impact of rising prices in the marketplace [66]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [16] - Adjusted EPS was $0.42 compared to $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [17] - Consolidated adjusted EBITDA was $168 million compared to $171 million in the year-ago period [17] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [16] - Reynolds Wrap retail sales were up 7%, with volumes outperforming the category [9] - Hefty Waste Bags saw retail takeaways increase by 9%, outperforming the category by 10 points [31] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly for low and middle-income consumers facing cost inflation [8] - The company noted that inflation remains around 3%, above the Fed's target of 2% [33] - Consumer sentiment has declined, with double-digit decreases year to date heading into the holidays [33] Company Strategy and Development Direction - The company is focusing on innovation and revenue growth management to drive share gains and profitability [39] - A new Chief Commercial Officer is leading growth programs to enhance market share across major customers [9] - The company is investing in high-return projects to support growth and drive margin improvements [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in retail trends and the effectiveness of implemented programs to drive near and long-term results [19] - The company anticipates net revenues to be flat to down 1% for the full year compared to 2024 [19] - Management highlighted the importance of maintaining cost discipline in all areas, including SG&A [19] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [7] - New product innovations, such as Reynolds Kitchens Air Fryer liners, have been recognized for their growth potential [10] - The company is positioned well within its target leverage range of 2x-2.5x EBITDA, allowing for continued investment in growth opportunities [21] Q&A Session Summary Question: How do you see the setup for the important holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste and food bags but feels confident in navigating the promotional environment [31][32] - Consumer sentiment remains under pressure, with inflation and cooling labor markets impacting lower-income demographics [33][34] Question: Can you elaborate on the risk of retailers shifting store brands to other suppliers? - Management flagged this risk due to economic challenges and uncertainty in supply chains, but expects to win more than lose as a US-centric manufacturer [34] Question: What is the grand plan related to operational capabilities and long-term growth? - The company is focused on driving growth through innovation, revenue growth management, and share gains at the customer level [39] Question: What is the outlook for the tableware business and foam products? - The tableware business is down primarily due to foam headwinds, but profitability has increased despite volume declines [42][43] Question: How is the Hefty Waste and Storage segment performing in terms of profitability and distribution? - The segment continues to perform well, with significant volume growth and effective management of promotional activities [46][47] Question: What is the current state of consumer behavior regarding dining out versus cooking at home? - There are modest tailwinds from increased cooking at home, but rising prices in the marketplace are also a factor [64]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [15] - Adjusted EBITDA was $168 million compared to $171 million in the year-ago period, reflecting improved results in all operating segments [16] - Adjusted EPS was $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [16] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [15] - Hefty Waste Bags and Reynolds Wrap aluminum foil were highlighted as strong performers, with Hefty Waste Bags year-to-date retail takeaways up 9% [26][10] - The tableware business grew EBITDA despite sales volumes being down 13%, demonstrating increasing success in driving profitability [16][39] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly for low and middle-income consumers facing cost inflation [6][28] - The company noted a shift in consumer behavior, with more affluent consumers tending to be brand loyalists while lower-income demographics are more value-oriented [28][45] Company Strategy and Development Direction - The company is focusing on innovation, revenue growth management, and driving additional share at the customer level [33] - New leadership, including a Chief Commercial Officer and Chief Operations Officer, is expected to enhance growth programs and operational efficiency [8][12] - The company is investing in high-return projects to support growth and drive margin improvements [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued pressure on consumers and the potential for increased promotional activity in certain categories [28][26] - The company remains confident in its ability to navigate the promotional environment and expects to leverage its U.S.-centric manufacturing footprint as a competitive advantage [6][29] - For the full year, the company expects net revenues to be flat to down 1% compared to 2024, with adjusted EBITDA guidance of $655 million to $665 million [18] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [5][12] - The company has implemented pricing actions to recover commodity and tariff impacts, with gross profit showing sequential improvement [16][17] Q&A Session Summary Question: How do you see the setup for the holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste bags and food bags but feels confident in navigating the promotional environment, with retail takeaways for Hefty Waste Bags up 9% year-to-date [26][28] Question: Why did you flag the risk of retailers shifting store brands to other suppliers? - Management indicated that in a challenging economic climate, retailers may seek to drive value for consumers by shifting to private label business, but expects to win more than lose as a U.S.-centric manufacturer [29] Question: Can you discuss the impact of operational changes on long-term growth? - Management highlighted the addition of key executives aimed at driving growth through innovation and revenue growth management tools, with a focus on optimizing promotional spending [33][60] Question: What is the outlook for the tableware business and foam products? - Management stated that 80% of the decline in tableware was due to foam headwinds, but they are managing profitability effectively despite volume declines [39] Question: How is the Hefty Waste and Storage segment performing in the current environment? - Management noted that innovation and being a performance brand are driving success in the Hefty Waste and Storage segment, with significant volume growth [58]