Financial Data and Key Metrics Changes - The company reported net revenues of $1.03 billion for Q4 2025, representing a 1% increase from $1.02 billion in Q4 2024 [18] - Full-year net revenues for 2025 were $3.7 billion, also reflecting a 1% year-over-year growth [20] - Adjusted EBITDA for Q4 2025 was $220 million, a 3% increase compared to the same period in 2024 [20] - Full-year adjusted EBITDA decreased to $667 million from $678 million in 2024 [21] - Adjusted EPS for Q4 2025 was $0.59, slightly up from $0.58 in Q4 2024 [20] Business Line Data and Key Metrics Changes - The Hefty Waste and Storage and Presto segments delivered strong volume growth and share gains in Q4 2025 [19] - Hefty Tableware saw slight sequential volume improvement but continued to face challenges due to declines in foam products [19] - The company achieved share gains across its six largest core categories, outperforming its categories by over 1 point in 2025 and by 2 points in Q4 [6][18] Market Data and Key Metrics Changes - The competitive landscape in the waste bag and food bag categories intensified, with increased promotional and pricing activity from competitors [11] - The company noted a pronounced increase in promotional activities in the waste category as it exited 2025 [40] - Retail volumes were down 2 points in Q4, but the company managed to maintain pricing power despite commodity pressures [11][18] Company Strategy and Development Direction - The company is focused on innovation and differentiation as central to its growth strategy for 2026, building on the momentum established in 2025 [14] - A restructuring of the Hefty and Presto segments aims to enhance clarity and focus on category management, rather than cost-cutting [64] - The company plans to continue investing in automation and productivity initiatives to improve operational efficiency [23] Management's Comments on Operating Environment and Future Outlook - Management anticipates sustained headwinds in 2026, emphasizing the need for adaptability and focus [10] - The company expects net revenues for 2026 to range from -3% to +1% compared to 2025, with retail branded sales expected to perform at or above category performance [24] - Management expressed confidence in the company's ability to navigate challenges and maintain stable results in 2026, with adjusted EBITDA expected to be flat year-over-year [13][25] Other Important Information - The company generated free cash flow of $316 million in 2025, benefiting from tight working capital management [22] - The company reduced its net debt leverage to 2.1x, providing financial flexibility for future investments [22] - Capital expenditures for 2026 are expected to remain elevated, with a focus on organic investment opportunities [28] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - Management emphasized clarity and focus in category management, aiming for end-to-end management across each business unit without significant personnel changes [32][34] Question: Are we nearing a stabilization point for foam products? - Management indicated that while the category saw a 14% decline in 2025, they expect a reduced rate of decline in 2026, driven by consumer behavior and cost considerations [36] Question: Can you elaborate on the competitive dynamics in the Hefty business? - Management noted increased promotional activity from competitors but remains committed to maintaining brand equity and pricing strategy [40][41] Question: How do you view the elasticity of aluminum foil pricing? - Management believes that gradual price increases have helped mitigate elasticity risks, with tighter price gaps to private label brands providing some insulation [75] Question: What is the outlook for SG&A expenses in 2026? - Management plans to increase SG&A to support innovation and strategic initiatives while maintaining discipline in controllable costs [56]