Reynolds Consumer Products Inc. (NASDAQ:REYN) is one of the 12 Dividend Stocks With High Insider Buying. RBC Cuts Target on Reynolds Consumer Products (REYN) Post Q4 Results On February 5, 2026, RBC Capital lowered the price target on Reynolds Consumer Products Inc. (NASDAQ:REYN) from $28 to $25 while keeping a Sector Perform rating. The update follows the company’s Q4 2025 results, released a day earlier, on February 4, 2025. RBC Capital cited the company’s restrained 2026 outlook and ongoing challenges ...

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].

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]

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 the previous year [20] - Full-year adjusted EBITDA decreased to $667 million from $678 million in 2024 [21] - Free cash flow for the full year was $316 million, benefiting from tight working capital management [22] 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 the market by 2 points in Q4 2025 [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 decline in retail volumes of 2 points, despite implementing pricing actions to offset commodity cost increases [11][20] Company Strategy and Development Direction - The company is focused on three core pillars: Revenue Growth Management, Share Gap Selling, and Innovation [14] - A restructuring of the Hefty and Presto segments aims to enhance clarity and focus on category innovation and growth opportunities [34][64] - The company plans to continue investing in innovation and distribution opportunities to accelerate earnings growth [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][25] - Management remains confident in the company's category leadership and innovation capabilities despite near-term challenges [13] Other Important Information - The company successfully refinanced its term loan facility and reduced net debt leverage to 2.1 times, providing financial flexibility for future investments [22] - The company plans to realign its category organization to increase efficiencies and sharpen focus on innovation [15] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - The restructuring aims for clarity and focus, allowing dedicated teams to manage categories more effectively without significant personnel changes [32][34] Question: Are we nearing a stabilization point for foam products? - Volumes in the foam category were down about 14% in 2025, with expectations of a reduced decline in 2026, driven by consumer behavior and cost considerations [36] Question: Can you elaborate on the competitive dynamics around the Hefty business? - The company has seen increased promotional activity from competitors but believes maintaining price points is essential for brand equity [40][41] Question: How do you view the elasticity of aluminum foil pricing? - The company has observed tighter price gaps to private label and believes gradual price increases have helped mitigate elasticity risks [75][76] Question: What is the outlook for SG&A expenses in 2026? - SG&A is expected to increase as the company invests in innovation and strategic initiatives, following a year of optimizing costs [56]

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 [19] - Full-year net revenues for 2025 were $3.7 billion, also reflecting a 1% year-over-year growth [22] - Adjusted EBITDA for Q4 2025 was $220 million, a 3% increase compared to the same period in 2024 [21] - Full-year adjusted EBITDA for 2025 was $667 million, down from $678 million in 2024 [23] - Free cash flow for the full year was $316 million, benefiting from tight working capital management [24] 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 [20] - Hefty Tableware saw slight sequential volume improvement but continued to face challenges due to declines in foam products [20] - The company achieved share gains across its six largest core categories, outperforming the market by 2 points in Q4 2025 [5][19] Market Data and Key Metrics Changes - Retail volumes exceeded overall category trends, outperforming by 2 points [19] - The foil category maintained constructive dynamics despite multiple price increases [19] - The competitive landscape intensified in the waste bag and food bag categories, with increased promotional and pricing activity from competitors [11] Company Strategy and Development Direction - The company is focused on three core pillars: Revenue Growth Management, Share Gap Selling, and Innovation [13][15] - A restructuring of category organization is planned to enhance efficiency and sharpen focus on innovation [16] - The company aims to continue investing in innovation and distribution opportunities to accelerate earnings growth [25] Management's Comments on Operating Environment and Future Outlook - The 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 [26] - Adjusted EBITDA for 2026 is projected to be between $660 million and $675 million [27] Other Important Information - The company successfully refinanced its term loan facility, extending debt maturity and reducing net debt leverage to 2.1 times [24] - The management highlighted the importance of maintaining brand equity and a long-term view on pricing strategy [42] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - The restructuring aims for clarity and focus, allowing dedicated teams to manage categories more effectively without significant personnel changes [34][35] Question: Are we nearing a stabilization point for foam products? - Volumes in the foam category were down about 14% in 2025, with expectations of a lesser decline in 2026 [37] Question: What are the competitive dynamics around the Hefty business? - The company has seen increased promotional activity from competitors but believes maintaining price points is essential for brand equity [41][42] Question: How is the company managing pricing and elasticity in the foil category? - The company has taken measured quarterly price increases and observed tighter price gaps with private labels, which may provide some insulation against elasticity risks [76] Question: What is the outlook for SG&A expenses in 2026? - SG&A is expected to increase as the company invests in innovation and strategic initiatives, following a year of cost optimization [56]

Q3 2025 Financial Performance - Net Revenues reached $931 million[16] - Adjusted EBITDA was $168 million[16] - Adjusted EBITDA margin was 18%[16] Segment Performance (Q3 2025) - Reynolds Cooking & Baking: Net Revenues of $308 million, Adjusted EBITDA of $53 million, with a 17% margin[16] - Hefty Waste & Storage: Net Revenues of $266 million, Adjusted EBITDA of $74 million, with a 28% margin[16] - Hefty Tableware: Net Revenues of $200 million, Adjusted EBITDA of $29 million, with a 15% margin[16] - Presto Products: Net Revenues of $163 million, Adjusted EBITDA of $35 million, with a 21% margin[16] Year-to-Date (YTD) 2025 Financials - Net Revenues totaled $2,687 million[18] - Adjusted EBITDA amounted to $447 million[18] - Adjusted EBITDA margin was 17%[18] Q4 2025 Outlook - Net Revenues are expected to decrease by 1% to 5%[21] - Net Income is projected to be between $110 million and $118 million[21] - Adjusted EBITDA is forecasted to be between $208 million and $218 million[21] Full Year 2025 Outlook - Net Revenues are expected to be flat to down 1%[22] - Net Income is projected to be between $294 million and $302 million[22] - Adjusted EBITDA is forecasted to be between $655 million and $665 million[22]

Q1 2025 Financial Performance - Net revenues for Q1 2025 were $818 million[17] - Adjusted EBITDA for Q1 2025 was $117 million with a 14% margin[17] - Reynolds Cooking & Baking net revenues were $259 million with an adjusted EBITDA of $38 million and a 15% margin[17] - Hefty Waste & Storage net revenues were $240 million with an adjusted EBITDA of $59 million and a 25% margin[17] - Hefty Tableware net revenues were $179 million with an adjusted EBITDA of $17 million and a 9% margin[17] - Presto Products net revenues were $143 million with an adjusted EBITDA of $26 million and an 18% margin[17] Financial Outlook - Q2 2025 net revenues are expected to be down 2% to 5%[20] - Q2 2025 adjusted EPS is projected to be $035 - $039[20] - Q2 2025 adjusted EBITDA is expected to be $155 million - $165 million[20] - Full year 2025 net revenues are expected to be down low single digits[22] - Full year 2025 adjusted EPS is projected to be $154 - $161[22] - Full year 2025 adjusted EBITDA is expected to be $650 - $670 million[22]