Reynolds Consumer Products (REYN) Q4 2024 earnings summary

Executive summary

• Achieved record profitability in 2024, with net income up 18% to $352 million and margin expansion, driven by strong brand performance, operational execution, and innovation.

• 2024 net revenues reached $3.695 billion, maintaining #1 or #2 US market share in most categories, despite a 2% year-over-year decline.

• Retail volume accelerated in Q4, with all business units contributing to growth.

• Entered 2025 with a strong balance sheet, reduced leverage, and robust cash flows, enabling investment in growth, automation, and productivity initiatives.

• Strategic focus on targeted innovation, distribution expansion, cost savings, and ROI-driven capital allocation to drive consistent earnings growth.

Financial highlights

• 2024 net revenues were $3.695 billion; Q4 net revenues were $1.021 billion, with sequentially improving retail volume.

• Adjusted EBITDA for 2024 was $678 million (18% margin), up 7% year-over-year; Q4 Adjusted EBITDA was $213 million (21% margin).

• Net income for 2024 was $352 million, up from $298 million in 2023; Adjusted EPS was $1.67, up from $1.42 in 2023.

• Free cash flow totaled $369 million, supporting $150 million in debt repayment during 2024 and an additional $50 million in early 2025.

• Operating cash flow for 2024 was $489 million, with a 72% conversion of Adjusted EBITDA.

Outlook and guidance

• 2025 net revenues expected to decline low single digits, reflecting a 2% category decline driven by double-digit foam dish declines.

• 2025 Adjusted EBITDA guidance is $670 million–$690 million; Adjusted EPS expected at $1.61–$1.68.

• Q1 2025 net revenues projected down low single digits; Adjusted EBITDA of $115 million–$120 million; Adjusted EPS of $0.22–$0.24.

• Excludes $25 million–$35 million in CEO transition and strategic initiative costs; full-year guidance includes $130 million in depreciation/amortization.

• Free cash flow conversion expected at ~50% of EBITDA; year-end 2025 net debt targeted at ~$1.4 billion.