Reynolds Consumer Products (REYN) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 net revenues of $1,034M, up from $1,021M in Q4 2024, and full-year net revenues of $3,721M, up from $3,695M in 2024, with share gains and improved service levels despite commodity and macro headwinds.

• Adjusted EBITDA grew to $220M in Q4 (from $213M) and reached $667M for the year (down from $678M in 2024), supported by innovation, cost savings, and strategic initiatives.

• Adjusted net income for Q4 was $125M (up from $121M), and for the year was $345M (down from $352M), with adjusted EPS of $0.59 for Q4 and $1.64 for the year.

• Management team strengthened with new leaders and focus on leadership development, supporting a more stable earnings growth model.

• Strategic realignment and cost reduction efforts offset commodity and operational cost increases.

Financial highlights

• Q4 net income was $118M (down from $121M), with EPS of $0.56 (down from $0.58); adjusted EPS was $0.59 (up from $0.58).

• Full-year net income was $301M (down from $352M), with EPS of $1.43 (down from $1.67); adjusted EPS was $1.64 (down from $1.67).

• Operating cash flow for 2025 was $477M (down from $489M), and free cash flow was $316M (down from $369M).

• Capital expenditures increased to $161M (from $120M), reflecting investments in automation and productivity.

• Net debt at year-end 2025 was $1,433M, with net debt leverage reduced to 2.1x from 2.3x in 2024.

Outlook and guidance

• 2026 net revenues expected to range from -3% to +1% versus 2025; adjusted EBITDA guidance is $660M–$675M.

• Net income projected at $331M–$343M; adjusted EPS between $1.57–$1.63.

• Q1 2026 net revenues expected to be -3% to +1% versus Q1 2025; adjusted EBITDA $120M–$125M.

• SG&A expected to rise in 2026 to support innovation and strategic initiatives.

• Quarterly dividend of $0.23 per share approved, payable February 27, 2026.