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1. Company Snapshot

1.a. Company Description

Reynolds Consumer Products Inc.produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally.It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products.


The Reynolds Cooking & Baking segment produces foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and E-Z Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally.The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands.This segment also provides a suite of products, including blue and clear recycling bags, compostable bags, bags made from recycled materials, and the Hefty EnergyBag Program.


The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand.The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories.Reynolds Consumer Products Inc.


offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers.The company was founded in 1947 and is headquartered in Lake Forest, Illinois.Reynolds Consumer Products Inc.


operates as a subsidiary of Packaging Finance Limited.

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1.b. Last Insights on REYN

Reynolds Consumer Products' recent performance was negatively impacted by its Q4 earnings miss, with quarterly earnings of $0.59 per share, falling short of the Zacks Consensus Estimate of $0.6 per share. Despite this, the company reported its Q4 and full-year 2025 financial results, providing a 2026 outlook. Institutional investors, such as Edgestream Partners and First Trust Advisors, have increased their holdings in the company. Reynolds Consumer Products also declared a regular quarterly cash dividend, demonstrating its commitment to shareholder value.

1.c. Company Highlights

2. Reynolds Consumer Products' Solid Q4 Execution Amidst Challenging Environment

Reynolds Consumer Products Inc. (RCP) reported a net revenue of $1.03 billion for the fourth quarter, representing a 1% growth compared to 2024. Adjusted EBITDA was $220 million, a 3% increase from the year-ago period. The company's actual EPS came out at $0.59, slightly below estimates of $0.6. For the full year 2025, RCP saw net revenues of $3.7 billion, representing year-over-year growth of 1%. Adjusted EBITDA was $670 million, compared to $678 million in 2024. The company's strong cash flow performance generated full-year free cash flow of $316 million.

Publication Date: Feb -08

📋 Highlights
  • Outperformance in 2025:: RCP outperformed its categories by 1 point in 2025 and 2 points in Q4, despite commodity, tariff, and consumer headwinds.
  • Q4 Financials:: Fourth-quarter net revenue reached $1.03 billion (+1% YoY), with adjusted EBITDA of $220 million (+3% YoY), driven by retail volume growth and higher non-retail revenues ($24M increase YoY).
  • 2026 Guidance:: Net revenue expected to decline -3% to +1%, with EPS guidance of $1.57–$1.63 and adjusted EBITDA of $120–$125 million in Q1 2026 amid margin expansion efforts.
  • Free Cash Flow & EBITDA:: Full-year 2025 free cash flow hit $316 million, while EBITDA stabilized at $670 million (down from $678 million in 2024) despite macro challenges.
  • Foam Category Stabilization:: Projected 7-point decline in 2026 (vs. 14% in 2025), with strategic focus on innovation and sustainable solutions to offset declining demand.

Operational Highlights

Scott Huckins highlighted that RCP's innovation engine began to deliver in 2025, driven by a focused strategy on fewer ideas, bigger ambition, and better consumer outcomes. New products met real consumer needs and reinforced RCP's leadership in everyday household essential categories. The company's retail volumes exceeded overall category trends, and low-margin non-retail net revenues increased $24 million versus the prior year period.

Guidance and Outlook

Nathan Lowe outlined RCP's priorities for 2026, including margin expansion through lean principles and high ROI automation investments. The company expects net revenues to be minus 3% to plus 1% compared to 2025 net revenues, with retail branded sales expected at or above category performance. For the first quarter, RCP expects net revenues to be down 3% to plus 1% compared to 2025, with adjusted EBITDA in the range of $120 million to $125 million.

Valuation Metrics

With a P/E Ratio of 15.91 and an EV/EBITDA of 10.44, the market seems to have priced in a reasonable growth trajectory for RCP. The company's ROE of 13.83% and ROIC of 8.6% indicate a decent return on equity and invested capital. Analysts estimate next year's revenue growth at 1.7%, which is slightly higher than the current year's growth rate.

Commodity Cost Inflation and Pricing

RCP expects a 2-3 point headwind to gross margin due to commodity cost inflation, with a similar amount of pricing to offset that. Scott Huckins noted that the company has taken pricing actions, believing gradual increases are more effective with the consumer than larger increases. The company studies the category daily and is confident in its ability to navigate elasticity through RGM capabilities.

Capital Allocation and Restructuring

RCP's approach to capital allocation considers organic and inorganic opportunities, with a bias for investments that drive growth. The company maintains a hurdle rate for other potential uses of capital based on the proven ROIs in its automation CapEx pipeline. Regarding the restructuring of Presto and Hefty, the goal is to have clarity and focus in each business unit, with end-to-end management and dedicated teams for category innovation.

3. NewsRoom

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3 Consumer Staples Stocks Breaking Out This Month

Feb -09

Source: marketbeat.com

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Reynolds Consumer Products Inc. (REYN) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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Reynolds Consumer Products (REYN) Q4 Earnings Lag Estimates

Feb -04

Source: zacks.com

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Reynolds Consumer Products Reports Fourth Quarter and Full Year 2025 Financial Results; Provides 2026 Outlook

Feb -04

Source: businesswire.com

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Reynolds Consumer Products Declares Regular Quarterly Cash Dividend

Jan -29

Source: businesswire.com

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Are These 4 Consumer Discretionary Stocks Set to Win in 2026?

Jan -22

Source: zacks.com

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Reynolds Consumer Products to Report Fourth Quarter and Full Year 2025 Financial Results on February 4, 2026

Jan -21

Source: businesswire.com

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State of Alaska Department of Revenue Acquires 34,162 Shares of Reynolds Consumer Products Inc. $REYN

Jan -12

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.94%)

6. Segments

Reynolds Cooking and Baking

Expected Growth: 1.0%

Reynolds Cooking and Baking's 1.0% growth is driven by increasing demand for convenient and sustainable cooking solutions, steady growth in the baking industry, and the company's focus on product innovation and expansion into new markets, such as e-commerce and meal kit delivery services.

Hefty Tableware

Expected Growth: 0.9%

Hefty Tableware's 0.9% growth is driven by increasing demand for sustainable and eco-friendly products, Reynolds Consumer Products Inc.'s strong brand recognition, and strategic partnerships with major retailers. Additionally, the company's focus on product innovation, such as compostable and recyclable tableware, resonates with environmentally conscious consumers, contributing to the segment's growth.

Hefty Waste and Storage

Expected Growth: 0.8%

Hefty Waste and Storage from Reynolds Consumer Products Inc. growth of 0.8 is driven by increasing consumer demand for convenient and sustainable waste management solutions, coupled with the company's strategic expansion into new markets and product lines, as well as its focus on innovation and operational efficiency.

Presto Products

Expected Growth: 1.1%

Presto Products' 1.1% growth is driven by increasing demand for convenient food storage solutions, rising popularity of meal prep and online grocery shopping, and Reynolds Consumer Products Inc.'s strategic investments in e-commerce and product innovation, particularly in the reusable container segment.

Unallocated

Expected Growth: 0.7%

Reynolds Consumer Products Inc.'s unallocated segment growth of 0.7% is driven by increasing demand for sustainable packaging, cost savings from operational efficiencies, and strategic pricing initiatives. Additionally, the company's focus on innovation and product diversification has contributed to the growth, despite headwinds from raw material inflation and supply chain disruptions.

7. Detailed Products

Hefty Trash Bags

Heavy-duty trash bags designed for household and industrial use, offering superior strength and leak resistance.

Hefty Storage Bags

Durable storage bags for organizing and protecting items during moves, storage, and travel.

Reynolds Wrap Aluminum Foil

Heavy-duty aluminum foil for cooking, wrapping, and storing food, offering superior heat resistance and durability.

Reynolds Parchment Paper

Non-stick parchment paper for baking, roasting, and cooking, offering easy food release and cleanup.

Cut-Rite Wax Paper

Wax-coated paper for wrapping food, covering surfaces, and protecting against moisture.

8. Reynolds Consumer Products Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Reynolds Consumer Products Inc. operates in a market with moderate threat of substitutes. While there are some alternatives to its products, they are not significantly cheaper or better, limiting the threat.

Bargaining Power Of Customers

Reynolds Consumer Products Inc. has a diverse customer base, which limits the bargaining power of individual customers. Additionally, the company's products are not highly customized, reducing the dependence on specific customers.

Bargaining Power Of Suppliers

Reynolds Consumer Products Inc. relies on a few large suppliers for its raw materials. While the company has some bargaining power due to its size, the suppliers also have some leverage, resulting in a moderate level of bargaining power.

Threat Of New Entrants

The market for consumer products has high barriers to entry, including significant capital requirements and established distribution networks. This limits the threat of new entrants to Reynolds Consumer Products Inc.

Intensity Of Rivalry

The market for consumer products is highly competitive, with several established players competing for market share. Reynolds Consumer Products Inc. faces intense competition from companies like Procter & Gamble and Kimberly-Clark.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.80%
Debt Cost 6.33%
Equity Weight 51.20%
Equity Cost 6.33%
WACC 6.33%
Leverage 95.31%

11. Quality Control: Reynolds Consumer Products Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sonoco

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Growth: 5.0

Quality: 5.6

Yield: 8.0

Momentum: 2.0

Volatility: 8.7

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Reynolds Consumer Products

A-Score: 6.0/10

Value: 5.6

Growth: 4.9

Quality: 5.6

Yield: 7.0

Momentum: 3.5

Volatility: 9.3

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Yield: 6.0

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Quality: 5.6

Yield: 6.0

Momentum: 3.0

Volatility: 8.3

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Graphic Packaging

A-Score: 5.0/10

Value: 7.8

Growth: 6.4

Quality: 4.3

Yield: 4.0

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Volatility: 7.0

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Value: 7.3

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Quality: 2.3

Yield: 2.0

Momentum: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.09$

Current Price

23.09$

Potential

-0.00%

Expected Cash-Flows