8-K
Reynolds Consumer Products Inc. (REYN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_______________________________________________
FORM 8-K
_______________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2026
_______________________________________________
REYNOLDS CONSUMER PRODUCTS INC.
(Exact Name of Registrant as Specified in its Charter)
_______________________________________________
| Delaware | 001-39205 | 45-3464426 | |||
|---|---|---|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) | 1900 W. Field Court<br><br>Lake Forest, Illinois | 60045 | |
| --- | --- | ||||
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (800) 879-5067
Not Applicable
(Former name or former address, if changed since last report)
_______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.001 Par Value | REYN | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition
On February 4, 2026, Reynolds Consumer Products Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01. Financial Statements and Exhibits
(d)Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release issued by Reynolds Consumer Products Inc., dated February 4, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 4, 2026 | ||
|---|---|---|
| REYNOLDS CONSUMER PRODUCTS INC. | ||
| By: | /s/ Jill E. Barnett | |
| Jill E. Barnett | ||
| Chief Legal Officer and Secretary |
Document
Exhibit 99.1
Reynolds Consumer Products Reports Fourth Quarter and Full Year 2025 Financial Results; Provides 2026 Outlook
Realizing Benefits from Strategic Initiatives & Continued Investment
Q4 Earnings Growth Despite Commodity Headwinds
Strong Branded Share Gains
LAKE FOREST, IL, February 4, 2026 – (BUSINESSWIRE) – Reynolds Consumer Products Inc. (the “Company”) (Nasdaq: REYN) today reported financial results for the fourth quarter and fiscal year ended December 31, 2025.
“I’m proud of the results our team delivered in a challenging macro environment,” said Scott Huckins, President and Chief Executive Officer. “We gained share, delivered excellent service levels, and reinforced the fundamentals of our U.S.-centric business by executing with discipline, innovating to meet evolving consumer needs, and investing in growth and productivity. Our fourth‑quarter and full‑year results demonstrate the resilience of our business and early results from executing against our priorities.”
Huckins continued, “We enter 2026 well‑positioned, with the team, resources, operating agility, innovation pipeline, and category leadership to navigate dynamic operating conditions.”
Fourth Quarter 2025 Highlights
•Net Revenues of $1,034 million compared to $1,021 million in Q4 2024
◦Retail Net Revenues of $964 million compared to $975 million in Q4 2024
◦Retail volumes decreased 2%, exceeding category performance by 2-points, and flat excluding foam
◦Non-Retail Net Revenues1 of $70 million compared to $46 million in Q4 2024
•Net Income of $118 million compared to $121 million in Q4 2024, and Adjusted Net Income of $125 million compared to $121 million in Q4 2024
•Adjusted EBITDA of $220 million vs $213 million in Q4 2024
•Earnings Per Share of $0.56 compared to $0.58 in Q4 2024, and Adjusted Earnings Per Share of $0.59 compared to $0.58 in Q4 2024
Net Income decreased to $118 million from $121 million in Q4 2024, driven primarily by $7 million of after-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income increased $4 million to $125 million over the year ago quarter. Adjusted EBITDA increased $7 million to $220 million over the year ago period, reflecting pricing actions to recover increased input costs, productivity improvements, and reductions in selling, general and administrative (SG&A) expenses.
__________________________________________________
1Non-Retail Revenues consist of aluminum sales made to food service and industrial customers.
Fourth Quarter Key Business Segment Results
The following is a summary of key fourth quarter results by reportable business unit. All comparisons are with the fourth quarter of 2024.
Reynolds Cooking & Baking
•Net Revenues increased $34 million to $398 million, driven by higher non-retail revenues and pricing to recover input cost increases.
•Retail volume decreased 3%, though sequentially flat, while Reynolds Wrap®, bakeware and parchment drove share gains.
•Adjusted EBITDA was flat at $80 million on better alignment of pricing and input costs, as well as lower operating costs.
Hefty Waste & Storage
•Net Revenues were flat at $250 million, reflecting stronger volumes offset by changes in year-over-year promotional timing and business mix.
•Retail volume increased 3%, driven by strong performance and share gains in both Hefty® waste bags and Hefty® Press to Close food bags.
•Adjusted EBITDA increased $7 million to $76 million, primarily driven by productivity improvements.
Hefty Tableware
•Net Revenues decreased $26 million to $229 million and retail volume decreased 12%, driven primarily by double-digit declines in the foam category.
•Adjusted EBITDA was flat at $52 million due to lower operational costs offset by the impact of lower foam sales.
Presto Products
•Net Revenues increased $14 million to a record $168 million.
•Retail volume increased 10% due to strong share gains in store brand food bags.
•Adjusted EBITDA increased $5 million to a record $36 million, driven by retail volume growth.
Fiscal Year 2025 Highlights
•Net Revenues of $3,721 million compared to $3,695 million in 2024
◦Retail Net Revenues of $3,481 million compared to $3,518 million in 2024
◦Retail volume decreased 2% in total, exceeding category performance by 1-point, and flat excluding foam
◦Non-Retail Revenues1 of $240 million compared to $177 million in 2024
•Net Income of $301 million compared to $352 million in 2024, and Adjusted Net Income of $345 million compared to $352 million in 2024
•Adjusted EBITDA of $667 million compared to $678 million in 2024
•Earnings Per Share of $1.43 compared to $1.67 in 2024, and Adjusted Earnings Per Share of $1.64 compared to $1.67 in 2024
Net Income was $301 million, including $10 million of after-tax debt refinancing costs in the first quarter and $34 million of after-tax CEO transition costs and strategic investments in cost savings and revenue growth initiatives. Adjusted Net Income was $345 million compared to Adjusted Net Income of $352 million in the comparable prior year period, which included a discrete tax benefit of $10 million in the second quarter of 2024. Adjusted EBITDA was $667 million, compared to $678 million in the comparable prior year period. The decline was driven by lower retail sales volumes, including retailer inventory destocking and foam category declines, as well as higher operational costs, partially offset by pricing actions to fully recover higher input costs and lower selling general and administrative costs, which included the benefit of cost reduction initiatives.
The Company reduced Net Debt Leverage2 from 2.3x on December 31, 2024 to 2.1x on December 31, 2025, at the low-end of our stated target leverage range of 2.0 to 2.5x.
__________________________________________________
2Net Debt is defined as current portion of long-term debt plus long-term debt less cash and cash equivalents. Net Debt Leverage is defined as Net Debt divided by Trailing Twelve Months Adjusted EBITDA. See “Use of Non-GAAP Financial Measures” for additional information.
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $147 million at December 31, 2025, and debt was $1,580 million, resulting in net debt of $1,433 million. Net Debt Leverage was 2.1x on December 31, 2025.
Operating cash flow was $477 million for the year ended December 31, 2025, compared to $489 million for the year ended December 31, 2024, reflecting working capital improvements to offset the impact of commodities and tariffs, and fund investments in strategic initiatives.
Capital expenditures were $161 million for the year ended December 31, 2025 compared to $120 million in the prior year, reflecting increased investments in automation and productivity to expand margins and support additional growth.
“Over the course of 2025, we drove cost reduction and productivity initiatives across all parts of our business in a dynamic environment, including pricing, operational improvements, and targeted SG&A reductions,” said Nathan Lowe, Chief Financial Officer. “As we look ahead, our priority is to further realize the benefits of the numerous initiatives we launched in 2025 and continue to invest in the business to deliver sustainable earnings growth that drives long-term shareholder value.”
Fiscal Year 2026 and First Quarter 2026 Outlook
Beginning in Q1 2026, we will realign category organization across the Hefty Waste & Storage and Presto segments, consolidating waste bags in one business and food bags and storage in another to increase efficiencies, sharpen the focus on innovation, and establish a structure to better unlock growth opportunities.
Full-year 2026 Net Revenues are expected to be -3% to +1% compared to 2025 Net Revenues of $3,721 million. The Company expects Net Income and Adjusted Net Income to be in the range of $331 million to $343 million. Full-year EPS and Adjusted EPS are expected to be between $1.57 to $1.63, and full-year Adjusted EBITDA is expected to be in the range of $660 million and $675 million.
First quarter 2026 Net Revenues are expected to be -3% to +1% compared to first quarter 2025 Net Revenues of $818 million. Net Income and Adjusted Net Income are expected to be between $49 million and $53 million in the first quarter, with EPS and Adjusted EPS expected to be $0.23 to $0.25. The Company expects first quarter Adjusted EBITDA to be $120 million to $125 million.
Quarterly Dividend
The Company’s Board of Directors has approved a quarterly dividend of $0.23 per common share. The Company expects to pay this dividend on February 27, 2026, to shareholders of record as of February 13, 2026.
Earnings Webcast
The Company will host a live webcast this morning at 7:00 a.m. CT (8:00 a.m. ET). A link to the webcast and all related earnings materials will be available on the Company’s Investor Relations website at https://investors.reynoldsconsumerproducts.com.
About Reynolds Consumer Products Inc.
Reynolds Consumer Products is a leading provider of household products that simplify daily life, so consumers can enjoy what matters most. Found in 95% of U.S. homes, the Company offers trusted solutions for cooking, cleanup, food storage and more. Its portfolio features iconic brands like Reynolds Wrap® aluminum foil and Hefty® trash bags and disposable tableware, along with store brand products tailored to retail partners. Reynolds holds the No. 1 or No. 2 U.S. market share in most of the categories it serves. Learn more at: https://investors.reynoldsconsumerproducts.com.
Forward Looking Statements
This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our positioning as we enter 2026, our priorities to realize benefits from past initiatives and invest in future growth, and our expectations for sustainable earnings growth and long-term shareholder value, and our anticipated Net Revenue, Net Income, Adjusted Net Income, EPS, Adjusted EPS and Adjusted EBITDA for first quarter and fiscal year 2026 guidance. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “believe,” “estimate,” “expect,” “will,” “should,” “may,” “might,” “intends,” “outlook,” “forecast”, “position,” “committed,” “plans,” “predicts,” “model,” “assumes,” “confident,” “look forward,” “potential,” “on track,” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and recovery of profitability, management of costs and other disruptions and other strategies, the impact of the imposition of tariffs, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q.
For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
REYN-F
Investor Contact
Jill Koval
Jill.Koval@reynoldsbrands.com
(203) 832-4449
Reynolds Consumer Products Inc.
Consolidated Statements of Income
(amounts in millions, except for per share data)
| For the Three Months Ended | For the Years Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Net revenues | $ | 1,034 | $ | 1,000 | $ | 3,704 | $ | 3,618 |
| Related party net revenues | — | 21 | 17 | 77 | ||||
| Total net revenues | 1,034 | 1,021 | 3,721 | 3,695 | ||||
| Cost of sales | (768) | (741) | (2,807) | (2,717) | ||||
| Gross profit | 266 | 280 | 914 | 978 | ||||
| Selling, general and administrative expenses | (81) | (100) | (382) | (429) | ||||
| Other expense, net | (9) | — | (40) | — | ||||
| Income from operations | 176 | 180 | 492 | 549 | ||||
| Interest expense, net | (23) | (22) | (86) | (98) | ||||
| Debt refinancing expense | — | — | (13) | — | ||||
| Income before income taxes | 153 | 158 | 393 | 451 | ||||
| Income tax expense | (35) | (37) | (92) | (99) | ||||
| Net income | $ | 118 | $ | 121 | $ | 301 | $ | 352 |
| Earnings per share | ||||||||
| Basic | $ | 0.56 | $ | 0.58 | $ | 1.43 | $ | 1.68 |
| Diluted | $ | 0.56 | $ | 0.58 | $ | 1.43 | $ | 1.67 |
| Weighted average shares outstanding: | ||||||||
| Basic | 210.3 | 210.2 | 210.3 | 210.1 | ||||
| Diluted | 210.6 | 210.9 | 210.4 | 210.4 |
Reynolds Consumer Products Inc.
Consolidated Balance Sheets
As of December 31
(amounts in millions, except for per share data)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Assets | ||||
| Cash and cash equivalents | $ | 147 | $ | 137 |
| Accounts receivable, net | 355 | 337 | ||
| Other receivables | 10 | 7 | ||
| Related party receivables | — | 6 | ||
| Inventories | 584 | 567 | ||
| Other current assets | 20 | 47 | ||
| Total current assets | 1,116 | 1,101 | ||
| Property, plant and equipment, net | 823 | 758 | ||
| Operating lease right-of-use assets, net | 98 | 90 | ||
| Goodwill | 1,895 | 1,895 | ||
| Intangible assets, net | 943 | 972 | ||
| Other assets | 61 | 57 | ||
| Total assets | $ | 4,936 | $ | 4,873 |
| Liabilities | ||||
| Accounts payable | $ | 387 | $ | 319 |
| Related party payables | — | 34 | ||
| Current operating lease liabilities | 23 | 20 | ||
| Income taxes payable | 14 | 5 | ||
| Accrued and other current liabilities | 153 | 161 | ||
| Total current liabilities | 577 | 539 | ||
| Long-term debt | 1,580 | 1,686 | ||
| Long-term operating lease liabilities | 81 | 73 | ||
| Deferred income taxes | 350 | 342 | ||
| Long-term postretirement benefit obligation | 13 | 14 | ||
| Other liabilities | 82 | 77 | ||
| Total liabilities | $ | 2,683 | $ | 2,731 |
| Stockholders’ equity | ||||
| Common stock, $0.001 par value; 2,000 shares authorized; 210.3 shares issued and outstanding | — | — | ||
| Additional paid-in capital | 1,431 | 1,413 | ||
| Accumulated other comprehensive income | 20 | 35 | ||
| Retained earnings | 802 | 694 | ||
| Total stockholders’ equity | 2,253 | 2,142 | ||
| Total liabilities and stockholders’ equity | $ | 4,936 | $ | 4,873 |
Reynolds Consumer Products Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31
(amounts in millions)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Cash provided by operating activities | ||||
| Net income | $ | 301 | $ | 352 |
| Adjustments to reconcile net income to operating cash flows: | ||||
| Depreciation and amortization | 135 | 129 | ||
| Deferred income taxes | 13 | (11) | ||
| Stock compensation expense | 21 | 19 | ||
| Change in assets and liabilities: | ||||
| Accounts receivable, net | (11) | 11 | ||
| Other receivables | (4) | 1 | ||
| Related party receivables | (1) | 1 | ||
| Inventories | (18) | (42) | ||
| Accounts payable | 40 | 95 | ||
| Related party payables | (9) | — | ||
| Income taxes payable / receivable | 9 | (17) | ||
| Accrued and other current liabilities | (6) | (26) | ||
| Other assets and liabilities | 7 | (23) | ||
| Net cash provided by operating activities | 477 | 489 | ||
| Cash used in investing activities | ||||
| Acquisition of property, plant and equipment | (161) | (120) | ||
| Net cash used in investing activities | (161) | (120) | ||
| Cash used in financing activities | ||||
| Repayment of long-term debt | (108) | (150) | ||
| Dividends paid | (192) | (192) | ||
| Proceeds from term loan refinancing(1) | 743 | — | ||
| Repayments of existing term loan(1) | (743) | — | ||
| Other financing activities | (6) | (4) | ||
| Net cash used in financing activities | (306) | (346) | ||
| Effect of exchange rate changes on cash and cash equivalents | — | (1) | ||
| Cash and cash equivalents: | ||||
| Increase (decrease) in cash and cash equivalents | 10 | 22 | ||
| Balance as of beginning of the year | 137 | 115 | ||
| Balance as of end of the year | $ | 147 | $ | 137 |
| Cash paid: | ||||
| Interest – long-term debt, net of interest rate swaps | 82 | 98 | ||
| Income taxes | 67 | 125 |
(1) Represents cash inflows and outflows due to changes in term loan lender composition.
Reynolds Consumer Products Inc.
Segment Results
(amounts in millions)
| Reynolds<br>Cooking<br>& Baking | Hefty<br>Waste &<br>Storage | Hefty<br>Tableware | Presto<br>Products | Unallocated(1) | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | ||||||||||||
| Three Months Ended December 31, 2025 | $ | 398 | $ | 250 | $ | 229 | $ | 168 | $ | (11) | $ | 1,034 |
| Three Months Ended December 31, 2024 | 364 | 250 | 255 | 154 | (2) | 1,021 | ||||||
| Year Ended December 31, 2025 | 1,259 | 1,011 | 850 | 628 | (27) | 3,721 | ||||||
| Year Ended December 31, 2024 | 1,206 | 981 | 936 | 597 | (25) | 3,695 | ||||||
| Adjusted EBITDA | ||||||||||||
| Three Months Ended December 31, 2025 | $ | 80 | $ | 76 | $ | 52 | $ | 36 | $ | (24) | $ | 220 |
| Three Months Ended December 31, 2024 | 80 | 69 | 52 | 31 | (19) | 213 | ||||||
| Year Ended December 31, 2025 | 219 | 279 | 133 | 130 | (94) | 667 | ||||||
| Year Ended December 31, 2024 | 216 | 277 | 148 | 130 | (93) | 678 |
(1)The unallocated net revenues include elimination of inter-segment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments.
(2)During the three and twelve months ended December 31, 2025, we reassigned certain product lines supporting international distribution across our segments to better align with our strategic objectives. All prior period segment disclosures have been recast to reflect this reassignment. Our composition of operating segments and reportable segments did not change, and this reassignment had no effect on our previously reported consolidated results of operations.
Components of Change in Net Revenues for the Three Months Ended December 31, 2025 vs. the Three Months Ended December 31, 2024
| Price | Volume/Mix | Total | ||||||
|---|---|---|---|---|---|---|---|---|
| Retail | Non-Retail | |||||||
| Reynolds Cooking & Baking | 10 | % | (3) | % | 2 | % | 9 | % |
| Hefty Waste & Storage | (3) | % | 3 | % | — | % | — | % |
| Hefty Tableware | 2 | % | (12) | % | — | % | (10) | % |
| Presto Products | (1) | % | 10 | % | — | % | 9 | % |
| Total RCP | 3 | % | (2) | % | — | % | 1 | % |
Components of Change in Net Revenues for the Twelve Months Ended December 31, 2025 vs. the Twelve Months Ended December 31, 2024
| Price | Volume/Mix | Total | ||||||
|---|---|---|---|---|---|---|---|---|
| Retail | Non-Retail | |||||||
| Reynolds Cooking & Baking | 6 | % | (4) | % | 2 | % | 4 | % |
| Hefty Waste & Storage | (1) | % | 4 | % | — | % | 3 | % |
| Hefty Tableware | 2 | % | (11) | % | — | % | (9) | % |
| Presto Products | — | % | 5 | % | — | % | 5 | % |
| Total RCP | 3 | % | (2) | % | — | % | 1 | % |
Use of Non-GAAP Financial Measures
We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” “Net Debt,” “Net Debt to Trailing Twelve Months Adjusted EBITDA,” and “Free Cash Flow” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, debt refinancing expense, depreciation and amortization, costs to execute strategic initiatives, CEO transition costs, as well as other non-recurring costs. We define Adjusted Net Income and Adjusted Earnings Per Share (“Adjusted EPS”) as Net Income and Earnings Per Share (“EPS”) calculated in accordance with GAAP, plus debt refinancing costs, costs to execute strategic initiatives, CEO transition costs, as well as other non-recurring costs. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above) for the period. We define Free Cash Flow as net cash provided by operating activities in the period minus the acquisition of property, plant and equipment in the period.
We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted Earnings Per Share as supplemental measures to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. We use Free Cash Flow because it measures our ability to generate additional cash from our business operations. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.
Guidance for first quarter and fiscal year 2026, where adjusted, is provided on a non-GAAP basis. Please see reconciliations of non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
Reynolds Consumer Products Inc.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
(amounts in millions)
| For the Three Months Ended December 31, | For the Years Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | (in millions) | |||||||
| Net income – GAAP | $ | 118 | $ | 121 | $ | 301 | $ | 352 |
| Income tax expense | 35 | 37 | 92 | 99 | ||||
| Interest expense, net | 23 | 22 | 86 | 98 | ||||
| Debt refinancing expense(1) | — | — | 13 | — | ||||
| Depreciation and amortization | 35 | 33 | 135 | 129 | ||||
| Costs to execute strategic initiatives(2) | 7 | — | 25 | — | ||||
| CEO transition costs(3) | 2 | — | 15 | — | ||||
| Adjusted EBITDA (Non-GAAP) | $ | 220 | $ | 213 | $ | 667 | $ | 678 |
(1)Reflects the expense recorded related to our March 2025 Term Loan Facility refinancing.
(2) Reflects costs related to the execution of cost savings and revenue growth strategic initiatives.
(3) Reflects compensation and other costs related to the CEO transition effective January 1, 2025.
Reynolds Consumer Products Inc.
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
(amounts in millions)
| Three Months Ended December 31, 2025 | Three Months Ended December 31, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions, except for per share data) | Net Income | Diluted Shares | Diluted EPS | Net Income | Diluted Shares | Diluted EPS | ||||
| As Reported - GAAP | $ | 118 | 210.6 | $ | 0.56 | $ | 121 | 210.9 | $ | 0.58 |
| Adjustments: | ||||||||||
| Costs to execute strategic initiatives(1) | 6 | 210.6 | 0.03 | — | — | — | ||||
| CEO transition costs(1) | 1 | 210.6 | — | — | — | — | ||||
| Adjusted (Non-GAAP) | $ | 125 | 210.6 | $ | 0.59 | $ | 121 | 210.9 | $ | 0.58 |
(1) Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.3% for deductible items and 0% for non-deductible items.
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions, except for per share data) | Net Income | Diluted Shares | Diluted EPS | Net Income | Diluted Shares | Diluted EPS | ||||
| As Reported - GAAP | $ | 301 | 210.4 | $ | 1.43 | $ | 352 | 210.4 | $ | 1.67 |
| Adjustments: | ||||||||||
| Debt refinancing expense(1) | 10 | 210.4 | 0.05 | — | — | — | ||||
| Costs to execute strategic initiatives(1) | 19 | 210.4 | 0.09 | — | — | — | ||||
| CEO transition costs(1) | 15 | 210.4 | 0.07 | — | — | — | ||||
| Adjusted (Non-GAAP) | $ | 345 | 210.4 | $ | 1.64 | $ | 352 | 210.4 | $ | 1.67 |
(1) Amounts are after tax, calculated based on the applicable tax treatment of each adjustment, using a normalized effective tax rate of 23.3% for deductible items and 0% for non-deductible items.
Reynolds Consumer Products Inc.
Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA
(amounts in millions, except for Net Debt to Trailing Twelve Months Adjusted EBITDA)
| As of December 31, 2025 | ||||||
|---|---|---|---|---|---|---|
| Current portion of long-term debt | $ | — | ||||
| Long-term debt | 1,580 | |||||
| Total debt | 1,580 | |||||
| Cash and cash equivalents | (147) | |||||
| Net debt (Non-GAAP) | $ | 1,433 | ||||
| For the twelve months ended December 31, 2025 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 667 | ||||
| Net Debt to Trailing Twelve Months Adjusted EBITDA | 2.1x | As of December 31, 2024 | ||||
| --- | --- | --- | ||||
| Current portion of long-term debt | $ | — | ||||
| Long-term debt | 1,686 | |||||
| Total debt | 1,686 | |||||
| Cash and cash equivalents | (137) | |||||
| Net debt (Non-GAAP) | $ | 1,549 | ||||
| For the twelve months ended December 31, 2024 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 678 | ||||
| Net Debt to Trailing Twelve Months Adjusted EBITDA | 2.3x |
Reynolds Consumer Products Inc.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(amounts in millions)
| For the Years Ended December 31 | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Net cash provided by operating activities | $ | 477 | $ | 489 |
| Acquisition of property, plant and equipment | (161) | (120) | ||
| Free cash flow | $ | 316 | $ | 369 |
Reynolds Consumer Products Inc.
Reconciliation of Q1 2026 and FY2026 Net Income Guidance to Adjusted EBITDA Guidance
(amounts in millions)
| Three Months Ended March 31, 2026 | Year Ended December 31, 2026 | |||||||
|---|---|---|---|---|---|---|---|---|
| Low | High | Low | High | |||||
| Net income (GAAP) | $ | 49 | $ | 53 | $ | 331 | $ | 343 |
| Income tax expense | 16 | 17 | 108 | 111 | ||||
| Interest expense, net | 21 | 21 | 86 | 86 | ||||
| Depreciation and amortization | 34 | 34 | 135 | 135 | ||||
| Adjusted EBITDA | $ | 120 | $ | 125 | $ | 660 | $ | 675 |