Free cash flow remains highly seasonal and constrained by a fixed $48 million quarterly dividend obligation, which frequently limits liquidity during periods where FCF margins drop as low as 2.1%.
| Cash from Operations | 492M | 477M | 489M | 644M | 219M | 310M | 319M | 403M | 530M | 395M |
| Operating CF Margin % | - | 12.82% | 13.23% | 17.15% | 5.74% | 8.72% | 9.78% | 13.29% | 16.87% | 13.36% |
| Operating CF Growth % | 40.34% | -2.45% | -24.07% | 194.06% | -29.35% | -2.82% | -20.84% | -23.96% | 34.18% | - |
| Net Income | 329M | 301M | 352M | 298M | 258M | 324M | 363M | 225M | 176M | 302M |
| Depreciation & Amortization | 136M | 135M | 129M | 124M | 117M | 109M | 99M | 91M | 87M | 90M |
| Stock-Based Compensation | 12M | 0 | 19M | 14M | 5M | 4M | 5M | 0 | 0 | 0 |
| Deferred Taxes | 21M | 13M | -11M | -5M | 1M | 22M | 67M | 1M | -22M | -158M |
| Other Non-Cash Items | 6M | 21M | 0 | 0 | 0 | 0 | 0 | -9M | 15M | 12M |
| Working Capital Changes | -13M | 7M | 0 | 213M | -162M | -149M | -215M | 95M | 274M | 151M |
| Change in Receivables | -51M | -16M | 13M | 7M | -31M | -29M | -276M | -19M | -7M | 44M |
| Change in Inventory | -5M | -18M | -42M | 198M | -139M | -165M | 0 | 2M | -65M | -78M |
| Change in Payables | 33M | 40M | 95M | -31M | -14M | 71M | 54M | -6M | 16M | -4M |
| Cash from Investing | -166M | -161M | -120M | -110M | -128M | -141M | -143M | -128M | -554M | -364M |
| Capital Expenditures | -166M | -161M | -120M | -104M | -128M | -141M | -143M | -109M | -82M | -56M |
| CapEx % of Revenue | 4.39% | 4.33% | 3.25% | 2.77% | 3.35% | 3.97% | 4.38% | 3.6% | 2.61% | 1.89% |
| Acquisitions | 0 | 0 | 0 | -6M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19M | -472M | -308M |
| Cash from Financing | -313M | -306M | -346M | -457M | -217M | -317M | 34M | -196M | 24M | -40M |
| Debt Issued (Net) | -108M | -108M | -150M | -262M | -25M | -125M | 2.25B | -21M | 3M | -21M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 1.41B | 0 | 0 | 0 |
| Dividends Paid | -192M | -192M | -192M | -192M | -192M | -192M | -124M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -13M | -6M | -4M | -3M | 0 | 0 | -3.5B | -175M | 21M | -19M |
| Net Change in Cash | 13M | 10M | 22M | 77M | -126M | -148M | 210M | 79M | 0 | -9M |
| Free Cash Flow | 326M | 316M | 369M | 540M | 91M | 169M | 176M | 294M | 448M | 339M |
| FCF Margin % | 8.62% | 8.49% | 9.99% | 14.38% | 2.38% | 4.75% | 5.39% | 9.7% | 14.26% | 11.46% |
| FCF Growth % | 3.16% | -14.36% | -31.67% | 493.41% | -46.15% | -3.98% | -40.14% | -34.38% | 32.15% | - |
| FCF per Share | 1.54 | 1.50 | 1.75 | 2.57 | 0.43 | 0.81 | 0.86 | 1.40 | 2.21 | 1.67 |
| FCF Conversion (FCF/Net Income) | 0.99x | 1.58x | 1.39x | 2.16x | 0.85x | 0.96x | 0.88x | 1.79x | 3.01x | 1.31x |
| Interest Paid | 41M | 0 | 98M | 114M | 68M | 41M | 83M | 109M | 123M | 146M |
| Taxes Paid | 46M | 0 | 125M | 90M | 64M | 91M | 76M | 4M | 8M | 7M |
Commodity Input Cost Volatility
Based on reported quarterly filings, REYN consistently demonstrates an OCF/NI ratio exceeding 1.0, with a notable peak of 2.02 in 2024Q1, suggesting that cash generation frequently outpaces accounting net income due to significant non-cash charges and working capital adjustments inherent in their manufacturing model.
The consistent gap between net income and operating cash flow suggests that the company's earnings quality is heavily influenced by depreciation and amortization, which are substantial relative to net income. Investors should monitor whether this conversion efficiency remains sustainable as the company navigates potential shifts in inventory valuation and trade promotion accounting.
As indicated in recent financial statements, REYN's free cash flow margins exhibit extreme seasonality, swinging from a high of 19.3% in 2025Q4 to a low of 2.1% in 2025Q1, reflecting the company's reliance on holiday-driven demand cycles to generate meaningful surplus cash.
The sharp contraction in FCF margins during the first quarter of each year highlights the company's vulnerability to post-holiday inventory build-ups and cash outflows. This trajectory suggests that the business is highly dependent on fourth-quarter performance to fund its dividend obligations throughout the remainder of the fiscal year.
According to historical cash flow data, REYN maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios generally oscillating between 2.0% and 5.0%, indicating that the firm is primarily focused on maintenance rather than aggressive capacity expansion in its mature US packaging markets.
The moderate capital intensity suggests that management is prioritizing cash preservation over large-scale infrastructure investment. This approach appears consistent with a defensive strategy in a low-growth industry, though it may limit the company's ability to pivot toward more sustainable or eco-friendly packaging materials without significant future capital outlays.
Based on the provided cash flow statements, working capital changes are a primary driver of quarterly cash volatility, with a significant $81 million inflow in 2025Q4 contrasting sharply with a $48 million outflow in 2025Q3, illustrating the impact of seasonal inventory and trade payables management.
The erratic nature of these working capital movements suggests that the company's cash position is highly sensitive to the timing of retailer payments and raw material procurement cycles. Analysts should interpret these fluctuations as a reflection of the company's role as a category captain that must absorb inventory risks to maintain shelf space.
As reported in financial statements, REYN consistently allocates $48 million per quarter to dividends, a fixed commitment that frequently consumes a large portion of quarterly free cash flow, particularly during the seasonally weaker first and second quarters of the fiscal year.
This rigid dividend policy appears to leave little room for share repurchases or strategic acquisitions, effectively tethering the company's capital allocation to its ability to generate consistent seasonal cash. Investors should monitor whether this payout ratio remains sustainable if commodity price volatility continues to compress operating margins.
Quick answers to the most common questions about buying REYN stock.
Reynolds Consumer Products Inc. (REYN) generated $477.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Reynolds Consumer Products Inc. (REYN) generated $316.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Reynolds Consumer Products Inc. (REYN) spent $161.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Reynolds Consumer Products Inc. (REYN) returned $192.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.