Revenue growth remains inconsistent with a 7.2% year-over-year increase in 2026Q1, while gross margins have faced significant compression, falling from 30.7% in 2023Q4 to 23.6% in 2026Q1 due to raw material price sensitivity.
| Sales/Revenue | 3.78B | 3.72B | 3.69B | 3.76B | 3.82B | 3.56B | 3.26B | 3.03B | 3.14B | 2.96B |
| Revenue Growth % | 2.77% | 0.7% | -1.62% | -1.6% | 7.34% | 8.98% | 7.62% | -3.5% | 6.26% | - |
| Cost of Goods Sold | 2.85B | 2.81B | 2.72B | 2.81B | 3.04B | 2.75B | 2.29B | 2.15B | 2.31B | 2.1B |
| COGS % of Revenue | - | 75.44% | 73.53% | 74.92% | 79.67% | 77.19% | 70.18% | 70.98% | 73.52% | 70.85% |
| Gross Profit | 932M | 914M | 978M | 942M | 776M | 811M | 973M | 880M | 832M | 862M |
| Gross Margin % | 24.66% | 24.56% | 26.47% | 25.08% | 20.33% | 22.81% | 29.82% | 29.02% | 26.48% | 29.15% |
| Gross Profit Growth % | - | -6.54% | 3.82% | 21.39% | -4.32% | -16.65% | 10.57% | 5.77% | -3.48% | - |
| Operating Expenses | 417M | 422M | 429M | 430M | 362M | 333M | 387M | 370M | 319M | 322M |
| OpEx % of Revenue | - | 11.34% | 11.61% | 11.45% | 9.48% | 9.36% | 11.86% | 12.2% | 10.15% | 10.89% |
| Selling, General & Admin | 385M | 382M | 429M | 430M | 340M | 320M | 358M | 315M | 298M | 304M |
| SG&A % of Revenue | - | 10.27% | 11.61% | 11.45% | 8.91% | 9% | 10.97% | 10.39% | 9.48% | 10.28% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 40M | 0 | 0 | 22M | 13M | 29M | 55M | 21M | 18M |
| Operating Income | 514M | 492M | 549M | 512M | 414M | 478M | 586M | 510M | 513M | 540M |
| Operating Margin % | 13.6% | 13.22% | 14.86% | 13.63% | 10.85% | 13.44% | 17.96% | 16.82% | 16.33% | 18.26% |
| Operating Income Growth % | - | -10.38% | 7.23% | 23.67% | -13.39% | -18.43% | 14.9% | -0.58% | -5% | - |
| EBITDA | 617M | 627M | 678M | 636M | 531M | 587M | 685M | 601M | 600M | 630M |
| EBITDA Margin % | 16.32% | 16.85% | 18.35% | 16.93% | 13.91% | 16.51% | 20.99% | 19.82% | 19.1% | 21.31% |
| EBITDA Growth % | -6.94% | -7.52% | 6.6% | 19.77% | -9.54% | -14.31% | 13.98% | 0.17% | -4.76% | - |
| D&A (Non-Cash Add-back) | 103M | 135M | 129M | 124M | 117M | 109M | 99M | 91M | 87M | 90M |
| EBIT | 514M | 479M | 578M | 537M | 416M | 474M | 582M | 542M | 564M | 565M |
| Net Interest Income | -44M | -86M | -98M | -119M | -76M | -48M | -70M | -234M | -302M | -341M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33M | 52M | 26M |
| Interest Expense | 44M | 86M | 98M | 119M | 76M | 48M | 70M | 267M | 354M | 367M |
| Other Income/Expense | -86M | -99M | -98M | -119M | -76M | -48M | -70M | -209M | -280M | -322M |
| Pretax Income | 428M | 393M | 451M | 393M | 338M | 430M | 516M | 301M | 233M | 218M |
| Pretax Margin % | 11.32% | 10.56% | 12.21% | 10.46% | 8.86% | 12.09% | 15.81% | 9.93% | 7.42% | 7.37% |
| Income Tax | 63M | 92M | 99M | 95M | 80M | 106M | 153M | 76M | 57M | -84M |
| Effective Tax Rate % | 14.72% | 23.41% | 21.95% | 24.17% | 23.67% | 24.65% | 29.65% | 25.25% | 24.46% | -38.53% |
| Net Income | 329M | 301M | 352M | 298M | 258M | 324M | 363M | 225M | 176M | 302M |
| Net Margin % | 8.7% | 8.09% | 9.53% | 7.93% | 6.76% | 9.11% | 11.12% | 7.42% | 5.6% | 10.21% |
| Net Income Growth % | -1.79% | -14.49% | 18.12% | 15.5% | -20.37% | -10.74% | 61.33% | 27.84% | -41.72% | - |
| Net Income (Continuing) | 329M | 301M | 352M | 298M | 258M | 324M | 363M | 225M | 176M | 302M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.55 | 1.43 | 1.67 | 1.42 | 1.23 | 1.54 | 1.78 | 1.07 | 0.87 | 1.49 |
| EPS Growth % | -1.26% | -14.37% | 17.61% | 15.45% | -20.13% | -13.48% | 66.36% | 22.99% | -41.61% | - |
| EPS (Basic) | - | 1.43 | 1.68 | 1.42 | 1.23 | 1.54 | 1.78 | 1.07 | 0.87 | 1.49 |
| Diluted Shares Outstanding | 211.8M | 210.4M | 210.4M | 210M | 209.9M | 209.8M | 204.5M | 209.7M | 202.75M | 202.75M |
| Basic Shares Outstanding | 210.6M | 210.3M | 210.1M | 210M | 209.8M | 209.8M | 204.5M | 209.7M | 202.68M | 202.68M |
| Dividend Payout Ratio | - | 63.79% | 54.55% | 64.43% | 74.42% | 59.26% | 34.16% | - | - | - |
Commodity Input Cost Volatility
According to the latest quarterly income statements, REYN's revenue growth has fluctuated significantly, with the most recent 7.2% year-over-year increase in 2026Q1 masking a broader trend of low-single-digit growth that suggests the post-pandemic demand surge for household consumables has largely dissipated across its core US segments.
The revenue trajectory appears heavily influenced by seasonal holiday demand, particularly in the fourth quarter, rather than sustained organic volume expansion. Investors should monitor whether the recent growth uptick represents a genuine recovery in consumer demand or merely a temporary deviation from the company's established low-growth baseline.
As reported in financial statements, REYN's gross margin has experienced notable volatility, peaking at 30.7% in 2023Q4 before compressing to 23.6% in 2026Q1, reflecting the company's high sensitivity to fluctuating aluminum and resin input costs that frequently outpace its ability to implement retail price adjustments.
The structural reliance on commodity-linked raw materials creates a persistent margin ceiling that limits the company's ability to capture value during inflationary cycles. This suggests that profitability is more a function of commodity spread management than traditional brand-driven pricing power, warranting caution regarding margin durability.
Based on reported figures, REYN's operating margin has struggled to maintain consistency, declining from a high of 20.5% in 2023Q4 to 11.2% in 2026Q1, which indicates that the company is currently failing to achieve meaningful operating leverage as SG&A expenses remain sticky relative to gross profit.
The inability to scale operating income faster than gross profit suggests that the company's cost structure is relatively rigid, leaving little room for margin expansion during periods of revenue stagnation. This trend implies that management may face significant challenges in driving bottom-line growth without a fundamental shift in operational efficiency.
While REYN maintains a dominant category position, short-term earnings volatility highlighted in recent filings suggests that the market may be overestimating the company's defensive characteristics, as net margins have remained stagnant at approximately 8.09% despite management's efforts to navigate complex raw material price cycles.
The primary risk remains the potential for prolonged commodity inflation to permanently erode the company's competitive spread, particularly if retailers resist further price increases. Investors should be wary of assuming that historical margin levels are a reliable floor, as the current environment appears to be testing the limits of the company's pricing power.
Quick answers to the most common questions about buying REYN stock.
For fiscal year 2025, Reynolds Consumer Products Inc. (REYN) reported total revenue of $3.72B. This represents a 25.8% increase compared to $2.96B in 2017.
Reynolds Consumer Products Inc. (REYN) is profitable, generating $301.0M in net income for the fiscal year ending 2025 with a net profit margin of 8.1%.
Reynolds Consumer Products Inc. (REYN) reported an operating income of $492.0M, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Reynolds Consumer Products Inc. (REYN) generated $914.0M in gross profit for the year, representing a gross profit margin of 24.6%. This demonstrates the company's core pricing power and production efficiency.