Revenue growth has been essentially flat at 0.6% YoY in Q2 2026, but gross margin resilience at 26.0% and SG&A cost cuts to $107M drove EPS up 20% to $0.42, indicating earnings quality is supported by operational efficiency rather than top-line expansion.
Reynolds Consumer Products Inc. (REYN) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 3.8B | 3.72B | 3.69B | 3.76B | 3.82B | 3.56B | 3.26B | 3.03B | 3.14B | 2.96B |
| Revenue Growth % | 2.48% | 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 | 954M | 914M | 978M | 942M | 776M | 811M | 973M | 880M | 832M | 862M |
| Gross Margin % | 25.11% | 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 | 444M | 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 | 403M | 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 | 2M | 40M | 0 | 0 | 22M | 13M | 29M | 55M | 21M | 18M |
| Operating Income | 509M | 492M | 549M | 512M | 414M | 478M | 586M | 510M | 513M | 540M |
| Operating Margin % | 13.4% | 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 | 642M | 627M | 678M | 636M | 531M | 587M | 685M | 601M | 600M | 630M |
| EBITDA Margin % | 16.9% | 16.85% | 18.35% | 16.93% | 13.91% | 16.51% | 20.99% | 19.82% | 19.1% | 21.31% |
| EBITDA Growth % | 1.9% | -7.52% | 6.6% | 19.77% | -9.54% | -14.31% | 13.98% | 0.17% | -4.76% | - |
| D&A (Non-Cash Add-back) | 133M | 135M | 129M | 124M | 117M | 109M | 99M | 91M | 87M | 90M |
| EBIT | 467M | 479M | 578M | 537M | 416M | 474M | 582M | 542M | 564M | 565M |
| Net Interest Income | -45M | -86M | -98M | -119M | -76M | -48M | -70M | -234M | -302M | -341M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33M | 52M | 26M |
| Interest Expense | 45M | 86M | 98M | 119M | 76M | 48M | 70M | 267M | 354M | 367M |
| Other Income/Expense | -87M | -99M | -98M | -119M | -76M | -48M | -70M | -209M | -280M | -322M |
| Pretax Income | 422M | 393M | 451M | 393M | 338M | 430M | 516M | 301M | 233M | 218M |
| Pretax Margin % | 11.11% | 10.56% | 12.21% | 10.46% | 8.86% | 12.09% | 15.81% | 9.93% | 7.42% | 7.37% |
| Income Tax | 98M | 92M | 99M | 95M | 80M | 106M | 153M | 76M | 57M | -84M |
| Effective Tax Rate % | 23.22% | 23.41% | 21.95% | 24.17% | 23.67% | 24.65% | 29.65% | 25.25% | 24.46% | -38.53% |
| Net Income | 324M | 301M | 352M | 298M | 258M | 324M | 363M | 225M | 176M | 302M |
| Net Margin % | 8.53% | 8.09% | 9.53% | 7.93% | 6.76% | 9.11% | 11.12% | 7.42% | 5.6% | 10.21% |
| Net Income Growth % | 6.58% | -14.49% | 18.12% | 15.5% | -20.37% | -10.74% | 61.33% | 27.84% | -41.72% | - |
| Net Income (Continuing) | 324M | 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) | 1.53 | 1.43 | 1.67 | 1.42 | 1.23 | 1.54 | 1.78 | 1.07 | 0.87 | 1.49 |
| EPS Growth % | 6.21% | -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 | 210.8M | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
Commodity input cost volatility
Metrics are mathematically derived from official filings.
Flat Top-Line, Defensive Stance
Revenue growth has been essentially flat, averaging around 0.7% year-over-year in the latest quarter, reflecting a mature market and limited pricing power, as per the latest earnings release.
The company's revenue trajectory shows minimal expansion, with quarterly growth rates oscillating between -4.7% and 7.2% over the past two years, but the most recent quarters indicate a stabilization around 0-1%. This suggests that volume growth is offset by price adjustments, and the company is not gaining significant market share. The flat guidance for Q3 2026 reinforces the view that top-line expansion is not a near-term driver.
Gross Margin Resilience Amid Input Costs
Gross margin has hovered between 23.1% and 27.5% over the last ten quarters, with the latest at 26.0%, indicating some ability to manage commodity costs, though still below the 27.5% peak in Q4 2024.
The gross margin trend shows a slight recovery from the trough in Q1 2025 (23.1%) to 26.0% in Q2 2026, suggesting that pricing actions and cost efficiencies are partially offsetting aluminum and resin inflation. However, the margin remains below the 27.5% level seen in late 2024, implying that input cost pressures are not fully passed through. This is consistent with the company's role as a private-label manufacturer, where pricing power is constrained by retailer negotiations.
Operating Leverage Emerging in SG&A
SG&A expenses have declined from $116M in Q2 2024 to $107M in Q2 2026, while operating income rose from $140M to $138M, indicating improved cost discipline and modest operating leverage.
The company has managed to keep SG&A relatively flat or declining even as revenue has grown slightly, leading to operating margin expansion from 15.1% in Q2 2024 to 14.6% in Q2 2026, though the latter is still below the 16.9% peak in Q4 2025. This suggests that management is focusing on overhead efficiency, which is crucial in a low-growth environment. The Q2 2026 beat was partly driven by lower SG&A, indicating that cost control is a key lever for earnings growth.
EPS Growth Driven by Cost Cuts, Not Revenue
Diluted EPS grew 20% year-over-year in Q2 2026 to $0.42, despite flat revenue, with stock-based compensation minimal at $4M, suggesting earnings quality is supported by operational efficiency rather than one-offs.
The EPS growth in Q2 2026 is notable given the flat top-line, indicating that margin expansion and lower interest expenses (not shown) are driving bottom-line improvement. The low SBC relative to net income (around 4.5%) suggests that reported earnings are not significantly diluted by stock compensation. However, the net margin of 9.4% is still below the 11.9% peak in Q4 2024, implying that there is room for further recovery if input costs stabilize.
COGS Dominates, Commodity Exposure High
COGS as a percentage of revenue has ranged from 72.5% to 76.9% over the last ten quarters, with the latest at 74.0%, highlighting the significant impact of aluminum and resin costs on profitability.
The cost structure is heavily weighted towards raw materials, with COGS consistently above 70% of revenue. This makes the company highly sensitive to commodity price fluctuations, as seen in the gross margin volatility. Management's ability to manage this cost line through procurement strategies and pricing actions is critical. The recent stabilization in gross margin suggests some success, but the risk remains that a spike in input costs could compress margins again.
Margin Compression Risk from Input Costs
Despite recent EPS beats, the stagnant net margin of 8.09% and flat revenue guidance suggest that any commodity price spike could erode profitability, as the company may lack pricing power to pass through costs.
Short-sellers might argue that REYN's earnings quality is overstated because the Q2 2026 beat was driven by cost cuts rather than sustainable revenue growth. The company's high exposure to aluminum and resin prices means that if these commodities rise, margins could contract sharply, as seen in Q1 2025 when gross margin fell to 23.1%. Additionally, the flat revenue guidance for Q3 2026 indicates that volume growth is not compensating for any price increases, making the earnings trajectory vulnerable to input cost inflation.