Reynolds Consumer Products Inc.

Market-leading household-products franchise with strong returns and cash generation but minimal growth.

Strengths

• Strong returns/cash: ROA 6.1% (81.3rd pct), ROE 13.4% (68.8th pct), FCF $316M (79.3rd pct), net margin 8.1% (68.5th pct)
• Durable #1/#2 brands (Reynolds, Hefty) with 95%-household penetration and pricing-relevant scale

Risks

• Heavy customer concentration (top 10 = 74%; three customers >10% of revenue)
• Stagnant growth (revenue +0.7%, 30.6th pct), net income -14.5%, and aluminum/resin cost and tariff exposure

Notable findings

• Customer concentration~74% of revenue from one customer/distributor — In 2025, sales to our top ten customers accounted for 74% of our total revenue
• Strong balance sheetStrong balance sheet — $147M cash & investments
• Revenue declineRevenue -15.2% YoY