Reassessing Reynolds Consumer Products (REYN) Valuation After 2025 Earnings And Flat 2026 Guidance

Reynolds Consumer Products (REYN) has just reported full year 2025 earnings, with sales of US$3,721 million and net income of US$301 million, and paired the release with relatively flat 2026 revenue and earnings guidance.

See our latest analysis for Reynolds Consumer Products.

Reynolds Consumer Products shares are trading at US$23.09, with a 7 day share price return of 5.87% contrasting with a 90 day share price return of 6.63% and a 1 year total shareholder return of a 2.71% decline. This suggests short term momentum has picked up even as longer term performance has been weaker, and the latest earnings and guidance may be prompting investors to reassess the balance between earnings risk and income from the recently affirmed quarterly dividend.

If this earnings update has you thinking about where to put fresh capital to work, it could be a good moment to scan our list of 23 top founder-led companies for new ideas beyond household products.

With earnings per share of US$1.43 in 2025, guidance of US$1.57 to US$1.63 for 2026, and the stock at US$23.09, is Reynolds quietly offering value here, or is the market already pricing in that earnings path?

Most Popular Narrative: 14% Undervalued

With Reynolds Consumer Products last closing at $23.09 versus a widely followed fair value estimate of about $26.86, the current price sits below that narrative anchor and puts the spotlight on what needs to go right to close that gap.

Investments in automation, supply chain improvements, and onshoring manufacturing are projected to improve operating leverage and reduce costs, positioning the company to expand net margins and deliver stronger earnings growth beyond 2025.

Read the complete narrative.

Curious what earnings power sits behind that fair value? The most followed narrative is based on steady revenue gains, firmer margins and a higher future earnings multiple to make the math work.

Result: Fair Value of $26.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer revenue growth assumptions and pressure on margins from raw material costs or weaker consumer demand could quickly challenge that 14% undervalued story.

Find out about the key risks to this Reynolds Consumer Products narrative.

Build Your Own Reynolds Consumer Products Narrative

If you see the story differently or would rather test your own assumptions against the numbers, you can build a custom Reynolds view in minutes, starting with Do it your way.

A great starting point for your Reynolds Consumer Products research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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