Group 1 - Sealed Air will release its second quarter 2025 results on August 5, 2025, at 7 a.m. EDT, followed by a conference call at 10 a.m. EDT [1] - The conference call will be available via live webcast on Sealed Air's Investors homepage [1] Group 2 - Sealed Air Corporation is a leading global provider of packaging solutions, focusing on sustainable materials, automation, and services [2] - The company generated $5.4 billion in sales in 2024 and employs approximately 16,400 people across 117 countries/territories [2] - Sealed Air's product offerings include well-known brands such as CRYOVAC®, LIQUIBOX®, SEALED AIR®, AUTOBAG®, and BUBBLE WRAP® [2]

Group 1 - The article discusses a revisit to Sealed Air Corporation (NYSE: SEE), a global packaging company, highlighting a previously bullish stance based on share pricing [1] - The focus is on cash flow and the potential for value and growth in the oil and natural gas sector, as indicated by the services offered by Crude Value Insights [1] Group 2 - Subscribers to the service benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement and information sharing [2]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported lower Q1 net sales but higher net earnings, alongside a stronger balance sheet and reduced operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $7.05 billion while total liabilities decreased, boosting stockholders' equity to $797.9 million Condensed Consolidated Balance Sheet Highlights (in USD millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,905.8 | $1,891.8 | | **Total assets** | $7,049.2 | $7,022.1 | | **Total current liabilities** | $1,507.4 | $1,635.5 | | **Total liabilities** | $6,251.3 | $6,397.6 | | **Total stockholders' equity** | $797.9 | $624.5 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 net sales decreased 4.3% to $1.27 billion, while net earnings grew 38.4% to $113.5 million due to a lower tax provision Statement of Operations Summary (in USD millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $1,272.5 | $1,329.6 | | Gross profit | $391.7 | $400.8 | | Operating profit | $183.4 | $185.0 | | Net earnings | $113.5 | $82.0 | | Diluted EPS | $0.77 | $0.56 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities declined sharply to $31.9 million, contributing to a negative net change in cash for the quarter Cash Flow Summary (in USD millions) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31.9 | $125.1 | | Net cash used in investing activities | $(43.5) | $(38.0) | | Net cash used in financing activities | $(45.3) | $(69.1) | | **Net change in cash** | **$(36.6)** | **$6.7** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment performance, restructuring costs, debt structure, and a significantly lower effective tax rate of 8.0% [Note 5: Segments](index=14&type=section&id=Note%205%20Segments) The Food segment's gross profit increased despite lower sales, while the Protective segment saw declines in both sales and profit Segment Performance (in USD millions) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Food** | Net Sales | $852.1 | $868.4 | | | Gross Profit | $268.1 | $259.5 | | **Protective** | Net Sales | $420.4 | $461.2 | | | Gross Profit | $124.1 | $141.3 | [Note 12: Restructuring Activities](index=20&type=section&id=Note%2012%20Restructuring%20Activities) The 'CTO2Grow Program' incurred $9.0 million in total charges in Q1 2025 as part of its 3-year, $160 million cost-saving plan - The Board of Directors approved the 'CTO2Grow Program' on August 7, 2023, a 3-year cost take-out initiative with an estimated total cash cost of **$160 million**[84](index=84&type=chunk) Restructuring Charges (in USD millions) | Expense Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Restructuring charges | $2.6 | $15.5 | | Other associated costs | $6.4 | $6.8 | | **Total charges** | **$9.0** | **$22.2** | [Note 13: Debt and Credit Facilities](index=22&type=section&id=Note%2013%20Debt%20and%20Credit%20Facilities) Total debt remained stable at approximately $4.4 billion, with a weighted average interest rate of 5.3% and $1.15 billion in unused credit Total Debt Outstanding (in USD millions) | Debt Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current debt | $208.7 | $205.1 | | Total long-term debt, less current portion | $4,195.5 | $4,198.8 | | **Total debt** | **$4,404.2** | **$4,403.9** | - As of March 31, 2025, the weighted average interest rate on long-term debt was **5.3%**, and the company had **$1,147.0 million** in unused lines of credit[90](index=90&type=chunk)[92](index=92&type=chunk) [Note 17: Income Taxes](index=29&type=section&id=Note%2017%20Income%20Taxes) The effective tax rate dropped to 8.0% from 30.0% year-over-year due to the resolution of international tax matters - The effective income tax rate was **8.0% for Q1 2025**, compared to 30.0% for Q1 2024[130](index=130&type=chunk)[131](index=131&type=chunk) - The lower tax rate in Q1 2025 was favorably impacted by the reversal of accruals for uncertain tax positions related to the resolution of previous years' international tax matters[130](index=130&type=chunk) - Net unrecognized tax positions decreased by **$44.2 million** in Q1 2025[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 4.3% sales decline due to lower volumes, offset by cost controls maintaining stable margins and liquidity [Highlights of Financial Performance](index=43&type=section&id=Highlights%20of%20Financial%20Performance) Q1 2025 net sales fell 4.3%, while net earnings grew 40.2% and Adjusted EBITDA decreased by a slight 0.7% Q1 2025 Financial Highlights vs. Q1 2024 (in USD millions, except per share) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,272.5 | $1,329.6 | (4.3)% | | Net earnings from continuing operations | $116.9 | $83.4 | 40.2% | | Non-GAAP Consolidated Adjusted EBITDA | $276.3 | $278.3 | (0.7)% | | Non-GAAP Adjusted EPS | $0.81 | $0.78 | 3.8% | [Net Sales by Segment](index=45&type=section&id=Net%20Sales%20by%20Segment) The Food segment's constant currency sales grew 0.9%, while the Protective segment's sales fell 7.6% on lower volumes Components of Net Sales Change, Q1 2025 vs Q1 2024 | Segment | Price | Volume | Constant Currency Change | | :--- | :--- | :--- | :--- | | Food | +0.6% | +0.3% | +0.9% | | Protective | -1.4% | -6.2% | -7.6% | | **Total Company** | **-0.1%** | **-1.9%** | **-2.0%** | [Adjusted EBITDA by Segment](index=50&type=section&id=Adjusted%20EBITDA%20by%20Segment) The Food segment's Adjusted EBITDA grew 6.9% with margin expansion, while the Protective segment's fell 17.4% with margin contraction Adjusted EBITDA by Segment (in USD millions) | Segment | Q1 2025 Adj. EBITDA | Q1 2024 Adj. EBITDA | % Change | | :--- | :--- | :--- | :--- | | Food | $202.7 | $189.6 | 6.9% | | Protective | $73.9 | $89.5 | (17.4)% | | **Total** | **$276.3** | **$278.3** | **(0.7)%** | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $335.2 million in cash, with total debt at $4.4 billion and a leverage ratio of 3.30 to 1.00 - Primary sources of cash are collections from sales and available credit facilities; as of March 31, 2025, cash and cash equivalents were **$335.2 million**[221](index=221&type=chunk)[223](index=223&type=chunk) Cash Flow and Debt Summary (in USD millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $31.9 | $125.1 | | Non-GAAP free cash flow | $(12.0) | $78.0 | | Total Debt (as of Mar 31, 2025) | $4,404.2 | N/A | - The company was in compliance with its debt covenants at March 31, 2025, with a leverage ratio of **3.30 to 1.00**, below the maximum of 4.50 to 1.00[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, foreign currency, and credit risks, managed through various derivative instruments - A hypothetical **10% increase in interest rates** would result in a decrease of **$76 million** in the fair value of the total debt balance at March 31, 2025[259](index=259&type=chunk) - The company recognized a remeasurement loss of **$2 million** in Q1 2025 related to the designation of Argentina as a highly inflationary economy[261](index=261&type=chunk) - The company uses foreign currency forward contracts and cross-currency swaps (notional amount of **$433 million**) to manage foreign exchange risk[263](index=263&type=chunk)[266](index=266&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls in Q1 2025 - Management's evaluation concluded that disclosure controls and procedures were effective at the **'reasonable assurance' level** as of the end of the period[272](index=272&type=chunk) - There were **no changes in internal control** over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[273](index=273&type=chunk) [PART II. OTHER INFORMATION](index=59&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in a legal dispute with Water.IO Ltd. but does not believe a probable loss is associated with the claim - The company is in a legal dispute with Water.IO Ltd. over a 2018 Purchase Agreement for sensors, with complaints filed by both parties[135](index=135&type=chunk) - The company does not believe it has a **probable loss** associated with the claim and intends to defend its interests vigorously[135](index=135&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) There have been no significant changes to the company's risk factors as disclosed in its 2024 Form 10-K - There have been **no significant changes** to the company's risk factors since December 31, 2024[275](index=275&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company transferred 824,393 shares to its 401(K) plan and made no share repurchases, with $537 million remaining on its program - In March 2025, **824,393 shares of common stock** were transferred from treasury to the company's 401(K) and Profit Sharing Plan[276](index=276&type=chunk) - **No shares were repurchased** during the three months ended March 31, 2025; the remaining authorization under the share repurchase program is approximately **$537 million**[278](index=278&type=chunk)

Core Viewpoint - Sealed Air Corporation reported a mixed performance in Q1 2025, with adjusted earnings per share of 81 cents exceeding estimates, but total sales declined due to lower volumes in the Protective segment [1][2]. Financial Performance - Adjusted earnings per share were 81 cents, surpassing the Zacks Consensus Estimate of 67 cents, marking a 4% year-over-year improvement [1] - Total sales for the quarter were $1.272 billion, beating the Zacks Consensus Estimate of $1.269 billion, but down 4.3% from $1.33 billion in Q1 2024 [2] - The cost of sales decreased by 5% year over year to $881 million, while gross profit was $392 million, a 2% decrease from $401 million in the previous year [3] - Adjusted EBITDA was approximately $276 million, a decline of 0.7% from the year-ago period, with an adjusted EBITDA margin of 21.7%, up from 20.9% [4][5] Segment Performance - In the Food segment, net sales decreased by 2% year over year to $852.1 million, exceeding estimates, with pricing actions positively impacting sales by 0.6% [6] - The Protective segment saw net sales of $420 million, down 9% from the previous year, with a significant volume decline of 6.2% [7][8] - Adjusted EBITDA for the Food segment was around $203 million, up 7% year over year, while the Protective segment's adjusted EBITDA decreased by 17% to $74 million [9] Cash Flow and Balance Sheet - Cash flow from operating activities was approximately $32 million, down from $125 million in the prior year [10] - Total debt remained flat at $4.4 billion, with $1.3 billion in liquidity available as of March 31, 2025 [11] 2025 Guidance - Sealed Air expects net sales between $5.1 billion and $5.5 billion for 2025, projecting a 2% dip from $5.39 billion in 2024 [12] - Adjusted EBITDA is forecasted to be between $1.075 billion and $1.175 billion, with adjusted earnings per share expected to range from $2.90 to $3.30 [12] Share Price Performance - Over the past year, Sealed Air's shares have declined by 23%, compared to an 11.9% decline in the industry [13]

Financial Data and Key Metrics Changes - Net sales for the first quarter were $1.27 billion, down 2% on a constant currency basis [23] - Adjusted EBITDA was $276 million, up 2% on a constant currency basis [23] - Adjusted earnings per share increased by 4% as reported and 9% on a constant currency basis, reaching $0.81 [24] - Adjusted EBITDA margin improved to 21.7%, up 80 basis points [25] Business Line Data and Key Metrics Changes - Food segment net sales were $852 million, up 1% on an organic basis, driven by pricing actions and marginal volume growth [26] - Protective segment net sales were $420 million, down 8% organically, primarily due to volume declines [27] - Food adjusted EBITDA was $203 million, up 7% as reported and 10% in constant currency, with an adjusted EBITDA margin of 23.8% [26][28] - Protective adjusted EBITDA was $74 million, down 18% as reported, with an adjusted EBITDA margin of 17.6%, down 180 basis points [28] Market Data and Key Metrics Changes - The industrial food processing markets were relatively flat compared to the previous year, with some regions showing growth while others faced declines [15][17] - In the Protective segment, box shipments in the U.S. were down low single digits, reflecting declining consumer confidence [19] - EMEA showed signs of stabilization, with volumes down just 1%, marking the best quarter since 2021 [28] Company Strategy and Development Direction - The company is focused on transforming its operations by reorganizing into two market-focused businesses: Food and Protective [6][7] - There is an emphasis on enhancing leadership and aligning commercial, innovation, and supply chain teams to better serve customers [8] - The company is actively reviewing its supply chain and optimizing production to mitigate potential tariff impacts and inflation [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious outlook due to potential softness in market demand and ongoing trade policy uncertainties [11][13] - The company is reaffirming its full-year guidance while anticipating better visibility into trade policies and market demand in the second half of the year [30][31] - Management expressed confidence in the food business's resilience and long-term potential despite current market volatility [17][18] Other Important Information - The company reported a cash flow use of $12 million in the first quarter, compared to a source of $78 million in the same period last year [29] - Total liquidity at the end of the quarter was $1.3 billion, with a net debt leverage ratio of 3.7 times [29] Q&A Session Summary Question: Comments on protective volumes and progress - Management indicated that protective volumes were down approximately 6% in Q1, but churn from large customers has been minimized, leading to expected sequential improvement in Q2 [35][36] Question: Measuring customer improvement - Management confirmed they are using customer feedback mechanisms and have seen improvements in customer satisfaction, although there is still work to be done [42][45] Question: Price changes and competitive landscape - Management noted that net price realization remains relatively unchanged, with competitive pressures particularly affecting the protective segment [53][55] Question: Gross margins despite sales decline - Management attributed margin expansion to ongoing productivity initiatives and cost takeout efforts, which have improved cost positions [61][62] Question: Timing for protective turnaround - Management indicated that the protective turnaround is ongoing, with expectations for improvements over the next 90 days to six months [72][75] Question: Volume assumptions for the second half - Management stated that they expect a modest decline in protective volumes of about 1% in the second half, with ongoing monitoring of market conditions [82][86]

Core Insights - Sealed Air reported revenue of $1.27 billion for Q1 2025, a decrease of 4.3% year-over-year, but slightly above the Zacks Consensus Estimate of $1.27 billion, resulting in a surprise of +0.26% [1] - The company's EPS for the quarter was $0.81, an increase from $0.78 in the same quarter last year, with a significant EPS surprise of +20.90% compared to the consensus estimate of $0.67 [1] Financial Performance - Net Sales in the Food segment were $852.10 million, slightly below the estimated $854.65 million, reflecting a year-over-year decline of -1.9% [4] - Net Sales in the Protective segment were $420.40 million, exceeding the average estimate of $417.02 million, but showing a year-over-year decrease of -8.9% [4] - Adjusted EBITDA for the Food segment was reported at $202.70 million, surpassing the estimate of $191.56 million [4] - Adjusted EBITDA for Corporate expenses and unallocated costs was -$0.30 million, better than the estimated -$3.34 million [4] - Adjusted EBITDA for the Protective segment was $73.90 million, slightly above the average estimate of $72 million [4] Market Performance - Sealed Air's shares have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $1.27 billion, down 2% on a constant currency basis [22] - Adjusted EBITDA was $276 million, up 2% on a constant currency basis [22] - Adjusted earnings per share increased by 4% as reported and 9% on a constant currency basis, reaching $0.81 [22][24] - Adjusted EBITDA margin improved to 21.7%, up 80 basis points from the previous year [24] Business Line Data and Key Metrics Changes - Food segment net sales were $852 million, up 1% on an organic basis, driven by pricing actions and marginal volume growth [25] - Protective segment net sales were $420 million, down 8% organically, primarily due to volume declines of 6% [26] - Food adjusted EBITDA was $203 million, up 7% as reported and 10% in constant currency, with an adjusted EBITDA margin of 23.8%, up 200 basis points [25][26] Market Data and Key Metrics Changes - The industrial food processing markets were relatively flat compared to the previous year, with the South American cattle cycle remaining strong [14] - In North America, the beef market performed slightly better than expected, while pork and turkey markets were weaker [14] - Box shipments in the U.S. were down low single digits in Q1, reflecting declining consumer confidence [19] Company Strategy and Development Direction - The company is focused on transforming its operations by reorganizing into two market-focused businesses: Food and Protective [5][6] - There is an emphasis on enhancing leadership and aligning commercial, innovation, and supply chain teams to better serve customers [6] - The company is actively reviewing its supply chain to mitigate potential tariff impacts and minimize inflation [7][8] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach due to a potentially weakening demand environment and ongoing trade policy uncertainties [10][11] - The company expects to gain more visibility into trade policies and market demand as the year progresses [12] - Management reaffirmed full-year guidance, anticipating modest volume softness but offset by improved foreign exchange outlook [30] Other Important Information - The company is targeting to drive net debt to adjusted EBITDA to approximately 3.0 times by the end of 2026 [28] - Cash flow was a use of $12 million in Q1, compared to a source of $78 million in the same period last year [28] Q&A Session Summary Question: What specific progress is being seen in the Protective segment? - Management indicated that volumes were down 6% in Q1 but noted that large customer churn has minimized since Q1 2024, leading to expected sequential improvement [35][36] Question: How is customer satisfaction being measured? - Management confirmed that customer satisfaction is being tracked through feedback and direct engagement with distribution partners, showing improvement but still needing work [44][46] Question: What is the outlook for pricing in the Protective segment? - Management noted that net price realization remains relatively unchanged, with competitive pressures affecting pricing dynamics in the Protective segment [54][56] Question: What are the volume assumptions for the second half of the year? - Management stated that they expect a modest volume decline of about 1% in the Protective segment for the second half [82] Question: How much of the equipment materials are sourced domestically? - Management indicated that most equipment materials are sourced domestically, with limited exposure to tariffs impacting equipment sales [86]

Company Performance - Sealed Air reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing an increase from $0.78 per share a year ago, representing an earnings surprise of 20.90% [1] - The company posted revenues of $1.27 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.26%, although this is a decrease from year-ago revenues of $1.33 billion [2] - Over the last four quarters, Sealed Air has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Sealed Air shares have declined approximately 18.6% since the beginning of the year, in contrast to the S&P 500's decline of 3.9% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.32 billion, and for the current fiscal year, it is $2.99 on revenues of $5.31 billion [7] - The estimate revisions trend for Sealed Air is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Containers - Paper and Packaging industry, to which Sealed Air belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sealed Air's stock performance [5]

Financial Performance - Net sales for Q1 2025 were $1.27 billion, a decrease of 4.3% compared to Q1 2024, with the Food segment down 2% and the Protective segment down 9%[5] - Net earnings increased by 40.2% to $117 million, or $0.79 per diluted share, compared to $83 million, or $0.57 per diluted share in the prior year[7] - Adjusted EBITDA was $276 million, representing 21.7% of net sales, slightly down from $278 million, or 20.9% in the prior year[9] - Adjusted earnings per diluted share increased by 3.8% to $0.81, driven primarily by lower interest expense[8] - Net earnings for the three months ended March 31, 2025, increased to $113.5 million, up from $82.0 million in the same period of 2024, representing a growth of 38.5%[33] - GAAP net earnings for Q1 2025 were $116.9 million, a 40.1% increase from $83.4 million in Q1 2024[47] - Diluted EPS for Q1 2025 was $0.79, compared to $0.57 in Q1 2024, reflecting a 38.6% increase[47] - Non-GAAP adjusted net earnings for Q1 2025 were $119.5 million, up 5.9% from $112.8 million in Q1 2024[47] Cash Flow and Debt - Free cash flow was a use of $12 million in Q1 2025, compared to a source of $78 million in Q1 2024, reflecting higher incentive compensation and tax payments[13] - Cash flow from operations was $32 million in Q1 2025, down from $125 million in the same period last year[12] - Total debt remained stable at $4.4 billion as of March 31, 2025, with net debt increasing slightly to $4.1 billion[14] - The company reported a net leverage ratio of 3.7x as of March 31, 2025, compared to 3.6x at the end of 2024[15] - The company reported a net debt of $4,069.0 million as of March 31, 2025, compared to $4,032.1 million at the end of 2024[52] - The net leverage ratio increased slightly to 3.7x as of March 31, 2025, from 3.6x at the end of 2024[53] - The total debt as of March 31, 2025, was $4,404.2 million, compared to $4,403.9 million at the end of 2024[52] Guidance and Projections - The company maintained its full-year guidance for 2025, projecting net sales between $5.1 billion and $5.5 billion, with an adjusted EBITDA range of $1.075 billion to $1.175 billion[16] Tax and Liabilities - The effective tax rate for Q1 2025 was 8.0%, significantly lower than 30.0% in the prior year, benefiting from the resolution of previous international tax matters[6] - Total current liabilities decreased to $1,507.4 million from $1,635.5 million, reflecting a reduction of approximately 7.8%[30] - The effective income tax rate for the three months ended March 31, 2025, was 8.0%, significantly lower than 30.0% in the same period of 2024[41] Assets and Inventory - Total assets as of March 31, 2025, were $7,049.2 million, a slight increase from $7,022.1 million as of December 31, 2024[30] - The company reported a decrease in inventories, net, to $766.8 million as of March 31, 2025, from $722.2 million at the end of 2024, indicating a 6.2% increase[30] - Cash and cash equivalents at the end of the period were $335.2 million, down from $371.8 million at the beginning of the period, a decrease of 9.8%[33] Special Items and Charges - Special items for Q1 2025 had a net impact of $2.6 million, down from $29.4 million in Q1 2024[50] - The company incurred restructuring charges of $2.6 million in Q1 2025, significantly lower than $15.5 million in Q1 2024[50] - Liquibox intangible amortization for Q1 2025 was $7.6 million, slightly up from $7.5 million in Q1 2024[50] - The company experienced a foreign currency exchange loss of $1.7 million in Q1 2025, down from $4.9 million in Q1 2024[50]

Non-GAAP Financial Measures In this presentation, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a "constant dollar" basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers' performance. We believe such non-GAAP financial measures are useful to in ...