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 ...

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both net sales and earnings for the first quarter of 2025, with a consensus estimate of $1.27 billion in net sales, reflecting a 4.6% decrease year-over-year, and earnings estimated at 67 cents per share, indicating a 14.1% decline from the previous year [1]. Group 1: Earnings Performance - Sealed Air has a history of beating earnings estimates, with an average surprise of 27.1% over the last four quarters [2]. - The current Earnings ESP for Sealed Air is +0.12%, and the company holds a Zacks Rank of 3, suggesting a neutral outlook [4]. Group 2: Segment Performance - The Protective segment has faced lower volumes for 12 consecutive quarters, with a projected year-over-year volume decline of 4.2% for Q1 2025 [5]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to show flat volumes year-over-year in Q1 2025, with net sales estimated at $841 million, a 3.1% decrease from the prior year [6][7]. - The Protective segment's net sales are estimated at $419 million, reflecting a 9.2% year-over-year decline, with adjusted EBITDA projected to decrease by 17.5% [8]. Group 3: Operational Factors - The company's Reinvent SEE Strategy is expected to drive productivity gains and mitigate supply-chain challenges, positively impacting operating margins in the March-ended quarter [9]. Group 4: Stock Performance - Over the past year, Sealed Air's stock has declined by 20.5%, compared to a 10.5% decline in the industry [10].

Company Overview - Sealed Air (SEE) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.67, reflecting a decrease of 14.1% compared to the previous year [3]. - Revenues are anticipated to be $1.27 billion, down 4.6% from the same quarter last year [3]. Earnings Expectations - The consensus EPS estimate has been revised 0.93% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Sealed Air is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.12%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Sealed Air exceeded the expected EPS of $0.67 by delivering $0.75, achieving a surprise of +11.94% [12]. - Over the last four quarters, the company has consistently beaten consensus EPS estimates [13]. Industry Context - Graphic Packaging (GPK), a peer in the Zacks Containers - Paper and Packaging industry, is expected to report an EPS of $0.56, down 15.2% year-over-year, with revenues projected at $2.13 billion, a decrease of 5.7% [17]. - The consensus EPS estimate for Graphic Packaging has been revised 1.7% higher, but a lower Most Accurate Estimate results in a negative Earnings ESP of -2.14%, complicating predictions for beating the consensus [18].

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Sealed Air (SEE) , which belongs to the Zacks Containers - Paper and Packaging industry, could be a great candidate to consider.This packaging company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 15.82%.For the most recent quarter, Sealed Ai ...

Sealed Air (SEE) shares rallied 12.8% in the last trading session to close at $26.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.9% loss over the past four weeks.Sealed Air’s shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). SEE serves diverse industries with operations in 117 countries/territories.This packaging compa ...

CHARLOTTE, N.C., April 3, 2025 /PRNewswire/ -- Sealed Air (NYSE: SEE) announced today that it will release its first quarter 2025 results at approximately 7:00 a.m. EDT on Tuesday, May 6, 2025, and will host a conference call and webcast at 10:00 a.m. EDT.  The conference will be webcast live. Interested parties can view the events on Sealed Air's Investors homepage at ir.sealedair.com.  About Sealed Air Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate s ...

A month has gone by since the last earnings report for Sealed Air (SEE) . Shares have lost about 12% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Sealed Air due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, ...