Group 1: Market Overview - Major U.S. equities indexes experienced a decline, with technology shares significantly impacting the Nasdaq, which fell nearly 2% [1] - The S&P 500 and Dow Jones Industrial Average also reported lower performance following the end of the longest federal shutdown in U.S. history [1] Group 2: Company Performance - Cisco Systems (CSCO) saw its stock surge over 4% after the company raised its full-year profit outlook [3] - The Walt Disney Co. (DIS) shares dropped 9% due to weaker-than-expected revenue, particularly in its linear TV networks business [2] - Flutter Entertainment (FLUT) stock fell 11% after the company revised its full-year revenue and adjusted EBITDA forecasts downward [2] - WEBTOON Entertainment (WBTN) shares plummeted 25% after projecting a decline in fourth-quarter revenue [2] - Sealed Air (SEE) shares soared 19% following reports of potential talks with private-equity firm Clayton Dubilier & Rice for a private acquisition [3] - Firefly Aerospace (FLY) shares jumped 17% after posting better-than-expected results and a positive full-year revenue projection [3] Group 3: Commodity and Currency Movements - Oil futures rose nearly 1%, trading just above $59 per barrel [3] - Gold futures remained relatively unchanged at around $4,200 per ounce [3] - The yield on the 10-year Treasury note increased to 4.10% [3] - The U.S. dollar weakened against the euro, pound, and yen [3] - Cryptocurrency prices were mixed, with Bitcoin trading under $101,000 [3]

Core Insights - Investors are urging Sealed Air to improve its underperforming Protective Care segment [1] Company Summary - The Protective Care segment of Sealed Air is currently experiencing sluggish performance, prompting investor pressure for strategic changes [1]

Core Points - U.S. stocks experienced a decline, with the Dow Jones index dropping over 100 points on Thursday [1] - Spectrum Brands Holdings Inc reported a quarterly adjusted EPS of $2.61, significantly exceeding the analyst consensus estimate of $0.86 [1] - The company's quarterly sales were $733.500 million, which fell short of the analyst consensus estimate of $741.111 million [1] Company Performance - Spectrum Brands Holdings shares surged 13.2% to $60.28 following the earnings report [2] - Ondas Holdings Inc saw a 24.4% increase in shares to $6.86 after reporting better-than-expected third-quarter results and raising FY25 sales guidance [4] - Firefly Aerospace Inc's shares rose 21.7% to $22.29 after exceeding quarterly financial expectations and raising FY25 sales guidance [4] - Cellebrite DI Ltd shares increased by 21.7% to $19.44 after reporting strong third-quarter results and raising FY25 sales guidance [4] - Sealed Air Corp shares gained 19.9% to $43.60 [4] - Dillard's Inc reported better-than-expected quarterly results, leading to an 18.3% rise in shares to $720.00 [4] - Digi International Inc shares jumped 17.5% to $42.30 following positive quarterly results [4] - Sally Beauty Holdings Inc shares rose 17.5% to $17.27 after reporting upbeat quarterly results [4] - Tetra Tech Inc gained 11.9% to $36.31 following strong quarterly earnings [4] - On Holding AG shares increased by 7.4% to $44.58 after reporting positive third-quarter earnings and issuing FY2025 sales guidance above expectations [4] - Nice Ltd shares rose 6.3% to $132.14 following strong quarterly sales [4]

Group 1 - The Federal Trade Commission is investigating whether proxy advisory firms ISS and Glass Lewis have violated antitrust laws regarding their influence on shareholder votes [2] - Sealed Air's shares are experiencing a surge in pre-market trading due to reports of discussions with buyout firm Clayton Dublier and Rice about taking the company private [3] - Prior to the pre-market increase, Sealed Air shares had already risen approximately 10% year-to-date [3] Group 2 - BYU is launching new AI processors and supercomputing products, emphasizing their capability to provide domestically controlled computing power [2]

Core Insights - Private-equity firm Clayton Dubilier & Rice is in discussions for a potential deal involving a company [1] Group 1 - The firm is actively exploring acquisition opportunities [1]

Core Insights - The global rigid packaging market is expected to grow from USD 550.49 billion in 2025 to USD 1,020.61 billion by 2034, with a CAGR of 7.1% driven by demand for eco-friendly and smart packaging solutions [1] - Major players in the market include Amcor, Berry Plastics, and Sealed Air Corporation, with significant markets in North America, Europe, and Asia Pacific [1][3] Market Trends - The rigid packaging sector is heavily reliant on plastic due to its durability, portability, and cost-effectiveness, with 31% of the world's plastic usage attributed to packaging [3] - Rigid packaging is preferred for its lightweight nature compared to glass or metal, which also reduces transportation energy consumption [4] - The shift towards sustainable packaging is evident, with companies adopting recyclable and biodegradable materials, including plant-based plastics and recycled PET [7][14] Regional Insights - North America is projected to experience significant growth in the rigid packaging market, driven by advancements in rigid thermoform plastic packaging [8] - The U.S. holds the largest market share in North America, supported by a substantial consumer base and advanced industrial infrastructure [10][11] - North America accounts for 57% of Berry Global's net sales, with EMEA contributing 35% [23] Company Insights - Berry Global reported USD 13 billion in annual revenue, with a diversified business model across four main segments: Consumer Packaging, Health, Hygiene & Specialties, and Engineered Materials [17][20] - The company emphasizes sustainability, focusing on innovations that promote recyclability and the use of post-consumer recycled content [20][21] - Berry Global's operational footprint includes approximately 290 manufacturing locations worldwide, enhancing its ability to serve global customers [19][23] Environmental Impact - Transitioning to more efficient packaging solutions has led to significant reductions in freight and greenhouse gas emissions, exemplified by a 320% increase in freight efficiency and a 67.92% reduction in annual truck shipments [25][30] - The shift from composite cans to polypropylene containers resulted in a total annual GHG emission reduction of 98 metric tons [25][32]

Financial Performance - Net earnings from continuing operations for the three months ended September 30, 2025, were $185.7 million, compared to $88.7 million for the same period in 2024, representing a 109% increase [182]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $856.3 million, compared to $839.8 million for the same period in 2024, reflecting a 2.9% increase [182]. - Adjusted Net Earnings for the three months ended September 30, 2025, were $128.3 million, compared to $115.7 million for the same period in 2024, an increase of 10.3% [185]. - Adjusted EPS for the three months ended September 30, 2025, was $0.87, compared to $0.79 for the same period in 2024, indicating a growth of 10.1% [185]. - For the three months ended September 30, 2025, net sales were $1,351.3 million, a 0.5% increase from $1,345.1 million in 2024; for the nine months, net sales decreased by 1.5% to $3,958.8 million from $4,019.8 million [195]. - Gross profit for the three months ended September 30, 2025, was $400.5 million, down 0.2% from $401.5 million in 2024; for the nine months, gross profit decreased by 1.6% to $1,198.4 million from $1,218.3 million [195]. - Net earnings from continuing operations for the three months ended September 30, 2025, were $185.7 million, a 109.4% increase from $88.7 million in 2024; for the nine months, net earnings increased by 47.0% to $396.8 million from $269.9 million [195]. - The company reported a net earnings per common share (basic) of $1.73 for the three months ended September 30, 2025, a 174.6% increase from $0.63 in 2024; for the nine months, it was $3.14, up 67.9% from $1.87 [195]. Segment Performance - Food segment sales on an organic basis for the first nine months of 2025 increased slightly compared to 2024, driven by pricing actions, despite a marginal volume decline, particularly in North America [176]. - Protective segment sales on an organic basis declined in the first nine months of 2025 compared to 2024 due to volume declines and unfavorable pricing, primarily in North America [176]. - For the Food segment, net sales increased by $12 million, or 1%, for the three months ended September 30, 2025, while for the nine months, net sales decreased by $2 million, or less than 1% [201][202]. - In the Protective segment, net sales decreased by $5 million, or 1%, for the three months ended September 30, 2025, and by $59 million, or 4%, for the nine months [204]. - Segment Adjusted EBITDA for the Food segment increased by 4.2% to $214.5 million in Q3 2025 compared to $205.9 million in Q3 2024 [248]. - Segment Adjusted EBITDA for the Protective segment decreased by 6.8% to $229.9 million in the nine months ended September 30, 2025, compared to $246.8 million in the same period of 2024 [248]. Cash Flow and Debt - Net cash provided by operating activities was $334.4 million for the nine months ended September 30, 2025, a decrease of $149.4 million compared to $483.8 million in 2024 [271]. - Net cash used in financing activities was $362.7 million for the nine months ended September 30, 2025, compared to $281.7 million in 2024 [281]. - The company's total debt as of September 30, 2025, was $4,173.6 million, down from $4,403.9 million at December 31, 2024, resulting in a non-GAAP net debt of $3,891.1 million [269]. - Cash and cash equivalents as of September 30, 2025, were $283 million, with approximately 91% located outside the U.S. [257]. - Total cash and cash equivalents decreased from $371.8 million at December 31, 2024, to $282.5 million by September 30, 2025 [258]. Expenses and Cost Management - Cost of sales for Q3 2025 increased by $7 million, or 1%, compared to Q3 2024, with a percentage of net sales rising from 70.2% to 70.4% [206]. - For the nine months ended September 30, 2025, cost of sales decreased by $41 million, or 1%, remaining consistent at 69.7% of net sales compared to 2024 [207]. - Selling, general and administrative (SG&A) expenses decreased by $12 million, or 6%, in Q3 2025 compared to Q3 2024, and by $18 million, or 3%, for the nine months [216][218]. - Amortization expense of intangible assets decreased by $1 million in Q3 2025 and by $2 million for the nine months, primarily due to lower amortization of capitalized software [219][220]. Tax and Special Items - The Adjusted Tax Rate for the three months ended September 30, 2025, was 23.9%, compared to 24.0% for the same period in 2024 [187]. - Effective income tax rate for Q3 2025 was (61)%, significantly improved from 26% in Q3 2024, primarily due to the reversal of accruals for uncertain tax positions related to an IRS audit [231][240]. - The company reported a pre-tax impact of Special Items amounting to $53.0 million for the three months ended September 30, 2025 [182]. - The company recognized a termination fee of $7 million as other income during the nine months ended September 30, 2025, from a lease termination [227]. - A pre-tax loss of $5 million was recognized during the nine months ended September 30, 2025, related to debt redemption and refinancing activities [229]. - Net decreases in unrecognized tax positions were $150 million for Q3 2025, primarily due to the resolution of the IRS audit [235]. Strategic Initiatives - The CTO2Grow Program is expected to deliver annualized savings of $160 million by year-end 2025, with the entire budget already allocated across approved projects [222]. - The company plans to continue monitoring foreign currency impacts and adjusting strategies accordingly, as these fluctuations can significantly affect financial results [196]. Other Financial Metrics - The current ratio improved to 1.3x as of September 30, 2025, compared to 1.2x at December 31, 2024 [284]. - The leverage ratio was 3.16 to 1.00 as of September 30, 2025, below the maximum covenant requirement of 4.50 to 1.00 [264]. - The company paid dividends of $89 million through the first nine months of both 2025 and 2024 [283]. - The company’s non-GAAP Consolidated Adjusted EBITDA from continuing operations was $287.5 million for the three months ended September 30, 2025, a 4.2% increase from $276.0 million in 2024 [195]. - Adjusted EBITDA margin for the Non-GAAP Consolidated Adjusted EBITDA was 21.3% in Q3 2025, up from 20.5% in Q3 2024 [248].

Core Insights - Sealed Air Corporation reported third-quarter 2025 adjusted earnings per share (EPS) of 87 cents, exceeding the Zacks Consensus Estimate of 68 cents, with a year-over-year increase of 10.1% due to improved operating leverage [1][9] - Total sales reached $1.35 billion, surpassing the Zacks Consensus Estimate of $1.31 billion, reflecting a 0.5% year-over-year growth despite pricing and volume challenges [2][9] Financial Performance - The cost of sales increased by 0.8% year over year to $951 million, resulting in a gross profit of $400 million, which is a slight decline of 0.3% from the previous year [3] - Gross margin contracted to 29.6% from 29.8% in the prior year, influenced by higher costs and modest sales growth [9] - Selling, General and Administrative (SG&A) expenses decreased by 6.3% to $175 million, while adjusted EBITDA rose by 4.2% to $287.5 million, leading to an adjusted EBITDA margin of 21.3%, up from 20.5% [4] Segment Performance - The Food segment reported net sales of $910 million, a 1% increase year over year, driven by favorable pricing actions despite a 1% decline in volumes [5] - The Protective segment's net sales were $442 million, down 1% year over year, with a 2% decline in volumes attributed to weakness in industrial portfolios [6][7] Cash Flow and Balance Sheet - Operating cash flow for the first nine months of 2025 was approximately $334 million, down from $484 million in the same period last year [8] - As of September 30, 2025, total debt was $4.17 billion, reduced from $4.40 billion at the end of 2024, with $1.3 billion in liquidity available [10] Guidance and Outlook - Sealed Air updated its 2025 guidance, expecting net sales of $5.275-$5.325 billion, adjusted EBITDA of $1.120-$1.140 billion, and adjusted EPS of $3.25-$3.35 [11] Stock Performance - Over the past year, Sealed Air's shares have declined by 4%, contrasting with a 34.6% decline in the industry [12]

Core Insights - Sealed Air (SEE) reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and showing an increase from $0.79 per share a year ago, resulting in an earnings surprise of +27.94% [1] - The company achieved revenues of $1.35 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.93%, with year-ago revenues also at $1.35 billion [2] - Sealed Air has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The future performance of Sealed Air's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $1.36 billion, and for the current fiscal year, it is $3.16 on revenues of $5.28 billion [7] Industry Context - The Containers - Paper and Packaging industry, to which Sealed Air belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Sealed Air reported Q3 2025 sales of $1.35 billion, up 0.5% as reported, or down 1% on a constant currency basis [17] - Adjusted EBITDA for the quarter was $287 million, up 4% as reported, or 3% on a constant currency basis [17] - Adjusted earnings per share increased to $0.87, up 10% as reported, or 9% on a constant currency basis [17] - Free cash flow for the first nine months was $201 million, compared to $323 million for the same period last year [22] Business Line Data and Key Metrics Changes - Food segment net sales were $910 million, consistent with last year on a constant currency basis, with volume and pricing relatively flat [20] - Protective sales were $442 million, down $12 million, or 3% on a constant currency basis, with volumes down less than 2% [21] - Food adjusted EBITDA was $215 million, up 3% in constant currency, with an adjusted EBITDA margin of 23.6% [21] - Protective adjusted EBITDA was $78 million, up approximately 3% as reported, with an adjusted EBITDA margin of 17.7% [21] Market Data and Key Metrics Changes - North American consumer sentiment is decreasing, impacting purchasing power, particularly among lower to middle-income households [5] - U.S. beef harvest rates were down approximately 10.5% compared to the prior year, affecting industrial exposed volumes [12] - International food service markets remained resilient, with volume growth in EMEA, Latin America, and APAC [20] Company Strategy and Development Direction - The company is focused on controlling costs and driving productivity while navigating macroeconomic challenges [5] - A transformation strategy is being implemented across both food and protective segments to enhance operational efficiency and market engagement [8] - Network optimization efforts are underway to improve cost positions and better serve customers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the consumer environment and macroeconomic trends, anticipating further market pressures in Q4 [15] - The company expects to see stabilization in material volumes in the fourth quarter, despite a weaker outlook for equipment [6] - Future performance will depend on consumer behavior and the impact of transformation initiatives [15] Other Important Information - The company has closed on refinancing its five-year revolving credit facility, enhancing its liquidity position [22] - The full-year sales range is targeted at a midpoint of $5.3 billion, with adjusted EBITDA expected to be between $1.12 billion and $1.14 billion [24] Q&A Session Summary Question: Insights on beef production and its impact on the food business - Management discussed the interplay between consumer demand and supply-side dynamics affecting beef production, with expectations for a gradual recovery in 2026 and 2027 [29][31][33] Question: Operating environment in the EMEA segment - The EMEA region has been the strongest performer within the food segment, with share gains driven by a focus on retail and less exposure to industrial markets [36][37] Question: Demand correction and pricing pressures - Management acknowledged seeing early signs of demand correction and pricing degradation, particularly in North American food and industrial processing [41][44] Question: Capital allocation and margin preservation - The company is focused on investments that enhance return on invested capital, with ongoing efforts to drive productivity and maintain margins despite headwinds [46][50] Question: SG&A costs and restructuring - SG&A costs have decreased due to ongoing restructuring initiatives, with expectations for continued efforts into the next year [59][62] Question: Network optimization details - Network optimization efforts are being applied to both segments, focusing on logistics and asset optimization to enhance operational efficiency [71][73] Question: Portfolio assessment timing - Management is currently focused on transformation efforts but remains open to opportunities that maximize shareholder value [76]