Financial Performance - In 2024, the company experienced slightly higher net sales in the second half of the year compared to the first half, although consolidated results were slightly lower due to higher tax expenses and restructuring costs [51]. - The company has not identified any indication of goodwill impairment in its annual assessments for 2023 and 2022, indicating stable financial health [363]. - The company prepares financial projections annually, considering macroeconomic conditions and historical trends to develop medium-term growth assumptions [367]. Pension Obligations - The total projected benefit obligation for the U.S. pension plan was $127 million, with a total benefit cost of $1 million for the year ended December 31, 2024; for international pension plans, the obligation was $477 million with a cost of $4 million [367]. - The total projected benefit obligation for a defined benefit pension plan in the UK is $8 million, with a full buy-out expected to be completed by 2025 [369]. - The accumulated comprehensive losses for the UK pension plan amount to $6 million, which will be recognized in Other expense upon plan termination or full buy-out [369]. - A 25 basis point increase in the assumed discount rate would decrease the projected benefit obligation for the US by $2.5 million, while a 25 basis point decrease would increase it by $2.6 million [369]. - A 100 basis point increase in the expected long-term rate of return on plan assets would decrease the expected net periodic benefit cost for the US by $1.0 million for 2025, while a decrease would have the opposite effect [369]. Taxation - The company provides a valuation allowance on deferred tax assets when it is more likely than not that some portion will not be realized, impacting future financial results [370]. - Changes in tax laws and future taxable earnings can affect the valuation allowances related to deferred tax assets, potentially impacting the consolidated financial position [371]. - The company may establish a liability for additional taxes based on tax positions for years where statutes of limitations have not expired, which could materially affect financial results [372]. - Adjustments to tax liabilities based on audits and changing circumstances could lead to significant impacts on the company's consolidated financial position [373]. - Tax benefits from uncertain tax positions are recognized only if it is more likely than not that they will be sustained upon examination by tax authorities [374]. - The largest amount of tax benefit recognized is based on a greater than fifty percent likelihood of realization upon settlement with tax authorities [374]. Environmental Compliance and Sustainability - The company maintains compliance with various environmental regulations, which has not materially affected its capital expenditures or consolidated financial condition [52]. - The company has registered manufacturing plants in the EU to comply with regulations for products incorporating recycled content, reflecting its commitment to sustainability [53]. - The company is actively monitoring regulatory developments related to Extended Producer Responsibility (EPR) laws in various jurisdictions, including the UK, EU, and Canada [56]. - The company has reformulated certain U.S. food packaging products to comply with anticipated regulations regarding per- and polyfluoroalkyl substances (PFAS) [57]. - The company has policies in place to guide environmental, health, and safety matters, ensuring compliance with relevant laws and regulations [55]. - The company has incurred costs related to compliance with product registration and FDA requirements, but these have not had a material adverse effect on its business [53].

CHARLOTTE, N.C., Feb. 25, 2025 /PRNewswire/ -- Sealed Air Corporation (NYSE: SEE) announced today that Dustin Semach, President and Chief Executive Officer, and Roni Johnson, Interim Chief Financial Officer, will participate in the upcoming Bank of America 2025 Global Agriculture and Materials Conference and the Raymond James 46th Annual Institutional Investors Conference. Bank of America 2025 Global Agriculture and Materials Conference Date: Thursday, Feb. 27, 2025Fireside Chat Presentation: 3:30 p.m. ESTL ...

Q4 and FY 2024 Earnings and 2025 Outlook Dustin Semach, President & CEO Roni Johnson, Interim CFO Mark Stone, Investor Relations © 2024 Sealed Air | 1 February 25, 2025 - Conference Call Supplement (Unaudited Results) Safe Harbor and Regulation G Statement Forward-looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "as ...

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1.4 billion, up 1% on a constant currency basis, while full-year sales were $5.4 billion, down 1% at constant currency [36] - Adjusted EBITDA for Q4 was $271 million, down 1% year-over-year, with a full-year adjusted EBITDA of $1.11 billion, relatively flat compared to the prior year [36][39] - Adjusted EPS for Q4 was $0.75, down 15% year-over-year, while full-year adjusted EPS was $3.14, down 1% primarily due to higher tax expenses [37][38] Business Line Data and Key Metrics Changes - Food sales for Q4 were $923 million, up 5% on an organic basis, driven by volume growth in all regions [40] - Protective business net sales for Q4 were $450 million, down 7% from the prior year, with adjusted EBITDA of $67 million, down 26% [42] - Food adjusted EBITDA for Q4 was $208 million, up 7% with a margin of 22.5%, while protective adjusted EBITDA margin was significantly lower due to volume declines [41][42] Market Data and Key Metrics Changes - The Americas region saw a constant dollar growth of 1%, driven by food strength, while EMEA and APAC also reported similar growth rates [43] - The protective segment is expected to face challenges in the first half of 2025, with a projected full-year decline of approximately 2% [48] Company Strategy and Development Direction - The company aims to further unlock potential in each business segment, targeting mid-single-digit earnings growth and high cash flow conversion over the long term [14][15] - A focus on deleveraging the balance sheet to three times is planned, with a return to balanced capital allocation including disciplined M&A and shareholder returns [15] - The company is shifting its culture to become high-performing and accountable, with an emphasis on customer focus and operational excellence [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased volatility in the macro environment due to global trade uncertainties, input costs, and foreign exchange movements [17][33] - The food business is expected to continue its growth trajectory, while the protective segment is anticipated to stabilize and inflect in volumes in the second half of 2025 [29][30] - Management expressed confidence in the company's ability to navigate challenges and drive returns for stakeholders [33][54] Other Important Information - The company plans to close two plants by the end of the year to optimize its footprint [31] - Free cash flow for the year totaled $454 million, with a net leverage ratio of 3.6 times, down from a peak of 4.1 times [44][45] - Full-year 2025 free cash flow is expected to be approximately $400 million, reflecting strong cash generation despite higher restructuring payments [51] Q&A Session Summary Question: Are there parts of the protective business that will significantly drag on volumes? - Management indicated that the industrial portfolio is expected to continue underperforming, with some bright spots in shrink films and fulfillment [58][60] Question: Can you discuss the potential impacts of tariffs? - Management noted that most of the business is domestic production, minimizing potential tariff impacts, but adjustments in the supply chain may be necessary [65][66] Question: What are the initial priorities for the new CEO? - The focus will be on accelerating customer focus, stabilizing the protective business, and enhancing cost takeout initiatives [71][75] Question: What is the outlook for the protective segment in 2024? - The protective segment is expected to face challenges in the first half, with a potential inflection in volumes in the second half [80][84] Question: How is the company addressing pricing pressures? - Management acknowledged slight inflation in resin prices and competitive pressures, but they expect to take modest price increases [87][102] Question: What is the expected growth for automation revenue? - Automation remains a critical part of the business, with expectations for growth driven by new placements and innovations in equipment [111][112]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1.4 billion, up 1% on a constant currency basis, while full-year sales were $5.4 billion, down 1% at constant currency [36] - Adjusted EBITDA for Q4 was $271 million, down 1% year-over-year, with a full-year adjusted EBITDA of $1.11 billion, relatively flat compared to the prior year [36][39] - Adjusted EPS for Q4 was $0.75, down 15% year-over-year, while full-year adjusted EPS was $3.14, down 1% primarily due to higher tax expenses [37][38] Business Line Data and Key Metrics Changes - Food sales for Q4 were $923 million, up 5% on an organic basis, driven by volume growth in all regions [40] - Protective business net sales for Q4 were $450 million, down 7% from the prior year, with adjusted EBITDA of $67 million, down 26% [42] - Food adjusted EBITDA for Q4 was $208 million, up 7%, with a margin of 22.5%, while protective adjusted EBITDA margin was significantly lower due to volume declines [41][42] Market Data and Key Metrics Changes - The Americas region saw a constant dollar growth of 1%, driven by food strength, while EMEA and APAC also reported 1% growth, reflecting solid volume performance in food [43] - The protective segment's performance was impacted by weakness in certain industrial portfolios and pressure within specific product lines [42] Company Strategy and Development Direction - The company aims to unlock underlying potential in each business segment, targeting mid-single-digit earnings growth and high cash flow conversion over the long term [14][15] - A focus on deleveraging the balance sheet to three times net debt to adjusted EBITDA is planned, with a return to balanced capital allocation including M&A and shareholder returns [15] - The company is shifting its culture to become high-performing and accountable, with an emphasis on customer focus and operational excellence [16][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased volatility in the macro environment due to global trade uncertainties, input costs, and foreign exchange movements [17][33] - The food business is expected to continue its growth trajectory, while the protective segment is anticipated to stabilize and inflect in volumes in the second half of 2025 [29][30] - The company is committed to enhancing customer service and improving operational execution across both business segments [33][54] Other Important Information - The company generated free cash flow of $454 million in 2024, slightly down from $467 million the previous year, while maintaining a strong liquidity position of $1.4 billion [44][45] - Capital expenditures for 2025 are expected to be approximately $220 million, with free cash flow projected at around $400 million [51][52] Q&A Session Summary Question: Are there parts of the protective business that will significantly drag on volumes? - Management indicated that the industrial portfolio is expected to continue underperforming, with some bright spots in shrink films and fulfillment areas [58][60] Question: Can you discuss the potential impacts of tariffs on the business? - Management noted that most of the business is domestic production, minimizing tariff impacts, but acknowledged potential challenges with cross-border trade [65][66] Question: What are the initial priorities for the new CEO? - The CEO emphasized a relentless focus on customer needs, accelerating cost takeout initiatives, and ensuring the right leadership is in place [71][78] Question: What is the outlook for the protective segment in 2025? - Management expects a second-half inflection in volumes, with ongoing efforts to stabilize the business and improve customer relationships [29][30] Question: How is the company addressing pricing pressures in the food segment? - Management highlighted the benefits of formula pricing and the ability to take modest price increases due to stable market conditions [101][102] Question: What is the expected growth for automation revenue in 2025? - Management remains optimistic about automation as a growth vector, focusing on new customer placements and product innovations [111][113]

Core Insights - Sealed Air Corporation (SEE) reported fourth-quarter 2024 adjusted earnings per share of 75 cents, exceeding the Zacks Consensus Estimate of 67 cents, although it represented a 14.8% decline year over year due to increased adjusted tax expenses [1] - Total sales for the quarter were $1.37 billion, slightly above the Zacks Consensus Estimate of $1.36 billion, but down 0.3% from $1.38 billion in Q4 2023 [2] - The company expects net sales for 2025 to be between $5.1 billion and $5.5 billion, with adjusted EBITDA projected at $1.075 billion to $1.175 billion [12] Financial Performance - Gross profit for Q4 was $407 million, a 0.5% increase from $405 million in the same quarter last year, with a gross margin improvement to 29.6% from 29.4% [4] - Adjusted EBITDA for the quarter was approximately $271 million, down 1.3% year over year, with an adjusted EBITDA margin of 19.7% compared to 19.9% in the previous year [5] - Cash flow from operating activities was around $728 million in 2024, an increase from $516 million in the prior year, with total debt reduced to $4.40 billion from $4.69 billion [10] Segment Performance - In the Food segment, net sales increased 3.3% year over year to $922.5 million, driven by a 4.9% volume growth, despite a 1.8% unfavorable impact from foreign currency [6] - The Protective segment saw net sales decline by 7.1% year over year to $450 million, with volumes falling 5.4% due to market pressures [7] - Adjusted EBITDA for the Protective segment decreased 26% year over year to $67 million, impacted by lower volumes and unfavorable net price realization [8] Market Context - Sealed Air's shares have decreased by 8.9% over the past year, contrasting with the industry's growth of 12.3% [13] - The company’s adjusted earnings per share for 2023 was $3.14, down 1.3% year over year, while total sales for 2024 edged down 1.8% to $5.39 billion [11]

Core Insights - Sealed Air reported revenue of $1.37 billion for the quarter ended December 2024, a slight decline of 0.3% year-over-year, with EPS at $0.75 compared to $0.88 in the same quarter last year [1] - The revenue matched the Zacks Consensus Estimate, showing a surprise of +0.55%, while the EPS exceeded expectations by +11.94% [1] Financial Performance - Net Sales in the Food segment reached $922.50 million, surpassing the average estimate of $916.38 million, reflecting a year-over-year increase of +3.4% [4] - Net Sales in the Protective segment were $450.30 million, slightly below the estimated $454.51 million, marking a year-over-year decline of -7.1% [4] - Adjusted EBITDA for the Food segment was $207.60 million, exceeding the average estimate of $195.59 million [4] - Adjusted EBITDA for Corporate expenses and unallocated costs was -$3.50 million, better than the average estimate of -$11.24 million [4] - Adjusted EBITDA for the Protective segment was $66.70 million, below the average estimate of $75.42 million [4] Stock Performance - Sealed Air's shares have declined by -9.9% over the past month, contrasting with the Zacks S&P 500 composite's decline of -1.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Sealed Air (SEE) reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, but down from $0.88 per share a year ago, indicating an earnings surprise of 11.94% [1][2] Financial Performance - The company achieved revenues of $1.37 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.55%, although this is a slight decrease from year-ago revenues of $1.38 billion [2] - Over the last four quarters, Sealed Air has consistently surpassed consensus EPS estimates [2] Stock Performance and Outlook - Sealed Air shares have declined approximately 5% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $1.31 billion, and for the current fiscal year, it is $3.05 on revenues of $5.38 billion [7] Industry Context - The Containers - Paper and Packaging industry, to which Sealed Air belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Net sales for Q4 2024 were $1.37 billion, flat compared to Q4 2023, with a 3% increase in the Food segment and a 7% decrease in the Protective segment[6]. - Full year 2024 net sales decreased by 2% to $5.39 billion, with the Food segment increasing by 2% and the Protective segment decreasing by 8%[10]. - Adjusted EBITDA for Q4 2024 was $271 million, or 19.7% of net sales, compared to $274 million, or 19.9% in Q4 2023[9]. - Full year 2024 adjusted EBITDA increased slightly to $1.11 billion, or 20.6% of net sales, from $1.11 billion, or 20.2% in the prior year[14]. - Operating profit for Q4 2024 was $159.0 million, a decrease of 24.7% compared to $211.2 million in Q4 2023[32]. - Net loss for Q4 2024 was $7.3 million, compared to net earnings of $124.0 million in Q4 2023[32]. - Basic net loss per share for Q4 2024 was $(0.05), while basic earnings per share for Q4 2023 was $0.86[32]. - The company reported a GAAP net earnings from continuing operations of $(0.4) million for Q4 2024, compared to $124.9 million in Q4 2023[46]. - For the year ended December 31, 2024, GAAP earnings before income tax from continuing operations was $458.4 million, compared to $429.7 million in 2023, reflecting a 6.5% increase[47]. - Non-GAAP adjusted net earnings for the year ended December 31, 2024, were $458.9 million, with diluted EPS of $3.14, compared to $461.3 million and diluted EPS of $3.18 in 2023, indicating a slight decrease in earnings[48]. Cash Flow and Leverage - Free cash flow for full year 2024 was $454 million, compared to $467 million in the prior year[18]. - The net leverage ratio improved to 3.6x as of December 31, 2024, down from 3.9x a year earlier[20]. - Free cash flow for the year ended December 31, 2024, was $507.8 million, an increase from $272.0 million in 2023[38]. - The total debt as of December 31, 2024, was $4,403.9 million, down from $4,690.3 million in 2023, resulting in a non-GAAP net debt of $4,032.1 million[51]. Segment Performance - The company completed a reorganization into two market-focused businesses: Food and Protective, aiming to maximize growth in respective end-markets[3]. - The food segment's adjusted EBITDA for 2024 was $807.7 million, reflecting a margin of 22.5%, up from 21.8% in 2023[46]. - The protective segment's adjusted EBITDA decreased to $313.5 million in 2024, with a margin of 17.3%, down from 18.4% in 2023[46]. - The company anticipates 2024 net sales to be $5,392.6 million, with food segment projected at $3,526.1 million (65.4%) and protective segment at $1,107.9 million (20.5%) [44]. Restructuring and Costs - Cost take-out initiatives generated $89 million in incremental savings for full year 2024, contributing to improved operational efficiency[5]. - The company incurred restructuring charges of $33.0 million in Q4 2024, compared to $6.4 million in Q4 2023[32]. - Restructuring charges for the year ended December 31, 2024, totaled $57.8 million, up from $15.6 million in 2023, reflecting increased costs associated with restructuring efforts[49]. Assets and Liabilities - Total assets decreased to $7,022.1 million as of December 31, 2024, from $7,200.6 million as of December 31, 2023[34]. - Total liabilities decreased to $6,397.6 million as of December 31, 2024, from $6,651.1 million as of December 31, 2023[34]. - Cash and cash equivalents increased to $371.8 million as of December 31, 2024, from $346.1 million as of December 31, 2023[34]. Taxation - The GAAP effective income tax rate for the year ended December 31, 2024, was 41.2%, significantly higher than 21.0% in 2023[47]. - Non-GAAP adjusted income tax rate for the year ended December 31, 2024, was 25.9%, compared to 23.6% in 2023, indicating an increase in the effective tax burden[47]. Currency Impact - Foreign currency translation negatively impacted total change (GAAP) by $(35.7) million (-0.7%) for the year ended December 31, 2023[42]. - The company incurred a foreign currency exchange loss of $9.9 million for the year ended December 31, 2024, compared to $23.1 million in 2023, indicating a reduction in losses from currency fluctuations[49].

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both revenue and earnings for the fourth quarter of 2024, with challenges in its Protective segment impacting overall performance [2][6]. Financial Performance Estimates - The Zacks Consensus Estimate for SEE's fourth-quarter revenues is $1.37 billion, reflecting a 0.9% decrease from the previous year [2]. - The consensus estimate for earnings is 67 cents per share, indicating a year-over-year decline of 23.9% [2]. - The earnings estimate has decreased by 1.5% over the past 60 days [2]. Earnings Surprise History - Sealed Air has a history of beating Zacks Consensus Estimates, with an average surprise of 34.6% over the last four quarters [3]. Segment Performance - The Protective segment has faced lower volumes for 11 consecutive quarters, with a projected year-over-year volume decline of 5% for Q4 [6]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to see a 4.8% year-over-year volume increase in Q4, driven by demand for bags and automated solutions [7]. - The estimated net sales for the Food segment in Q4 are $912 million, representing a 2.2% growth from the prior year, despite a negative pricing impact of 2.1% [9]. - The Protective segment's estimated net sales for Q4 are $445 million, indicating an 8.2% year-over-year decline due to volume and pricing impacts [10]. Operational Efficiency - Savings from the company's Reinvent SEE Strategy are expected to enhance productivity and mitigate supply-chain challenges, positively influencing operating margins in Q4 [11]. Stock Performance - Over the past year, SEE shares have decreased by 3.6%, contrasting with the industry's growth of 15.5% [12].