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]

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This presentation, conference call and discussions that follow 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," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this presentation, conference call and discussions ...

Financial Performance - Net sales for Q3 2025 were $1.351 billion, a 0.5% increase compared to Q3 2024, with net earnings rising 109.4% to $186 million[6] - Adjusted EBITDA for Q3 2025 was $287 million, reflecting a 4.2% increase year-over-year, with an Adjusted EBITDA margin of 21.3%[11] - Adjusted diluted EPS increased by 10.1% to $0.87, driven by higher Adjusted EBITDA and lower interest expenses[11] - The Food segment reported net sales of $910 million, up 1%, while the Protective segment saw a 1% decline in net sales to $442 million[12][13] - Net sales for the three months ended September 30, 2025, were $1,351.3 million, a slight increase from $1,345.1 million in the same period of 2024, while net sales for the nine months ended September 30, 2025, decreased to $3,958.8 million from $4,019.8 million in 2024[29] - Gross profit for the three months ended September 30, 2025, was $400.5 million, compared to $401.5 million in 2024, and for the nine months, it decreased to $1,198.4 million from $1,218.3 million[29] - Net earnings from continuing operations for the three months ended September 30, 2025, were $185.7 million, significantly higher than $88.7 million in 2024, while net earnings for the nine months increased to $396.8 million from $269.9 million[29] - The company raised its full-year outlook for Adjusted EBITDA to a range of $1.120 to $1.140 billion, and for Adjusted EPS to $3.25 to $3.35[18] - The adjusted EBITDA for the nine months ended September 30, 2025, was $856.3 million, compared to $839.8 million in the same period of 2024, reflecting a 2.1% increase[41] Cash Flow and Debt - Cash flow from operations for the first nine months of 2025 was $334 million, a decrease of 30.9% from the prior year[14] - Free cash flow for the first nine months of 2025 was $201 million, down 37.8% from the previous year[15] - Total debt as of September 30, 2025, was $4.2 billion, down from $4.4 billion at the end of 2024, with a net debt to Adjusted EBITDA ratio of 3.5x[16][17] - Interest payments for the nine months ended September 30, 2025, were $210.5 million, down from $220.3 million in 2024[36] - Non-GAAP Net Debt as of September 30, 2025, is $3,891.1 million, down from $4,032.1 million as of December 31, 2024[50] - The Net Leverage Ratio improved to 3.5x as of September 30, 2025, compared to 3.6x at the end of 2024[51] Tax and Special Items - The effective tax rate for Q3 2025 was (60.5)%, significantly lower than the 25.7% rate in the prior year, due to the resolution of historical tax matters[9][10] - The non-GAAP adjusted tax rate for Q3 2025 was 23.9%, slightly down from 24.0% in Q3 2024[45] - Special items impacted Q3 2025 net earnings by $57.4 million, leading to non-GAAP adjusted net earnings of $128.3 million[46] - Special items for Q3 2025 resulted in a net impact of $(57.4) million, compared to a net impact of $27.0 million in Q3 2024[48] - Other special items for the nine months ended September 30, 2025, amounted to $25.3 million, significantly higher than $5.2 million in the same period of 2024[48] Operational Highlights - The company is focused on customer-first initiatives and operational discipline to maximize shareholder value amid challenging market conditions[4][5] - The company incurred restructuring charges of $20.8 million for the three months ended September 30, 2025, compared to $6.8 million in 2024[29] - Restructuring charges for the nine months ended September 30, 2025, totaled $26.2 million, compared to $24.8 million in the same period of 2024[48] - Foreign currency exchange loss due to highly inflationary economies was $10.6 million for the nine months ended September 30, 2025, up from $7.9 million in the previous year[48] - The company incurred $5.1 million in losses on debt redemption and refinancing activities for the nine months ended September 30, 2025[48] Balance Sheet - Total assets as of September 30, 2025, were $7,084.2 million, a slight increase from $7,022.1 million at the end of 2024[32] - Total liabilities decreased to $5,893.9 million as of September 30, 2025, from $6,397.6 million at the end of 2024[32] - The company’s retained earnings increased to $1,015.7 million as of September 30, 2025, compared to $643.4 million at the end of 2024[32] Shareholder Information - The weighted average number of diluted common shares outstanding increased to 147.7 million in Q3 2025 from 146.1 million in Q3 2024[48]

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Core Insights - Sealed Air Corporation reported a strong performance in Q3 2025, achieving net earnings of $186 million, a significant increase of 109.4% compared to $89 million in Q3 2024, driven by improved operational efficiency and favorable tax resolutions [3][7][12]. Financial Performance - Net sales for Q3 2025 were $1.351 billion, a slight increase of 0.5% from $1.345 billion in Q3 2024, with the Food segment up 1% and the Protective segment down 1% [4][5]. - Adjusted EBITDA rose to $287 million, representing a 4.2% increase from $276 million in the previous year, with an adjusted EBITDA margin of 21.3% [4][8]. - Adjusted diluted EPS increased by 10.1% to $0.87 from $0.79 in Q3 2024, reflecting higher adjusted EBITDA and lower interest expenses [4][8]. Business Segment Highlights - The Food segment generated net sales of $910 million, up 1% as reported, with adjusted EBITDA of $215 million, or 23.6% of net sales, an increase from 22.9% in the prior year [9]. - The Protective segment reported net sales of $442 million, a decrease of 1%, with adjusted EBITDA of $78 million, or 17.7% of net sales, up from 16.9% in the previous year [10]. Cash Flow and Debt Management - Cash flow from operations for the first nine months of 2025 was $334 million, down 30.9% from $484 million in the prior year, primarily due to higher incentive compensation and tax payments [11]. - Total debt decreased to $4.2 billion as of September 30, 2025, from $4.4 billion at the end of 2024, with a net debt to adjusted EBITDA ratio below 3.5x [14][12]. 2025 Full Year Outlook - The company raised its full-year outlook for adjusted EBITDA to a range of $1.120 to $1.140 billion and adjusted EPS to $3.25 to $3.35, while maintaining net sales expectations between $5.275 to $5.325 billion [15].

Core Insights - Sealed Air reported Q3 2025 net sales of $1.35 billion, flat year over year, with food net sales at $910 million, up 1.3%, and protective net sales at $442 million, down 1.2% [1] - The company is undergoing a business turnaround with new CFO Kristen Actis-Grande, focusing on transformation strategies in both food and protective packaging sectors [1] Financial Performance - Net earnings for Q3 2025 reached $186 million, an increase from $89 million in Q3 2024 [1] - Sealed Air tightened its 2025 financial guidance, expecting net sales between $5.275 billion and $5.325 billion, and adjusted EBITDA between $1.12 billion and $1.14 billion [1] Protective Packaging - There was a positive inflection in protective material volumes for the first time since 2021, indicating a potential recovery in this segment [1] - The company is applying transformation strategies from the protective packaging business to its food business, focusing on retail and food service markets [1] Food Packaging - Consumer trends show a shift towards private label products and pre-packaged offerings due to strained purchasing power [1] - Sealed Air anticipates growth opportunities in diversifying its food business to mitigate volatility from supply-side dynamics, particularly in industrial food processing [1] Market Outlook - The company expects pricing and market pressures to accelerate in Q4, leading to lower-than-expected volumes in North America food [1] - Sealed Air is monitoring the implications of the U.S. government shutdown on the Supplemental Nutrition Assistance Program, which could affect consumer spending patterns [1] Strategic Focus - The company is committed to supporting market changes, innovations, and optimizing network assets as part of its transformation efforts [1] - Sealed Air plans to implement foundational changes by the end of the year to prepare for growth in 2026 [1]

Core Insights - Sealed Air Corporation (SEE) is set to report its third-quarter 2025 results on November 4, with net sales expected to be $1.31 billion, reflecting a 2.4% decline year-over-year [1] - The consensus estimate for earnings per share (EPS) is 68 cents, indicating a year-over-year decline of 13.9% [1] - The company has a history of earnings surprises, beating estimates in the last four quarters with an average surprise of 19% [3][4] Financial Performance Expectations - The Protective segment is projected to experience a volume decline of 2.8% year-over-year for Q3 2025, continuing a trend of lower volumes for 14 consecutive quarters [7] - The Food segment is expected to see a 3% decline in volumes year-over-year, although demand for certain products is strong [8] - Estimated net sales for the Food segment are $879 million, down 2.1% from the previous year, with a slight pricing increase of 0.3% [9] - The Protective segment's estimated net sales are $433 million, reflecting a 3.3% year-over-year decline, with adjusted EBITDA expected to fall by 7.6% [10] - Overall, Sealed Air's volumes are anticipated to decrease by 2.9%, with a pricing decrease of 0.4% for the quarter [10] Strategic Initiatives - Cost savings from the Reinvent SEE Strategy are expected to enhance productivity and mitigate supply chain challenges, positively impacting operating margins [11] Stock Performance - Over the past year, SEE shares have declined by 4.9%, contrasting with a 34.5% decline in the industry [12]