Sealed Air(SEE)2025-05-06 11:14Financial 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]