Ranpak (US:PACK)2025-10-30 15:41Financial Performance - In Q3 2025, net revenue increased to $99.6 million, up 8.0% from $92.2 million in Q3 2024, with a constant currency increase of 4.4%[141] - Cost of sales rose to $65.2 million, reflecting a 12.8% increase compared to $57.8 million in the same quarter last year[141] - Gross profit remained stable at $34.4 million, with no percentage change year-over-year[141] - Selling, general and administrative expenses increased to $29.6 million, a rise of 2.8% from $28.8 million[141] - The company reported a net loss of $10.4 million in Q3 2025, compared to a net loss of $8.1 million in Q3 2024, representing a 28.4% increase in loss[141] - EBITDA for Q3 2025 was $11.9 million, down 5.6% from $12.6 million in Q3 2024[141] - AEBITDA increased to $21.4 million, up 8.1% from $19.8 million year-over-year[141] - Net revenue for Q3 2025 was $99.6 million, an increase of $7.4 million or 8.0% from $92.2 million in Q3 2024, with a constant currency increase of 4.4%[143] - North America net revenue increased by 10.9% to $44.7 million, driven by void-fill and automation sales, despite a decrease in cushioning sales[154] - Europe/Asia net revenue rose by 5.8% to $54.9 million, attributed to increases in automation and wrapping sales, partially offset by a decline in void-fill sales[155] Cost and Expenses - Cost of sales for Q3 2025 rose to $65.2 million, a 12.8% increase from $57.8 million in Q3 2024, driven by a 9.5% rise in production costs[145] - SG&A expenses increased by 2.8% to $29.6 million, primarily due to a $2.1 million rise in professional services fees[146] - Cost of sales for the nine months ended September 30, 2025 totaled $188.9 million, an increase of $23.4 million or 14.1% compared to $165.5 million in 2024[163] - SG&A expenses increased by $3.3 million or 3.9% to $87.3 million for the nine months ended September 30, 2025[164] - Depreciation and amortization expense rose by $2.1 million or 8.4% to $27.0 million for the nine months ended September 30, 2025[165] - Interest expense increased by $4.9 million or 23.6% to $25.7 million for the nine months ended September 30, 2025[167] Net Loss and EBITDA - EBITDA for the nine months ended September 30, 2025 was $37.2 million, a decrease of $20.1 million or 35.1% compared to $57.3 million in 2024[172] - Net loss for the nine months ended September 30, 2025 was $28.8 million, an increase of $18.1 million or 169.2% compared to a net loss of $10.7 million in 2024[161] - North America segment EBITDA fell by 63.9% to $3.0 million, primarily due to a non-recurring gain in Q3 2024 and increased professional services fees[157] - Europe/Asia segment EBITDA increased by 107.0% to $8.9 million, driven by higher net revenue[158] - Segment EBITDA for North America was $11.1 million for the nine months ended September 30, 2025, down $6.3 million or 36.2% from $17.4 million in 2024[176] - Segment EBITDA for Europe/Asia decreased to $26.1 million for the nine months ended September 30, 2025, a decline of $13.8 million or 34.6% from $39.9 million in 2024[177] Revenue Drivers - The increase in net revenue was driven by a 5.4% increase in sales volume of paper consumable products and a 2.2% increase in automated equipment sales[162] - Automation revenue surged by 63.0% to $11.9 million, while void-fill and wrapping revenues increased by 4.8% and 9.0%, respectively[143] - Over a third of net revenue in 2024 was attributed to e-commerce sectors, indicating a seasonal sales pattern with peak revenue in Q4[133] Tax and Foreign Currency - Income tax benefit for Q3 2025 was $4.2 million, with an effective tax rate of 28.1%, up from $2.5 million and 23.2% in Q3 2024[152] - Foreign currency gain for the nine months ended September 30, 2025 was $5.0 million, an increase of $3.9 million from $1.1 million in 2024[168] - The company experienced a foreign currency loss of $5.0 million for the nine months ended September 30, 2025, compared to a loss of $1.1 million in 2024, marking a significant increase of 354.5%[181] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $49.9 million, which, along with cash flows from operations, is expected to cover current liquidity needs[182] - The company reported a net cash provided by operating activities of $3.6 million for the nine months ended September 30, 2025, a significant decrease from $34.9 million in the same period of 2024, primarily due to a non-recurring patent litigation settlement[192] - Net cash used in investing activities increased to $27.6 million in the nine months ended September 30, 2025, compared to $24.7 million in 2024, reflecting investments in production equipment and machinery[193] - The company experienced a net cash used in financing activities of $5.3 million for the nine months ended September 30, 2025, up from $2.3 million in 2024, due to principal payments on term loans and other financing arrangements[194] - The company had no outstanding amounts under its $50.0 million revolving credit facility as of September 30, 2025, indicating strong liquidity management[186] - The company remains in compliance with all debt covenants as of September 30, 2025, ensuring financial stability[186] Capital Expenditures and Inventory - The company anticipates an increase in capital expenditures, primarily related to production and maintenance of PPS systems at end-user facilities[183] - The company is evaluating its inventory requirements and adjusting according to volume forecasts, which may impact future capital requirements[185] - The company is evaluating alternative suppliers to mitigate the impact of tariffs on capital expenditures related to equipment sourced from Asia[132] Adjustments and Impairments - Adjustments related to M&A, restructuring, and severance costs increased to $11.6 million in 2025 from $5.6 million in 2024, reflecting a rise of 107.1%[181] - The company recorded a non-cash impairment loss of $0.2 million in 2025, down from $0.9 million in 2024, indicating a decrease of 77.8%[181] Debt and Financing - As of September 30, 2025, the company had $412.0 million in total debt, a slight decrease from $415.7 million as of December 31, 2024, with short-term debt remaining relatively stable at $5.9 million[186] - The Term Facility matures in December 2031, with an interest rate of 8.80% as of September 30, 2025, reflecting the company's borrowing costs[187] - The company had $5.9 million committed to outstanding letters of credit, leaving a net availability of $44.1 million under the Revolving Facility as of September 30, 2025[188] - The company’s cash and cash equivalents decreased to $49.9 million at the end of the period from $76.1 million at the beginning, indicating a cash outflow trend[191]