Sealed Air(US:SEE)2025-11-04 12:06Financial 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]