SEE Earnings Beat Estimates in Q1, Sales Decline Y/Y on Lower Volumes

Core Viewpoint - Sealed Air Corporation reported a mixed performance in Q1 2025, with adjusted earnings per share of 81 cents exceeding estimates, but total sales declined due to lower volumes in the Protective segment [1][2]. Financial Performance - Adjusted earnings per share were 81 cents, surpassing the Zacks Consensus Estimate of 67 cents, marking a 4% year-over-year improvement [1] - Total sales for the quarter were $1.272 billion, beating the Zacks Consensus Estimate of $1.269 billion, but down 4.3% from $1.33 billion in Q1 2024 [2] - The cost of sales decreased by 5% year over year to $881 million, while gross profit was $392 million, a 2% decrease from $401 million in the previous year [3] - Adjusted EBITDA was approximately $276 million, a decline of 0.7% from the year-ago period, with an adjusted EBITDA margin of 21.7%, up from 20.9% [4][5] Segment Performance - In the Food segment, net sales decreased by 2% year over year to $852.1 million, exceeding estimates, with pricing actions positively impacting sales by 0.6% [6] - The Protective segment saw net sales of $420 million, down 9% from the previous year, with a significant volume decline of 6.2% [7][8] - Adjusted EBITDA for the Food segment was around $203 million, up 7% year over year, while the Protective segment's adjusted EBITDA decreased by 17% to $74 million [9] Cash Flow and Balance Sheet - Cash flow from operating activities was approximately $32 million, down from $125 million in the prior year [10] - Total debt remained flat at $4.4 billion, with $1.3 billion in liquidity available as of March 31, 2025 [11] 2025 Guidance - Sealed Air expects net sales between $5.1 billion and $5.5 billion for 2025, projecting a 2% dip from $5.39 billion in 2024 [12] - Adjusted EBITDA is forecasted to be between $1.075 billion and $1.175 billion, with adjusted earnings per share expected to range from $2.90 to $3.30 [12] Share Price Performance - Over the past year, Sealed Air's shares have declined by 23%, compared to an 11.9% decline in the industry [13]