Sealed Air(US:SEE) ZACKS·2025-11-04 19:06Core 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]