Sealed Air’s protective material volumes grow in a first since 2021

Core Insights - Sealed Air reported Q3 2025 net sales of $1.35 billion, flat year over year, with food net sales at $910 million, up 1.3%, and protective net sales at $442 million, down 1.2% [1] - The company is undergoing a business turnaround with new CFO Kristen Actis-Grande, focusing on transformation strategies in both food and protective packaging sectors [1] Financial Performance - Net earnings for Q3 2025 reached $186 million, an increase from $89 million in Q3 2024 [1] - Sealed Air tightened its 2025 financial guidance, expecting net sales between $5.275 billion and $5.325 billion, and adjusted EBITDA between $1.12 billion and $1.14 billion [1] Protective Packaging - There was a positive inflection in protective material volumes for the first time since 2021, indicating a potential recovery in this segment [1] - The company is applying transformation strategies from the protective packaging business to its food business, focusing on retail and food service markets [1] Food Packaging - Consumer trends show a shift towards private label products and pre-packaged offerings due to strained purchasing power [1] - Sealed Air anticipates growth opportunities in diversifying its food business to mitigate volatility from supply-side dynamics, particularly in industrial food processing [1] Market Outlook - The company expects pricing and market pressures to accelerate in Q4, leading to lower-than-expected volumes in North America food [1] - Sealed Air is monitoring the implications of the U.S. government shutdown on the Supplemental Nutrition Assistance Program, which could affect consumer spending patterns [1] Strategic Focus - The company is committed to supporting market changes, innovations, and optimizing network assets as part of its transformation efforts [1] - Sealed Air plans to implement foundational changes by the end of the year to prepare for growth in 2026 [1]