SEE Q4 Earnings Surpass Estimates, CD&R Merger to Close Mid-2026

Core Insights - Sealed Air Corporation (SEE) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 77 cents, exceeding the Zacks Consensus Estimate of 72 cents, with a year-over-year increase of 2.7% driven by higher adjusted EBITDA and lower operating costs [1][10] - Total sales for the quarter reached $1.4 billion, surpassing the Zacks Consensus Estimate of $1.34 billion, reflecting a 2% year-over-year increase [3][10] - The company announced a definitive agreement for an all-cash acquisition by Clayton, Dubilier & Rice (CD&R) valued at $10.3 billion, with shareholders set to receive $42.15 per share [15][16] Financial Performance - Adjusted EBITDA for Q4 was $278 million, up 2.7% year over year, with an adjusted EBITDA margin of 19.8%, slightly higher than the previous year's 19.7% [5][6] - Gross profit was $398 million, a 2% decline from the previous year, with a gross margin of 28.4%, reflecting a 120-basis point contraction [4] - Cash flow from operating activities was approximately $628 million in 2025, down from $728 million in the prior year, while total debt decreased to $4.1 billion from $4.4 billion [12] Segment Performance - In the Food segment, net sales increased 1.6% year over year to around $937 million, despite a 1.4% decline in volumes [7] - The Protective segment reported net sales of $464 million, up 3% year over year, with adjusted EBITDA increasing 21% to $80.5 million [8][11] Market Context - Sealed Air's shares gained 35.3% over the past year, contrasting with a 1.1% decline in the industry [17] - Competitors like Packaging Corporation of America and Amcor Plc reported mixed results, with Packaging Corp missing EPS estimates and Amcor showing revenue growth but facing volume declines [19][20]