Financial Data and Key Metrics Changes - Net sales increased by 49% to $1.9 billion, driven by the S and P EMEA acquisition and strong volume in the U.S. business [22][5] - Adjusted EBITDA rose by 25% to $328 million, with adjusted EBITDA margin improving by 101 basis points to 17.2% [22][5] - Adjusted EPS was $1.37, reflecting a 7% year-over-year increase, impacted by higher interest expenses [21][5] Business Line Data and Key Metrics Changes - Consumer Packaging segment saw a 110% increase in sales, with adjusted EBITDA growing by 115% due to acquisitions and productivity gains [23][6] - Industrial segment sales decreased by 2% to $588 million, with adjusted EBITDA increasing by 15% to $113 million, driven by favorable pricing despite lower volumes [24][6] - All Other business sales were flat at $95 million, with adjusted EBITDA declining by 8% [25][6] Market Data and Key Metrics Changes - EMEA sales were impacted by a late start to the vegetable packaging season, with expectations for recovery in the third quarter [15][14] - Demand for pet food and premium food categories remained resilient despite macroeconomic pressures [15][14] - The company anticipates a solid vegetable harvest in the third quarter, which is expected to drive growth [15][14] Company Strategy and Development Direction - The company is focused on businesses where it can leverage advanced material science and technology to drive competitive advantage [8][10] - Recent divestitures are aimed at reallocating capital to core businesses, with a target to reduce net leverage to 3-3.3 times by the end of 2026 [11][10] - The company is investing in automation and capacity expansion to enhance productivity and meet growing market demands [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged global macroeconomic pressures affecting consumer and industrial demand but expressed confidence in strong performance in the North American markets [27][28] - The company is maintaining its full-year guidance for net sales and adjusted EBITDA, despite some softness in international markets [27][28] - Management remains focused on controlling costs and reducing leverage while creating long-term shareholder value [36][28] Other Important Information - The company has achieved approximately $20 million in annual savings from stranded costs due to divestitures and is optimizing its operating footprint [12][11] - The integration of S and P EMEA is progressing well, with projected synergies of $40-50 million by the end of the year [12][14] Q&A Session Summary Question: Can you discuss the current volume run rate across major businesses and expectations for SMT EMEA? - Management indicated a slight decline in the paper can business but expects growth in the third quarter, particularly in metal cans [40][42] - EMEA volumes were down due to sardine availability and a late vegetable harvest, but recovery is anticipated in the third quarter [44][46] Question: What are the expectations for stranded costs and interest expenses moving forward? - Management expects improvements in stranded costs and a reduction in interest expenses in the second half of the year [61][62] Question: How are tariff impacts affecting the business? - Management noted that tariffs are being mitigated, but they could impact retail and consumer behavior [75][76] Question: Can you provide details on the EBITDA expectations for the EVO business? - Management confirmed expectations for year-over-year EBITDA growth and highlighted significant new contracts that will contribute to future volumes [69][70] Question: What is the outlook for the consumer segment's sustainability? - Management expressed confidence in maintaining strong performance in the consumer segment, driven by ongoing investments and new product launches [110][112]