Ranpak Q2 2025 slides: North America drives growth amid profitability challenges

Published 05/08/2025, 13:26
Ranpak Q2 2025 slides: North America drives growth amid profitability challenges

Introduction & Market Context

Ranpak Holdings Corp (NYSE:PACK) released its second quarter 2025 earnings presentation on August 5, showing continued volume growth in North America offset by profitability challenges. The packaging solutions provider’s stock jumped 7.91% in premarket trading to $3.82, suggesting investors are focusing on the company’s volume growth and improved guidance despite margin pressures.

The results come after a disappointing first quarter when Ranpak missed earnings expectations with an EPS of -$0.13 against a forecast of -$0.07. The second quarter presentation reveals the company’s ongoing efforts to address profitability concerns while capitalizing on strong North American demand.

Quarterly Performance Highlights

Ranpak reported a 3.8% increase in net sales on a constant currency basis, driven by 5.2% higher volumes. North America emerged as the standout performer with 12.2% revenue growth, while Europe, Middle East, Africa, and Asia-Pacific (EMEA/APAC) regions saw a 2.7% decrease in revenue.

As shown in the following quarterly performance summary:

The company’s gross margin decreased to 31.3%, reflecting ongoing cost pressures. Enterprise e-commerce accounts were particularly strong in North America, driving 14.8% volume growth in the region. Meanwhile, volumes remained flat in Europe and Asia-Pacific markets.

The revenue breakdown by region demonstrates the divergent performance:

Detailed Financial Analysis

Profitability metrics showed significant pressure during the quarter. Adjusted EBITDA decreased by 15.8%, or 18.4% on a constant currency basis. The company cited a 620 basis point headwind due to Amazon (NASDAQ:AMZN) warrant revenue reduction as a key factor affecting profitability.

The following chart illustrates the decline in Adjusted EBITDA:

On a year-to-date basis, Ranpak’s net revenue reached $183.5 million, representing a 6.3% increase on a constant currency basis compared to the same period in 2024. However, Adjusted EBITDA for the first half of 2025 fell to $33.8 million, a 13.4% decrease on a constant currency basis.

The year-to-date performance is summarized in this chart:

Ranpak maintained a solid liquidity position with $49.2 million in cash and no drawings on its Revolving Credit Facility. The company’s net leverage ratio stood at 4.6x as of June 30, 2025, with $408 million in U.S. dollar-denominated debt outstanding.

Forward-Looking Statements

Despite the profitability challenges, Ranpak has updated its 2025 guidance with a focus on improvement in the second half of the year. The company now forecasts revenue of $398 million and Adjusted EBITDA of $92.5 million, accounting for a $4 million warrant impact.

The updated guidance is presented in this table:

Management expressed confidence that actions taken to improve pricing and reduce costs will begin to benefit results starting in the third quarter. Specifically, these initiatives are expected to improve the margin profile in North America by 300 to 500 basis points.

The company cited a "slightly improving operating environment" as one factor supporting its updated guidance, along with anticipated margin improvements in North America. These forward-looking statements suggest Ranpak is focusing on operational efficiency and pricing strategies to address the profitability challenges evident in the first half of 2025.

Investors appear to be responding positively to these initiatives, as reflected in the premarket stock movement, despite the mixed results from the second quarter. With the stock trading near its 52-week low of $2.91 prior to this report, the market may be seeing value in Ranpak’s North American growth and margin improvement plans for the remainder of 2025.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.