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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:
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