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CHARLOTTE - On Tuesday, Sealed Air Corporation (NYSE:SEE) reported second-quarter earnings that surpassed analyst expectations, despite facing market headwinds, particularly in North America.
The packaging solutions provider's shares gained 3.49% in pre-market trading after the results.
The company posted adjusted earnings of $0.89 per share for the second quarter, significantly exceeding the analyst estimate of $0.71. Revenue came in at $1.34 billion, above the consensus expectation of $1.31 billion, though slightly down 0.8% from $1.35 billion in the same period last year. On a constant currency basis, revenue decreased 1.3% YoY, with volumes declining 1.8% while pricing contributed a 0.5% increase.
"While our Protective turnaround will be non-linear, this quarter is a mark of progress as we delivered our best volume performance since the fourth quarter of 2021 and our industrial portfolio inflected to volume growth," said Dustin Semach, Sealed Air's President and CEO.
The company's Food segment reported flat sales at $896 million, with favorable pricing of 2% offset by a 1% volume decline primarily in North America. The Protective segment saw a 3% decrease in sales to $439 million, with volumes down 2% and pricing down 2%.
Despite these challenges, Sealed Air achieved margin expansion with adjusted EBITDA increasing 2.5% to $293 million, representing 21.9% of net sales compared to 21.2% in the prior year. The improvement was attributed to lower operating costs driven by productivity benefits from the company's cost take-out program.
For the full year 2025, Sealed Air maintained its guidance, projecting revenue between $5.1 billion and $5.5 billion and adjusted earnings per share between $2.90 and $3.30, compared to analyst expectations of $5.31 billion and $3.09 per share, respectively.
"We are accelerating our productivity initiatives to improve operating leverage in the business and offset any further volume weakness in the second half," said Roni Johnson, Interim CFO.
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