Sealed Air’s results for Q2 reflected stable overall performance, with revenue and margins largely unchanged from the prior year. Management credited ongoing cost reduction efforts and productivity gains—such as network optimization and G&A streamlining—as key drivers of financial stability amid flat sales volumes and persistent market pressures. CEO Dustin Semach emphasized the company’s ability to offset weaker demand in its Food segment through operational efficiencies and highlighted the early impact of a turnaround strategy in the Protective business. The quarter saw minimal effect from recent tariff changes, supporting the company’s operational resilience.
Is now the time to buy SEE? Find out in our full research report (it’s free).
Sealed Air (SEE) Q2 CY2025 Highlights:
- Revenue: $1.34 billion vs analyst estimates of $1.31 billion (flat year on year, 1.9% beat)
- Adjusted EPS: $0.89 vs analyst estimates of $0.72 (23.8% beat)
- Adjusted EBITDA: $292.5 million vs analyst estimates of $270.7 million (21.9% margin, 8% beat)
- The company reconfirmed its revenue guidance for the full year of $5.3 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $3.10 at the midpoint
- EBITDA guidance for the full year is $1.13 billion at the midpoint, above analyst estimates of $1.11 billion
- Operating Margin: 14.9%, in line with the same quarter last year
- Sales Volumes fell 1.7% year on year (1.3% in the same quarter last year)
- Market Capitalization: $4.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sealed Air’s Q2 Earnings Call
- Matthew Burke Roberts (Raymond James): Asked about the volume outlook in Food and Protective for the second half. CEO Dustin Semach detailed the headwinds from lower beef production, noting Food volumes are expected to decline further, while Protective is holding steady due to internal initiatives rather than market recovery.
- Ghansham Panjabi (BMO Capital Markets): Inquired about margin sustainability in the Food business given the high profitability of red meat packaging. Semach replied that while some margin impact is expected, cost takeout and productivity initiatives should offset the volume decline, maintaining earnings power.
- George Leon Staphos (Bank of America Securities): Sought clarity on how new CFO Kristen Actis-Grande’s experience will impact Sealed Air. Semach highlighted her background in complex industrial transformations as directly applicable to ongoing efficiency and restructuring efforts.
- Phil Ng (Jefferies): Queried whether order activity had slowed in Protective and whether positive trends were driven by internal changes or broader market recovery. Semach responded that order patterns remain stable, with gains mostly attributable to sales investments and improved customer engagement.
- Jeffrey John Zekauskas (JPMorgan): Asked why the EBITDA guidance range remains wide despite two quarters remaining. Semach explained it reflects management conservatism amid ongoing end market volatility and tariff uncertainty, not a specific expectation of major swings.
Catalysts in Upcoming Quarters
Over the coming quarters, our analysts will be tracking (1) volume trends and sales mix shifts in North American Food markets as the beef cycle unfolds, (2) the pace and impact of cost reduction and network optimization initiatives on overall margins, and (3) continued progress in the Protective segment’s turnaround, particularly as new product formats and external R&D partnerships scale. Updates on tariff developments and raw material price trends will also be closely watched.
Sealed Air currently trades at $29.86, up from $29.01 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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