Sealed Air Earnings & Sales Surpass Estimates in Q3, Increase Y/Y

Sealed Air Corporation (SEE) has reported third-quarter 2025 adjusted earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate of 68 cents. The bottom line increased 10.1% year over year on improved operating leverage.

Including special items, the company delivered EPS from continuing operations of $1.26 compared with the year-ago quarter’s 61 cents.

Sealed Air’s Sales Dip Y/Y

Total sales were $1.35 billion, which beat the Zacks Consensus Estimate of $1.31 billion. The figure rose 0.5% year over year.

Pricing had unfavorable impacts of 1%. Volumes declined 1% year over year. Our model predicted an unfavorable impact of 0.4% from pricing and a year-over-year volume decline of 2.9%.

SEE’s Q3 Gross Margins Dip Y/Y

The cost of sales inched up 0.8% year over year to $951 million. The gross profit was $400 million, which marked a 0.3% dip from the year-ago quarter’s $401 million. The gross margin was 29.6%, a marginal contraction from the year-ago quarter’s 29.8%.

SG&A expenses were $175 million, down 6.3% from the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $287.5 million, up 4.2% from the year-ago period. The adjusted EBITDA margin was 21.3%, up from the prior-year quarter’s 20.5%.

Sealed Air’s Segment Performances in Q3

Food: Net sales increased 1% year over year to $910 million. The figure surpassed our estimate of $879 million.

Pricing actions had a favorable impact of 1%, while volumes declined 1%, reflecting softness in the North America market. Foreign currency had a favorable impact of 1%. We expected volume to slip 3% and pricing to inch up 0.3%.

Adjusted EBITDA was around $215 million, up 4% from the last-year quarter, aided by productivity benefits and cost reductions. The reported figure surpassed our estimate of $207 million.

Protective: The segment reported net sales of $442 million, down 1% from the year-ago quarter. We had projected net sales to be $433 million.

Pricing had a negative impact of 1% and volumes fell 2% year over year due to the ongoing weakness in industrial portfolios. We expected a volume decline of 2.9% and an unfavorable pricing impact of 1.9%.

The segment’s adjusted EBITDA increased 3% year over year to $75 million, driven by productivity benefits and cost reductions. We expected adjusted EBITDA to be $70 million.

SEE’s Cash Flow & Balance Sheet Updates

Cash flow generated from operating activities was around $334 million in the first nine months of 2025 compared with $484 million in the year-ago period.

As of Sept. 30, 2025, Sealed Air’s total debt was $4.17 billion compared with $4.40 billion as of Dec. 31, 2024. As of the end of the third quarter, the company had $1.3 billion in liquidity available, which comprised $282 million in cash and $994 million in undrawn, committed credit facilities.

Sealed Air Updates 2025 Guidance

SEE expects net sales of $5.275-$5.325 billion. This compares to the previously provided guidance of $5.10-$5.50 billion.

Adjusted EBITDA is projected at $1.120-$1.140 billion for 2025, updated from the prior mentioned $1.075-$1.175 billion. Adjusted earnings per share are forecast at $3.25-$3.35, increased from the previously stated $2.90-$3.30. The free cash flow for the year is expected to be $350-$450 million.

SEE Stock’s Price Performance

In the past year, Sealed Air’s shares have lost 4% compared with the industry’s 34.6% decline.

Sealed Air’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did SEE’s Industry Peers Fare in Q3?

Packaging Corporation of America (PKG) posted adjusted earnings per share of $2.73 in the third quarter of 2025, missing the Zacks Consensus Estimate of $2.83 by 4%.

The bottom line, however, increased 3% year over year, supported by higher prices and mix in both segments, along with lower fiber costs and maintenance outage expenses. Packaging Corp’s sales in the third quarter grew 6% year over year to $2.3 billion. The top line beat the Zacks Consensus Estimate of $2.26 billion.

Sonoco Products Co. (SON) reported adjusted earnings per share of $1.92 in the third quarter of 2025, beating the Zacks Consensus Estimate of $1.91. The bottom line improved 29% from the prior-year quarter.

Sonoco’s net sales were $2.131 billion, surpassing the Zacks Consensus Estimate of $2.128 billion. The top line improved 57.3% year over year on gains from the Eviosys acquisition and the implementation of price increases. The figure excludes the results of discontinued operations.

Ball Corporation (BALL) reported adjusted earnings of $1.02 per share, in line with the Zacks Consensus Estimate. The bottom line improved 12% from the prior-year quarter.

BALL’s net sales were $3.38 billion, surpassing the Zacks Consensus Estimate of $3.32 billion. The top line improved 9.7% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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