Sealed Air's Q2 2025: Unpacking Contradictions in Protective Volumes, Food Trends, and Cost Targets

Protective volume expectations, Food volume trends and market dynamics, Food segment volume impact and market dynamics, cost takeout targets and initiatives, and Protective volume expectations are the key contradictions discussed in Sealed Air Corporation's latest 2025Q2 earnings call.



Food Segment Performance and Market Dynamics:
- Sealed Air's Food segment remains resilient with global protein production down about 1%, impacting overall volumes.
- Shifting consumer spending towards value grocery and retail solutions is causing a decline in premium beef cuts and an increase in retail solutions.

Protective Segment Turnaround:
- The Protective segment showed early signs of progress, with volumes down 2% and industrial portfolio slightly up.
- Improvement is due to enhanced field engagement, new go-to-market strategies, and addressing fiber portfolio gaps.

Tariff and Trade Policy Impact:
- Sealed Air is largely exempt from direct tariffs, but certain specialty resins procured for international partners are experiencing increased tariffs.
- Mitigation efforts include production and procurement optimization and limited pricing actions, but the impact on the second half of the year is minimal.

Financial Performance and Cost Management:
- Second quarter net sales were $1.34 billion, down 1% on a constant currency basis, while adjusted EBITDA increased 3%.
- Cost takeout and productivity efficiencies drove financial performance, partially offset by unfavorable net price realization.