SEE Q4 Earnings Surpass Estimates, CD&R Merger to Close Mid-2026

Sealed Air Corporation SEE reported fourth-quarter 2025 adjusted earnings per share (EPS) of 77 cents, surpassing the Zacks Consensus Estimate of 72 cents. The bottom line increased 2.7% year over year, driven by higher adjusted EBITDA and lower operating costs, reflecting productivity benefits and lower interest expense. These gains were partly offset by higher depreciation and amortization expenses as well as increased adjusted tax expense.
Including special items, the company delivered EPS from continuing operations of 30 cents compared with the breakeven results last quarter.

Sealed Air’s Q4 Sales Up Y/Y Despite Low Volumes

Total sales were $1.4 billion, which beat the Zacks Consensus Estimate of $1.34 billion. The figure rose 2% year over year. Currency translation had a favorable 2.8% impact, while pricing was slightly unfavorable at 0.2% and volumes declined 0.5%.

Our model predicted an unfavorable impact of 1.3% from pricing, a year-over-year volume decline of 1.9% and a positive currency impact of 0.3%.

Sealed Air Corporation Price, Consensus and EPS Surprise

Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote

SEE’s Q4 Gross Margin Dips Y/Y, EBITDA Shows Slight Growth

Cost of sales was up 3.8% year over year to $1 billion. The gross profit was $398 million, which marked a 2% dip from the year-ago quarter’s $407 million. The gross margin was 28.4%, a 120-basis point contraction from the year-ago quarter.

Selling, general and administrative expenses (SG&A) expenses were $199 million, up 5.3% from the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $278 million, up 2.7% from the year-ago period. The adjusted EBITDA margin was 19.8%, slightly up from the prior-year quarter’s 19.7%.

The improvement reflected lower operating costs driven by productivity benefits and favorable impacts from currency translation. These gains were partially offset by unfavorable net price realization in both the Food and Protective segments and lower volumes in Food.

Sealed Air’s Segment Performances in Q4

Food: Net sales increased 1.6% year over year to around $937 million. The figure surpassed our estimate of $912 million.

Pricing actions had no impact, while volumes declined 1.4%. Foreign currency had a favorable impact of 3%. We expected volume to slip 1.1% and pricing impact at an unfavorable 0.4%. We had projected a 0.3% positive foreign currency impact.

Adjusted EBITDA was around $202 million, down 2.7% from the last-year quarter on lower volumes and unfavorable net price realization, partially offset by lower operating costs and favorable impacts from currency translation. The reported figure lagged our estimate of $208.5 million.

Protective: The segment reported net sales of $464 million, up 3% from the year-ago quarter. We had projected net sales to be $421 million.
Pricing had a negative impact of 0.5% and volumes rose 1.3% year over year. We expected a volume decline of 3.4%, an unfavorable pricing impact of 3.4% and a 0.3% positive impact from currency.

The segment’s adjusted EBITDA increased 21% year over year to $80.5 million, driven by lower operating costs, partially offset by unfavorable net price realization. We expected adjusted EBITDA to be $69.3 million.

SEE’s Cash Flow & Balance Sheet Updates

Cash flow generated from operating activities was around $628 million in 2025 compared with $728 million in the prior year.

As of Dec. 31, 2025, Sealed Air’s total debt was $4.1 billion compared with $4.4 billion as of Dec. 31, 2024. As of the end of 2025, the company had $1.4 billion in liquidity available, which comprised $344 million in cash and $1.06 billion in undrawn, committed credit facilities.

Sealed Air’s Performance in 2025

For 2025, Sealed Air reported adjusted EPS of $3.34 (up 6% year over year) and also beat the Zacks Consensus Estimate of $3.29. Lower interest expense and higher adjusted EBITDA, partially offset by a higher diluted share count and increased depreciation and amortization expense, led to the improvement.
Including special items, the company delivered EPS from continuing operations of $2.99 compared with $1.83 in 2024.

Total sales dipped 0.6% year over year to $5.36 billion, but beat the Zacks Consensus Estimate of $5.3 billion. Pricing had no impact and volumes declined 1.2% year over year, while currency had a favorable impact of 0.6%. Our model predicted an unfavorable impact of 0.3% from pricing and a year-over-year volume decline of 1.6%.

Update on Sealed Air’s Acquisition by CD&R

In November 2025, Sealed Air announced a definitive agreement to be acquired by Clayton, Dubilier & Rice (CD&R) in an all-cash transaction valued at $10.3 billion. CD&R is a leading private investment firm with deep experience in the industrial and packaging industries.

Sealed Air’s shareholders approved the merger on Feb. 25, 2026. Per the deal, the company's shareholders will receive $42.15 cash per share. The deal is expected to close in mid-2026, subject to regulatory approvals.

SEE Stock’s Price Performance & Zacks Rank

In the past year, Sealed Air’s shares have gained 35.3% against the industry’s 1.1% dip.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did SEE’s Industry Peers Fare in Q4?

Packaging Corporation of America PKG reported adjusted EPS of $2.32 in the fourth quarter of 2025, which missed the Zacks Consensus Estimate of $2.41. The bottom line came below Packaging Corp’s guidance and fell 6% year over year.

Packaging Corp’s sales in the fourth quarter rose 10.1% year over year to $2.36 billion. The top line missed the Zacks Consensus Estimate of $2.42 billion.

Amcor Plc AMCR reported second-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted EPS of 86 cents, which beat the Zacks Consensus Estimate of 83 cents. The bottom line grew 7.5% from the year-ago quarter. While the results benefited from gains related to the Berry acquisition, persistent volume declines continued to pressure both revenues and overall profits.

Amcor’s revenues surged 68% year over year to $5.45 billion in the reported quarter. The top line, however, missed the Zacks Consensus Estimate of $5.55 billion.

A Packaging Stock Awaiting Results

Karat Packaging Inc. KRT is set to release fourth-quarter 2025 results on March 12. The Zacks Consensus Estimate for Karat Packaging’s fourth-quarter 2025 earnings is pegged at 28 cents per share, suggesting a year-over-year decline of 3.5%. The consensus estimate for Karat Packaging’s revenues is pegged at $114 million, indicating a 12% increase from the prior-year quarter.

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Sealed Air Corporation (SEE): Free Stock Analysis Report

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