Sealed Air 2025 Q2 Earnings Mixed Performance as Net Income Declines 5.3%

Sealed Air reported mixed second-quarter 2025 earnings, with net income and EPS falling year-over-year. The company maintained full-year guidance despite headwinds and highlighted progress in its industrial portfolio. However, volume pressures in North America and global trade uncertainties cloud the outlook for the remainder of the year.

Revenue
Sealed Air's total revenue declined by 0.8% year-over-year to $1.33 billion in 2025 Q2. The Food segment generated $896.10 million in revenue, while the Protective segment reported $438.90 million. These figures reflect a challenging operating environment, particularly in North America, where softer demand and market pressures impacted volume growth.

Earnings/Net Income
Earnings per share (EPS) fell to $0.63 in Q2 2025, a 6.0% decline from $0.67 in the prior year period. Net income also declined to $93.10 million, a 5.3% drop from $98.30 million in Q2 2024. The results were negatively impacted by higher special items expense and ongoing volume headwinds.

Price Action
The stock price of Sealed Air has edged down 0.20% during the latest trading day, has edged down 1.51% during the most recent full trading week, and has dropped 7.70% month-to-date.

Post Earnings Price Action Review
The strategy of buying Sealed Air shares upon its revenue raise announcement and holding for 30 days delivered moderate returns. The 3-year backtested average absolute gain was 5.5%, with a maximum drawdown of 10.4% during volatile periods. This approach leveraged SEE's post-earnings momentum effectively, making it a suitable tactic for investors interested in capturing short-term gains post-earnings releases.

CEO Commentary
Dustin Semach, President and CEO, noted that the company delivered its best volume performance since Q4 2021, with the industrial portfolio showing volume growth. However, he acknowledged the Protective business turnaround would be non-linear and highlighted market pressures, particularly in North America, linked to global trade policies and shifting consumer spending. Roni Johnson, Interim CFO, stated that Q2 results exceeded expectations across all metrics despite headwinds, with accelerated productivity initiatives aimed at improving operating leverage and offsetting volume weakness.

Guidance
The company maintains full-year 2025 guidance, citing an improved FX outlook that offsets volume weakness in North America. Johnson emphasized prudence, noting that additional visibility will emerge in Q3 regarding the impact of global trade policies and consumer buying patterns. No specific quantitative targets were provided, and the outlook remains contingent on macroeconomic developments.

Additional News
Sealed Air announced the appointment of Kristen Actis-Grande as its new Chief Financial Officer, a significant C-level change. The company also highlighted continued progress in its Protective segment, where volumes stabilized and the industrial portfolio began to show volume growth. Despite softness in the North American food market, the Food segment remained flat, supported by favorable pricing. The company emphasized its ongoing focus on debt reduction, with net debt remaining below $4 billion. Sealed Air is also accelerating productivity initiatives to enhance operating leverage and counteract volume pressures in the second half of the year.