Ranpak (NYSE:PACK) Posts Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Ranpak missed quarterly expectations: The company reported an adjusted loss of $0.08 per share versus the $0.02 loss analysts expected, while revenue of $101.9 million fell short of the $108.85 million consensus.
• Automation remains the primary growth driver, with revenue increasing 26.9% year over year on a constant-currency basis. Management continues to target approximately $60 million in automation revenue in 2026 and expects the segment to become adjusted EBITDA-positive that year.
• Shares fell 10.2% to $3.40 as overall volumes declined 2.5%, particularly in Europe and APAC, amid cautious demand and elevated costs. Ranpak is targeting improved cash generation and a reduction in net leverage from 4.3 times to 2.5–3.0 times within 24 months.

Ranpak (NYSE:PACK - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.06), Zacks reports. The company had revenue of $101.90 million during the quarter, compared to the consensus estimate of $108.85 million. Ranpak had a negative net margin of 9.09% and a negative return on equity of 7.18%.

Here are the key takeaways from Ranpak's conference call:

• Automation remained the key growth engine, with revenue up 26.9% year over year on a constant-currency basis and the company still targeting approximately $60 million in 2026 automation revenue. Ranpak expects automation to be adjusted EBITDA-positive in 2026 and contribute positively in 2027.
• Profitability improved despite a difficult cost environment. Gross margin expanded 110 basis points, constant-currency SG&A excluding RSU expense fell 10.5%, and adjusted EBITDA rose 6.1% on a constant-currency basis, excluding warrant impacts.
• Overall volumes declined 2.5%, as Europe and APAC weakened after a strong second quarter. European customers worked through inventory pulled forward ahead of surcharges, while geopolitical uncertainty, elevated energy prices and cautious demand remain significant headwinds.
• Ranpak ended the quarter with $53.4 million of cash, no revolver borrowings and net leverage of 4.3 times, while management expects further cash improvement in the fourth quarter and aims to reach 2.5–3.0 times net leverage within 24 months.
• Management identified cold chain and automation as major 2027 growth drivers. New cold-chain capacity is expected to come online early next year, with meaningful contributions anticipated from the second quarter onward, while partnerships such as Element Logic broaden the company’s warehouse-automation offering.

Ranpak Trading Down 10.2%

Shares of PACK traded down $0.39 during trading hours on Thursday, hitting $3.40. The company's stock had a trading volume of 1,137,800 shares, compared to its average volume of 616,139. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.79 and a quick ratio of 1.39. The business has a 50 day simple moving average of $4.13 and a two-hundred day simple moving average of $5.16. Ranpak has a 52-week low of $3.05 and a 52-week high of $7.81.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ranpak in a research note on Thursday, October 15th. Three equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $7.00.

About Ranpak

Ranpak Holdings Corp. NYSE: PACK develops and manufactures sustainable, paper-based packaging solutions designed to protect products during shipping and handling. Its offerings serve e-commerce, retail, industrial, food, and other applications where cushioning, void fill, wrapping, and product protection are required.

The company's product portfolio includes paper cushioning and void-fill materials, protective wrapping systems, and packaging automation equipment. Ranpak also provides dispensing systems and related packaging solutions that help customers streamline fulfillment operations while reducing reliance on plastic-based protective packaging.

Founded in 1972, Ranpak serves customers through a global network of manufacturing, distribution, and sales operations across North America, Europe, and other international markets.

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