Ranpak (NYSE:PACK) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Missed EPS but revenue beat: Ranpak reported EPS of ($0.12), missing estimates by $0.01, while revenue topped expectations at $101.2M versus $91.6M, and the company still shows a negative net margin (9.7%) and negative ROE.
• Automation is the growth driver: Automation revenue grew ~111% YoY (constant currency); management expects about $60M in automation revenue this year and says it can exceed $100M in the near term, with automation aiding PPS cross-sell.
• Deleveraging and liquidity focus: Ranpak has $48.5M in cash and reported net leverage of 4.7x LTM, targeting 2.5–3.0x leverage within 24 months and a targeted free cash flow profile (~$15M) to support debt reduction.

Ranpak (NYSE:PACK - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.12) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.01), FiscalAI reports. The firm had revenue of $101.20 million for the quarter, compared to the consensus estimate of $91.59 million. Ranpak had a negative net margin of 9.70% and a negative return on equity of 7.11%.

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

• Automation momentum is the standout — automation revenue grew ~111% YoY on a constant currency basis, the company expects about $60M in automation revenue this year and is confident it can surpass $100M in the near term, with automation also driving PPS cross-sell.
• Europe outperformed expectations with PPS volume growth and stronger sales execution after organizational changes, and Ranpak sees a timely resin-to-paper switching opportunity as resin costs and availability tighten.
• Volatile European energy and higher paper input costs prompted a temporary surcharge to protect margins, which management warns could cause a slight margin headwind in Q2 until the surcharge and pricing actions take hold.
• Margin and cost improvement initiatives are taking hold — gross margin improved ~210 basis points (ex-warrants/depreciation), Adjusted EBITDA was flat in constant currency but up excluding warrants, and Lean Six Sigma and sourcing efforts are expected to drive further efficiencies.
• Liquidity and deleveraging path remain priorities — $48.5M cash, no revolver draws, reported net leverage 4.7x LTM, a 24-month target of 2.5–3.0x leverage, disciplined CapEx, and a targeted FCF profile (~$15M) to support debt reduction.

Ranpak Stock Performance

Shares of PACK traded up $1.12 during trading hours on Thursday, hitting $5.06. The stock had a trading volume of 2,869,897 shares, compared to its average volume of 360,542. The firm has a market capitalization of $428.26 million, a PE ratio of -11.23 and a beta of 2.88. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.83 and a quick ratio of 1.47. Ranpak has a 12 month low of $2.91 and a 12 month high of $6.31. The stock has a fifty day moving average price of $4.04 and a 200 day moving average price of $4.91.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Cantor Fitzgerald reissued an "overweight" rating on shares of Ranpak in a research report on Friday, March 6th. UBS Group reaffirmed an "overweight" rating on shares of Ranpak in a research report on Friday, March 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ranpak in a research note on Tuesday, April 21st. Wall Street Zen lowered Ranpak from a "hold" rating to a "sell" rating in a report on Sunday, April 12th. Finally, Craig Hallum lowered their price target on Ranpak from $10.00 to $8.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Ranpak has a consensus rating of "Hold" and a consensus target price of $6.83.

Institutional Investors Weigh In On Ranpak

A number of large investors have recently made changes to their positions in the company. Corient Private Wealth LLC bought a new position in shares of Ranpak in the 4th quarter worth approximately $59,000. Empowered Funds LLC grew its position in Ranpak by 6.0% during the fourth quarter. Empowered Funds LLC now owns 498,623 shares of the company's stock valued at $2,698,000 after buying an additional 28,056 shares during the period. nVerses Capital LLC purchased a new stake in Ranpak during the fourth quarter valued at approximately $58,000. Numerai GP LLC purchased a new stake in Ranpak during the fourth quarter valued at approximately $62,000. Finally, Millennium Management LLC raised its position in Ranpak by 32.9% in the fourth quarter. Millennium Management LLC now owns 1,588,253 shares of the company's stock worth $8,592,000 after acquiring an additional 393,344 shares during the period. 85.94% of the stock is currently owned by institutional investors.

About Ranpak

Ranpak Holdings Corp. NYSE: PACK is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company's core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak's solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail.

Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability.

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