Ranpak (NYSE:PACK) Issues Earnings Results

Key Points

• Ranpak missed on earnings but exceeded revenue expectations: Quarterly EPS was $(0.09), versus the $(0.08) consensus estimate, while revenue reached $105.2 million compared with $100.94 million expected.
• Automation drove strong operating growth: Automation revenue surged 139% year over year on a constant-currency basis, while consolidated revenue rose 12.2% and adjusted EBITDA increased 13.9%. Management expects automation to reach EBITDA breakeven by year-end and become profitable in 2027.
• Management remains cautious on near-term conditions: Volatile energy and paper costs, geopolitical risks and cautious customers are creating uncertainty, although pricing and efficiency initiatives are expected to support margins in the second half. Shares fell to $5.24, while analysts maintained a “Moderate Buy” consensus with a $6.83 average price target.

Ranpak (NYSE:PACK - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.01), FiscalAI reports. Ranpak had a negative return on equity of 7.04% and a negative net margin of 9.28%.The firm had revenue of $105.20 million for the quarter, compared to analyst estimates of $100.94 million.

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

• Automation revenue surged 139% year over year on a constant-currency basis, supported by expansion with major customers such as Walmart and Medline and new integrator partnerships. Management said most 2026 revenue is contracted and reaffirmed its goal of approximately $60 million in automation revenue this year.
• Consolidated revenue rose 12.2% on a constant-currency basis, while adjusted EBITDA increased 13.9%; gross margin improved 150 basis points year over year. Management expects further margin gains in the second half from pricing, efficiency initiatives and Lean/Six Sigma programs.
• Automation is expected to reach EBITDA breakeven by year-end and become an EBITDA-positive contributor in 2027. The company also sees strong growth potential in sustainable cold-chain products, including Climaliner Plus, with relatively low ongoing capital requirements.
• PPS volumes increased 2.4%, with Europe outperforming and North American enterprise demand remaining strong, but the distribution channel continued to face difficult comparisons. Ranpak expects distribution activity to improve in the second half as comparisons normalize and new products gain traction.
• Management described the near-term environment as uncertain, citing volatile energy and paper costs, geopolitical risks and cautious customers. The company plans to prune lower-margin PPS and warrant-related business, which should improve profitability but may constrain some lower-quality revenue growth.

Ranpak Price Performance

PACK traded down $0.60 on Thursday, hitting $5.24. 1,477,598 shares of the company were exchanged, compared to its average volume of 426,075. Ranpak has a twelve month low of $3.22 and a twelve month high of $7.81. The company has a current ratio of 1.73, a quick ratio of 1.32 and a debt-to-equity ratio of 0.76. The firm has a 50-day moving average price of $6.86 and a two-hundred day moving average price of $5.53.

Wall Street Analyst Weigh In

PACK has been the topic of several research analyst reports. Wall Street Zen upgraded Ranpak from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Weiss Ratings reissued a "sell (d-)" rating on shares of Ranpak in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Ranpak presently has a consensus rating of "Moderate Buy" and an average target price of $6.83.

Hedge Funds Weigh In On Ranpak

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC purchased a new stake in shares of Ranpak during the fourth quarter worth approximately $59,000. Empowered Funds LLC lifted its stake in Ranpak by 6.0% in the fourth quarter. Empowered Funds LLC now owns 498,623 shares of the company's stock worth $2,698,000 after acquiring an additional 28,056 shares during the last quarter. nVerses Capital LLC acquired a new position in Ranpak during the 4th quarter worth approximately $58,000. Numerai GP LLC acquired a new position in Ranpak during the 4th quarter worth approximately $62,000. Finally, Millennium Management LLC increased its position in shares of Ranpak by 32.9% in the 4th quarter. Millennium Management LLC now owns 1,588,253 shares of the company's stock valued at $8,592,000 after purchasing an additional 393,344 shares during the last quarter. Hedge funds and other institutional investors own 85.94% of the company's stock.

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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