Westrock Coffee (NASDAQ:WEST) Posts Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Key Points

• EPS miss: Westrock reported EPS of ($0.21), missing the consensus by ($0.11) despite revenue of $339.47 million that beat estimates, and the company showed a negative net margin (8.58%) and ROE (-98.07%).
• Strong EBITDA and guidance: The company posted a record 2025 adjusted EBITDA of $69.7 million (up 48% YoY) and guided 2026 consolidated adjusted EBITDA to $90–$100 million, while cutting capex and targeting free cash flow positivity in H2 2026.
• Customer loss and new capacity: A large single‑serve customer exited (~$30M annualized) and is not included in 2026 guidance with phased replacement into 2026–2027, while the Conway extract and RTD facility is fully commercialized and will begin producing new milk‑based and high‑protein RTD products this fall.

Westrock Coffee (NASDAQ:WEST - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported ($0.21) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.11), Zacks reports. Westrock Coffee had a negative net margin of 8.58% and a negative return on equity of 98.07%. The firm had revenue of $339.47 million during the quarter, compared to analysts' expectations of $317.40 million.

Here are the key takeaways from Westrock Coffee's conference call:

• Record 2025 adjusted EBITDA of $69.7 million (up 48% YoY) and 2026 consolidated adjusted EBITDA guidance of $90–$100 million (≈29–44% growth).
• Construction of the Conway extract and RTD facility is complete and fully commercialized, enabling production of milk‑based RTD, extracts, canned energy drinks, carbonated beverages, and a high‑protein RTD product slated to begin production this fall.
• Balance sheet and cash profile improved — Beverage Solutions secured net leverage at ~3.85x (vs. 4.5x target), capex falling from ~$160M (2024) to ~$89M (2025) to an expected ~$30M in 2026, and management expects to be free cash flow positive in H2 2026.
• A large single‑serve customer exited in Q4 2025, representing an ~ $30M annualized run rate not included in 2026 guidance; management expects phased replacement beginning late 2026 and full refill by late 2027.
• Management cites the three‑year Palantir partnership as a material driver of operational and cost efficiencies — claiming systems are ~10x more effective with a 30–40% smaller team, which should support margin expansion.

Westrock Coffee Trading Up 0.5%

Shares of Westrock Coffee stock traded up $0.02 during trading hours on Wednesday, hitting $4.06. The company's stock had a trading volume of 252,051 shares, compared to its average volume of 319,442. The business has a fifty day moving average of $4.56 and a 200 day moving average of $4.61. The company has a market capitalization of $393.11 million, a PE ratio of -4.14 and a beta of 0.49. Westrock Coffee has a 1-year low of $3.59 and a 1-year high of $7.92. The company has a quick ratio of 0.47, a current ratio of 1.02 and a debt-to-equity ratio of 37.87.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on WEST shares. Telsey Advisory Group reissued an "outperform" rating and set a $7.00 price target on shares of Westrock Coffee in a research report on Monday. Weiss Ratings reissued a "sell (e+)" rating on shares of Westrock Coffee in a research report on Wednesday, January 21st. Finally, Benchmark reissued a "buy" rating on shares of Westrock Coffee in a report on Friday, November 14th. Three investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $9.00.

Hedge Funds Weigh In On Westrock Coffee

Several hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC lifted its stake in Westrock Coffee by 199.0% during the second quarter. EverSource Wealth Advisors LLC now owns 6,214 shares of the company's stock valued at $36,000 after buying an additional 4,136 shares in the last quarter. BNP Paribas Financial Markets increased its position in shares of Westrock Coffee by 79.2% in the third quarter. BNP Paribas Financial Markets now owns 7,782 shares of the company's stock worth $38,000 after acquiring an additional 3,439 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Westrock Coffee during the fourth quarter valued at approximately $47,000. Jain Global LLC acquired a new stake in shares of Westrock Coffee during the fourth quarter valued at approximately $48,000. Finally, HRT Financial LP purchased a new stake in shares of Westrock Coffee in the 4th quarter valued at approximately $54,000. 45.08% of the stock is currently owned by institutional investors and hedge funds.

Westrock Coffee Company Profile

Westrock Coffee Company is a global integrated coffee roaster and manufacturer that delivers end-to-end solutions across the coffee and tea supply chain. The company sources, roasts, blends, packages and distributes a diverse range of products, including hot and cold brew coffee, single-serve pods, instant and soluble coffee, tea, and specialty coffee extracts. Serving retail, convenience, foodservice and industrial customers, Westrock Coffee offers both private-label and co-packed branded products to meet the needs of supermarkets, quick-service restaurants, office coffee services and other channels.

Since its founding in 2008, Westrock Coffee has grown through a combination of organic expansion and strategic acquisitions to establish manufacturing facilities across North America, Latin America and Europe.