Ranpak Holdings Corp.

Second-quarter consolidated net revenue increased 14% year over year on a reported basis and 12.2% on a constant-currency basis, or 12.6% excluding warrants. Adjusted EBITDA increased $2.6 million to $19.1 million, up 13.9% in constant currency and 15.8% excluding warrants. Gross margin improved 150 bps versus Q2 last year, and gross profit increased 17.6% in constant currency, or 18.6% excluding a $1.7 million noncash warrant provision. North America revenue rose 8.5% (9.4% excluding warrants) and Europe/APAC revenue rose 15.4% in constant currency. For the balance sheet, Ranpak ended Q2 with $43.2 million of cash, no revolver borrowings, net leverage of 4.5x, and Q2 CapEx of $6.6 million. Management reiterated full-year guidance, said automation is on track to hit roughly $60 million of revenue this year, expects automation to be EBITDA-even by year-end and EBITDA-positive next year, and continues to expect cash to improve in the back half of the year.

Omar Asali was upbeat about the quarter and framed automation as the company’s key strategic growth engine. He said Ranpak is building an integrated warehouse orchestration ecosystem across vision, physical AI, and end-of-line automation, and described the company as strategically advantaged in serving large enterprise customers. His tone was confident but not complacent: he acknowledged macro and geopolitical uncertainty, but said the company is positioned to keep growing while shifting toward more value-added, higher-margin solutions.

William Drew focused on the financial leverage of automation and the margin improvement underway in the core business. He cited 150 bps of gross margin improvement year over year, North America PPS margin improvement of more than 300 bps excluding depreciation, and SG&A down 3% on a constant-currency basis excluding RSU expense. He also highlighted a $43.2 million cash balance, no revolver usage, 4.5x net leverage, and Q2 CapEx of $6.6 million, saying cash should improve meaningfully in the second half as seasonality turns and working capital frees up.

Analysts pressed on whether automation growth is coming from existing customer rollouts or new logos, and management said it is both, citing expansions with Walmart and Medline plus new partnerships with integrators. Questions also focused on margin pressure and whether surcharge timing in EMEA and price increases in North America will support a better second half; management said the surcharge lag hurt EMEA margins temporarily, but they expect more improvement as costs are passed through and lean/Six Sigma initiatives flow through. Another question addressed pruning the PPS portfolio, and Omar said the company is intentionally trimming lower-return business, including some warrant-related consumables, to improve the financial profile.