Sealed Air Corporation

Third quarter sales were $1.35 billion, up 0.5% as reported and down 1% constant currency. Adjusted EBITDA was $287 million, up 4% as reported and 3% constant currency, with margin of 21.3% versus 20.5% a year ago, up 80 basis points. Adjusted EPS was $0.87, up 10% as reported and 9% constant currency. Food net sales were $910 million, flat constant currency, with Food adjusted EBITDA of $215 million, up $9 million or 3% constant currency and margin of 23.6% (+70 bps). Protective sales were $442 million, down 3% constant currency, with Protective adjusted EBITDA of $78 million, up about $3 million and margin of 17.7% (+80 bps). For the full year, management now targets sales at the $5.3 billion midpoint of its tightened range, adjusted EBITDA of $1.12 billion to $1.14 billion, adjusted EPS of $3.25 to $3.35, free cash flow of about $400 million, and capex of $175 million. Q4 adjusted EBITDA is implied at $274 million.

Dustin Semach said the macro backdrop got softer through the quarter, especially in North America, but emphasized that the company is ‘controlling the controllables’ through productivity, cost actions and a broader transformation. He highlighted Protective’s turnaround as on track, with material volumes inflecting for the first time since 2021, and said the company is extending the same playbook into Food by shifting the business toward retail and foodservice. His tone was constructive but cautious: he repeatedly stressed that 2026 visibility depends on the consumer, the beef cycle and the timing of transformation benefits.

Kristen Actis-Grande framed Q3 as better-than-expected execution against a difficult backdrop, citing $1.35 billion in sales, $287 million of adjusted EBITDA, $0.87 of adjusted EPS and 21.3% adjusted EBITDA margin. She said free cash flow was $201 million for the first nine months and $120 million in Q3, with liquidity at $1.3 billion including $282 million in cash, net leverage at 3.5x, and a goal of about 3x by the end of 2026. She also noted the new refinancing with a delayed draw term loan as a backstop for 2026 notes, said capex was reduced to $175 million, and explained that Q4 free cash flow is still expected to be strong because of seasonal inventory reductions, even though reductions in accounts payable offset some of the benefit from higher EBITDA and lower capex.

Analysts pressed on the beef cycle, asking whether 2026 is the bottom or plateau and whether Food EBITDA should rise next year; management said the answer depends on the consumer and the company’s transformation, and declined to give a specific 2026 profit outlook. Questions also focused on the Q4 guide implying worse sequential trends; management said weakness is already showing up in order entry, especially in North American food industrial processing, and that lower volume and competitive pricing are now embedded in guidance. Analysts asked about Protective’s 7-figure wins, SG&A reductions, capex, network optimization and pricing pass-throughs; management said the large wins are mostly in fulfillment, SG&A reductions reflect ongoing restructuring and back-office simplification, and network optimization will be addressed holistically across both segments with more detail coming in February.