Westrock Coffee Company, LLC

Second-quarter consolidated net sales were approximately $306 million, up 8.8% versus Q2 2025, and first-half sales were approximately $614 million, up 24% year over year. Consolidated gross profit was $37.7 million, down $3.6 million year over year, mainly due to $4.1 million of incremental D&A from Conway assets placed into service and a $2 million negative mark-to-market impact in SS&T. Reported net loss was $13.7 million, narrower than the $21.6 million loss in Q2 2025; operating loss narrowed to $1.4 million from $15 million a year ago. Adjusted EBITDA was $21.3 million, up nearly 39% year over year, with Beverage Solutions segment adjusted EBITDA of $22.2 million, up 13%, and SS&T segment adjusted EBITDA of $2 million versus $3.3 million last year. Capital expenditures were about $6.5 million in the quarter, and 2026 CapEx is expected to be about $30 million. The company generated $20.2 million of free cash flow in Q2, had about $73 million of unrestricted cash and revolver availability at quarter end, and ended with Beverage Solutions secured net leverage of 3.36x. Management reaffirmed full-year 2026 consolidated adjusted EBITDA outlook of $90 million to $100 million.

Scott Ford said the quarter showed the business has shifted from a build-out phase to a cash-generating platform. He emphasized share gains across categories, especially RTD cans, glass, multi-serve bottles, and single-serve cups, and said the expanded manufacturing capacity is now fully operational and shortening sales cycles. He also highlighted Palantir-powered AI tools as a structural operating advantage and sounded optimistic that recent wins can drive revenue and profit growth over the next several quarters without additional CapEx.

Chris Pledger said consolidated net sales rose to about $306 million, adjusted EBITDA reached a record $21.3 million, and the company produced $20.2 million of free cash flow in Q2. He explained that gross profit declined year over year because of $4.1 million of incremental depreciation and amortization from Conway and a $2 million SS&T mark-to-market headwind, even as first-half gross profit rose 19% to $83.5 million. He also noted approximately $73 million of unrestricted cash and revolver availability, 3.36x secured net leverage, a credit facility maturity extension to November 2028, and CapEx guidance of about $30 million for 2026, with roughly half of that viewed as maintenance run-rate over time.

Analysts focused on whether pipeline strength is being driven more by Conway’s new capacity or by industry M&A disruption, and Scott Ford said Westrock is taking share across every category it plays in, including roast and ground, canning, and single-serve cups. He said customers are coming in because the company offers a highly automated, large-scale platform and can solve broader account needs, not just one product line. Questions also centered on product expansion, EBITDA upside into 2027, and SG&A; management said there are more format lines and products under development, but they will only add them with anchor tenants, and they expect SG&A to at least stay flat, with potential to come down over the next several quarters and next year.