Sealed Air returns to profit in Q4 2025
Sealed Air has reported net earnings of $44m for Q4 2025, a turnaround from a net loss of less than $1m in the same period of the previous year.
The bubble wrap maker’s net sales rose 2% in the quarter to $1.4bn, with its protective segment increasing by 3% and its food segment by 2%.
The quarter’s results were affected by $69m of special items expense, down from $110m in the prior year’s quarter.
The reduction was primarily attributed to decreased income tax-related special item charges and reduced restructuring costs, partially offset by transaction-related expenses linked to the pending acquisition by CD&R.
Adjusted EBITDA for the quarter reached $278m, representing 19.8% of net sales, compared to $271m or 19.7% of net sales in the year-ago period.
The improvement was mainly attributed to reduced operating costs from productivity gains and favourable currency effects, though these were partially offset by unfavourable net price realisation and lower food segment volumes.
Food segment sales for Q4 stood at $937m, a 2% increase from the previous year, with currency impacts contributing a positive $28m (3%).
Protective segment sales totalled $464m, up 3%, including a favourable currency impact of $10m (2%).
Sealed Air is set to go private in an acquisition by funds affiliated with CD&R.
Valued at $10.3bn, the transaction was agreed in November 2025, with stockholders entitled to receive $42.15 per share in cash.
Stockholders approved the merger at a special meeting last month. The closing is expected in mid-2026 pending regulatory approvals and other customary closing conditions.
For the full year 2025, Sealed Air posted net sales of $5.36bn, a decrease of less than 1% on a reported basis from 2024. Sales in the food segment were essentially flat while protective segment sales fell 2%.
Full-year net earnings reached $441m, up from $270m in 2024.
Adjusted EBITDA was reported at $1.1bn, representing 21.2% of net sales.
Dividend payments for the year totalled $119m versus $118m last year while net debt fell to $3.7bn at year-end from $4bn a year earlier.
"Sealed Air returns to profit in Q4 2025" was originally created and published by Packaging Gateway, a GlobalData owned brand.
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