($ millions, except per share data)

Unless otherwise stated, all results compare first quarter 2025 results to first quarter 2024 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported.

First Quarter 2025 Financial Highlights

Net sales of $1.27 billion decreased 4% as reported, with the Food and Protective segments down 2% and 9%, respectively in the quarter. Net sales decreased $27 million, or 2%, on a constant currency basis. Volumes decreased by $26 million, or 2%. Price was flat in the quarter.

Income tax expense was $10 million, or an effective tax rate of 8.0% in the quarter. This compares to an income tax expense of $36 million, or an effective tax rate of 30.0%, in the prior year. The first quarter 2025 tax rate benefited from the resolution of certain previous years' international tax matters. The Adjusted Tax Rate was 25.7% in the quarter, as compared to 25.9% in the prior year.

Net earnings were $117 million, or $0.79 per diluted share, as compared to net earnings of $83 million, or $0.57 per diluted share in the prior year. The current year results were unfavorably impacted by $3 million of Special Items expense compared to $29 million of Special Items expense in the prior year. The decrease in Special Items expense was primarily due to favorable impacts related to income tax items and lower restructuring and other associated costs in connection with the cost take-out to grow program ("CTO2Grow Program").
Adjusted earnings per diluted share increased 4% to $0.81, from $0.78 in the prior year, primarily due to lower interest expense.

Adjusted EBITDA was $276 million, or 21.7% of net sales, as compared to $278 million, or 20.9% in the prior year. The increase in Adjusted EBITDA margin reflects lower operating costs driven by productivity benefits including savings from the CTO2Grow Program. The $2 million decrease in Adjusted EBITDA was primarily due to unfavorable net price realization, lower volumes in Protective and unfavorable impacts from currency translation, partially offset by lower operating costs.

Business Segment Highlights

First quarter net sales in Food were $852 million, a decrease of 2% as reported. Currency fluctuations had an unfavorable impact of $24 million, or 3%. On a constant currency basis, net sales increased $8 million, or 1%. Price had a favorable impact of $5 million, or less than 1%. Volumes increased $3 million. Adjusted EBITDA of $203 million, or 23.8% of net sales, increased 7% from $190 million, or 21.8% of net sales. The increase in Adjusted EBITDA was driven by lower operating costs including benefits from our productivity and CTO2Grow Program initiatives, partially offset by unfavorable net price realization.

First quarter net sales in Protective were $420 million, a decrease of 9% as reported. Currency fluctuations had an unfavorable impact of $6 million, or 1%. On a constant currency basis, net sales decreased $35 million, or 8%. Volumes decreased $29 million, or 6%, primarily resulting from continued weakness in our fulfillment and industrial portfolios. Price had an unfavorable impact of $6 million, or 1%. Adjusted EBITDA of $74 million, or 17.6% of net sales, decreased 17% from $90 million, or 19.4% of net sales. The decrease in Adjusted EBITDA was primarily attributable to lower volumes and unfavorable net price realization, partially offset by lower operating costs driven by productivity benefits, including the CTO2Grow Program.

Cash Flow and Net Debt

Cash flow from operating activities during the first three months of 2025 was a source of $32 million, as compared to a source of $125 million during the prior year period. The decrease in cash flow from operating activities primarily reflects higher incentive compensation and tax payments made in 2025, compared to the prior year period.

Capital expenditures in the first three months of 2025 were $44 million, as compared to $47 million during the prior year period. Free Cash Flow, defined as net cash from operating activities less capital expenditures, was a use of $12 million for the first three months of 2025, as compared to a source of $78 million during the prior year period.

Dividend payments for the first three months of both 2025 and 2024 were approximately $30 million.

Total debt was $4.4 billion as of March 31, 2025 and December 31, 2024. Net Debt, defined as total debt less cash and cash equivalents, was $4.1 billion as of March 31, 2025 and $4.0 billion as of December 31, 2024. As of March 31, 2025, Sealed Air had approximately $1.3 billion of available liquidity comprised of $335 million of cash and $1.0 billion of available and unused lines of credit under our committed credit facilities. The net leverage ratio, defined as net debt divided by last twelve months Adjusted EBITDA, was 3.7x as of March 31, 2025 as compared to 3.6x as of December 31, 2024.

2025 Full Year Outlook

Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items.

Conference Call Information

Sealed Air Corporation will host a conference call and webcast on Tuesday,
May 6, 2025 at 10:00 a.m. (ET) to discuss our First Quarter 2025
Results. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company’s first quarter earnings will be made available through the “Presentations & Events” section of the Company’s Investor Relations website at https://ir.sealedair.com/events-and-presentations prior to the call.

About Sealed Air

Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2024, Sealed Air generated $5.4 billion in sales and has approximately 16,400 employees who serve customers in 117 countries/territories.

www.sealedair.com

Website Information

We routinely post important information for investors on our website, www.sealedair.com, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Information

In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a “constant dollar” basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers’ performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the “Risk Factors” section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission.

Any forward-looking statements made by us in this press release are based solely on management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law.