Third Quarter 2025 Highlights and Financial Results
- Net Earnings and EPS improvement resulting from improved operating leverage and favorable resolution of historical tax matters
- Adjusted EBITDA and EPS increased by 4% and 10%, respectively, reflecting ongoing execution of productivity initiatives and operational discipline
- Protective volume stabilization combined with transformation initiatives contributed to margin expansion
- Food sales relatively flat with strength in our food service portfolio offset by weakness in our industrial and retail portfolios
- Continued deleveraging efforts resulted in lower total debt and a Net Debt to Adjusted EBITDA ratio below 3.5x
- Raising 2025 outlook for Adjusted EBITDA and Adjusted EPS while maintaining mid-point of Sales and Free Cash Flow
CHARLOTTE, N.C., November 4, 2025 – Sealed Air Corporation (NYSE: SEE) announced third quarter 2025 financial results and business updates.
“Our third quarter performance reflects our ability to control the controllables against a challenging market backdrop. We made further progress on our transformation, which drove a positive inflection in Protective’s material volumes for the first time since 2021. We remain laser focused on putting our customers first, executing with urgency and maximizing shareholder value” said Dustin Semach, Sealed Air’s President and CEO.
“We exceeded expectations across all metrics this quarter. Given our trajectory heading into the fourth quarter, we are tightening our outlook ranges and raising the mid-point of both Adjusted EBITDA and Adjusted EPS for the full year, despite weaker market conditions putting further pressure on volumes in the fourth quarter and increasing uncertainty as we head into 2026” said Kristen Actis-Grande, Sealed Air’s CFO.
(In USD millions, except per share data)
| GAAP Results | Third Quarter | |||
| 2025 | 2024 | Reported △% | Constant currency △% | |
| Net Sales | $1,351 | $1,345 | 0.5% | (0.9)% |
| Net Earnings | $186 | $89 | 109.4% | |
| Diluted EPS | $1.26 | $0.61 | 106.6% | |
| Cash Flow from Operations | $334 | $484 | (30.9)% | |
| Non-GAAP Results | Third Quarter | |||
| 2025 | 2024 | Reported △% | Constant currency △% | |
| Adjusted EBITDA | $287 | $276 | 4.2% | 3.4% |
| Adjusted Net Earnings | $128 | $116 | 10.9% | 10.1% |
| Adjusted Diluted EPS | $0.87 | $0.79 | 10.1% | 8.9% |
| Free Cash Flow | $201 | $323 | (37.8)% | |
Unless otherwise stated, all results compare third quarter 2025 results to third quarter 2024 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported.
Third Quarter 2025 Financial Highlights
Net sales of $1.35 billion increased less than 1% as reported, with the Food segment up 1% and the Protective segment down 1% in the quarter. Net sales decreased $12 million, or 1%, on a constant currency basis. Volumes decreased by $9 million, or less than 1% in the quarter. Price was unfavorable by $3 million, or less than 1% in the quarter.
Income tax expense was $(70) million, or an effective tax rate of (60.5)% in the quarter. This compares to income tax expense of $31 million, or an effective tax rate of 25.7%, in the prior year. The current quarter effective tax rate was favorably impacted by the reversal of accruals for uncertain tax positions in the U.S. associated with the resolution of an IRS audit. The Adjusted Tax Rate was 23.9% in the quarter, as compared to 24.0% in the prior year.
Net earnings were $186 million, or $1.26 per diluted share, as compared to net earnings of $89 million, or $0.61 per diluted share, in the prior year. The current year results were favorably impacted by $57 million of Special Items income, compared to $27 million of unfavorable impacts of Special Items expense in the prior year. The favorable impacts of Special Items in the quarter were primarily driven by income tax items, partially offset by higher restructuring expenses and other charges that are considered one-time or infrequent.
Adjusted EBITDA was $287 million, or 21.3% of net sales, as compared to $276 million, or 20.5% in the prior year. The increase in Adjusted EBITDA was primarily due to lower operating costs driven by productivity benefits, partially offset by unfavorable net price realization and lower volume.
Adjusted earnings per diluted share increased 10% to $0.87, from $0.79 in the prior year, primarily due to higher Adjusted EBITDA and lower interest expense.
Business Segment Highlights
Third quarter net sales in Food were $910 million, or up 1% as reported. Currency fluctuations had a favorable impact of $12 million, or 1%. On a constant currency basis, net sales were flat. Price had a favorable impact of $1 million, or less than 1%. Volumes decreased $1 million, or less than 1%, primarily resulting from softness in the North American market, partially offset by share gains in the EMEA region. Adjusted EBITDA of $215 million, or 23.6% of net sales, increased 4% from $206 million, or 22.9% of net sales in the prior year. The increase in Adjusted EBITDA was due to lower operating costs partly attributable to productivity benefits and cost reductions, partially offset by unfavorable net price realization and lower volume.
Third quarter net sales in Protective were $442 million, a decrease of 1% as reported. Currency fluctuations had a favorable impact of $6 million, or 1%. On a constant currency basis, net sales decreased $12 million, or 3%. Volumes decreased $7 million, or 2%, resulting from softness in equipment sales given the ongoing sluggishness in the industrial markets. Price had an unfavorable impact of $5 million, or 1%. Adjusted EBITDA of $78 million, or 17.7% of net sales, increased 3% from $75 million, or 16.9% of net sales in the prior year. The increase in Adjusted EBITDA was primarily due to lower operating costs mainly driven by productivity benefits and cost reductions, partially offset by unfavorable net price realization and lower volume.
Cash Flow and Net Debt
Cash flow from operating activities during the first nine months of 2025 was a source of $334 million, as compared to a source of $484 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 nine months of 2025 were $134 million, as compared to $161 million during the prior year period. Free Cash Flow, defined as net cash from operating activities less capital expenditures, was a source of $201 million for the first nine months of 2025, as compared to a source of $323 million during the prior year period.
Dividend payments for the first nine months of both 2025 and 2024 were $89 million.
Total debt was $4.2 billion as of September 30, 2025 and $4.4 billion as of December 31, 2024. Net Debt, defined as total debt less cash and cash equivalents, was $3.9 billion as of September 30, 2025 and $4.0 billion as of December 31, 2024. As of September 30, 2025, Sealed Air had approximately $1.3 billion of available liquidity comprised of $282 million of cash and $994 million 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 3.5x and 3.6x as of September 30, 2025 and December 31, 2024, respectively.
2025 Full Year Outlook
Updated Outlook Prior Outlook
| (in $ millions except EPS) | Range | Constant currency △% | Range | Constant currency △% |
| Net Sales | $5,275 to $5,325 | (3)% to (2)% | $5,100 to $5,500 | (6)% to 2% |
| Adjusted EBITA | $1,120 to $1,140 | 1% to 3% | $1,075 to $1,175 | (3)% to 6% |
| Adjusted EPS | $3.25 to $3.35 | 4% to 7% | $2.90 to $3.30 | (7)% to 6% |
| Free Cash Flow | $350 to $450 | $350 to $450 |
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, November 4, 2025 at 8:00 a.m. (ET) to discuss our Third Quarter 2025 Results. The conference call will be webcast live on the Investors homepage at ir.sealedair.com. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company’s third 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, SEALED AIR® brand protective packaging, LIQUIBOX® brand liquids systems, 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.
Website Information
We routinely post important information for investors on our website, www.sealedair.com/uk, 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 currency” 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.
