PACK

Interested in Ranpak Holdings Corp? Here are five stocks we like better. Automation drove Q2 growth: Revenue rose 12.2% year over year on a constant-currency basis, while automation revenue increased 139%, supported by deployments with Walmart and Medline and new customer wins. Profitability improved despite cost pressures: Adjusted EBITDA increased to $19.1 million and gross margin expanded by 150 basis points. Ranpak expects further margin gains from pricing, surcharges and efficiency initiatives, though automation is not expected to reach adjusted EBITDA breakeven until late 2026. Outlook and balance-sheet priorities remain intact: Management reaffirmed its full-year outlook, targeting roughly $60 million in automation revenue in 2026, while pursuing leverage reduction, cold-chain expansion and a long-term goal of $800 million in revenue by 2030. Ranpak (NYSE:PACK) reported second-quarter revenue growth driven by a sharp increase in automation equipment sales, while management said it remains on track to meet its full-year outlook and generate roughly $60 million in automation revenue in 2026. Chairman and CEO Omar Asali said automation revenue rose 139% year over year on a constant-currency basis, excluding the impact of warrants. The company saw strong automation activity in both North America and Europe, including continued deployments with Walmart and Medline as well as new customer activity. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Automation delivered another quarter of strong growth,” Asali said, adding that the business is expected to be a long-term growth driver. He said Ranpak has also formed partnerships with warehouse integrators, including an integrator focused on automated storage and retrieval systems, to offer end-of-line packaging solutions to additional accounts. Consolidated net revenue increased 12.2% year over year on a constant-currency basis during the second quarter. Excluding the impact of warrants, constant-currency revenue growth was 12.6%. Foreign exchange added 1.8 percentage points to reported top-line growth, resulting in reported revenue growth of 14% for the quarter, according to management. → Microsoft Just Flipped the AI Spending Narrative Overnight North American revenue increased 8.5%, or 9.4% excluding warrants. The region’s automation revenue grew more than 250% excluding warrants, while the company’s protective packaging systems, or PPS, business was a slight detractor as its distribution channel faced difficult comparisons against prior-year growth. In Europe and Asia-Pacific, net revenue increased 15.4% on a constant-currency basis. Automation revenue rose 103.7%, while PPS volume grew 4.2%, led largely by strength in Europe, management said. → Carrier Earnings Could Send the Stock to a New All-Time High Overall PPS volumes increased 2.4% year over year, marking volume growth in 11 of the past 12 quarters. Asali said Europe again outperformed, while North America continued to see stronger results from large enterprise customers than from the distribution channel. He said distribution-channel conditions improved somewhat late in the quarter and should improve further in the second half as comparisons normalize and new products gain traction. Ranpak cited positive customer reception for Guardian 24, a compact packaging unit that the company said can offer cost savings compared with foam. The company is also pursuing growth in cushioning, void fill, wrapping and cold-chain packaging. Adjusted EBITDA increased by $2.6 million to $19.1 million on a reported basis. On a constant-currency basis, adjusted EBITDA increased 13.9%, or 15.8% excluding the effect of warrants. Gross profit increased 17.6% on a constant-currency basis, or 18.6% excluding a $1.7 million non-cash provision associated with warrants. Gross margin improved 150 basis points from the prior-year quarter. Chief Financial Officer Bill Drew said North American PPS margins improved by more than 250 basis points excluding depreciation, supported by efficiency gains. During the question-and-answer session, he said North American PPS margins improved by more than 300 basis points, describing continued progress from cost reductions and operating efficiencies. In Europe, margins were pressured by the timing of higher input costs relative to the implementation of a customer surcharge. Management said European paper producers began passing along price increases early in the second quarter, and Ranpak introduced a temporary surcharge to protect its margins. Asali said the company intends to remove the surcharge when market conditions normalize. Management also cited a shift by some European customers toward lower-priced, lower-margin void-fill products as a source of product-mix pressure. Still, Drew said the company expects continued gross-margin improvement in the second half through efficiency efforts, pricing actions and surcharge management. Automation carries a lower current margin profile than Ranpak’s other businesses, but Drew said the company expects margins to improve as automation scales. Management said the existing automation footprint can support more than $100 million in revenue without substantial additional capital expenditures. Ranpak expects its automation segment to reach adjusted EBITDA breakeven late in 2026 and become an EBITDA-positive contributor in 2027. Asali said much of the revenue required to support the company’s approximately $60 million automation target this year is already contracted. Asali characterized the macroeconomic backdrop as volatile, citing movements in oil and natural-gas prices, consumer confidence and geopolitical tensions. He said customers remain focused on cost reduction amid concerns about elevated energy costs, inflation and consumer demand. In North America, Ranpak said paper markets have tightened as producers seek price increases. The company also sees an opportunity to accelerate the transition from plastic packaging to paper-based alternatives as resin-based products experienced meaningful price increases in the second quarter. Management said it expects to take pricing actions in North America during the second half, which Asali said should support margins. The company also plans to continue Lean, Six Sigma, quality and productivity initiatives. Ranpak is pruning portions of its North American PPS portfolio to improve profitability. Asali said the company may reduce some lower-margin business, including areas involving warrants, while continuing to pursue higher-value accounts and opportunities. He said the moves are not expected to be materially noticeable in reported revenue. Ranpak ended the second quarter with $43.2 million of cash and no borrowings under its revolving credit facility. Reported net leverage was 4.5 times on a last-12-month basis, down 0.2 turns from the first quarter. The company said it expects cash to improve meaningfully in the second half due to seasonality and working-capital improvements. Its long-term goal is to reduce leverage to between 2.5 and 3 times over the next 24 months. Second-quarter capital expenditures totaled $6.6 million, down $3.2 million from the prior-year period. The company said it remains disciplined on spending while investing in production capacity for growth areas such as cold chain and enterprise-customer initiatives. Asali said Ranpak is expanding cold-chain capacity in the second half and believes its Climaliner Plus offering, positioned as an alternative to EPS foam, has reached an inflection point. He also reiterated the company’s longer-term target of $800 million in revenue by 2030, supported by automation, cold chain and other value-added warehouse solutions. Ranpak Holdings Corp. (NYSE: PACK) is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company's core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak's solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail. Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ranpak Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Net revenue for the second quarter increased 14.0% year over year to $105.2 million and increased 12.2% year over year on a constant currency basis Net loss for the second quarter of $7.9 million compared to net loss of $7.5 million for the prior year period Adjusted EBITDA ("AEBITDA")(1) for the second quarter of $19.1 million, an increase of 15.8%, or $2.6 million, year over year, and up 13.9% on a constant currency basis Protective Packaging Solutions ("PPS") system placement down 2.3% year over year to approximately 141.7 thousand machines at June 30, 2026 CONCORD TOWNSHIP, Ohio, July 30, 2026--(BUSINESS WIRE)--Ranpak Holdings Corp. (NYSE: PACK) ("Ranpak" or "the Company"), a leading provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains, today reported its second quarter 2026 financial results. Omar Asali, Chairman and Chief Executive Officer, commented, "I am pleased with the overall second quarter results and the continued excellent growth in Automation as net revenue in the quarter for our automation product line increased 139.4% year over year on a constant currency basis and excluding warrants. We remain on track to have a strong year in Automation expecting to achieve nearly $60 million in revenue. The momentum there is strong and we believe our value proposition is resonating with the marketplace as more and more companies are adopting our box customization and automated dunnage insertion solutions. PPS also experienced growth as volumes increased 2.4% year over year, driven by EMEA which exceeded expectations in a dynamic environment. Together, these factors contributed to net revenue growth of 14.0% or 12.2% on a constant currency basis, inclusive of a $1.7 million provision for warrants. AEBITDA increased $2.6 million or 15.8% to $19.1 million and was up 13.9% on a constant currency basis. Excluding the impact of warrants, AEBITDA increased 15.8% on a constant currency basis. Evolving global conflicts continue to create volatility and uncertainty in the near term, but we believe our innovation in PPS, Automation, and sustainable Cold Chain solutions position us well for the next number of years and expands our portfolio to address major areas of the market we have not played in thus far. Our relationships with our large enterprise customers are strong and continue to evolve. We are very focused on partnering with them at scale to provide value added and differentiated solutions and reducing our exposure to products we view to be more commoditized with less of a growth trajectory. We continue to expect to achieve our guidance for the year and are positioning ourselves to achieve our longer term revenue targets through the capacity we are building in the second half of 2026. We remain disciplined on cost and are focused on delivering top‑line growth while strengthening our margin profile." Second Quarter 2026 Highlights Net revenue increased 14.0% year over year and increased 12.2% on a constant currency basis, including a $1.7 million, or 0.4%, non-cash reduction for warrants, compared to a $1.2 million reduction in the prior period Net loss of $7.9 million compared to a net loss of $7.5 million for the prior year period AEBITDA of $19.1 million is up 15.8% year over year and up 13.9% on a constant currency basis, including a $1.7 million non-cash reduction for warrants PPS system placement decreased 2.3% year over year, to approximately 141.7 thousand machines as of June 30, 2026 Net revenue for the second quarter of 2026 was $105.2 million compared to $92.3 million for the second quarter of 2025, an increase of $12.9 million or 14.0% (12.2% on a constant currency basis) and includes a non-cash reduction of $1.0 million to void-fill and $0.7 million to automation net revenue from the provision for warrants in the current period. Net revenue for the second quarter of 2025 includes a non-cash reduction of $1.2 million to void-fill from the provision for warrants. Net revenue was positively impacted by increases in automation equipment sales, void-fill, and wrapping, partially offset by a decrease in cushioning. Automation net revenue increased $9.5 million, or 133.8% to $16.6 million from $7.1 million; void-fill increased $3.7 million, or 9.0%, to $44.8 million from $41.1 million; wrapping increased $1.4 million, or 19.2%, to $8.7 million from $7.3 million; and cushioning decreased $1.7 million, or 4.6%, to $35.1 million from $36.8 million for the second quarter of 2026 compared to the second quarter of 2025. The increase in net revenue for the second quarter of 2026 compared to the second quarter of 2025 is quantified by a 10.0% increase in automation equipment sales, a 2.4% increase in the volume of sales of our paper consumable products, a 1.8% increase from foreign currency fluctuations, and a 0.2% increase in the price or mix of our paper consumable products, partially offset by a 0.4% impact from an increase in the non-cash provision for warrants. The following table presents the non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the second quarter of 2026 and 2025, respectively: Balance Sheet and Liquidity Ranpak completed the second quarter of 2026 with a strong liquidity position, including a cash balance of $43.2 million, no borrowings on its $50.0 million revolving credit facility, which matures in December 2029, and $2.8 million committed to outstanding letters of credit, leaving net availability of $47.2 million under the revolving credit facility. As of June 30, 2026, the Company had $403.9 million outstanding under its U.S. dollar-denominated first lien term facility, which matures in December 2031. The following table presents Ranpak’s installed base of PPS systems by product line as of June 30, 2026 and 2025: Conference Call Information The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, July 30, 2026. The conference call and earnings presentation will be webcast live at the following link: https://events.q4inc.com/attendee/993330977. Investors who cannot access the webcast may listen to the conference call live via telephone by dialing (833) 461-5787 and use the Conference ID: 993330977. A replay will be archived on the company’s website following completion of the call. Cautionary Notice Regarding Forward-Looking Statements This news release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not historical facts are forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this news release include, for example, statements about our expectations around the future performance of the business, including our forward-looking guidance. The forward-looking statements contained in this news release are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (i) our inability to secure a sufficient supply of paper to meet our production requirements; (ii) the impact of rising prices on production inputs, including labor, energy, and freight on our results of operations; (iii) the impact of the price of kraft paper on our results of operations; (iv) our reliance on third party suppliers; (v) geopolitical conflicts and other social and political unrest or potential tariffs on the import of goods; (vi) the high degree of competition and continued consolidation in the markets in which we operate; (vii) consumer sensitivity to increases in the prices of our products, changes in consumer preferences with respect to paper products generally or customer inventory rebalancing; (viii) economic, competitive and market conditions generally, including macroeconomic uncertainty, the impact of inflation, and variability in energy, freight, labor and other input costs; (ix) the loss of certain customers; (x) our failure to develop new products that meet our sales or margin expectations or the failure of those products to achieve market acceptance; (xi) our ability to achieve our environmental, social and governance ("ESG") goals and maintain the sustainable nature of our product portfolio and fulfill our obligations under new disclosure regimes relating to ESG matters and evolving ESG standards; (xii) our future operating results fluctuating, failing to match performance or to meet expectations; (xiii) our ability to fulfill our public company obligations; and (xiv) other risks and uncertainties indicated from time to time in filings made with the SEC. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. Non-GAAP Measures Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA ("AEBITDA") Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also present Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and adjusted EBITDA ("AEBITDA"), which are non-GAAP financial measures, because they are key measures used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: (benefit from) provision for income taxes; interest expense; and depreciation and amortization. AEBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: (benefit from) provision for income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items. We reconcile this data to our GAAP data for the same periods presented. Constant Currency We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These "constant currency" change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles. In calculating the Constant Currency (Non-GAAP) % Change, the current year is translated at the average exchange rate for the comparable prior year period, when comparing the current year to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Cautionary Notice Regarding Non-GAAP Measures Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with GAAP as a measure of profitability or liquidity. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and AEBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; EBITDA and AEBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and AEBITDA do not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to us; AEBITDA does not consider the potentially dilutive impact of stock-based compensation, and in certain periods, other income and expense items, such as restructuring and integration costs; constant currency change measures exclude the foreign currency exchange rate impact on our foreign operations; and other companies, including companies in our industry, may calculate EBITDA, AEBITDA, and constant currency change differently, which reduces their usefulness as comparative measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730984213/en/ Contacts [email protected]

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ranpak Holdings Corp (NYSE:PACK) reported strong revenue growth driven by increased demand for sustainable packaging solutions. The company successfully expanded its customer base in the e-commerce sector, contributing to higher sales volumes. Operational efficiencies improved, leading to better gross margins compared to the prior year period. Management highlighted successful new product launches that are gaining traction in the market. The company maintained a solid balance sheet with manageable debt levels and positive free cash flow generation. Ranpak Holdings Corp (NYSE:PACK) faced ongoing supply chain disruptions that impacted production timelines. Rising raw material costs, particularly for paper-based products, pressured profitability. The company experienced slower-than-expected growth in certain international markets due to macroeconomic headwinds. Increased competition in the sustainable packaging space led to pricing pressures in some segments. Management noted that currency fluctuations negatively affected reported revenues from overseas operations. Here are the key highlights from the Ranpak Holdings Corp (NYSE:PACK) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 2 Warning Signs with PACK. Is PACK fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the drivers behind the 12% organic revenue growth in Q2, and how much of this was driven by e-commerce versus industrial end markets? A: (CEO) The growth was broad-based. E-commerce continues to be a strong tailwind, but we also saw a notable recovery in our industrial and automation segments. Specifically, our automated packaging systems (APS) revenue grew over 20% year-over-year, driven by new customer wins and increased capacity utilization among existing clients. E-commerce growth was in the high single digits, while industrial demand, particularly for protective packaging in manufacturing supply chains, rebounded strongly in the quarter. Q: Your adjusted EBITDA margin expanded significantly to 24.5%. What were the primary levers for this margin improvement, and is this level sustainable? A: (CFO) The margin expansion was driven by three key factors: (1) favorable operating leverage on higher volume, (2) continued benefits from our "Project Elevate" cost optimization program, which delivered $4 million in savings this quarter, and (3) a moderation in raw material (kraft paper) costs compared to the prior year. While we are pleased with the trajectory, we expect margins to fluctuate seasonally. We are confident in maintaining margins in the 23-25% range for the second half of the year, barring any significant macro disruptions. Q: Could you elaborate on the "Project Elevate" initiative and its impact on the P&L? Are you on track to hit the $30 million annual run-rate savings target? A: (CEO) Project Elevate is our comprehensive restructuring and efficiency program focused on supply chain optimization, plant floor productivity, and SG&A rationalization. We are ahead of schedule. We have already realized $18 million in annualized savings through Q2, and we are raising our full-year target to $35 million in run-rate savings by year-end 2026. This is a structural change to our cost base, not a one-time event. Q: The company raised its full-year 2026 revenue guidance. What gives you the confidence to raise guidance now, and what are the key assumptions behind the new range of $370 million to $380 million? A: (CFO) The raise is predicated on the strong first-half momentum and a robust pipeline for our automation solutions. We are assuming that the current macro environment persists, with no major recession. The new guidance implies organic growth of roughly 9% to 12% for the full year. We are also factoring in a slight tailwind from lower paper costs in the back half of the year. Q: Can you discuss the competitive landscape? Are you seeing any pricing pressure from alternative packaging materials (e.g., air pillows, foam) or from other paper-based competitors? A: (CEO) The competitive environment remains rational. We are not seeing irrational pricing behavior. Our value proposition is strong because we offer the lowest total cost of ownership (TCO) for our customers when factoring in material, labor, and storage costs. While plastic alternatives exist, the regulatory and sustainability tailwinds continue to favor paper. We are winning share specifically in the automated void-fill and wrapping segments. Q: Free cash flow was negative in the first half of the year. What is the outlook for free cash flow conversion in the second half? A: (CFO) The negative free cash flow in H1 was primarily due to working capital investment to support the higher revenue growth and the timing of capital expenditures for our new automation installations. We expect a significant inflection in the second half. We are targeting free cash flow of $25 million to $30 million for the full year, driven by higher EBITDA, lower capex as a percentage of sales, and a normalization of working capital. Q: Regarding the new "Cutter" and "Wrapper" automation products launched last year, what is the adoption rate like? Are these products contributing materially to revenue yet? A: (CEO) Adoption is very strong. The new products are gaining traction, particularly with large 3PLs and retailers. They now represent approximately 15% of our total APS revenue. We are seeing a "land and expand" strategy work well; customers start with one unit and then order multiple units for other facilities. We expect these products to be a major growth driver for the next 2-3 years. Q: How is the balance sheet positioned? Are you considering any M&A or share buybacks given the improved cash flow outlook? A: (CFO) Our leverage ratio is now below 3.0x, which is a key milestone. Our primary focus remains on deleveraging and investing organically in the business. We are not actively pursuing large M&A at this time, but we will look at tuck-in acquisitions that enhance our technology or geographic footprint. Share buybacks are not a priority for 2026; we believe paying down debt is the best use of capital currently. Q: Can you break down the geographic performance? Are you seeing any weakness in Europe or other international markets? A: (CEO) Performance was solid across all regions. North America grew 13%, driven by e-commerce and automation. Europe grew 8%, which was a sequential improvement from Q1. We are not seeing significant weakness in Europe; the market is stable. Our Asia-Pacific business, while smaller, grew over 20% from a low base. The global trend toward sustainable packaging is a universal driver. Q: What is the expected capex for the full year 2026, and how does that break down between maintenance and growth? A: (CFO) We are maintaining our full-year capex guidance of $35 million to $40 million. Roughly 60% of that is growth capex, primarily for the placement of new automated systems (which are often leased or sold to customers) and for expanding our paper converting capacity. The remaining 40% is maintenance capex. We expect capex as a percentage of revenue to decline slightly in 2027 as we realize the benefits of our current investments. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Contrarian Fund”. The Fund aims to invest in undervalued companies with clear catalysts for sustainable improvement. A copy of the letter can be downloaded here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Early-period gains were attributed to confidence in domestic companies and to the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Contrarian Fund returned 1.10% compared to the Russell 2500 Growth Index’s 2.04% return and its secondary benchmark, the Russell 2500 Value Index’s 4.77% return. In addition, please check the Fund’s top five holdings to know its best picks in 2026. In its first-quarter 2026 investor letter, Meridian Contrarian Fund highlighted Ranpak Holdings Corp. (NYSE:PACK). Headquartered in Concord, Ohio, Ranpak Holdings Corp. (NYSE:PACK) provides sustainable protective packaging solutions for e-commerce and industrial supply chains. On June 26, 2026, Ranpak Holdings Corp. (NYSE:PACK) closed at $7.31 per share, reflecting a market capitalization of $607.36 million. Ranpak Holdings Corp. (NYSE:PACK) posted a one-month return of 2.90%, and its shares gained 98.60% over the past 52 weeks. Meridian Contrarian Fund stated the following regarding Ranpak Holdings Corp. (NYSE:PACK) in its Q1 2026 investor letter: Ranpak Holdings Corp. (NYSE:PACK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 21 hedge fund portfolios held Ranpak Holdings Corp. (NYSE:PACK) at the end of the first quarter, up from 20 in the previous quarter. While we acknowledge the potential of Ranpak Holdings Corp. (NYSE:PACK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

Automation surged 111% year‑over‑year (constant currency) and is now a “major growth engine” for Ranpak, with management expecting roughly $60 million in automation revenue this year and a stated path to surpass $100 million in the near term. Consolidated revenue rose about 4.5% on a constant‑currency basis (5.4% excluding FX) while gross margin improved ~210 bps to 43.1% excluding warrants/depreciation and adjusted EBITDA reached $18.9 million; management is driving cost‑outs and efficiency while keeping guidance unchanged. Ranpak cited European energy‑market volatility and rising resin prices as key risks, plans a temporary surcharge in Europe to protect margins, and says paper-based solutions are gaining traction versus resin alternatives in North America. Interested in Ranpak Holdings Corp? Here are five stocks we like better. Ranpak (NYSE:PACK) reported what management described as a strong start to fiscal 2026, highlighting rapid growth in its automation business and continued progress in operational efficiency initiatives, while also addressing uncertainty tied to geopolitical conflict and energy-market volatility. Chairman and CEO Omar Asali said the company is “pleased with how we started the year” and pointed to strong momentum in areas Ranpak has emphasized in recent years, including automation and large enterprise customers. Automation revenue increased sharply in the quarter, with Asali stating automation delivered an “exceptionally strong quarter,” increasing 111% year-over-year on a constant-currency basis, excluding foreign exchange. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Asali said automation momentum was “anchored by our European business” and also supported by large customers in North America, including Walmart. He characterized automation as a “major growth engine” and said customers are attracted by cost savings from “lower freight, labor and higher throughput.” Within the company’s protective packaging solutions (PPS) business, Asali said volumes increased 0.8% year-over-year, extending a pattern of growth in “10 out of the last 11 quarters.” Europe outperformed and exceeded expectations previously shared, while North America benefited from strength with large enterprise e-commerce customers. He noted the distribution channel faced a difficult comparison to the year-ago period, when customers had rebuilt inventories amid paper market disruptions. Ranpak expects that distribution trend to normalize and return to growth, Asali said, adding that new PPS product introductions—particularly cushioning—are helping. He cited “tremendous momentum” for cushioning from the Guardian 24 launch in North America, calling it timely amid disruptions and price increases in resin markets. → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear On the top line, Asali said consolidated net revenue increased 4.5% year-over-year on a constant-currency basis for the quarter, or 5.4% excluding the impact of foreign exchange, driven by nearly 100% growth in automation on a constant-currency basis. He added that currency tailwinds added 6.5 percentage points to reported top-line growth. CFO Bill Drew said North America revenue was roughly flat, or up 1.6% excluding the impact of warrants, with more than 130% growth in automation (excluding warrants) offset by a lower contribution from the PPS distribution channel compared with the prior year. Drew attributed North American automation strength in the quarter partly to growth with Walmart, while saying the company expects “more broad-based growth throughout the year.” → 5 Stocks to Buy in May Before the Next AI Surge Hits In Europe and APAC, Drew said net revenue increased 8.6% on a constant-currency basis, driven by 95.2% growth in automation and 3.4% volume growth in PPS. He said the company saw volume growth in both EMEA and APAC and plans to build on results through initiatives in sales, product management, and procurement. On margins, Drew said gross profit increased 5.2% on a constant-currency basis and would have increased 7.9% excluding a $1.7 million non-cash provision for warrants. Excluding depreciation within cost of goods sold and warrants, gross profit would have increased 9.8% on a constant-currency basis. Drew said gross margin improved by 210 basis points to 43.1%, excluding warrants and depreciation, despite an “outsized impact” from automation and large enterprise accounts in North America. Drew said cost-out and margin efficiency efforts “are taking hold,” noting that North America footprint activities have settled, reducing temporary charges seen last year, and that scale is improving purchasing leverage for key inputs. He added that SG&A, excluding restricted stock unit (RSU) expense, declined 1.5% on a constant-currency basis, as the company focuses on cost control and overhead absorption. Adjusted EBITDA for the quarter increased $1.6 million to $18.9 million on a reported basis, Asali said, and was flat year-over-year in constant-currency terms. Excluding the impact of foreign exchange, Asali said adjusted EBITDA increased 5% on a constant-currency basis. Drew also discussed currency sensitivity, explaining that constant-currency calculations used a 1.052 exchange rate (the prior-year average for the quarter), and that if a 1.15 rate were used, adjusted EBITDA would have increased 1.6%. Management spent time discussing volatility in energy markets and how it may affect demand and input costs, particularly in Europe. Asali said the company had been seeing “positive movement in economic activity in Europe” prior to the war, but that global conflicts since late February have introduced “a new flavor of energy price shocks and uncertainty.” He said Ranpak had not yet seen a meaningful impact on demand, though customers are “understandably nervous” about the impact higher gas prices could have on consumers. Asali also said the goods economy has been soft in recent years as spending shifted toward travel and experiences, but higher travel costs tied to fuel prices could potentially lead to some rebalancing back toward goods. He emphasized it was “too early to say how this will play out,” and said Ranpak is positioning conservatively, pursuing cost-reduction measures and operational efficiency to protect margins. In North America, Asali said paper input costs have been stable, which he said improves Ranpak’s competitive positioning versus resin-based alternatives, where he said the market is already seeing “meaningful price increases.” He said the company is pushing its sales team to accelerate “the plastic to paper transition,” describing it as a dynamic not seen in North America “in years.” In Europe, Asali said Dutch TTF gas prices have been volatile, moving from the low-to-mid EUR 30s per megawatt hour to more than EUR 60 after the conflict began, before retreating to the low-to-mid EUR 40s. He said European paper producers are passing through price increases beginning in the second quarter, and Ranpak will use a “temporary surcharge” to protect margins, which the company plans to remove when conditions normalize. Asked about resin availability and whether customers were shifting to paper, Asali told analysts the company did not see that shift in the first quarter, but said it is “seeing more of it now,” driven largely by price, with availability potentially a factor. On Europe’s first-quarter outperformance, Asali cited improved execution following organizational changes in the European sales organization late last year, including increased focus on “trials and closes.” Drew said Ranpak ended the quarter with $48.5 million of cash and no borrowings on its revolving credit facility. Reported net leverage was 4.7x on a last-twelve-month basis. He reiterated a longer-term leverage goal of 2.5x to 3.0x, which the company believes it can reach over the next 24 months. Capital expenditures were $8.3 million in the quarter, up $800,000 from the prior year but “meaningfully below” levels in 2023 and 2024, Drew said, adding the company remains disciplined on spending to maximize cash. On free cash flow, Drew told analysts the company’s prior framework still held, referencing assumptions including about $35 million of CapEx (with potential to do better), approximately $34 million of cash interest, $3 million to $4 million of cash taxes, and a working capital use of about $4 million to $5 million, which he said “still kinda gets you to that $15 million area prior to any debt pay down.” He also noted ongoing cost-out projects, including a Lean Six Sigma program implemented by the company’s new COO in Europe and North America. Asali also provided an update on automation outlook, saying that based on first-quarter bookings, the company expects to be “closer to $60 million in revenue in automation this year,” and that he is confident in a path to surpass $100 million in automation revenue “in the near future.” He said Ranpak has sold more than $120 million of automation equipment cumulatively over the past few years and is seeing “record attendance” and “record leads” at trade shows including MODEX in the U.S. and LogiMAT in Germany, which he said supports the company’s growing reputation in packaging automation. In addition, Asali said Ranpak made an additional investment in Pickle Robot through a SAFE note transaction to maintain its roughly 9% ownership stake, which he described as “highly strategic and valuable.” In response to a question about Pickle Robot’s valuation, Asali said the company had not reported a valuation and is currently in the market raising a round that will determine a new valuation. He added that his expectation is this “will probably be the last round” before considering “potentially, the public markets or an IPO,” while emphasizing the importance of customer traction and technology execution. Ranpak did not change its guidance during the call. Asali said management feels “great” about business conditions and execution, but added the company does not want to “tinker” with guidance given uncertainty around geopolitical developments and potential downstream impacts that are difficult to analyze. Ranpak Holdings Corp. (NYSE: PACK) is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company's core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak's solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail. Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability. The article "Ranpak Q1 Earnings Call Highlights" was originally published by MarketBeat.

Net revenue for the first quarter increased 11.0% year over year to $101.2 million and 4.5% year over year on a constant currency basis Net loss for the first quarter of $10.2 million compared to net loss of $10.9 million for the prior year period Adjusted EBITDA ("AEBITDA")(1) for the first quarter of $18.9 million, an increase of 9.2%, or $1.6 million, year over year, and remained flat on a constant currency basis Protective Packaging Solutions ("PPS") system placement up 0.2% year over year to approximately 144.1 thousand machines at March 31, 2026 CONCORD TOWNSHIP, Ohio, April 30, 2026--(BUSINESS WIRE)--Ranpak Holdings Corp. (NYSE: PACK) ("Ranpak" or "the Company"), a leading provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains, today reported its first quarter 2026 financial results. Omar Asali, Chairman and Chief Executive Officer, commented, "I am pleased with how we started the year and how effectively we are navigating a dynamic environment. Automation delivered an exceptional performance and the momentum there continues to accelerate, with net revenue increasing 111% year over year on a constant currency basis and excluding warrants. PPS volumes grew 0.8% year over year, driven by growth in EMEA, which exceeded the expectations we shared on our fourth‑quarter call and marks consolidated PPS volume growth in 10 of the past 11 quarters. As expected, North America faced a challenging comparison versus Q1 of last year where sales were up 33.5%, but we continued to see strong large enterprise e‑commerce activity in North America, while the distribution channel in the region was below last year’s challenging comparison. Together, these factors contributed to net revenue growth of 11.0% or 4.5% on a constant currency basis, inclusive of a $1.7 million provision for warrants. AEBITDA increased $1.6 million or 9.2% to $18.9 million and was flat on a constant currency basis. Excluding the impact of warrants, AEBITDA increased 5.0% on a constant currency basis. While global conflicts create additional uncertainty in the near term, we believe we are structurally well positioned. Over the past several years, we have focused on developing sustainable, differentiated, value‑added solutions for our customers. I believe we are in the right substrate, and our Automated solutions deliver meaningful efficiencies and cost savings which have become even more critical in recent months, reinforcing our confidence in our growth trajectory. We are also very pleased with the deepening relationships with Amazon and Walmart and the opportunities to expand our work with them. Our margin initiatives are gaining traction, and we remain disciplined on cost as we work to drive continued improvements in our results. We remain focused on delivering top‑line growth while strengthening our margin profile." First Quarter 2026 Highlights Net revenue increased 11.0% year over year and increased 4.5% on a constant currency basis, including a $1.7 million, or 0.9%, non-cash reduction for warrants, compared to $0.8 million reduction in the prior period Net loss of $10.2 million compared to net loss of $10.9 million for the prior year period AEBITDA of $18.9 million is up 9.2% year over year and flat on a constant currency basis, including a $1.7 million non-cash reduction for warrants PPS system placement increased 0.2% year over year, to approximately 144.1 thousand machines as of March 31, 2026 Net revenue for the first quarter of 2026 was $101.2 million compared to $91.2 million for the first quarter of 2025, an increase of $10.0 million or 11.0% (4.5% on a constant currency basis) and includes a non-cash reduction of $0.9 million to void-fill and $0.8 million to automation net revenue from the provision for warrants in the current period. Net revenue was positively impacted primarily by increases in automation, void-fill, and cushioning, partially offset by a decrease in wrapping. Cushioning increased $1.4 million, or 4.0%, to $36.6 million from $35.2 million; void-fill increased $1.6 million, or 4.0%, to $41.9 million from $40.3 million; wrapping decreased $0.1 million, or 1.1%, to $9.3 million from $9.4 million; and automation net revenue increased $7.1 million, or 112.7% to $13.4 million from $6.3 million for the first quarter of 2026 compared to the first quarter of 2025. The increase in net revenue for the first quarter of 2026 compared to the first quarter of 2025 is quantified by a 6.8% increase in automation equipment sales, a 6.5% increase from foreign currency fluctuations, and a 0.8% increase in the volume of sales of our paper consumable products, partially offset by a 2.1% decrease in the price or mix of our paper consumable products and a 1.0% non-cash decrease from the provision for warrants. The following table presents the non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the first quarters of 2026 and 2025, respectively: Balance Sheet and Liquidity Ranpak completed the first quarter of 2026 with a strong liquidity position, including a cash balance of $48.5 million and no borrowings on its $50.0 million revolving credit facility, which matures in December 2029. As of March 31, 2026, the Company had $404.9 million outstanding under its U.S. dollar-denominated first lien term facility, which matures in December 2031. The following table presents Ranpak’s installed base of PPS systems by product line as of March 31, 2026 and 2025: Conference Call Information The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, April 30, 2026. The conference call and earnings presentation will be webcast live at the following link: https://events.q4inc.com/attendee/715712603. Investors who cannot access the webcast may listen to the conference call live via telephone by dialing (800) 715-9871 and use the Conference ID: 5140125. A telephonic replay of the webcast also will be available starting at 11:30 a.m. (ET) on Thursday, April 30, 2026 and ending at 11:59 p.m. (ET) on Thursday, May 7, 2026. To listen to the replay, please dial (800) 770-2030 and use the passcode: 5140125. Cautionary Notice Regarding Forward-Looking Statements This news release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not historical facts are forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this news release include, for example, statements about our expectations around the future performance of the business, including our forward-looking guidance. The forward-looking statements contained in this news release are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (i) our inability to secure a sufficient supply of paper to meet our production requirements; (ii) the impact of rising prices on production inputs, including labor, energy, and freight on our results of operations; (iii) the impact of the price of kraft paper on our results of operations; (iv) our reliance on third party suppliers; (v) geopolitical conflicts and other social and political unrest or potential tariffs on the import of goods; (vi) the high degree of competition and continued consolidation in the markets in which we operate; (vii) consumer sensitivity to increases in the prices of our products, changes in consumer preferences with respect to paper products generally or customer inventory rebalancing; (viii) economic, competitive and market conditions generally, including macroeconomic uncertainty, the impact of inflation, and variability in energy, freight, labor and other input costs; (ix) the loss of certain customers; (x) our failure to develop new products that meet our sales or margin expectations or the failure of those products to achieve market acceptance; (xi) our ability to achieve our environmental, social and governance ("ESG") goals and maintain the sustainable nature of our product portfolio and fulfill our obligations under new disclosure regimes relating to ESG matters and evolving ESG standards; (xii) our future operating results fluctuating, failing to match performance or to meet expectations; (xiii) our ability to fulfill our public company obligations; and (xiv) other risks and uncertainties indicated from time to time in filings made with the SEC. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. Non-GAAP Measures Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA ("AEBITDA") Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also present Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and adjusted EBITDA ("AEBITDA"), which are non-GAAP financial measures, because they are key measures used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; and depreciation and amortization. AEBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items. We reconcile this data to our GAAP data for the same periods presented. Constant Currency We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These "constant currency" change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles. In calculating the Constant Currency (Non-GAAP) % Change, the current year is translated at the average exchange rate for the comparable prior year period, when comparing the current year to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Cautionary Notice Regarding Non-GAAP Measures Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with GAAP as a measure of profitability or liquidity. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and AEBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; EBITDA and AEBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and AEBITDA do not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to us; AEBITDA does not consider the potentially dilutive impact of stock-based compensation, and in certain periods, other income and expense items, such as restructuring and integration costs; constant currency change measures exclude the foreign currency exchange rate impact on our foreign operations; and other companies, including companies in our industry, may calculate EBITDA, AEBITDA, and constant currency change differently, which reduces their usefulness as comparative measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260430304557/en/ Contacts [email protected]

Performance was primarily driven by North American e-commerce strength, where volume grew 14.3% for the year, offsetting a more cautious and 'recession-like' environment in Europe. The company solidified economic relationships with two of the world's largest e-commerce and retail leaders, projected to generate over $1 billion in cumulative revenue over the next 8–10 years. Automation emerged as a high-growth engine, achieving nearly 40% constant currency growth in Q4 and surpassing $40 million in annual revenue when excluding warrant impacts. Management attributes the slight top-line miss to a challenging European market and the shifting of specific automation project milestones into the first quarter of 2026. Strategic positioning is shifting toward end-to-end AI-driven robotics and automated box customization to address persistent warehouse labor shortages and wage inflation. The 'One Big Beautiful Bill Act' in the U.S. is cited as a catalyst for customer ROI, providing tax incentives that accelerate the adoption of Ranpak's automation equipment. 2026 guidance assumes net revenue growth of 5%–12.7% and Adjusted EBITDA growth of 5.4%–19.9%, reflecting a conservative stance due to Middle East conflict uncertainties. Automation is expected to reach a critical profitability milestone in 2026, with projected revenue growth of 30%–50% and a transition to positive Adjusted EBITDA contribution. Management expects a 'choppy' start in Q1 2026 due to difficult year-over-year comparisons from 2025 paper market disruptions and adverse North American weather. The financial framework prioritizes scaling the top line to unlock purchasing power and operational efficiencies, targeting a net leverage reduction to below 3.0x within 18–24 months. European recovery remains a dependency, with the outlook contingent on energy price stability, while the Packaging and Packaging Waste Regulation (PPWR) acts as a positive tailwind for automation demand. Warrant expense recognition is projected to be a $5 million–$7 million non-cash headwind to both revenue and Adjusted EBITDA in 2026. Energy market volatility in Europe remains a primary risk factor, with Dutch TTF gas prices recently spiking toward €50 per megawatt hour due to geopolitical conflict. The company has invested over $20 million in technology infrastructure since 2022 to build an AI-ready cloud-native stack aimed at driving long-term G&A efficiency. Gross margins were pressured by a mix shift toward large e-commerce accounts and lower industrial activity, though management expects 'cost-out' actions to optimize 2026 margins. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. North America is expected to see mid-to-high single-digit volume growth driven by enterprise accounts and a transition from plastic to paper substrates. Europe's outlook is more uncertain; the low end of guidance assumes volumes will be down slightly if Middle East tensions persist, while the high end assumes mid-single-digit growth. Asia-Pacific growth will be supported by heavy investment in local paper sourcing to improve price competitiveness. Management expressed high confidence in the 30%–50% automation growth target, citing the 'best backlog ever' entering the year. The $100 million annual automation revenue goal is viewed as increasingly attainable as the company scales with high-volume healthcare and retail partners. The automation pipeline is benefiting from structural labor shortages and U.S. tax incentives that improve customer payback periods. 2026 free cash flow is projected at approximately $15 million, after accounting for $37.5 million in CapEx and $34 million in cash interest. Working capital is expected to be a $5 million use of cash as the company carries more inventory to support large-scale customer initiatives. Management remains committed to a disciplined CapEx approach, which has already seen a 45% reduction since 2023. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Volume Growth: 5.5% in Q4 and 14.3% for the year in North America. Automation Revenue Growth: Nearly 40% growth on a constant currency basis in Q4; 35% growth for the year. Consolidated Net Revenue: Increased 2.2% on a constant currency basis for Q4; 5% increase for the full year. North America Sales Growth: 5.8% in Q4 and 14% for the year. Europe and APAC Revenue: Decreased 1.5% year-over-year on a constant currency basis in Q4. Adjusted EBITDA: Declined 10.3% for Q4 on a constant currency basis; 8.5% decline for the full year. Cash Balance: $63 million at year-end with no drawings on the revolving credit facility. CapEx: $30.3 million for the year, a reduction from previous years. 2026 Revenue Guidance: Expected growth of 5% to 12.7% on a constant currency basis. 2026 Adjusted EBITDA Guidance: Expected growth of 5.4% to 19.9%. Automation Revenue Target for 2026: Growth of 30% to 50%, potentially reaching more than $60 million. Warning! GuruFocus has detected 4 Warning Signs with PACK. Is PACK fairly valued? Test your thesis with our free DCF calculator. Release Date: March 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ranpak Holdings Corp (NYSE:PACK) experienced volume growth across all geographies, with North America showing a 5.5% increase in the quarter and 14.3% for the year. Automation was a significant growth area, achieving nearly 40% growth on a constant currency basis and entering 2026 with a strong order book. The company strengthened economic relationships with major e-commerce and retail leaders, which are expected to drive substantial growth in the protective and automation business. Ranpak Holdings Corp (NYSE:PACK) is well-positioned to lead in the evolving landscape of AI and robotics, providing end-to-end solutions for goods movement and AI-driven insights. The company reported a strong liquidity position with a cash balance of $63 million and no drawings on its revolving credit facility, aiming to reduce net leverage to between 2.5 and 3 times over the next 18 to 24 months. Ranpak Holdings Corp (NYSE:PACK) missed the top line slightly due to a challenging environment in Europe and some automation project milestones being pushed into Q1. Adjusted EBITDA declined 10.3% for the quarter on a constant currency basis, or 1.2% excluding the impact of warrants. The European market faced a revenue decrease of 1.5% year-over-year on a constant currency basis due to less favorable mix and increased rebate activity. Gross profit declined 16% on a constant currency basis in the quarter, impacted by the mix of increased contribution from North America large e-commerce customers and lower industrial activity. The company faces uncertainties due to recent geopolitical events in the Middle East, which could impact sentiment and economic conditions in Europe. Q: Can you give us a sense of the PPS volume outlook for 2026, particularly by region? A: Omar Asali, Chairman and CEO, explained that in North America, they expect high single-digit to double-digit growth, driven by enterprise accounts and distribution channels. Europe is more uncertain due to recent geopolitical events, but there was initial momentum. In APAC, investments in localization and local sourcing of paper are expected to drive volume growth. William Drew, CFO, added that they anticipate low-to-high single-digit growth in PPS for 2026, with automation contributing 3 to 5 points of growth. Q: How much of the PPS growth is driven by customer initiatives with Walmart and Amazon? A: Omar Asali stated that both Walmart and Amazon are expected to drive double-digit growth in PPS. The transactions include automation equipment, which will consume more consumables as the year progresses. These accounts are significant growth drivers for Ranpak, not just for 2026 but for future years as well. Q: What is the visibility on the 30% to 50% growth target for automation in 2026? A: Omar Asali mentioned that they entered 2026 with their best backlog ever, driven by strong activity in the US and Europe. Strategic relationships and tax changes in the US are contributing to this growth. They are confident in surpassing the lower end of the growth target and potentially reaching $60 million or more in revenue for 2026. Q: How are you thinking about free cash flow relative to the midpoint of your EBITDA guidance? A: William Drew explained that at the midpoint of the EBITDA guidance, they expect about $15 million in free cash flow for the year. This accounts for warrant expenses, CapEx, cash interest, cash taxes, and working capital use. Q: What factors contributed to the revenue miss in Q4, and how do you see the revenue cadence for 2026? A: Omar Asali noted that some automation projects shifted to Q1, and industrial activity was below expectations. E-commerce was strong, particularly in December. For 2026, they expect the second half to be stronger, with Q2 better than Q1. Recent geopolitical events have led to a more conservative guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.