Overview

• Ranpak Q3 revenue increased 8% yr/yr to $99.6 mln, missing analyst expectations

• Net loss widened to $10.4 mln from $8.1 mln in prior year

• Adjusted EBITDA rose 8.1% yr/yr, driven by automation revenue growth

Outlook

• Ranpak expects automation net revenue of $40–$45 mln for 2025

• Company aims to sustain margin improvements through year-end

• Ranpak sees strong growth potential in North American market

Result Drivers

• AUTOMATION GROWTH - Automation net revenue increased 63% yr/yr, driven by new partnership with Walmart

• PROTECTIVE PACKAGING - Protective Packaging net revenue rose 3.3% yr/yr, aided by favorable currency impacts and North American volume increase

• MARGIN IMPROVEMENT - Gross margins expanded to 34.5% from 31.1% in Q2, reflecting margin enhancement initiatives

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper packaging peer group is "buy"

• Wall Street's median 12-month price target for Ranpak Holdings Corp is $6.50, about 14.2% above its October 29 closing price of $5.58

Press Release: ID:nBw5VGZCHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)