[Management View]
Westrock Coffee reported record adjusted EBITDA of $26.2 million, up 14% sequentially and 84% year-over-year, driven by higher volumes and cost controls. Net sales grew 61% YoY, with Beverage Solutions segment sales up 60% and SS&T segment sales up 62%. The company is focusing on ultra-filtered, high-protein milk products in cans, leveraging new production capabilities.

[Outlook]
Westrock reaffirmed its full-year fiscal 2025 guidance, projecting consolidated adjusted EBITDA of $60-$65 million. The company expects Beverage Solutions segment adjusted EBITDA of $63-$68 million and SS&T segment adjusted EBITDA of $14-$16 million. The net leverage ratio is forecasted at 4.5x by year-end.

[Financial Performance]
- Adjusted EBITDA: $26.2 million, +14% QoQ, +84% YoY
- Net Sales: +61% YoY
- Beverage Solutions: Sales +60% YoY, adjusted EBITDA +74% YoY
- SS&T: Sales +62% YoY, adjusted EBITDA +132% YoY

[Q&A Highlights]
Question 1: Do you expect to be fully caught up to the delays by the end of the year? (Line breaks here)
Answer: We have run 80-125% of expected volumes on the main can lines and have caught up with all customers. The glass line will start commercial production in December.

Question 2: Can you expand on the ultra-filtered high-protein milk product? (Line breaks here)
Answer: There is significant interest in ultra-filtered milk products in cans. We have installed a second line for commercial production starting in January. The product development cycle is about twelve months, and demand could rival our ready-to-drink coffee business in the next two to four years.

Question 3: Do you need incremental investment for the high-protein milk line? (Line breaks here)
Answer: We could run the product through our facilities today, but $5-$6 million in capital would be needed to fully enable the line.

Question 4: How are you managing high coffee prices and tariffs? (Line breaks here)
Answer: We optimize coffee blends and have raised capital to ensure we can manage high prices and tariffs. We feel prepared to navigate the market environment.

Question 5: Were the single-serve customers involved in the M&A transaction existing or prospective? (Line breaks here)
Answer: They were coming on in 2025 and were included in our original 2026 guidance.

Question 6: What areas might you attack with the improved balance sheet? (Line breaks here)
Answer: We will conservatively pursue incremental opportunities. Demand for our facility is high, and we are prepared to meet it.

Question 7: Is there a backlog of customer demand for single-serve capacity? (Line breaks here)
Answer: We don't know yet, but the M&A transaction has generated interest from other customers. We will update as we learn more.

Question 8: Are there any changes in customer contracts due to high coffee prices? (Line breaks here)
Answer: We battle in a competitive market and win or lose customers regularly. The single-serve space remains stable except for the M&A transaction.

[Sentiment Analysis]
Analysts were cautiously optimistic, focusing on production delays and new product lines. Management was confident in their strategic direction and financial stability, despite uncertainties around a key customer.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|-------------------------|---------------|---------------|---------------|
| Adjusted EBITDA | $26.2 million | $23.0 million | $14.2 million |
| Net Sales Growth (YoY) | +61% | +55% | +40% |
| Beverage Solutions Sales| +60% | +58% | +35% |
| SS&T Sales | +62% | +60% | +38% |

[Risks and Concerns]
- Uncertainty around a key single-serve customer involved in an M&A transaction.
- Continued elevated coffee prices and tariffs impacting consumer demand and operating costs.

[Final Takeaway]
Westrock Coffee delivered record Q3 results, driven by strong customer volume additions and operational scale-up. The company is expanding into high-protein milk products, leveraging its production capabilities. Despite uncertainties around a key customer and high coffee prices, Westrock reaffirmed its 2025 guidance and is well-positioned for future growth.