Sealed Air Reports Decline in Net Sales and Profitability for Q2 2025

Sealed Air Corporation reported its financial results for the second quarter of 2025, revealing a slight decline in net sales and profitability compared to the same period in 2024. The company generated net sales of $1.335 billion for the three months ended June 30, 2025, a decrease of 0.8% from $1.345 billion in the prior year. For the first half of 2025, net sales totaled $2.608 billion, down 2.5% from $2.675 billion in the same period last year. Gross profit also fell, amounting to $406.2 million for the quarter, down 2.4% year-over-year, while operating profit decreased by 3.6% to $198.3 million.

The decline in revenue was attributed to a combination of factors, including a marginal volume decline in the Protective segment, particularly in North America, and unfavorable pricing conditions. The Food segment, however, saw a slight increase in organic sales driven by pricing actions, although this was offset by a decrease in volume. The company noted that ongoing economic uncertainties and shifts in consumer spending were impacting its end markets, particularly in North America.

In terms of strategic developments, Sealed Air is actively pursuing its CTO2Grow Program, a three-year initiative aimed at improving operational efficiency and reducing costs. The program is expected to yield annualized savings of $160 million by the end of 2025. For the first half of 2025, the company incurred $5.4 million in restructuring charges related to this program. Additionally, Sealed Air's total debt decreased to $4.342 billion as of June 30, 2025, down from $4.404 billion at the end of 2024, reflecting ongoing efforts to manage its capital structure.

Operationally, Sealed Air's cash and cash equivalents stood at $354.4 million, a decrease from $371.8 million at the end of 2024. The company reported a net cash provided by operating activities of $168.5 million for the first half of 2025, significantly lower than the $313.3 million reported in the same period of 2024. This decline was primarily driven by changes in working capital, including increased inventories and a decrease in accounts payable. The company also noted a favorable foreign currency translation impact on its financial results, which contributed positively to its net sales.

Looking ahead, Sealed Air anticipates continued challenges in its operating environment, particularly in the Protective segment, but expects to benefit from favorable foreign exchange impacts and pricing trends. The company remains focused on executing its strategic initiatives and managing costs effectively to navigate the current market conditions.