Ranpak Q2 revenue beats analyst estimates on automation growth

Overview

• Packaging automation provider's Q2 revenue rose 14% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 increased 15.8% yr/yr to $19.1 mln

• Company saw strong automation revenue growth, but net loss widened to $7.9 mln

Outlook

• Ranpak expects 2026 Automation revenue to reach nearly $60 mln

• Company continues to expect to achieve its full-year 2026 guidance

• Ranpak says global conflicts are creating near-term volatility and uncertainty

Result Drivers

• AUTOMATION GROWTH - Automation product line revenue rose 133.8% yr/yr, driven by increased adoption of box customization and automated dunnage insertion solutions

• CONSUMABLE VOLUME - Paper consumable product volumes increased 2.4% yr/yr, led by growth in EMEA region

• CUSHIONING DECLINE - Cushioning revenue fell 4.6% yr/yr, partially offsetting growth in other segments

Company press release: ID:nBw3lZZhra

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 $7.25, about 24.1% above its July 29 closing price of $5.84

Reuters Recommended Reads

• July 29 - Industrial products maker Fortive lifts profit view on strong automation business

• July 30 - Mondi shares surge as price hikes, cost cuts to drive second-half profits

• July 29 - Smurfit Westrock downgrades full-year profit guidance on freight costs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)