Ranpak (NYSE:PACK) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Ranpak (NYSE:PACK) issued its earnings results on Thursday. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.06), Zacks reports. Ranpak had a negative return on equity of 7.18% and a negative net margin of 9.09%. The firm had revenue of $101.90 million during the quarter, compared to the consensus estimate of $108.85 million.

Here are the key takeaways from Ranpak’s conference call:

• Automation remained the key growth engine, with revenue up 26.9% year over year on a constant-currency basis and the company still targeting approximately $60 million in 2026 automation revenue. Ranpak expects automation to be adjusted EBITDA-positive in 2026 and contribute positively in 2027.
• Profitability improved despite a difficult cost environment. Gross margin expanded 110 basis points, constant-currency SG&A excluding RSU expense fell 10.5%, and adjusted EBITDA rose 6.1% on a constant-currency basis, excluding warrant impacts.
• Overall volumes declined 2.5%, as Europe and APAC weakened after a strong second quarter. European customers worked through inventory pulled forward ahead of surcharges, while geopolitical uncertainty, elevated energy prices and cautious demand remain significant headwinds.
• Ranpak ended the quarter with $53.4 million of cash, no revolver borrowings and net leverage of 4.3 times, while management expects further cash improvement in the fourth quarter and aims to reach 2.5–3.0 times net leverage within 24 months.
• Management identified cold chain and automation as major 2027 growth drivers. New cold-chain capacity is expected to come online early next year, with meaningful contributions anticipated from the second quarter onward, while partnerships such as Element Logic broaden the company’s warehouse-automation offering.

Ranpak Stock Down 6.6%

Shares of PACK traded down $0.23 during trading hours on Friday, reaching $3.17. 493,316 shares of the stock traded hands, compared to its average volume of 547,917. Ranpak has a 52 week low of $3.05 and a 52 week high of $7.81. The company has a market cap of $272.28 million, a price-to-earnings ratio of -7.22 and a beta of 3.14. The stock has a fifty day simple moving average of $4.10 and a 200 day simple moving average of $5.15. The company has a current ratio of 1.79, a quick ratio of 1.39 and a debt-to-equity ratio of 0.76.

Analyst Upgrades and Downgrades

PACK has been the topic of several recent analyst reports. Craig Hallum lowered shares of Ranpak from a “buy” rating to a “hold” rating and set a $3.50 price objective on the stock. in a research note on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ranpak in a research note on Thursday, October 15th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Ranpak currently has an average rating of “Hold” and an average target price of $4.75.

About Ranpak

Ranpak Holdings Corp. (NYSE: PACK) develops and manufactures sustainable, paper-based packaging solutions designed to protect products during shipping and handling. Its offerings serve e-commerce, retail, industrial, food, and other applications where cushioning, void fill, wrapping, and product protection are required.

The company’s product portfolio includes paper cushioning and void-fill materials, protective wrapping systems, and packaging automation equipment. Ranpak also provides dispensing systems and related packaging solutions that help customers streamline fulfillment operations while reducing reliance on plastic-based protective packaging.

Founded in 1972, Ranpak serves customers through a global network of manufacturing, distribution, and sales operations across North America, Europe, and other international markets.