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Why Is Sealed Air (SEE) Up 0.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Sealed Air (SEE - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sealed Air due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Sealed Air Corporation before we dive into how investors and analysts have reacted as of late.

SEE Q4 Earnings Surpass Estimates, CD&R Merger to Close Mid-2026

Sealed Air reported fourth-quarter 2025 adjusted earnings per share (EPS) of 77 cents, surpassing the Zacks Consensus Estimate of 72 cents. The bottom line increased 2.7% year over year, driven by higher adjusted EBITDA and lower operating costs, reflecting productivity benefits and lower interest expense. These gains were partly offset by higher depreciation and amortization expenses as well as increased adjusted tax expense. 

Including special items, the company delivered EPS from continuing operations of 30 cents compared with the breakeven results last quarter.

Sealed Air’s Q4 Sales Up Y/Y Despite Low Volumes

Total sales were $1.4 billion, which beat the Zacks Consensus Estimate of $1.34 billion. The figure rose 2% year over year. Currency translation had a favorable 2.8% impact, while pricing was slightly unfavorable at 0.2% and volumes declined 0.5%.

SEE’s Q4 Gross Margin Dips Y/Y, EBITDA Shows Slight Growth

Cost of sales was up 3.8% year over year to $1 billion. The gross profit was $398 million, which marked a 2% dip from the year-ago quarter’s $407 million. The gross margin was 28.4%, a 120-basis point contraction from the year-ago quarter.

Selling, general and administrative expenses (SG&A) expenses were $199 million, up 5.3% from the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $278 million, up 2.7% from the year-ago period. The adjusted EBITDA margin was 19.8%, slightly up from the prior-year quarter’s 19.7%. 

The improvement reflected lower operating costs driven by productivity benefits and favorable impacts from currency translation. These gains were partially offset by unfavorable net price realization in both the Food and Protective segments and lower volumes in Food.

Sealed Air’s Segment Performances in Q4

Food: Net sales increased 1.6% year over year to around $937 million. Pricing actions had no impact, while volumes declined 1.4%. Foreign currency had a favorable impact of 3%. Adjusted EBITDA was around $202 million, down 2.7% from the last-year quarter on lower volumes and unfavorable net price realization, partially offset by lower operating costs and favorable impacts from currency translation. 

Protective: The segment reported net sales of $464 million, up 3% from the year-ago quarter. 

Pricing had a negative impact of 0.5% and volumes rose 1.3% year over year. The segment’s adjusted EBITDA increased 21% year over year to $80.5 million, driven by lower operating costs, partially offset by unfavorable net price realization.

SEE’s Cash Flow & Balance Sheet Updates

Cash flow generated from operating activities was around $628 million in 2025 compared with $728 million in the prior year.

As of Dec. 31, 2025, Sealed Air’s total debt was $4.1 billion compared with $4.4 billion as of Dec. 31, 2024. As of the end of 2025, the company had $1.4 billion in liquidity available, which comprised $344 million in cash and $1.06 billion in undrawn, committed credit facilities.

Sealed Air’s Performance in 2025

For 2025, Sealed Air reported adjusted EPS of $3.34 (up 6% year over year) and also beat the Zacks Consensus Estimate of $3.29. Lower interest expense and higher adjusted EBITDA, partially offset by a higher diluted share count and increased depreciation and amortization expense, led to the improvement.

Including special items, the company delivered EPS from continuing operations of $2.99 compared with $1.83 in 2024.

Total sales dipped 0.6% year over year to $5.36 billion, but beat the Zacks Consensus Estimate of $5.3 billion. Pricing had no impact and volumes declined 1.2% year over year, while currency had a favorable impact of 0.6%. Our model predicted an unfavorable impact of 0.3% from pricing and a year-over-year volume decline of 1.6%.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, Sealed Air has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Sealed Air has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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