Ranpak Q3 revenue rises on increased automation  equipment sales

Overview

• US sustainable packaging firm's Q3 revenue rose 2.3% but missed analyst expectations

• Adjusted EBITDA for Q3 increased 5.1% year over year

• Company cites automation sales growth and margin initiatives as key drivers

Outlook

• Ranpak expects to achieve prior full-year guidance for 2026

• Company anticipates Automation segment revenue of about $60 mln for 2026

Result Drivers

• AUTOMATION SALES - Co said automation equipment sales grew 22.7% year over year, driving overall revenue growth

• MARGIN ENHANCEMENT - Co said gross margin improved by 110 bps year over year to 35.6%, driven by North America

• PRODUCT MIX AND PRICING - Co attributed revenue increase to 3.5% rise in price or mix of paper consumables, partially offset by lower volumes

Company press release:

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 91.8% above its October 28 closing price of $3.78

Reuters Recommended Reads

• Oct 28 - Smurfit Westrock Q3 net income falls on cost inflation

• Oct 29 - Finland's Huhtamaki Q3 sales rise 5% on Flexible Packaging unit strength

• Oct 29 - Avery Dennison Q3 sales rise 5.2%, beat estimates

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.)