Sealed Air Reports Flat Q4 Sales, 8.9% Share Movement

By Tamara Parker • Tuesday, February 25 10:34 • Permanent Link

Sealed Air Corporation (NYSE: SEE) has released its financial results for the fourth quarter and full year 2024, along with an outlook for 2025. The company reported net sales of $1.37 billion for the fourth quarter of 2024, which remained flat compared to the same period in 2023. However, on a constant dollar basis, net sales increased by 1%. The food segment saw a 3% increase in net sales, driven by competitive share gains and continued end-market demand, while the protective segment experienced a 7% decrease.

In terms of earnings, Sealed Air reported a net loss of less than $1 million, or less than ($0.01) per diluted share, in the fourth quarter of 2024, as compared to net earnings of $125 million, or $0.86 per diluted share, in the fourth quarter of 2023. Adjusted earnings per diluted share decreased to $0.75 from $0.88 in the prior year, primarily due to higher adjusted tax expense, partially offset by lower interest expense.

For the full year 2024, net sales decreased by 2% as reported, with the food segment increasing by 2% and the protective segment decreasing by 8%. The company reported net earnings of $270 million, or $1.84 per diluted share, for the full year 2024, compared to net earnings of $339 million, or $2.34 per diluted share, in the prior year. Adjusted earnings per diluted share decreased to $3.14 from $3.18 in the prior year, primarily due to higher adjusted tax expense and higher shares outstanding, partially offset by lower interest expense.

Sealed Air's adjusted EBITDA for the fourth quarter of 2024 was $271 million, representing a 1.3% decrease compared to the same period in 2023. For the full year 2024, adjusted EBITDA was $1,111 million, marking a 0.4% increase from the prior year.

The company also provided its financial outlook for 2025, with a projected range of $5,100 to $5,500 million for net sales, representing a 3% decrease to 4% increase on a constant dollar basis. The adjusted EBITDA for 2025 is anticipated to be in the range of $1,075 to $1,175 million, marking a 1% decrease to 8% increase on a constant dollar basis. The projected adjusted EPS for 2025 is expected to be between $2.90 and $3.30, reflecting a 4% decrease to 9% increase.

Sealed Air Corporation ended the year with a net leverage ratio of 3.6x, reduced from 3.9x at the end of 2023, and approximately $1.37 billion of available liquidity.

Today the company's shares have moved 8.9% to a price of $34.99. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.