Ranpak Holdings Corp. Q1 FY2026 earnings call

• Omar Asili mentioned the business is demonstrating strong momentum across critical areas like automation and large enterprise accounts. Automation is a major growth engine. PPS volumes have growth trends with Europe outperforming. The company has invested in new product introduction for PPS. - Bill Drew provided details on key performance indicators, net revenue growth driven by various factors, gross profit details, SG&A, adjusted EBITDA, balance sheet and liquidity, and CapEx. - Omar touched on strategic updates like funding additional investment in Pickle Robot, expectations for automation revenue, margin enhancement initiatives, and strong relationships with large enterprise accounts.

Automation increased 111% year over year on a constant currency basis. PPS volumes increased 0.8% year over year, with Europe being the outperformer. Consolidated net revenue increased 4.5% on a constant currency basis for the quarter, or 5.4% excluding the impact of warrants. Adjusted EBITDA increased 1.6 million to 18.9 million on a reported basis and was flat in constant currency terms. North America business was roughly flat in the quarter, or up 1.6% excluding the impact of warrants. Europe and APAC net revenue increased 8.6% on a constant currency basis, driven by 95.2% growth in automation and 3.4% volume growth in PPS. Gross profit increased 5.2% on a constant currency basis in the quarter.

• Expecting to be closer to 60 million in revenue in automation this year and confident in surpassing 100 million in the near future. - Expect gross margin improvement versus last year by a good 200 basis points, with a slight lag in Q2 for Europe but it will level out. - Free cash flow guide still holds with midpoint around $90 million area, adding back $6 to $8 million of warrants, focusing on managing CapEx tightly, etc.

• Global conflicts creating energy price shocks and uncertainty across the globe, with unknown impact on demand. - Volatile Dutch net gas pricing in Europe affecting paper producers' price increases and potential impact on demand. - Geopolitical uncertainties making it hard to precisely analyze and adjust guidance based on them.

Q: Greg Palm asked about Europe's situation since the war start, resin to paper shift, and automation bookings.

A: Europe execution improved, decent demand seen, resin to paper switch potential, strong automation funnel.

Q: Greg Palm asked about automation growth outlook, Modex and Modumat shows.

A: Strong reputation in packaging automation, busy booking activity, automation driving PPS volume.

Q: Greg Palm asked about full-year guidance based on Q1 outperformance.

A: Confident in business, will keep executing, Q1 positions well for rest of year.

Q: Josh Vesely asked about demand being pre-buy, margin cadence.

A: Watching buy-in and inventory, good margin outlook in US, Europe has temporary surcharge.

Q: Josh Vesely asked about free cash flow guide.

A: Guide still holds, focusing on managing CapEx, etc.

Q: Troy Jensen asked about 10% customers, EBITDA guidance, Pickle Robotics.

A: Had one 10% customer, Q1 EBITDA enough, Pickle Robotics working on fund raise, expectation of potential public markets or IPO