Westrock Coffee Company, LLC Q4 FY2025 earnings call

• 2025 was record-breaking with continued new customer volume additions, successful scale-up of integrated platform, and disciplined cost/operational execution. - Completed product development and commercialization of first high-protein beverage, with production expected this fall. - Water and tank farm upgrades enable production of various beverages including carbonated water, seltzer, and soda by fall. - Transitioned from plant construction to full-scale operations, focused on driving growth through expanded customer volumes, disciplined expense management, and operational efficiencies. - Three-year relationship with Palantir has been key to operational, risk management, and financial success, with combined systems team being more effective and smaller. - Final year of elevated capital intensity in 2025, with 2026 expected to have total capital expenditures of approximately $30 million mainly for routine maintenance.

In 2025, consolidated adjusted EBITDA was $69.7 million, up 48% year-over-year. Beverage Solutions segment adjusted EBITDA was $68.5 million, up 28% versus 2024. SS&T segment adjusted EBITDA was $16.5 million, more than doubling from $6.4 million in 2024. Consolidated net sales increased 40% over 2024. Revenue grew nearly 40% year-over-year in 2025 while gross profit dollars held roughly flat due to pass-through coffee costs. Beverage Solutions secured net leverage ratio was 3.85 times at year-end 2025, better than the 4.5 times target.

• 2025 consolidated adjusted EBITDA was $69.7 million, up 48% year-over-year. - Estimate EBITDA will be up another 30 to 45% in 2026. - 2026 expected consolidated adjusted EBITDA between $90 and $100 million, representing 29 to 44% year-over-year growth. - Expect leverage in 2026 to remain relatively flat to slightly improved, with more meaningful deleveraging beginning in 2027 as volumes normalize. - Expect to be free cash flow positive in the second half of 2026.

Q: Can you size up the EBITDA contribution of the customer that came off the platform on the single-serve side in 2025?

A: The annualized run rate was about $30 million expected in 2026, with a half-year's performance in 2025.

Q: How far into the process are you of levering Palantir's expertise and how iterative is the process?

A: Started with trade and logistics platform, then moved into operational platform, and now turning sights on every software as a service business, with weekly updates and daily/weekly iterations.

Q: How is the pacing of winning back customers in the single-serve cup space?

A: Expect some to show up in late 2026, with all running by late 2027.

Q: Can you expand on optimizing product mix?

A: Some is maturation of operations, and new high-protein offerings coming online later this year, with the plant now set up to handle various beverages creating more options to fill and cover fixed costs.

Q: What is fully operational at the Conway plant now?

A: All are up and running.

Q: How is capacity utilization progressing?

A: Utilization in 2025 will be higher in 2026, and scheduled to be busting the seams in 2027.

Q: How does mix between gross margin and cost leverage help EBITDA for 2026?

A: SG&A cost staying flat to down, and leveraging the platform by running more volume through the facility without adding additional costs to drive EBITDA growth.