SEE

Macro Environment

• Softer global growth outlooks, muted industrial production, and a consumer with decreasing purchasing power, especially in North America lower to middle income households.

Protective Segment

• Turnaround on track, materials volume inflected growth since 2021, North American business stabilized, progress in EMEA and APAC, R&D focus on better product market fit, network optimization.

Food Segment

• Resilient despite headwinds, retail end markets see trade downs, foodservice markets in US flat but international resilient, rotation into retail and foodservice end markets, talent upgrade.

Full Year Outlook

• Targeting $5.3 billion midpoint for sales.
• Adjusted EBITDA expected range raised to $1.12 billion to $1.14 billion.
• Full year adjusted EPS expected $3.25 to $3.35.
• Full year free cash flow expected ~$400 million.
• Capital expenditure projection lowered to $175 million.

In the third quarter, Food net sales were $910 million, consistent with last year on a constant currency basis, with adjusted EBITDA of $215 million, up 3% in constant currency. Protective sales were $442 million, down 3% on a constant currency basis, with adjusted EBITDA of $78 million, up 3% as reported and 1.5% in constant currency.

• Market pressures accelerating in Q4, particularly in North America Food.
• Uncertainty around U.S. government shutdown and impact on SNAP program.
• Persistent inflation and labor costs affecting pricing.

Q: George Staphos from Bank of America Securities asked about food segment, beef production and 2026 EBITDA.

A: Dustin Semach discussed U.S. beef cycle dynamics, consumer rotation into value grocery, and uncertainty around 2026 due to market and transformation factors.

Q: Ghansham Panjabi from Baird asked about EMEA segment operating environment and share gains.

A: Dustin Semach mentioned EMEA region as strong performer, broad-based strength across portfolios.

Q: Philip Ng from Jefferies asked about Q4 demand correction and price degradation.

A: Kristen Actis-Grande and Dustin Semach discussed softer macro environment, volume pressure, and ongoing execution efforts.

Q: Matthew Roberts of Raymond James asked about Protective playbook, capital allocation, and margin preservation.

A: Dustin Semach talked about borrowing from Protective playbook, capital allocation linked to transformation, and margin preservation through productivity.

Q: Edlain Rodriguez from Mizuho asked about Protective volume inflection and sustainability.

A: Dustin Semach discussed Protective volume inflection, stabilization in Q4, and cautious outlook for 2026.

Q: Jeffrey Zekauskas from JPMorgan asked about SG&A costs and restructuring.

A: Dustin Semach discussed SG&A cost reduction, ongoing restructuring, and sustainable initiatives.

Q: Anthony Pettinari from Citi asked about EBITDA bridge and CapEx offset.

A: Kristen Actis-Grande and Dustin Semach explained EBITDA bridge components and free cash flow guidance.

Q: Anojja Shah from UBS asked about network optimization.

A: Dustin Semach discussed holistic network optimization for both segments.

Q: Christopher Parkinson from Wolfe Research asked about portfolio assessment.

A: Dustin Semach mentioned always looking for shareholder value opportunities while focused on transformation.

Q: Mike Roxland from Truist Securities asked about Protective large account wins and Kristen's view on Sealed Air.

A: Dustin Semach talked about Protective large account wins, and Kristen discussed transformation opportunity and operating system improvement.

Q: Stefan Diaz from Morgan Stanley asked about foodservice volume strength.

A: Dustin Semach discussed foodservice volume strength from fluids and liquids portfolio, new products, and labor optimization.

Q: Gabe Hajde from Wells Fargo asked about facility disentanglement and pricing.

A: Dustin Semach discussed facility disentanglement, labor inflation impact, and pricing dynamics.

Q: Arun Viswanathan from RBC asked about volume growth weakness and duration.

A: Dustin Semach discussed Q4 volume weakness, consumer rotation into value grocery, and expected persistence into first half of 2026