Canada's Winpak Q1 revenue misses estimates on weak customer demand

Winpak

29/04/2026 22:10

Overview

Canada packaging materials maker's Q1 revenue fell 1.7% yr/yr, missing analyst expectations

Q1 net income attributable to equity holders declined 10.4% from prior year

Lower gross profit and weaker sales volumes contributed to earnings decline

Outlook

Company forecasts 2026 capital expenditures between $80 mln and $90 mln

Company expects new business and added extrusion capacity to drive growth from mid-2026

Result Drivers

WEAKER CUSTOMER DEMAND - Co said sales volumes fell 2.1% yr/yr due to weakened demand in several product categories and prior-year order shifts related to tariffs

GROSS PROFIT MARGIN PRESSURE - Gross profit margins declined due to slightly higher raw material costs and selling price concessions over the past year

SEGMENT VARIATION - Flexible packaging and packaging machinery volumes declined, while specialized printed packaging saw strong growth from nutraceutical business gains

Company press release: ID:nCNWy2RRwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$280.03 mln
$289.17 mln (3 Analysts)
Q1 Net Income
$30.97 mln
Q1 Basic EPS
$0.53
Q1 EBITDA
$53.76 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the non-paper containers & packaging peer group is "buy."

Wall Street's median 12-month price target for Winpak Ltd is C$52.00, about 24.6% above its April 28 closing price of C$41.74

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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.)