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WPK — Winpak News Story

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Basic MaterialsConservativeMid CapSuper Stock

Canada's Winpak Q2 revenue rises on higher selling prices, favorable product mix

Canada's Winpak Q2 revenue rises on higher selling prices, favorable product mix 


Overview

  • Canada packaging materials maker's Q2 revenue rose 7.9% yr/yr

  • Q2 net income attributable to equity holders rose 11.3% yr/yr, with EPS at $0.57

  • Higher gross profit from selling price increases and cost-efficient sourcing boosted earnings


Outlook

  • Winpak forecasts 2026 capital expenditures between $70 mln and $80 mln

  • Company says ongoing Middle East uncertainty may continue to impact operating costs and working capital

  • Winpak expects to onboard new poultry, dairy, pet food and creamer business in H2 2026


Result Drivers

  • SELLING PRICE INCREASES - Higher selling prices and favorable product mix contributed $15.7 mln to Q2 revenue growth

  • GROSS MARGIN IMPROVEMENT - Gross profit margin rose as selling prices outpaced raw material cost increases, supported by fuel surcharges and cost-efficient aluminum sourcing

  • SEGMENT MIXED PERFORMANCE - Specialized printed packaging and lidding volumes grew, while specialty films and packaging machinery volumes declined due to weaker demand and economic uncertainty


Company press release: ID:nCNWP2dlwa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$294.47 mln

$297.67 mln (3 Analysts)

Q2 EPS

$0.57

Q2 Net Income

$34.23 mln

Q2 Basic EPS

$0.57

Q2 EBITDA

$57.66 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$47.00, about 6.1% above its July 22 closing price of C$44.29

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


Reuters Recommended Reads

  • July 22 - Sonoco Q2 profit beats estimates driven by Industrial Paper Packaging

  • July 22 - Packaging Corp Q2 adjusted EPS falls less than expected, helped by strong demand

  • July 23 - Finland's Huhtamaki Q2 net sales flat, comparable growth 2%


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.)

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