Canada's Winpak Q3 revenue misses estimates; net income falls

Winpak

Thu 20:13

Overview
Canada packaging materials maker's Q3 revenue rose 10% yr/yr but missed analyst expectations
Net income attributable to equity holders fell 3% yr/yr
Revenue growth driven by higher sales volumes and price/mix changes

Outlook
Company expects elevated operating costs and pricing pressures to persist into 2027
Winpak expects Q4 2026 gross profit margin to be modestly higher than Q3 2026
Company sees Q4 2026 volume growth similar to Q3 2026

Result Drivers
SEGMENT PERFORMANCE - Flexible packaging, rigid packaging, and specialized printed packaging saw volume gains, while specialty films and packaging machinery volumes declined
PRICE/MIX CHANGES - Higher selling prices and fuel surcharges partially offset increased raw material costs
MARGIN PRESSURE - Gross margin declined due to higher personnel expenses, increased production waste, and competitive pricing pressures

Company press release: ID:nCNWlFb4ma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$312.5 mln
$322.97 mln (3 Analysts)
Q3 Net Income Attributable to Equity Holders of the Company
 
$35.2 mln
 
Q3 Basic EPS
 
$0.60
 
Q3 EBITDA
 
$60.8 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$49.00, about 9.1% above its October 21 closing price of C$44.90
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Oct 22 - Canada's FirstService Q3 results beat on new residential contract wins
Oct 20 - Canada's Algoma Central sees Q3 revenue up 26% on freight rates
Oct 20 - Canada's Altius Minerals sees record Q3 royalty revenue

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.)