Packaging firm Winpak misses Q2 revenue estimates on muted demand

Winpak

24/07/2025 18:10

Overview

Winpak Q2 2025 revenue falls 3.8% yr/yr, missing analyst expectations

Net income for Q2 declines 22.2% due to reduced gross profit margins

Company repurchased 235,649 shares under normal course issuer bid

Outlook

Winpak expects 2025 H2 gross profit margins of 30% to 32%

Company forecasts 2025 capital expenditures of $100 mln to $110 mln

Winpak anticipates stable resin and foil prices for 2025

Company sees sales volume growth from new dairy and pet food business

Result Drivers

MUTED DEMAND - Revenue decline attributed to muted customer demand in certain product categories

GROSS PROFIT DECLINE - Lower gross profit margins due to competitive pressures and increased production costs

VOLUME DECREASE - Rigid packaging and flexible lidding segments experienced significant volume declines

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$272.80 mln
$294.40 mln (3 Analysts)
Q2 Net Income
$29.94 mln
Q2 Basic EPS
$0.49
Q2 EBITDA
$51.09 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 13.9% above its July 23 closing price of C$44.75

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nCNW2NJ5pa

(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.)