10-Q · November 4, 2025
Sealed Air reported Q3 net sales of $1,351.3 million (vs $1,345.1M in Q3 2024), essentially flat year-over-year, with slight pressure on margins. Net EPS (diluted) was $1.73 for the quarter versus $0.63 a year ago,…
Earnings analysis · 10-K
SEE earnings analysis
Filed March 2, 2026 · Our reading of the company's report
The latest report
Sealed Air reported 2025 net sales of $5.4 billion, net earnings from continuing operations of $441 million, and net cash provided by operating activities of $628 million while pursuing a definitive merger with CD&R…
Read full summary
Sealed Air reported 2025 net sales of $5.4 billion, net earnings from continuing operations of $441 million, and net cash provided by operating activities of $628 million while pursuing a definitive merger with CD&R that values the company at $10.3 billion ($42.15 per share). The business emphasizes a strategy of automated, sustainable packaging solutions across two reportable segments (Food and Protective), global scale (49% of 2025 net sales outside the U.S.) and a balanced capital-allocation philosophy focused on debt repayment and profitable organic growth.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- Food (reportable segment) — integrated food packaging materials, automation and services (Part I, Item 1 Business).
- Segment
- Protective (reportable segment) — protective packaging and automation; ~60% of Protective sales sold through distributors in 2025 (Part I, Item 1 Business).
What stood out
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Merger agreed at $42.15/share ($10.3B)
Sealed Air entered a definitive merger agreement under which CD&R will acquire the company for a total purchase price of $10.3 billion, with each share to receive $42.15 in cash; the transaction is expected to close in mid-2026 and was approved by stockholders on February 25, 2026.
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Solid 2025 top-line and earnings
The Company reported net sales of $5.4 billion and net earnings from continuing operations of $441 million for 2025 (Part I, Item 1 Business).
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Strong operating cash generation
Net cash provided by operating activities was $628 million in 2025 (Part I, Item 1 Business).
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International mix provides geographic diversification
In 2025, 49% of net sales were from outside the U.S., with a sales and distribution network reaching 119 countries/territories (Part I, Item 1 Business).
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R&D spend trending lower
Research and development expense declined to $82 million in 2025 from $93 million in 2024 and $97 million in 2023 (Part I, Item 1 Business).
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Protective distribution channel scale
Approximately 60% of Protective segment sales were sold through distributors in 2025 (Part I, Item 1 Business).
What to watch
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Merger completion and litigation risk
The filing identifies risks relating to the Merger, including failure to satisfy closing conditions, the occurrence of a Company Material Adverse Effect, and the risk of any litigation relating to the Merger; the Merger consideration is $42.15 per share and the total purchase price is $10.3 billion, and closing is subject to regulatory approvals and other customary conditions (Part I, Business; Cautionary Notice Regarding Forward-Looking Statements).
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Raw-material cost exposure
The Company states that principal raw materials typically represent approximately one-third of consolidated cost of sales, exposing margins to resin, pulp and other commodity price and availability changes (Part I, Item 1 Business).
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Labor / collective bargaining exposure
About 5,200 employees (close to 32% of total employees) were covered by collective bargaining agreements as of December 31, 2025, and approximately 31% of such agreements will expire during 2026, creating negotiation and labor relation risk (Part I, Item 1 Business).
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Geopolitical and foreign-revenue concentration risks
With 49% of net sales coming from outside the U.S. in 2025, the Company highlights exposure to currency translation, foreign investment laws and approvals, trade policies and tariffs, and other foreign regulatory risks (Part I, Business; Cautionary Notice Regarding Forward-Looking Statements).
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Potential underinvestment in innovation
R&D expense fell to $82 million in 2025 from $97 million in 2023, which could constrain new product and automation development if the trend continues (Part I, Item 1 Business).
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Sole-source supplier dependence in some regions
The filing notes that in some regions the Company relies on sole-source suppliers and seeks to mitigate risk via global inventory and supply agreements, indicating localized supplier concentration risk (Part I, Item 1 Business).
Management's outlook
The Form 10-K does not provide forward numeric revenue or EPS guidance; the filing discusses strategic outlook and merger timing but defers specific annual outlook to earnings releases and the Company’s public guidance (Cautionary Notice Regarding Forward-Looking Statements; Item 1 Business).
Earlier filings 4
10-Q · November 7, 2024
Sealed Air reported Q3 net sales of $1,345.1 million and diluted EPS of $0.63, with operating profit improving to $186.3 million. Revenue and gross profit were modestly down versus the prior-year quarter, while…
10-K · February 21, 2023
Sealed Air generated net sales of $5.6 billion, net earnings from continuing operations of $491 million and net cash provided by operating activities of $613 million in 2022. The company completed its Reinvent SEE…
10-Q · November 2, 2021
Sealed Air reported Q3 net sales of $1,406.7M (up from $1,237.2M a year ago) and generated operating profit of $201.3M. Segment revenue expanded: Food to $797.4M and Protective to $609.3M. Cash generation remains…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.