Volume Growth and Revenue Increase
Ranpak reported its eighth consecutive quarter of volume growth. Consolidated net revenue increased by 3.8% year-over-year, driven by a 5.2% volume growth and a 12.2% sales increase in North America.
Automation Segment Expansion
Automation revenue increased by 34% compared to the previous year. The company expects full-year automation revenue to reach $40 million to $45 million, indicating a robust backlog and strong payback profiles for high-volume customers.
Strategic Initiatives and Cost Reduction
Ranpak has implemented cost reduction programs, resulting in a 3% headcount reduction since April. The company expects gross margin improvements of 300 to 500 basis points in the second half of 2025 due to these initiatives.
New Product Launch
Ranpak launched a new cushioning product expected to compete effectively with foam in place, contributing to an improved mix profile as it ramps up.