Sealed Air (SEE) Q1 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, December 23, 2025 astatine 11:30 AM CST 50 min read

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Tuesday, May 6, 2025 astatine 10 a.m. ET

• Chief Executive Officer — Dustin Semach

• Chief Financial Officer — Roni Johnson

Dustin Semach: Thank you, Mark, and convey you each for joining america for our archetypal 4th net call. Today, I volition sermon the advancement we are making connected our transformation, springiness an update connected existent marketplace conditions, including our effect to the caller commercialized policies and locomotion done however we volition navigate the 2nd half. Over the past year, we person been fixing the instauration of the concern by reorganizing backmost into 2 market-focused businesses, Food and Protective. We precocious completed the past large measurement by integrating our proviso chains, including our readying and production, backmost into each business.

This present aligns each our commercial, innovation and proviso concatenation teams each the mode down to the respective extremity markets, putting america successful a amended presumption to service our customers. This is particularly important successful periods of volatility. Now, each concern is amended positioned to accommodate rapidly to their unsocial marketplace dynamics and lawsuit needs. With wide accountability and inducement alignment, we proceed to spot improvements and fundamentals passim each business. In parallel, we proceed to heighten enactment crossed the enactment with a beardown predisposition towards maturation and ownership mindsets. I americium assured the actions we are taking proceed to amended presumption each concern for semipermanent sustainable maturation and volition assistance america successfully navigate the uncertainty up of us.

Before I springiness updates connected each segment, I would similar to code the dynamic macro situation we proceed to run in, focusing connected the changing planetary commercialized scenery and consequent tariff impacts. Since our treatment successful February, the scenery has continued to evolve, with our absorption archetypal connected imaginable tariffs successful Canada and Mexico, past connected broader reciprocal tariffs, including China. As a reminder, we are mostly home accumulation for home consumption, which positions america good against nonstop tariffs. In addition, astir of our products are exempt nether USMCA, which has enactment america successful amended presumption connected nonstop impacts since February, arsenic the U.S. has shifted its absorption to the remainder of the world.

Since November, we person been actively reviewing our proviso concatenation and optimizing accumulation and procurement to mitigate imaginable tariffs and minimize inflation. Where we person vulnerability that cannot beryllium mitigated, we are actively taking pricing actions, mostly successful Food. At this point, based connected existent policy, the nett tariff interaction to our bottomline is minimal and reflected successful our outlook. More importantly, we are assessing the downstream interaction connected our customers’ businesses driven by a perchance weakening request environment. In Protective, we are intimately monitoring user and concern sentiment and the imaginable knock-on effects successful our fulfillment and concern extremity markets. Food is simply a much resilient concern successful immoderate economical cycle.