Ranpak Holdings Corp.

Good morning and welcome to the RANDPAC Holdings fourth quarter 2025 earnings call. All participants are in a listen only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question, you'll need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Sarah Horvath, General Counsel. Please go ahead.

Thank you and good morning, everyone. Before we begin, I'd like to remind you that we will discuss forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our Form 10-K and our other filings filed with the SEC. Some of the statements and responses to your questions in this conference call may include forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. RAMPAC assumes no obligation and does not intend to update any such forward-looking statements. You should not place under reliance on these forward-looking statements, all of which speak to the company only as of today. The earnings release we issued this morning and the presentation for today's call are posted on the investor relations section of our website. A copy of the release has been included in a Form 8K that we submitted to the SEC before this call. We will also make a replay of this conference call available via webcast on the company website. For financial information that is presented on a non-GAAP basis, we have included reconciliations to the comparable GAAP information. Please refer to the table and slide presentation accompanying today's earnings release. Lastly, we'll be filing our 10K with the SEC for the period ending December 31st, 2025. The 10K will be available through the SEC or on the investor relations section of our website. With me today, I have Omar Asili, our chairman and CEO, and Bill Drew, our CFO. Omar will summarize our fourth quarter results and issue our outlook for 2026. Bill will provide additional detail on the financial results before we open up the call for questions. With that, I'll turn the call over to Omar.

Thank you, Sarah, and good morning, everyone. Thank you for joining us today. We finished 2025 on a positive note, as all geographies experienced volume growth and automation finished the year with a lot of momentum, positioning us well for 2026. Large enterprise accounts in North America continue to be a key driver of performance, both from top line and margin perspective. We experienced a very robust e-commerce-led holiday season in North America, particularly in December, following a brief lull during the government shutdown. The e-commerce strength drove volume growth of 5.5% in the quarter and 14.3% for the year in North America. Excluding the impact from warrants, automation was the other bright spot in the quarter as we achieved nearly 40% growth on a constant currency basis, and enter 2026 with a strong order book, giving us visibility to what we believe will be our largest growth year yet in that area. With our fourth quarter performance, we hit the lower end of our adjusted EBITDA guide, but did miss the top line slightly due to a continued challenging environment in Europe and a few automation project milestones getting pushed into Q1. Excluding the impact of Florence, Automation achieved the goal of being north of $40 million in revenue for the year, resulting in almost 35% growth. 2025 was an important year for RAMPAC. We strengthened our economic relationships with two of the world's largest e-commerce and retail leaders. These are partnerships that we believe will fuel substantial growth across both our protective and automation business for years to come. We also elevated our position as a leader in automated box customization through a major collaboration with Medline Industries, the largest provider of medical surgical products and supply chain solutions in the U.S. Together, we're providing automation solutions across some of the highest volume operations in the healthcare sector. These achievements validate the years of work and strategy we've been executing towards and setting the stage for RAPAC's next era. The world is evolving at an unprecedented pace. With rapid advances in AI and robotics, capabilities that once felt like science fiction are now becoming operational reality. RAMPAC is well positioned to lead in this new landscape, one defined by larger, more sophisticated warehouses and logistics networks that must also meet rising expectations for environmental responsibility. Our internal innovations and customer relationships, combined with strategic relationships with cutting edge leaders like Pickle Robot, give us a unique advantage. We're not just providing packaging, we're delivering end-to-end solutions for goods movement and AI-driven insights that help our customers operate smarter, faster, and more sustainably. Now, more on our results. We experienced another quarter of volume growth, making it out of the past 10 quarters, growing volumes at 3% over a really strong Q4 in 2024, which experienced 12 points of volume growth. It was encouraging to see sequential volume growth in each region and for Europe to experience volume growth for the first time this year. Consolidated net revenue increased 2.2% on a constant currency basis for the quarter, or 4.4% excluding warrants, driven by e-commerce activity in North America and automation achieving its largest revenue quarter ever. 4.8% volume growth for the year and 34.4% growth in automation drove 2025 full-year net revenue to increase 5% on a constant currency basis. Our North America business, again, was the engine that drove top line performance with sales of 5.8% for the quarter and 14% for the year, driven by more than 20% growth in void fill and 91.7% growth in automation, excluding warrants. In the quarter, the distribution channel was less robust, but we did grow mid-single digit for the year, and I believe have some momentum in the channel given our new product releases and focus growth and expansion initiatives. Invigorating this channel is key to helping improve our margin profile in the region, and we believe the setup going into 2026 has us positioned to continue to grow here while enhancing margins. In Europe and Asia Pacific, less favorable mix as well as increased rebate activity offset slightly higher PPS volumes and 30% automation growth in the quarter, resulting in a revenue decrease of 1.5% year over year on a constant currency basis. Similar to last year, Europe did not experience the same holiday season strength that we saw in the U.S. The environment in Europe seems to be improving from the negative impacts of tariffs we saw earlier in the year. After several years of recession-like conditions across the region, driven by energy price shocks, elevated inflation, and tariff uncertainty, economic fundamentals are stabilizing and the outlook is improving. But we will need to see how the recent events in the Middle East unfold, as that could have an impact on sentiment in the region. The input cost environment has remained relatively stable and consistent with the trends we saw in the second half of last year. Europe has been somewhat more favorable, driven largely by softer demand, while the U.S. experienced tighter pricing through mid-year. Those pressures eased and ultimately leveled off once the paper market disruptions from early in the year were resolved. In Europe, energy market volatility is the unknown at the moment. There was some volatility to start the year, as cold and the normal winter weather drove a heavier draw in reserves. Even so, Dutch net gas was around 30 euros per megawatt hour prior to the events of the last few days, resulting in pricing in Q1 in line with what we experienced in the second half of the year. On a constant currency basis, adjusted EBITDA declined 10.3% for the quarter, or just 1.2% when excluding the impact of Florence. For the full year, Adjusted EBITDA was down 8.5% or 2.4% excluding warrants. Our second half performance allowed us to achieve the low end of the revised guidance we communicated in our Q2 results, despite the top line challenges we faced in EMEA. Overall, 2025 proved to be a more difficult year than we anticipated. Many companies shifted priorities, curtailed activity, and took a more cautious stance in response to a rapidly evolving tariff environment. Europe, in particular, appeared to take a meaningful step back as customers there lacked confidence in their forward outlook. Our sequencing and priorities remain clear. First, drive stop-line growth to achieve scale. Then leverage that scale to unlock operational efficiencies and enhance purchasing power. which will flow through to adjusted EBITDA as revenue continues to grow. This, in turn, will support deleveraging and ultimately enable us to generate meaningful cash. With that, here's Bill with more info on the quarter.