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    PACK
    Earnings call· Jun 2026(Q2 FY26)

    Ranpak Holdings Q2 FY26 earnings call PACK

    Jul 30, 2026 Source

    Executive summary

    Ranpak Holdings Q2 FY26 — Strong Automation Growth and Margin Improvement

    Ranpak delivered a strong Q2 FY26, driven by exceptional growth in automation solutions across North America and Europe, alongside significant gross margin expansion. The company is strategically pivoting towards higher-value, differentiated offerings and investing in cold chain capacity, while navigating a volatile macro environment and managing input cost pressures. Management remains confident in its full-year outlook and long-term revenue targets.

    Highlights

    5

    • Automation revenue increased 139% year-over-year on a constant currency basis, excluding the impact of warrants.

    • Consolidated net revenue increased 14% on a reported basis for the quarter.

    • Adjusted EBITDA increased 13.9% year-over-year on a constant currency basis, or 15.8% excluding the impact of warrants.

    • Gross margin improved by 150 basis points versus Q2 of last year.

    • Net leverage decreased by 0.2 turns from Q1 to 4.5 times on an LTM basis.

    Concerns

    4

    • North America's distribution channel faced a challenging comparison and was softer than expected.

    • European input costs increased in April, leading to a lag before the implementation of temporary surcharges in May.

    • Customers in EMEA traded down to lower dollar price, lower margin void fill products, creating a mixed headwind.

    • The macro backdrop was described as 'noisy' with volatile oil and gas prices, and heightened geopolitical tensions.

    Guidance & targets

    5
    CategoryTargetConfidence
    Automation revenue
    ~$60 million
    high materiality
    High
    Net leverage ratio
    2.5x to 3x
    high materiality
    High
    Full-year guidance
    Meet existing guidance
    high materiality
    High
    Automation Adjusted EBITDA
    EBITDA breakeven
    medium materiality
    High
    Automation Adjusted EBITDA
    EBITDA positive contributor
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    North America
    Driven by strong automation growth. PPS faced tougher comps, but enterprise customers showed strength. Distribution channel was softer but expected to improve in H2.
    Automation growth (excluding warrants): >250%PPS volume growth: slight detractor (lapped 14.8% volume growth in prior year)
    		increased 8.5% in the quarter8.5%—improved more than 250 bps excluding depreciation versus the prior year
    Europe and APAC
    Driven by automation and PPS volume strength, particularly in EMEA. Experienced pressure on margins due to input cost timing and customer trade-down to lower-margin void fill.
    Automation growth: 103.7%PPS volume growth: 4.2%
    		increased 15.4% on a constant currency basis15.4% (constant currency)—some pressure due to the timing of the implementation of the surcharge versus when our input costs increased

    Operational metrics

    23
    Consolidated net revenue growth
    12.2%YoY
    Q2 FY26
    Consolidated net revenue growth
    12.6%YoY
    Q2 FY26
    Consolidated net revenue growth
    14%YoY
    Q2 FY26
    Consolidated net revenue growth
    12.5%YoY
    YTD FY26
    Automation revenue growth
    139%YoY
    Q2 FY26
    PPS volume growth
    2.4%YoY
    Q2 FY26

    Marking growth in 11 out of the last 12 quarters.

    Adjusted EBITDA
    $19.1 millionUp $2.6 million
    Q2 FY26
    Adjusted EBITDA growth
    13.9%YoY
    Q2 FY26
    Adjusted EBITDA growth
    15.8%YoY
    Q2 FY26
    Currency tailwinds impact on revenue
    1.8
    Q2 FY26

    Added to top line growth on a reported basis.

    Gross margin
    150improvement vs. prior year
    Q2 FY26
    Gross margin
    >250improvement vs. prior year
    Q2 FY26
    SG&A
    -3%YoY
    Q2 FY26
    Cash balance
    $43.2 million
    Q2 FY26
    Revolving credit facility drawings
    $0
    Q2 FY26
    Investment in Pickle
    $10 million
    Q1 FY26

    This was a follow-on investment made in the first quarter.

    Automation revenue capacity
    $100 million+
    current

    Can be served in existing footprint with minimal capex required to expand sales.

    Euro/USD exchange rate
    1.1323
    Q2 FY25

    Used for constant currency calculation in Q2 FY26.

    Euro/USD exchange rate
    1.169
    Q3 FY25

    Considerable movement in the euro began in Q3 FY25, leading to a potential rate headwind for comparisons in Q3 FY26.

    Euro/USD exchange rate
    1.14
    current

    Current rate as of the call date.

    Dutch net gas price
    >60
    End Q1 FY26

    Price at the end of Q1 FY26.

    Dutch net gas price
    40
    Mid Q2 FY26

    Price fell back to this level during Q2 FY26.

    Dutch net gas price
    Mid 50s
    Q2 FY26

    Price moved back to this level by the end of Q2 FY26.

    Industry KPIs

    5
    MetricValueDetails
    Net debt leverage4.5xtimes
    CAPEX capital program$6.6 millionUSD
    Volume production growth2.4%%
    End market demand driversgenerally okay
    Adjusted underlying EBITDA$19.1 millionUSD

    Orderbook & backlog

    1
    Automation revenue~$60 millionQ2 FY26

    Refers to the FY26 revenue target for automation, which is largely contracted.

    Product announcements

    2
    ProductTypeDetails
    Climaliner Plusexpansion
    Guardian 24launch

    Deals & partnerships

    2
    Pickle RobotCollaboration on vision and physical AI for warehouse automation.

    Ranpak made a $10 million follow-on investment in Pickle in Q1 FY26.

    One of the largest integrators in ASRSPartnership to roll out end-of-line packaging solutions for key accounts.

    The partnership was signed in the last few months and is focused on rolling out solutions to key accounts.

    Risks & headwinds

    5
    Macroeconomic volatilityQ2 FY26 and ongoing

    Oil prices hit multi-year highs in April then fell back; Dutch net gas pricing moved from >60 euros/MWh at end of Q1 to 40, then mid-50s.

    Mitigation: Focused on driving value and sustainability proposition, disciplined spend, and margin improvement.

    Input cost inflationQ2 FY26 and ongoing

    Paper producers in Europe passing on price increases since Q2; plastic and resin saw meaningful price increases in Q2.

    Mitigation: Implemented temporary surcharges in Europe to protect margins; expect price increases in North America PPS in H2.

    Consumer weaknessQ2 FY26

    The consumer at the lower end of the K economy is stretched due to elevated gas/energy prices and other inflationary pressures.

    Mitigation: Monitoring consumer confidence stabilization and flow-through to durable sectors like housing and industrial activity.

    Geopolitical tensions (Europe)Q2 FY26 and ongoing

    War in Europe creating uncertainty, impacting energy prices and customer demand, with Dutch net gas pricing being volatile.

    Mitigation: Customers are being cautious, but inventory levels are low, suggesting potential for activity once clarity emerges.

    Distribution channel softness (North America)Q2 FY26

    North America distribution channel faced a tougher comparison and was softer than desired, with PPS being a slight detractor.

    Mitigation: Expect improved performance in H2 as comparisons normalize and new product initiatives take hold.

    What to watch in Q3 FY26

    5

    Automation Adjusted EBITDA

    End of FY26
    CurrentScaling phase, approaching breakeven
    TargetEBITDA breakeven

    Why it matters

    Achieving breakeven is a key milestone for this high-growth segment and will improve overall profitability.

    So on automation, and I'll start there just with EBITDA, we still think we're on track for getting to break even later this year... And the plan is to be sort of EBITDA even towards the end of the year and then starting next year, automation will be an EBITDA positive contributor.

    Q&A highlights

    4

    Is automation growth primarily from existing customers expanding or new customer acquisition?

    Automation growth is driven by both existing large enterprise customers expanding their footprint and new customer acquisition through partnerships with integrators. The majority of FY26 automation revenue is already contracted.

    “Yes, it's actually both, Gansham, which is quite exciting from RC. So you have some of the large enterprises, Walmart, Medline, which again, we're helping them roll out in more facilities as well as new facilities and that continues. And then what we're seeing is very decent activity. with new customers, you know, so I'll highlight for you, we have formed, a couple of key partnerships with integrators. One of them is one of the largest integrators in ASRS, and we've signed a partnership with them the last few months and are rolling out some of their key accounts for end of line packaging.”

    asked by Gansham Punjabi · answered by Omar Asili

    2 min read5 chapters

    Detailed Narrative

    01

    Automation Growth and Strategy

    Ranpak's automation segment showed exceptional growth, with revenue increasing 139% year-over-year on a constant currency basis. This growth is driven by both existing large enterprise customers like Walmart and Medline expanding their adoption, and new customer acquisition through partnerships with integrators. The company views automation as a key growth engine with high momentum in North America and Europe, expecting it to be EBITDA positive by FY27.

    02

    Strategic Pivot to Value-Added Solutions

    The company is actively pruning its PPS (Protective Packaging Systems) portfolio, particularly in North America, to improve margin profiles by reducing exposure to lower-margin business and optimizing fleet efficiency. This strategic shift aims to focus on value-added solutions and larger, more attractive initiatives expected to scale in 2027, aligning with the goal of $800 million top-line by 2030.

    03

    Warehouse Ecosystem and Physical AI

    Ranpak is building an integrated intelligence ecosystem for warehouse orchestration, leveraging its own solutions and partnerships (e.g., Pickle Robot) across vision, physical AI, and end-of-line automation. This approach aims to maximize throughput, reduce labor dependency, and improve accuracy for customers, utilizing large physical data sets for competitive advantage in physical AI.

    04

    Cold Chain Expansion

    The company is building out more cold chain capacity in the second half of FY26, anticipating a 'step change in growth' for its Climaliner Plus offering as a sustainable alternative to EPS foam. This product line is identified as another scalable revenue stream with low ongoing capital intensity, representing a significant market opportunity.

    05

    Margin Improvement Initiatives

    Ranpak is focused on improving its margin profile through cost discipline, efficiency gains, and lean/Six Sigma initiatives. In North America, the company expects to implement price increases in the second half, leveraging competitive dynamics against plastic and resin. In Europe, temporary surcharges are in place to protect margins against volatile input costs.

    AI-generated summary of the company’s earnings call. Not investment advice.