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    WEST
    Earnings call· Jun 2026(Q2 FY26)

    Westrock Coffee Q2 FY26 earnings call WEST

    Aug 6, 2026 Source

    Executive summary

    Westrock Coffee Company Q2 FY26 — Strong Performance and Free Cash Flow Inflection

    Westrock Coffee delivered a strong second quarter, achieving free cash flow positive status ahead of schedule and marking its fifth consecutive quarter of adjusted EBITDA growth. The company has successfully transitioned from a capital-intensive build-out phase to a cash-generating platform, driven by the operational Conway facility and strategic customer wins. Management is now focused on maximizing capacity utilization, optimizing customer mix, and driving operational excellence to enhance shareholder value.

    Highlights

    5

    • Consolidated adjusted EBITDA increased nearly 39% year-over-year to $21.3 million, marking the fifth consecutive quarter of YoY growth.

    • Achieved free cash flow positive status ahead of schedule, generating $20.2 million in Q2 and positive free cash flow for the first half of the year.

    • Beverage Solutions net sales grew nearly 17% year-over-year, driven by volume growth in RTD formats and new brand partners.

    • Credit agreement secured net leverage ratio improved to 3.36x, representing the fifth consecutive quarter of sequential deleveraging.

    • Single-serve cup volumes were up over 9% year-over-year, excluding volumes lost from a customer acquisition.

    Concerns

    2

    • Consolidated gross profit decreased by $3.6 million year-over-year to $37.7 million, primarily due to $4.1 million in incremental depreciation and amortization and a $2 million negative mark-to-market impact.

    • SS&T segment adjusted EBITDA declined to $2 million in Q2 from $3.3 million in Q2 2025, attributed to shipment timing.

    Guidance & targets

    4
    CategoryTargetConfidence
    Consolidated Adjusted EBITDA
    $90 million to $100 million
    high materiality
    High
    Capital Expenditures
    approximately $30 million
    medium materiality
    High
    Single-serve cup new volumes arrival
    begin arriving in late 26
    medium materiality
    High
    Single-serve cup full volume replacement
    targeted by the end of 27
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Beverage Solutions
    Growth led by continued volume growth of RTD formats in Conway and increasing volumes from existing and new brand partners. Improved fixed cost absorption across manufacturing footprint.
    Segment adjusted EBITDA: $22.2 millionSegment adjusted EBITDA growth YoY: 13%RTD can, glass, and multi-serve bottle formats volume growth: continuedSingle-serve cup volumes growth YoY (excluding lost customer): over 9%
    		—nearly 17%—$22.2 million
    SS&T
    Q2 segment adjusted EBITDA declined year-over-year due to shipment timing, but year-to-date performance shows significant growth. SS&T remains a strategic capability for the platform.
    Segment adjusted EBITDA: $2 million (Q2)Segment adjusted EBITDA (Q2 2025): $3.3 millionSegment adjusted EBITDA (YTD): $8.4 millionSegment adjusted EBITDA growth (YTD YoY): more than 60%
    		———$2 million

    Operational metrics

    15
    Consolidated Adjusted EBITDA
    $21.3 millionup nearly 39% year over year
    Q2 FY26

    Record second quarter result for Westrock.

    Consolidated Adjusted EBITDA
    $47.3 millionmore than twice the first half of 25
    H1 FY26

    Ahead of internal EBITDA plan by almost 10% for the first half.

    Consolidated Net Sales
    $306 millionup 8.8% versus the second quarter of 2025
    Q2 FY26

    Led by Beverage Solutions.

    Consolidated Net Sales
    $614 millionup 24% versus the first half of last year
    H1 FY26

    Reflects continued momentum across the platform.

    Consolidated Gross Profit
    $37.7 milliondown $3.6 million compared to the prior year
    Q2 FY26

    Impacted by incremental depreciation and non-cash mark-to-market adjustments.

    Consolidated Gross Profit
    $83.5 millionup 19% over the first half of 2025
    H1 FY26

    Despite Q2 decline, H1 gross profit shows strong growth.

    Operating Loss
    $1.4 millionnarrowed from $15 million a year ago
    Q2 FY26

    Significant improvement in operating performance.

    Operating Income
    positivecompared to a $28 million operating loss in the first half of 2025
    H1 FY26

    Reflects the company's improved profitability.

    Net Loss
    $13.7 millionnarrowed significantly from $21.6 million incurred in Q2 2025
    Q2 FY26

    Reflects improved financial results.

    Capital Expenditures
    $6.5 millioncompared to over $20.5 million in Q2 2025
    Q2 FY26

    Reflects structural shift in capital profile after heavy investment phase.

    Unrestricted Cash and Revolver Availability
    $73 million
    Q2 FY26 end

    Available under Beverage Solutions credit facility, providing financial flexibility.

    Credit Agreement Secured Net Leverage Ratio
    3.36 timesfifth consecutive quarter of sequential deleveraging
    Q2 FY26 end

    Improved from Q1, reflecting underlying momentum and financial discipline.

    New Format Lines Added
    4
    FY26

    Part of current run rate, leveraging existing infrastructure.

    New Products in Development
    8
    next 24 months

    Going through the launch process, with product development team having twice the historical number of products under development.

    SG&A Rate
    stay flat or decrease
    next several quarters and next year

    Expected due to quieting down of construction activity and efficiency gains from technology (Foundry AI).

    Industry KPIs

    8
    MetricValueDetails
    Gross margin$37.7 millionUSD
    Brand platform growth—
    Organic net revenue growth8.8%%
    Adjusted EPS operating income—
    Retailer trade negotiation status—
    Volume mix vs pricing decomposition—
    Elasticity consumer response commentary—
    Category growth benchmark channel shift data—

    Product announcements

    2
    ProductTypeDetails
    New Product Pipeline (Refreshers, Energy, High-Protein, Functional/Nutraceutical)roadmap
    Lemonade Refreshers Programlaunch

    Risks & headwinds

    3
    Incremental Depreciation and Amortization ExpenseQ2 FY26

    $4.1 million

    Mitigation: This is a non-cash expense associated with placing assets into service at the Conway facility, reflecting the completion of the investment phase.

    Non-Cash Mark-to-Market AdjustmentsQ2 FY26

    $2 million negative impact

    Mitigation: Impacted SS&T segment gross profit year-over-year.

    Customer Volume Loss due to Industry Consolidationpast, impacting current period

    volumes lost

    Mitigation: New customer inbound interest is strong, with new volumes expected in late 2026 and full replacement targeted by end of 2027.

    What to watch in Q3 FY26

    5

    Single-serve cup volume replacement

    late 26 / end of 27
    CurrentVolumes lost due to customer acquisition
    TargetNew volumes arriving, progress towards full replacement

    Why it matters

    Verifying the successful replacement of lost volumes is crucial for the growth trajectory of the single-serve cup business.

    New customer inbound interest remains strong. We continue to expect new volumes to begin arriving in late 26 with full replacement targeted by the end of 27.

    Q&A highlights

    6

    How much of the pipeline strength is due to the Conway facility vs. industry M&A, and is the company gaining market share?

    Management confirmed they are winning share across every category, driven by the competitive, large-scale, automated platform and integrated solutions (risk management, green coffee supply). They noted the fastest growing business win set of relationships seen in their professional career.

    “We are across the board Winning share in every single category that we play in... we are winning share because we are bringing in customers that want to see and want to get priced on a super competitive, very large scale, very automated platform.”

    asked by Eric Des Lauriers · answered by Scott Ford

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Shift to Cash Generation

    Westrock Coffee has successfully transitioned from a capital-intensive build-out phase to a cash-generating platform. The company achieved free cash flow positive status in Q2 FY26, ahead of its anticipated schedule, and generated $20.2 million in free cash flow for the quarter. This marks a significant milestone, with all plants now generating free cash flow, enabling a focus on maximizing shareholder value rather than further large-scale capital investments.

    02

    Conway Facility Driving Growth and Efficiency

    The recently expanded manufacturing capacity at the Conway facility is fully operational and is a key driver of current and future performance. It is contributing to continued volume growth in RTD can, glass, and multi-serve bottle formats, and is expected to be an increasingly meaningful contributor to segment profitability through the balance of FY26 and into FY27. The facility's state-of-the-art capabilities are also shortening sales cycles with brand partners.

    03

    AI Integration for Operational Excellence

    The company is leveraging Palantir's Foundry AI to drive real-time analysis across its manufacturing, logistics, and planning systems. This integration provides live visibility into performance, enabling structural operating leverage. Management emphasizes that this is not merely bolting AI onto a beverage company, but rather running the platform on an AI-native operating core, with the benefits only beginning to show in results.

    04

    Robust Customer Pipeline and Market Share Gains

    Westrock Coffee reports a robust customer and sales pipeline, with new products in queue including refreshers, energy, high-protein, functional, and nutraceutical single-serve cups. The company is actively winning market share across all categories, attracting customers with its competitive pricing, large-scale automated platform, and integrated solutions such as risk management and green coffee supply. This momentum is expected to build materially over the coming quarters.

    05

    Balance Sheet Deleveraging and Future Capital Allocation

    The company continued its deleveraging trend, improving its credit agreement secured net leverage ratio to 3.36x, marking the fifth consecutive quarter of sequential deleveraging. With significant free cash flow generation anticipated over the next three to four years, management is actively evaluating capital allocation strategies, including high-return incremental CapEx projects that leverage existing infrastructure and optimizing the balance sheet for shareholder benefit.

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