Winpak Reports 2025 Fourth Quarter Results

Executive Summary

• Winpak Ltd. reported Q4 2025 revenue of US$284.9 M, essentially flat versus Q4 2024, with net income attributable to equity holders of US$36.2 M (EPS 60 cents), a modest 1.2% decline YoY.
• FY 2025 revenue slipped 0.5% to US$1,125.4 M; net income fell 8.1% to US$137.3 M (EPS 225 cents). Gross‑margin pressure persisted, declining to 30.5% in Q4 and 30.4% for the year.
• The company completed its Normal Course Issuer Bid (NCIB), repurchasing an additional 839,453 shares at a weighted‑average price of C$45.00 (US $27,606). Cash & cash equivalents ended FY 2025 at US$375.6 M, up $10.3 M from Q3.

Key Details

• Revenue
• Q4 2025: US$284.9 M vs. US$285.1 M (Q4 2024) – down $0.3 M.
• FY 2025: US$1,125.4 M vs. US$1,130.9 M (FY 2024) – down $5.5 M.
• Net Income
• Q4 2025: US$36.2 M (EPS 60 cents) vs. US$37.0 M (EPS 58 cents) in Q4 2024.
• FY 2025: US$137.3 M (EPS 225 cents) vs. US$149.5 M (EPS 235 cents) in FY 2024.
• Gross Profit Margin
• Q4 2025: 30.5% (down 1.8 pts YoY).
• FY 2025: 30.4% (down 1.6 pts YoY).
• Operating Segments – Volume Trends
• Flexible packaging volumes ‑0.4% QoQ; ‑3.0% YoY.
• Rigid packaging & flexible lidding volumes +2% QoQ; ‑3% YoY.
• Notable product‑group moves:
  • Modified atmosphere packaging volumes –1% Q4, +2% FY.
  • Biaxially oriented nylon –14% YoY decline.
  • Lidding group +12% Q4 driven by pet‑food retort lidding.
• Expenses
• Operating expenses (ex‑FX) fell 3.4% QoQ; sales volumes down 0.4%.
• Net finance income: (US$2.7 M) in Q4 2025 vs. (US$5.2 M) in Q4 2024.
• Cash Flow & Liquidity
• Cash & cash equivalents end‑FY 2025: US$375.6 M (+$10.3 M QoQ).
• Operating cash flow FY 2025: US$226.1 M.
• Capital expenditures FY 2025: US$84.9 M (incl. expansion of modified atmosphere packaging facility).
• Dividends paid FY 2025: US$139.8 M; share repurchases FY 2025: US$80.3 M.
• NCIB Activity
• Authorized to purchase up to 3,087,500 shares (5% of outstanding) between 26 Mar 2025 – 25 Mar 2026.
• Completed NCIB program after FY 2025, repurchasing 839,453 shares at C$45.00 avg price (US $27,606).
• Outlook 2026
• Anticipated organic volume growth of 2‑4% and gross‑margin target of 30‑31%.
• Planned capex: US$80‑100 M, focusing on in‑mold‑label capacity and converting equipment.
• Management will evaluate renewal of NCIB for FY 2026 and pursue synergistic acquisition opportunities, especially in medical/pharma packaging.

Notable Quotes

• “Winpak enters 2026 facing a vast array of opportunities and challenges… Healthy anticipated organic volume growth and substantial cost‑savings initiatives are in stark contrast to heightened geopolitical and economic uncertainties.” – O.Y. Muggli, President & CEO

Materiality Assessment: Material – Neutral (Quarterly and annual results constitute material information for investors; performance is mixed with modest declines.)