Westrock Coffee Company (WEST) Q3 2025 Earnings Call Transcript
Combined Segment Adjusted EBITDA $26.2 million, up 14% over the second quarter and up 84% over the same quarter last year. This growth was driven by new customer volume additions and cost management execution.
Consolidated Adjusted EBITDA $23.2 million, representing 125% growth over the third quarter of 2024. This was driven by volume growth in various platforms, supply chain optimization, and disciplined expense management.
Net Sales (Consolidated) Increased 61% compared to the third quarter of 2024. This was influenced by higher coffee prices, tariffs passed through to customers, and volume growth.
Net Loss $19.1 million, reflecting continued investment in the Conway extract and RTD facility during its scale-up phase.
Beverage Solutions Segment Adjusted EBITDA $20.4 million, up 74% year-over-year. This was driven by a 4% increase in core roast and ground coffee volumes, an 85% volume increase in single-serve cup, and supply chain optimization.
SS&T Segment Adjusted EBITDA $5.8 million, up from $2.5 million in the prior year quarter, driven by volume growth, margin capture, and higher coffee prices.
Capital Expenditures Approximately $18 million in the quarter, primarily related to the Conway extract and RTD facility.
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Willis Lease Unveils $392.9 Million Fixed Rate Notes Offering
Financing Announcement: Willis Lease Finance Corporation's subsidiary, WEST, plans to offer $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, secured by a portfolio of 47 aircraft engines and 2 airframes.
Use of Proceeds: The proceeds from the Notes will cover fees related to the offering, establish reserve accounts, and pay WLFC for the acquisition of aircraft engines and airframes over a 270-day period.
Regulatory Compliance: The Notes will not be registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, adhering to specific regulatory exemptions.
Forward-Looking Statements: The announcement includes forward-looking statements that carry risks and uncertainties, with actual results potentially differing due to various market and operational factors.
Insider Buying Update for Monday, November 24: BFLY and WEST
Insider Buying at Butterfly Network: Larry Robbins purchased 2,800,000 shares of Butterfly Network (BFLY) for $6.78M at $2.42 each, seeing a 27.9% gain when shares peaked at $3.10 on Monday, marking his first buy in a year.
Insider Buying at Westrock Coffee: Director Robert Patrick Kruczek bought 150,000 shares of Westrock Coffee for $620,950 at $4.14 each, following a previous purchase of $1.02M shares at $6.82 each within the last year, while the stock is down 0.7% on Monday.
Westrock Coffee Projects $60M-$65M Adjusted EBITDA for 2025 Amid New Product Launches and Capital Investment
Management Performance: Westrock Coffee Company reported record-breaking quarterly results for Q3 2025, with a 14% increase in Adjusted EBITDA to $26.2 million, driven by new customer volume and effective cost management. CEO Scott Ford emphasized the company's goal to be a leading supplier in the beverage industry and highlighted significant production advancements at their Conway facility.
Financial Results: The company experienced a 61% increase in net sales compared to Q3 2024, although it reported a net loss of $19.1 million due to ongoing investments in the Conway facility. Consolidated Adjusted EBITDA rose 125% year-over-year, with strong performance in both Beverage Solutions and SS&T segments.
Outlook and Guidance: For 2025, Westrock updated its guidance for Consolidated Adjusted EBITDA to between $60 million and $65 million, while segment-specific expectations were also provided. However, uncertainty looms for 2026 due to a major customer's M&A transaction affecting their volume commitments.
Risks and Concerns: Management identified elevated coffee prices, tariffs, and uncertainties from a key customer's M&A as ongoing risks. Despite these challenges, they expressed confidence in their operational strategies and financial flexibility to navigate potential headwinds.
Westrock Coffee (WEST) Q3 2025 Earnings Report Transcript
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Westrock Coffee Company (WEST) Announces Q3 Loss but Exceeds Revenue Projections
Quarterly Performance: Westrock Coffee Company reported a quarterly loss of $0.05 per share, matching the Zacks Consensus Estimate, with revenues of $354.83 million, exceeding expectations by 24.20%.
Stock Outlook: The company's shares have declined by 33.7% this year, and its Zacks Rank is currently #3 (Hold), indicating expected performance in line with the market.
Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $295.37 million, while the current fiscal year estimate is -$0.29 on $1.08 billion in revenues.
Industry Context: The Beverages - Soft drinks industry is ranked in the bottom 41% of Zacks industries, suggesting that the overall industry outlook could significantly impact Westrock's stock performance.
Telsey Advisory Group Reaffirms Outperform Rating and $10 Price Target for Westrock Coffee
Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform is designed to help traders succeed in the markets by providing accurate stock market intelligence.
Willis Lease Unveils $392.9 Million Fixed Rate Notes Offering
Financing Announcement: Willis Lease Finance Corporation's subsidiary, WEST, plans to offer $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, secured by a portfolio of 47 aircraft engines and 2 airframes.
Use of Proceeds: The proceeds from the Notes will cover fees related to the offering, establish reserve accounts, and pay WLFC for the acquisition of aircraft engines and airframes over a 270-day period.
Regulatory Compliance: The Notes will not be registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, adhering to specific regulatory exemptions.
Forward-Looking Statements: The announcement includes forward-looking statements that carry risks and uncertainties, with actual results potentially differing due to various market and operational factors.
Insider Buying Update for Monday, November 24: BFLY and WEST
Insider Buying at Butterfly Network: Larry Robbins purchased 2,800,000 shares of Butterfly Network (BFLY) for $6.78M at $2.42 each, seeing a 27.9% gain when shares peaked at $3.10 on Monday, marking his first buy in a year.
Insider Buying at Westrock Coffee: Director Robert Patrick Kruczek bought 150,000 shares of Westrock Coffee for $620,950 at $4.14 each, following a previous purchase of $1.02M shares at $6.82 each within the last year, while the stock is down 0.7% on Monday.
Westrock Coffee Projects $60M-$65M Adjusted EBITDA for 2025 Amid New Product Launches and Capital Investment
Management Performance: Westrock Coffee Company reported record-breaking quarterly results for Q3 2025, with a 14% increase in Adjusted EBITDA to $26.2 million, driven by new customer volume and effective cost management. CEO Scott Ford emphasized the company's goal to be a leading supplier in the beverage industry and highlighted significant production advancements at their Conway facility.
Financial Results: The company experienced a 61% increase in net sales compared to Q3 2024, although it reported a net loss of $19.1 million due to ongoing investments in the Conway facility. Consolidated Adjusted EBITDA rose 125% year-over-year, with strong performance in both Beverage Solutions and SS&T segments.
Outlook and Guidance: For 2025, Westrock updated its guidance for Consolidated Adjusted EBITDA to between $60 million and $65 million, while segment-specific expectations were also provided. However, uncertainty looms for 2026 due to a major customer's M&A transaction affecting their volume commitments.
Risks and Concerns: Management identified elevated coffee prices, tariffs, and uncertainties from a key customer's M&A as ongoing risks. Despite these challenges, they expressed confidence in their operational strategies and financial flexibility to navigate potential headwinds.
Westrock Coffee (WEST) Q3 2025 Earnings Report Transcript
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Westrock Coffee Company (WEST) Announces Q3 Loss but Exceeds Revenue Projections
Quarterly Performance: Westrock Coffee Company reported a quarterly loss of $0.05 per share, matching the Zacks Consensus Estimate, with revenues of $354.83 million, exceeding expectations by 24.20%.
Stock Outlook: The company's shares have declined by 33.7% this year, and its Zacks Rank is currently #3 (Hold), indicating expected performance in line with the market.
Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $295.37 million, while the current fiscal year estimate is -$0.29 on $1.08 billion in revenues.
Industry Context: The Beverages - Soft drinks industry is ranked in the bottom 41% of Zacks industries, suggesting that the overall industry outlook could significantly impact Westrock's stock performance.
Telsey Advisory Group Reaffirms Outperform Rating and $10 Price Target for Westrock Coffee
Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform is designed to help traders succeed in the markets by providing accurate stock market intelligence.
