Ranpak Q3 Revenue Rises 2.3% on Automation Growth

Ranpak Holdings reported higher third-quarter revenue and adjusted EBITDA as strong automation equipment sales and North American growth outweighed softer Protective Packaging Solutions volumes in Europe and Asia. Net revenue increased 2.3% year over year to $101.9 million for the quarter ended September 30, 2026, or 3.4% on a constant-currency basis, despite a 110-basis-point foreign-exchange headwind.

Automation was the main growth driver, with revenue from the product line rising 22.7%, or 23.5% at constant currency. North American revenue increased 6.9%, supported by a 36.1% rise in automation equipment sales and positive contributions from the Protective Packaging Solutions distribution channel. Cushioning and wrapping growth more than offset lower void-fill volumes, with cushioning benefiting from traction for the company’s Guardian unit.

Europe and Asia revenue declined 1.5% on a reported basis but increased 0.5% at constant currency. Automation equipment sales in the regions rose 16.9%, though that gain was more than offset by a 4.9% decline in Protective Packaging Solutions volume as EMEA channel customers reduced inventory following a strong second quarter.

Across the company, constant-currency revenue growth reflected a 3.5% contribution from pricing or mix in paper consumables and a 2.8% increase from automation equipment sales. Those gains were partly offset by a 2.5% decline in Protective Packaging Solutions volume and a 0.4% non-cash reduction related to the provision for warrants.

Margins improve as costs decline

Gross profit increased 5.5% to $36.3 million, while gross margin expanded to 35.6% from 34.5% a year earlier. Ranpak attributed the improvement to efficiency gains and cost discipline, including procurement and continuous-improvement initiatives. The result included a $0.4 million year-over-year increase in the non-cash provision for warrants.

Selling, general and administrative expenses decreased 13.2% to $25.7 million as cost-reduction measures implemented in 2025 took effect. Excluding stock-based compensation, SG&A fell 10.9%.

Adjusted EBITDA, a non-GAAP measure, rose 5.1% to $22.5 million from $21.4 million and increased 6.1% at constant currency. Adjusted EBITDA margin reached 22.1%, compared with 21.5% in the prior-year quarter. The current-period figure included a $1.2 million non-cash reduction from the warrant provision, versus $0.8 million a year earlier.

On a GAAP basis, the quarterly net loss narrowed to $7.2 million, or $0.08 per diluted share, from $10.4 million, or $0.12 per share, a year earlier. The operating result was approximately break-even on a rounded basis, compared with a $5.7 million operating loss in the third quarter of 2025.

For the first nine months of 2026, net revenue increased to $308.3 million from $283.1 million, representing constant-currency growth of 6.6%. Adjusted EBITDA rose 9.6% to $60.5 million, or 6.0% at constant currency, while the year-to-date GAAP net loss narrowed to $25.3 million from $28.8 million.

Automation and cash generation remain priorities

Ranpak said automation remains on track to generate $60 million of revenue in 2026. Management also identified margin enhancement, cost discipline and cash generation as key priorities.

The installed system base remained 1.9% below the prior-year level, which the company attributed to efforts to improve fleet utilization. It increased 0.8% sequentially from the second quarter, driven by void-fill placements.

Ranpak ended the quarter with $53.4 million in cash, an increase of $10 million from the second quarter, and no borrowings under its revolving credit facility. The company expects its cash balance to continue improving in the fourth quarter because of seasonality and working-capital movements.

The adjusted EBITDA net leverage ratio stood at 4.3 times as of September 30, while the bank adjusted EBITDA leverage ratio was 3.7 times under the covenant calculation. Ranpak had $402.8 million of U.S. dollar-denominated first-lien term loans outstanding, with $4.1 million of annual principal payments required until maturity in December 2031.

The company identified risks including paper availability and kraft paper pricing, higher labor, energy and freight costs, reliance on third-party suppliers, tariffs and geopolitical disruption. Other uncertainties include competition, customer inventory rebalancing, changing demand for paper products, customer losses, macroeconomic conditions and the market acceptance of new products. The quarterly figures were preliminary and unaudited.