Winpak (WPK) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 2.9% year-over-year to $284.8 million, driven by 2.5% volume growth and modestly higher selling prices.

• Net income attributable to equity holders declined 2.7% to $34.6 million, impacted by lower net finance income.

• Gross profit margin remained stable at 31.1% of revenue, with higher selling prices and lower raw material costs offset by increased production waste and inventory obsolescence.

Financial highlights

• EBITDA for Q1 2025 was $58.1 million, up from $55.9 million in Q1 2024.

• Basic and diluted EPS were 56 cents, up from 55 cents in the prior year.

• Cash and cash equivalents decreased by $140.8 million to $356.5 million at quarter-end, mainly due to dividend payments and share repurchases.

• Operating cash flow before working capital changes was $58.4 million.

Outlook and guidance

• Sales volume growth for the remainder of 2025 is expected to be 4–6%.

• Gross profit margins are projected to remain in the 31–32% range for the rest of 2025.

• Capital expenditures for 2025 are forecast at $110–130 million, with major facility expansion to be completed by year-end.

• Potential for record net income in 2025, though tariff changes could significantly impact results.