Business Overview and History
Sealed Air Corporation (SEE) is a leading global provider of innovative packaging solutions that integrate sustainable, high-performance materials, automation, equipment, and services. The company's comprehensive portfolio of brands, including CRYOVAC, LIQUIBOX, SEALED AIR, AUTOBAG, and BUBBLE WRAP, caters to diverse end markets ranging from fresh proteins and foods to e-commerce, logistics, and industrial applications.
Sealed Air's origins date back to 1957 when Marc Chavannes and Alfred Fielding invented the iconic Bubble Wrap cushioning material. The company was incorporated in 1960 as Sealed Air Corporation and began publicly trading on the New York Stock Exchange in 1964. Over the following decades, Sealed Air expanded its product portfolio and global footprint through organic growth and strategic acquisitions.
A major milestone for the company occurred in 1998 when Sealed Air acquired Cryovac, a leading provider of food packaging solutions. This transformative deal allowed Sealed Air to significantly expand its presence in the food packaging market. However, the Cryovac acquisition also brought with it complex legal challenges related to asbestos claims, which Sealed Air worked to resolve over many years.
Throughout the 2000s and 2010s, Sealed Air continued to strengthen its position as a global packaging leader through the development of innovative products and solutions. This included the launch of the AUTOBAG brand automated packaging systems and the LIQUIBOX brand for liquid packaging. The company also made several strategic acquisitions, such as the purchase of Automated Packaging Systems in 2019.
Despite its growth and innovation, Sealed Air has faced its share of challenges over the years. The company had to navigate global economic downturns, raw material cost fluctuations, and changing consumer preferences around sustainability. Sealed Air responded to these pressures by implementing restructuring programs, optimizing its manufacturing footprint, and investing in more environmentally-friendly packaging solutions.
Today, Sealed Air operates in over 117 countries and serves a diverse range of end markets, including food processing, e-commerce, and industrial manufacturing. The company's portfolio of leading brands, global scale, and focus on innovation have been key to its success in the highly competitive packaging industry.
Financial Performance and Ratios
In 2024, Sealed Air reported total revenue of $5.39 billion, a slight decrease of 1.8% year-over-year. The company's net income for the year stood at $269.5 million, with diluted earnings per share of $1.81. Sealed Air's operations are organized into two reportable segments: Food and Protective.
The Food segment, which accounted for 66.4% of the company's 2024 revenue, provides integrated packaging materials and automated equipment solutions to industrial food processors, food service businesses, and food retailers. This segment generated $3.58 billion in net sales with a gross profit of $1.09 billion and a gross margin of 30.5%. The Food segment's offerings are designed to increase food safety, extend shelf life, reduce food waste, and optimize processing efficiency for customers. Key brands within the Food segment include CRYOVAC and LIQUIBOX.
The Protective segment, responsible for the remaining 33.6% of 2024 revenue, serves a diverse range of industries, including e-commerce, consumer goods, pharmaceutical, and industrial manufacturing. This segment reported net sales of $1.81 billion with a gross profit of $533.8 million and a gross margin of 29.5%. The Protective segment's solutions are focused on protecting goods during transit, increasing packaging velocity, minimizing waste, and reducing labor dependencies. Notable Protective segment brands include SEALED AIR, AUTOBAG, and BUBBLE WRAP.
Sealed Air has maintained a strong financial profile, with a robust balance sheet and disciplined capital allocation strategy. As of December 31, 2024, the company reported total assets of $7.02 billion and total liabilities of $6.40 billion, resulting in a debt-to-equity ratio of 4.40.
The company's liquidity position remains healthy, with cash and cash equivalents of $371.8 million and $1.0 billion in available credit facilities as of the end of 2024. Sealed Air's free cash flow generation has been impressive, with $507.8 million in free cash flow for the full year 2024, representing a cash conversion ratio of 1.92.
Key financial ratios for Sealed Air as of December 31, 2024, include:
- Current Ratio: 1.15
- Quick Ratio: 0.72
- Debt-to-Equity Ratio: 4.40
- Return on Equity: 41.1%
- Return on Invested Capital: 14.2%
Sustainability and Innovation Initiatives
Sustainability is a core focus for Sealed Air, as the company recognizes the growing importance of environmentally responsible packaging solutions. The company has committed to advancing the circular economy through its design and development of recyclable, renewable, and recycled content packaging offerings.
Sealed Air's innovation efforts are centered around developing sustainable materials, improving automation and equipment, and enhancing digital capabilities to better serve its customers. In 2024, the company launched several new products, including its fiber-based mailer solutions and substrate-agnostic auto bagging systems, which enable customers to transition towards more eco-friendly packaging alternatives.
Leadership Transition and Strategic Priorities
In February 2025, Sealed Air announced a leadership transition, with Dustin Semach, previously the company's President and Chief Financial Officer, being promoted to the role of Chief Executive Officer. This change came after a brief tenure of Patrick Kivits, who had joined the company in mid-2024.
Under Semach's leadership, Sealed Air is focused on the following strategic priorities:
- Accelerating customer focus and end-market alignment within the Food and Protective segments
- Driving productivity improvements and cost optimization initiatives, including the closure of two manufacturing facilities by the end of 2025
- Strengthening the company's portfolio of sustainable and automated packaging solutions to better serve evolving customer needs
- Maintaining a disciplined approach to capital allocation, with a target of reducing net leverage to approximately 3.0x by the end of 2026
Outlook and Challenges
For the full year 2025, Sealed Air expects net sales to be in the range of $5.1 billion to $5.5 billion, representing flat to low single-digit growth on a constant currency basis. The company's adjusted EBITDA guidance for 2025 is between $1.075 billion and $1.175 billion, implying a margin of approximately 21%. Adjusted EPS is expected to be in the range of $2.90 to $3.30 per share, with the midpoint representing constant currency growth of 2%. Free cash flow is projected to be approximately $400 million, with capital expenditures expected to be around $220 million.
For the first quarter of 2025, Sealed Air anticipates net sales of about $1.26 billion, adjusted EBITDA of approximately $260 million, and adjusted EPS between $0.65 and $0.70 per share.
While Sealed Air's Food segment is anticipated to deliver consistent low single-digit volume growth, with constant dollar sales growth of 2% primarily from price, the Protective segment continues to face near-term headwinds, particularly in its industrial and fulfillment portfolios. The company projects full-year sales for the Protective segment to be down 3% year-over-year, with challenges in the first half and an expected inflection in volumes during the second half of 2025.
Macroeconomic uncertainties, such as the impact of tariffs, supply chain disruptions, and foreign exchange volatility, may pose challenges for Sealed Air in the coming year. However, the company's diversified global footprint, strong customer relationships, and commitment to innovation position it well to navigate these market dynamics.
Global Presence and Human Capital
Sealed Air has a significant global presence, with 47% of its net sales in 2024 coming from outside the United States. The company sells its products in 117 countries and territories, with no single country outside the U.S. accounting for more than 10% of net sales. This global footprint provides Sealed Air with diversification and growth opportunities across various markets.
As of December 31, 2024, Sealed Air employed approximately 16,400 people worldwide, with the largest component being 10,600 direct manufacturing employees. The company's workforce is relatively stable and does not experience significant seasonal fluctuations. Approximately 32% of Sealed Air's employees are located outside the United States, reflecting the company's global operations and diverse talent pool.
Conclusion
Sealed Air's legacy as an industry pioneer, coupled with its focus on sustainable packaging solutions and continuous product innovation, has solidified its position as a leader in the global packaging market. As the company navigates near-term headwinds in its Protective segment, Sealed Air's strategic initiatives and leadership transition are aimed at leveraging its strengths to drive long-term growth and value creation for shareholders.
The company's balanced approach to capital allocation, focus on profitable organic growth, and commitment to innovation in sustainable packaging solutions position it well for future success. With a strong global presence, diverse product portfolio, and clear strategic priorities, Sealed Air is poised to capitalize on growth opportunities in its key end markets while addressing the evolving needs of customers and consumers worldwide.