Canada's Winpak Q2 revenue rises on higher selling prices, favorable product mix 

Overview

• Canada packaging materials maker's Q2 revenue rose 7.9% yr/yr

• Q2 net income attributable to equity holders rose 11.3% yr/yr, with EPS at $0.57

• Higher gross profit from selling price increases and cost-efficient sourcing boosted earnings

Outlook

• Winpak forecasts 2026 capital expenditures between $70 mln and $80 mln

• Company says ongoing Middle East uncertainty may continue to impact operating costs and working capital

• Winpak expects to onboard new poultry, dairy, pet food and creamer business in H2 2026

Result Drivers

• SELLING PRICE INCREASES - Higher selling prices and favorable product mix contributed $15.7 mln to Q2 revenue growth

• GROSS MARGIN IMPROVEMENT - Gross profit margin rose as selling prices outpaced raw material cost increases, supported by fuel surcharges and cost-efficient aluminum sourcing

• SEGMENT MIXED PERFORMANCE - Specialized printed packaging and lidding volumes grew, while specialty films and packaging machinery volumes declined due to weaker demand and economic uncertainty

Company press release: ID:nCNWP2dlwa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers packaging peer group is "buy."

• Wall Street's median 12-month price target for Winpak Ltd is C$47.00, about 6.1% above its July 22 closing price of C$44.29

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 22 - Sonoco Q2 profit beats estimates driven by Industrial Paper Packaging

• July 22 - Packaging Corp Q2 adjusted EPS falls less than expected, helped by strong demand

• July 23 - Finland's Huhtamaki Q2 net sales flat, comparable growth 2%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)