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Westrock Coffee Co.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 10 March 2026: press release. Guidance figures: 2 new. The quarter’s numbers.

Key takeaways

  • Full-year net sales rose 39.8%: Net sales for 2025 were $1.2 billion, up 39.8% from the prior year. Net loss was $90.4 million, compared with $80.3 million in 2024. Source
  • Full-year gross profit fell 2.0%: Gross profit was $150.8 million, down 2.0%, while net sales rose 39.8% over the same year. Source
  • Full-year Consolidated Adjusted EBITDA rose: Consolidated Adjusted EBITDA was $69.7 million for 2025 against $47.2 million in 2024. The fourth-quarter figure was $23.0 million against $13.3 million. Source
  • Beverage Solutions sales rose 37.8%: Beverage Solutions net sales were $908.4 million for 2025. Segment Adjusted EBITDA was $68.5 million, an increase of 27.7%. Source
  • Customer demand shapes 2026 projections: Projections incorporate customer demand after recently announced industry consolidation and expectations for end-consumer demand for RTD glass and can volumes. Source
  • Full-year Conway scale-up costs totaled $15.3 million: Full-year scale-up costs of $15.3 million were included in 2025 Consolidated Adjusted EBITDA, compared with $12.8 million in 2024. Source
  • Covenant compliance stated at release date: Beverage Solutions secured net leverage ratio was 3.85x at December 31, 2025. As of the release date, the company said it was in compliance with its financial covenants. Source
  • Focus turns to volume and margin: Management said the focus now shifts to driving volume, optimizing product mix and maximizing margin across the platform. Source

“As we turn the page on 2025, we are pleased with the progress made toward becoming the premiere integrated, strategic supplier to the pre-eminent global coffee, tea and energy beverage brands, as evidenced by our record results.”

Scott T. Ford, CEO and Co-founder

Guidance

AreaPeriodFigureAgainst last quarter
Consolidated Adjusted EBITDA Source2026 full year$90.0 million to $100.0 millionNew
Consolidated Adjusted EBITDA growth Source2026 compared with full year 202529% to 44%New

What changed from last quarter

  • New guidance: Numeric 2026 Consolidated Adjusted EBITDA guidance of $90.0 million to $100.0 million was given. The updated 2026 guidance supersedes previously disclosed guidance. Source

Full-year and fourth-quarter results

  • Full-year net sales rose 39.8%: Net sales for 2025 were $1.2 billion, up 39.8% from the prior year. Net loss was $90.4 million, compared with $80.3 million in 2024. Source
  • Full-year gross profit fell 2.0%: Gross profit was $150.8 million, down 2.0%, while net sales rose 39.8% over the same year. Source
  • Full-year Consolidated Adjusted EBITDA rose: Consolidated Adjusted EBITDA was $69.7 million for 2025 against $47.2 million in 2024. The fourth-quarter figure was $23.0 million against $13.3 million. Source
  • Fourth-quarter net loss was $22.6 million: Fourth-quarter net loss was $22.6 million against $24.6 million a year earlier. Fourth-quarter gross profit was $38.9 million, up 2.3%. Source
  • Fourth-quarter net sales rose 48.3%: Fourth-quarter net sales were $339.5 million, up 48.3%. Both Beverage Solutions and SS&T net sales rose in the quarter. Source
  • 2025 results against November guidance: 2025 Consolidated Adjusted EBITDA of $69.7 million was above the $60.0 million to $65.0 million range. Beverage Solutions ($68.5 million) and SS&T ($16.5 million) were also above their ranges. Source

Segment results

  • Beverage Solutions sales rose 37.8%: Beverage Solutions net sales were $908.4 million for 2025. Segment Adjusted EBITDA was $68.5 million, an increase of 27.7%. Source
  • Sustainable Sourcing sales rose 46.6%: Sustainable Sourcing & Traceability net sales were $280.5 million for 2025. Segment Adjusted EBITDA was $16.5 million, against $6.4 million in 2024. Source
  • Fourth-quarter Beverage Solutions sales rose 56.6%: Fourth-quarter Beverage Solutions net sales were $272.5 million. Segment Adjusted EBITDA was $18.8 million, an increase of 5.4%. Source
  • Fourth-quarter SS&T sales rose 21.9%: Fourth-quarter SS&T net sales were $66.9 million. Segment Adjusted EBITDA was $5.5 million, against $3.1 million a year earlier. Source

“With the build-out and commercialization of our Conway extracts and ready-to-drink facility in our rearview mirror, our focus shifts to driving volume, optimizing our product mix and maximizing margin across our platform.”

Scott T. Ford, CEO and Co-founder

Demand and 2026 projections

  • Customer demand shapes 2026 projections: Projections incorporate customer demand after recently announced industry consolidation and expectations for end-consumer demand for RTD glass and can volumes. Source
  • Demand uncertainty cited in November: The November release cited uncertain customer demand from industry consolidation and elevated coffee prices and tariffs, and said 2026 guidance would be re-evaluated.
  • Projections exclude acquisitions and capital markets: The 2026 estimate is what the company believes is realizable as of the release date. It excludes future acquisitions and capital markets activities. Source

Conway facility scale-up costs

  • Fourth-quarter Conway scale-up costs declined: Scale-up costs at the Conway Facility were $1.4 million in the fourth quarter, against $7.6 million in the prior year period. Source
  • Pre-production costs added back: Conway pre-production costs were added back to Consolidated Adjusted EBITDA: $24.7 million for 2025, $35.5 million for 2024, and $6.0 million in the fourth quarter. Source
  • Full-year Conway scale-up costs totaled $15.3 million: Full-year scale-up costs of $15.3 million were included in 2025 Consolidated Adjusted EBITDA, compared with $12.8 million in 2024. Source

Cash, debt and covenants

  • Operating cash used rose: Net cash used in operating activities was $19.0 million for 2025, against $13.2 million for 2024. Inventory build used $46.9 million in the year. Source
  • Capital additions declined: Additions to property, plant and equipment were $88.8 million in 2025, against $159.6 million in 2024. Source
  • Covenant compliance stated at release date: Beverage Solutions secured net leverage ratio was 3.85x at December 31, 2025. As of the release date, the company said it was in compliance with its financial covenants. Source
  • Secured debt balances at year-end: Beverage Solutions secured debt totaled $337.8 million at year-end, including the $145.5 million term loan, $45.3 million delayed draw term loan and $145.0 million revolver. Source
  • Convertible notes issued November 2025: The company sold $30.0 million of 5.00% convertible senior notes due 2031 on November 4, 2025, with a conversion price of $5.25 per share.
  • Shareholders' equity turned to deficit: Total shareholders' equity was a deficit of $1.9 million at December 31, 2025, against equity of $97.5 million a year earlier. Accumulated deficit was $534.4 million. Source

Strategy and focus

  • Conway build-out behind the company: Management said the Conway extracts and ready-to-drink facility build-out and commercialization are behind the company. Source
  • Premiere supplier goal restated: In the November release management said the company remained on track toward becoming the premiere integrated, strategic supplier.
  • Focus turns to volume and margin: Management said the focus now shifts to driving volume, optimizing product mix and maximizing margin across the platform. Source

Coming up, as management said on 10 March 2026

  • Covenant levels eased through Q3 2026: The credit agreement was amended to raise total net leverage compliance levels and lower minimum interest coverage levels through the third quarter of 2026.

Risks management discussed

  • Demand: Management tied 2026 estimates to uncertainty about customer demand from industry consolidation and end-consumer demand for RTD glass and can volumes. Source
  • Financial: Failure to comply with credit agreement covenants or to make payments when due could trigger an event of default. The company said it was in compliance at the release date. Source

Earlier plans management reported on

  • On track: In November management said it remained on track toward becoming the premiere integrated, strategic supplier.
  • Not stated: Full-year 2025 Consolidated Adjusted EBITDA was $69.7 million, compared with the $60.0 million to $65.0 million range from the November 6, 2025 release. Source
  • Not stated: Year-end Beverage Solutions secured net leverage was 3.85x, compared with the 4.50x level in the November 6 leverage guidance. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.