Westrock Coffee announced record-breaking fourth-quarter and full-year 2025 results, driven by new customer volumes and the completion of its Conway, Arkansas facility. Management highlighted a shift from construction to regular operations, with expectations for EBITDA growth in 2026. The company reported a net loss but exceeded key financial outlooks.
Westrock Coffee (NASDAQ:WEST) shared its 2025 financial performance during an earnings call, describing the year as a transition marked by significant investments in its Conway facility. Consolidated net sales rose 40% compared to 2024, though the company posted a net loss of $90.4 million, which executives linked to ongoing investments and facility scale-up.
In the Beverage Solutions segment, adjusted EBITDA reached $68.5 million, a 28% increase from 2024 and surpassing the guided range of $63 million to $68 million. The Sustainable Sourcing and Traceability (SS&T) segment saw adjusted EBITDA of $16.5 million, exceeding the $14 million to $16 million outlook and more than doubling from $6.4 million the previous year.
CEO Scott Ford noted the company has transitioned from 'construction mode into regular daily operations,' with capital expenditures dropping to $89 million in 2025 from $160 million in 2024. Over three years, investments totaled about $360 million in the Conway extract and ready-to-drink facility, now fully operational. For 2026, capital spending is projected at $30 million, mainly for maintenance, and Ford indicated higher utilization ahead, stating the facility is 'scheduled to be busting the seams in 27.'
Volume growth included a 29% rise in single-serve cup volumes and a 6% increase in core roast and ground coffee. However, a major single-serve customer departed in the fourth quarter, representing an annualized $30 million run rate, with half realized in 2025. Management does not assume replacement in 2026 guidance, expecting some volume back late 2026 and full recovery by late 2027.
CFO Chris Pledger emphasized that elevated coffee prices inflate revenues under the pass-through model but do not alter absolute margins, advising focus on dollar profitability and EBITDA. The company guided 2026 adjusted EBITDA to $90 million to $100 million, a 29% to 44% increase, with free cash flow positivity in the second half. Net leverage ended at 3.85 times, below the 4.5 times target, supported by $105 million in unrestricted cash and availability.
