Westrock Coffee (NASDAQ:WEST) reported what management called “record-breaking” fourth quarter and full-year 2025 results, pointing to new customer volume additions, the completion and scale-up of its Conway, Arkansas facilities, and ongoing cost and operational execution as key drivers.
On the call, co-founder and CEO Scott Ford said the company has moved from “construction mode into regular daily operations,” marking what he described as a pivotal moment as capital spending declines and the business targets free cash flow generation. CFO Chris Pledger added that the company exceeded its previously communicated outlook across key metrics and expects another year of EBITDA growth in 2026.
Full-year 2025 results and fourth-quarter momentum
Consolidated net sales increased 40% over 2024, according to Pledger. The company reported a net loss of $90.4 million, which management attributed to continued investment and the scale-up of Conway during 2025.
- Beverage Solutions segment adjusted EBITDA: $68.5 million (up 28% versus 2024), above the high end of the company’s $63 million to $68 million outlook range.
- SS&T segment adjusted EBITDA: $16.5 million, above the company’s $14 million to $16 million outlook range and more than doubling from $6.4 million in 2024.
Operational transition as Conway build-out completes
Management framed 2025 as a transition year, with the Conway extract and ready-to-drink (RTD) facility moving from construction into full operations. Pledger said the company invested approximately $360 million in capital expenditures over the past three years to build and commercialize the facility, and that “that investment phase is now complete.”
Capital expenditures were approximately $89 million in 2025, down from roughly $160 million in 2024. For 2026, the company expects total capital expenditures of about $30 million, which Pledger said will be mostly routine maintenance capital.
During Q&A, Ford confirmed that the lines at Conway are “all up and running,” but both he and Pledger said the company will provide fewer detailed utilization disclosures now that construction is complete. Ford said 2025 utilization will be higher in 2026, and the company is “scheduled to be busting the seams in 27.”
Volume drivers, customer changes, and product expansion
Within Beverage Solutions, Pledger attributed EBITDA growth to several factors discussed on the call, including:
- The launch of an RTD can line mid-year and continued ramp of multi-serve bottle volumes.
- A 29% increase in single-serve cup volumes across legacy and new customers.
- A 6% increase in core roast and ground coffee volumes.
Ford also addressed a previously disclosed uncertainty around a large single-serve customer involved in an M&A transaction. He said the customer “moved out entirely” during the fourth quarter of 2025. In response to an analyst question, management said the annualized run rate expected in 2026 from that customer was about $30 million, with roughly half a year of performance in 2025. Management said its 2026 guidance does not assume the capacity is refilled.
On timing to replace the departed volume, Ford said some replacement could arrive in late 2026, with an expectation that “all of it” would be running by late 2027.
Strategically, Ford said Westrock is aiming to be an integrated supplier across coffee, tea, energy, and now high-protein beverages. He provided two operational updates:
- The company has completed product development and commercialization for its first high-protein beverage for a leading CPG brand, with production expected to begin in the fall.
- Following water and tank farm upgrades, the Conway facility is now capable of producing not only milk-based RTD beverages and extracts but also traditional canned energy drinks. Ford said the company expects to be in production by the fall with customers in carbonated water, seltzer, and soda.
Commodity price mechanics and cost structure commentary
Pledger emphasized that elevated coffee commodity prices affected reported revenue and margin percentages due to the company’s pass-through pricing model. He said higher commodity costs inflate revenue while the absolute dollar margin earned stays consistent, which compresses reported margin percentages. Pledger encouraged investors to focus on “absolute dollar profitability and EBITDA growth” as more meaningful indicators of business performance.
He also noted that full-year Beverage Solutions EBITDA included about $17.4 million of short-term incentive compensation expense that was not incurred in 2024 because performance targets were not met in the prior year.
On operating leverage, management said the platform is positioned to take on higher volumes without proportional cost increases. Pledger told analysts that from 2025 to 2026, SG&A is expected to be flat to down, and that EBITDA growth should be driven primarily by running more volume through the facility without having to add significant costs.
Balance sheet position and 2026 outlook
Ford said the company outperformed its deleveraging goals, despite 2025 being the final year of elevated capital spending tied to plant construction. At year-end 2025, the Beverage Solutions secured net leverage ratio was 3.85x (Ford referenced 3.9x), better than the company’s 4.5x target. Pledger said Westrock ended the year with approximately $105 million of unrestricted cash and revolver availability under its Beverage Solutions credit facility and remained in compliance with its credit agreement.
For 2026, the company guided to consolidated adjusted EBITDA of $90 million to $100 million, representing 29% to 44% growth year over year. Ford said the customer departure is a key reason 2026 growth is lower than earlier expectations, while Pledger said leverage is expected to be relatively flat to slightly improved in 2026, with more meaningful deleveraging beginning in 2027 as volumes normalize.
With lower expected capital expenditures and ongoing EBITDA expansion, Pledger said the company expects to be free cash flow positive in the second half of 2026. He also noted that Westrock will no longer provide segment adjusted EBITDA guidance or Beverage Solutions net leverage guidance, saying a single consolidated metric better reflects how management runs the business as it enters a more streamlined operating phase.
About Westrock Coffee (NASDAQ:WEST)
Westrock Coffee Company is a global integrated coffee roaster and manufacturer that delivers end-to-end solutions across the coffee and tea supply chain. The company sources, roasts, blends, packages and distributes a diverse range of products, including hot and cold brew coffee, single-serve pods, instant and soluble coffee, tea, and specialty coffee extracts. Serving retail, convenience, foodservice and industrial customers, Westrock Coffee offers both private-label and co-packed branded products to meet the needs of supermarkets, quick-service restaurants, office coffee services and other channels.
Since its founding in 2008, Westrock Coffee has grown through a combination of organic expansion and strategic acquisitions to establish manufacturing facilities across North America, Latin America and Europe.
