Westrock Coffee rang up a record $280.86 million in sales during Q2 2025, outpacing last year by 34.8%. Yet, the company still posted its fourth straight loss after costs tied to new factories and higher interest payments weighed on profits.
Westrock smashes Q2 sales record at $280.9M, yet margins sink as factory costs widen its fourth straight loss.
The sales performance beat Wall Street’s target by 17.9%. Revenue drivers came from every major line of business. The Beverage Solutions unit, which makes ready-to-drink coffees and concentrates, lifted net sales 27.9% to $208.8 million. Demand rose for single-serve pods and cold brew concentrates, and new plants in Conway, Arkansas and Hattiesburg, Mississippi added extra capacity. Caffeine Concentration Levels play a significant role in customer preferences as they often seek stronger options.
The Sustainable Sourcing & Traceability segment chipped in $72 million, up 59.6%, as more large coffee chains paid premium prices for responsibly sourced beans. Trailing-twelve-month revenue climbed to $944.5 million, a sharp rebound from last year’s small dip to $850.7 million. Analysts note that the firm’s combined segments now reach diverse customers and reduce dependence on any single channel.
Despite the surge, the bottom line stayed red. Net loss widened to $21.56 million, or 23 cents a share, worse than the expected 15-cent shortfall. Management blamed startup costs for the new plants and rising interest rates on debt. Gross profit was flat year-over-year, and operating margins stayed under pressure. Post-earnings stock performance showed a 4.99% decline as investors weighed the widening losses against revenue momentum. The $597.61 million market cap reflects the market’s cautious stance amid the persistent losses.
Operations did show progress. Two new factories opened on schedule, and sustainable sourcing deals expanded to nearly 20% of total bean volume. CEO Scott Ford told investors that output capacity is now 40% higher than a year ago, though he warned that heavy capital spending will continue through 2025.
Investors sold the stock anyway. Shares slipped 4.99% after the report and are down 17% in the past month. The price-to-sales ratio sits at 0.62, reflecting investor caution. Revenue per employee is about $670,000 among the 1,408-person workforce.
Westrock’s outlook remains tied to balancing rapid growth with cost control. Management reiterated that profitability is expected in 2026 once the new plants reach full efficiency.
