Thank you, and good morning, everyone. Before we begin, I'd like to remind you that we will discuss forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our Form 10-K and our other filings filed with the SEC. Some of the statements and responses to your questions in this conference call may include forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements.

Ranpak assumes no obligation and does not intend to update any such forward-looking statements. You should not place undue reliance on these forward-looking statements, all of which speak to the company only as of today.

The earnings release we issued this morning and the presentation for today's call are posted on the Investor Relations section of our website. A copy of the release has been included in a Form 8-K that we submitted to the SEC before this call.

We will also make a replay of this conference call available via webcast on the company website. For financial information that is presented on a non-GAAP basis, we have included reconciliations to the comparable GAAP information.

Please refer to the table and slide presentation accompanying today's earnings release. Lastly, we'll be filing our 10-Q with the SEC for the period ending June 30, 2026.

The 10-Q will be available through the SEC or on the Investor Relations section of our website. With me today, I have Omar Asali, our Chairman and CEO; and Bill Drew, our CFO.

Omar will summarize our second quarter results and market conditions, and Bill will provide additional detail on the financial results before we open up the call for questions. With that, I'll turn the call over to Omar.

Thank you, Sara. Good morning, everyone, and thank you for joining us today.

We are pleased with our second quarter results and how we have started the year as we continue to effectively navigate a dynamic environment. Our investments in automation are paying off as we experienced an exceptionally strong quarter in both North America and Europe.

Automation delivered another quarter of strong growth with revenue increasing 139% year-over-year on a constant currency basis and excluding the impact of warrants. The momentum has continued to build across North America and Europe.

In North America, we continue to experience strong activity with Walmart and Medline and are expanding the breadth of customers at a solid clip to start the year. In Europe, we are more established in that market as our automation product line began there and continue to experience broad-based activity.

We believe automation will be a strong growth engine for us for years to come. PPS volumes increased 2.4% year-over-year, marking growth in 11 out of the last 12 quarters.

Europe was the outperformer again as anticipated weakness following the start of the war has not immediately materialized to the extent we were concerned about. The trends we experienced in North America in the first quarter, where large enterprise outperformed while the distribution channel faced a challenging comparison persisted into Q2, but did improve somewhat in the latter part of the quarter.

Overall, we continue to expect to see improved performance in the distribution channel in the second half as the comparison normalizes and our new product initiatives in cushioning, void-fill and wrapping take hold. We're getting great receptivity to our new products such as Guardian 24, which has a smaller footprint relative to other units and provides meaningful cost savings versus foam.

Now more on to our results. Consolidated net revenue increased 12.2% on a constant currency basis for the quarter, or 12.6% excluding the impact of warrants, driven by an outstanding growth in automation equipment sales on a constant currency basis.

We also benefited from currency tailwinds in the quarter, which added 1.8 percentage points to top line growth on a reported basis in the quarter, bringing reported top line growth to 14% for the quarter and 12.5% on a year-to-date basis. Adjusted EBITDA increased $2.6 million to $19.1 million on a reported basis and was up 13.9% in constant currency terms.

Excluding the impact of warrants, adjusted EBITDA increased 15.8% on a constant currency basis and roughly in line with growth in sales and gross profit ex-depreciation on a constant currency basis. Now moving on to the market environment and how Ranpak is positioned.

The macro backdrop through the second quarter was noisy, to say the least. We saw oil prices hit multiyear highs in April and then fall back, consumer confidence plummet and then recover, and geopolitical tensions that started to fade have now heightened once again.

Against that volatility, the quarter ended in a better place than it started. Several months in, demand seems generally okay, but we see that customers remain understandably nervous about the impact higher oil and gas prices will have on input costs and the consumer and are therefore being conservative and focused on cost reduction.

The consumer at the lower end of the K economy is stretched as gas and energy prices remain elevated and other inflationary pressures for consumer goods persist. Recent improvement in consumer confidence is encouraging, but we would like to see it stabilize and also see it flow through to more durable sectors like housing and industrial activity before getting really bullish.

In the near term, we are focused on driving our value and sustainability proposition. We're getting good traction with our cushioning offerings versus foam-in-place and would expect that product to inflect soon.

In North America, the paper market has gotten somewhat tighter for the second half as producers try to push price increases. But from a competitive standpoint, we believe we remain well positioned against plastic and resin, where we saw meaningful price increases flow through in the second quarter.

We continue to be aggressive in pushing the sales team to accelerate the plastic to paper transition as this is a dynamic we have not seen in North America in years. In Europe, Dutch nat gas pricing has been volatile since the start of the conflict, moving from more than EUR 60 per megawatt hour at the end of Q1 back down to EUR 40, and now back in the mid-50s.

Paper producers in Europe have been passing on price since the beginning of Q2, and we, in turn, took steps to protect our margins through a temporary surcharge. We continue to be transparent with our customers.

And when conditions normalize, we will remove the surcharge. From a commercial perspective in Europe, we continue to emphasize the advantages we see for paper versus plastic as resin costs and availability in the region are experiencing greater pressures than what we are currently seeing flow through in the paper markets.

Conditions seem to be changing daily, but overall, we believe they remain manageable. Just as we are doing internally, companies everywhere are extremely focused on costs to minimize inflationary impact.

We remain disciplined on our spend and focused on improving our margin profile. We also see great pockets of opportunity that we are attacking with vigor, which we believe will be the bedrock for growth in years to come.

While the near term is somewhat uncertain, I remain very excited by Ranpak's offerings and positioning in the marketplace. With that, here is Bill with more info on the quarter.

Thank you, Omar. In the deck, you'll see a summary of some of our key performance indicators.

We'll also be filing our 10-Q, which provides further information on Ranpak's operating results. Overall, net revenue for the company in the second quarter increased 12.2% year-over-year on a constant currency basis, or an increase of 12.6% excluding the impact of warrants, driven by accelerating growth in automation, volume strength in EMEA/APAC and solid e-commerce growth in North America.

Our North America revenues increased 8.5% in the quarter, or up 9.4% excluding the impact of warrants, driven by more than 250% growth in Automation, excluding warrants, while PPS was a slight detractor as channel continued to face a tougher comp, and we lapped 14.8% volume growth in the prior year. Traction with Automation in North America continues to build, so we are excited about the outlook there.

In Europe and APAC, net revenue increased 15.4% on a constant currency basis, driven by 103.7% growth in Automation and 4.2% volume growth in PPS, driven largely by strength in EMEA, which is highly encouraging. Gross profit increased 17.6% on a constant currency basis in the quarter and would have increased 18.6%, excluding the $1.7 million noncash provision for warrants.

We continue to be very focused on improving our margin profile through the back half of the year and are pleased to report 150 bps improvement in gross margin versus Q2 of last year. In NOAM and PPS, where margins have been most pressured, we made continued progress through our efficiency gains and improved more than 250 bps, excluding depreciation versus the prior year.

In EMEA, there was some pressure due to the timing of the implementation of the surcharge versus when our input costs increased, but I feel good about what we are doing there. We continue to be pleased with the actions the teams are taking to take cost out and get more efficient.

Just a note on the consolidated gross margin, Automation being a larger contributor masks some of the progress we're making overall given the lower margin profile of that product line, but we do expect to continue to improve the margin of that product line as we scale. As we have shared before, Automation is a sale of capital goods, so there's minimal CapEx required to expand our sales.

We've invested in the facilities already and can serve as $100 million-plus in revenue in our existing footprint. Over time, as Automation becomes a larger component of our revenue profile, we expect you will see CapEx as a percentage of sales in Ranpak decline.

SG&A, excluding RSU expense, was down 3% on a constant currency basis versus the prior year. Consistent with what we've shared previously, we continue to prioritize cost discipline and margin expansion.

Keeping spend lean and putting our G&A investments to work against our fixed overhead is where we're focused. Getting Automation to breakeven on an adjusted EBITDA basis remains a key goal for us, and we believe we have line of sight to that as we approach $60 million in revenue this year.

As Omar mentioned, adjusted EBITDA increased 13.9% year-over-year on a constant currency basis, or up 15.8% excluding the impact of warrants, as greater sales and gross profit flowed through with slightly lower G&A. The constant currency calculation is based on a rate of $1.1323, which was last year's average rate for the quarter.

Beginning in Q3 of last year, there was considerable movement in the euro. So next quarter, if rates stay as they are, we will have a slight rate headwind for comparisons as the average euro-USD for Q3 2025 was $1.169 compared to $1.14 today.

So please note that for the remainder of the year. Moving to the balance sheet and liquidity.

We completed Q2 2026 with a strong liquidity position, with a cash balance of $43.2 million and no drawings on our revolving credit facility, bringing our reported net leverage to 4.5x on an LTM basis, which is down 0.2 turns from Q1. On cash, the first half of the year is typically a draw on cash.

And as previously shared, we made a $10 million follow-on investment in Pickle in Q1. We do expect cash to improve meaningfully in the back half of the year due to seasonality and our ability to free up some working capital.

Our goal remains to achieve between 2.5 to 3x turns, which we believe we can do over the next 24 months. Our CapEx for the quarter was $6.6 million, which is $3.2 million lower from prior year as we remain disciplined on spend, but continue investing in further production capacity to drive growth in key products in upcoming years in areas like cold chain and related to the growth plans for our enterprise customers.

With that, I'll turn it to Omar.

Thank you, Bill. Before I close, I want to touch on a few of our key initiatives and add some color on the rest of the year and into 2027.

Over the past several years, our strategy has been to build a best-in-class portfolio of end-of-line automation solutions and to partner with others who play key roles in the flow of goods through the warehouse. We believe there is tremendous value in Ranpak having as many touch points in the warehouse as possible.

It maximizes efficiency for our customers and gives us deep, sticky relationships with the most sophisticated customers in the world. From my perspective, there are a few bigger areas of opportunity than removing bottlenecks in the warehouse.

Between our own solutions and our partnerships with Pickle Robot and others, we now have the pieces in place across vision, physical AI and end-of-line automation. That means we can help companies maximize throughput, reduce labor dependency and improve accuracy at every step in the process.

How are we different in the industry? We've been building an integrated intelligence ecosystem to address these warehouse pain points, and we and our partners have access to some of the largest physical data sets in the world.

We believe that high-quality data cannot just be simulated in a model with the same impact and is exactly what you need to win with physical AI. We believe our ecosystem is genuinely unique and strategically advantaged in our pursuit of warehouse orchestration.

In the public realm, I don't know of anyone else who's doing what we are doing. These are the steps that have positioned us so well with our large enterprise customers and increasingly separate us in the industry.

We're very focused on partnering with our large enterprise customers at scale to deliver value-added and differentiated solutions while reducing our exposures to products we view as more commoditized and lower growth. The packaging needs of these players are changing rapidly, and Ranpak is pivoting to serve the opportunities we think can scale meaningfully and carry more value.

Let me turn to a few specifics for the second half. In Automation, we believe we are on track to hit the roughly $60 million in revenue this year.

That was my single biggest goal coming into 2026. Automation has real momentum in both North America and Europe, and I believe it is a business that should command a higher multiple in the public markets relative to protective.

In North America, we're pruning the PPS portfolio somewhat to improve the margin profile. And given the warrant relationship, we are trying to be mindful of where and how we participate in the consumables area.

In the second half, that means you could see us do less of the lower-margin business where we have been providing warrants to a level we are more comfortable with. Our capacity additions and development work we have been doing sets us up well to be able to participate in size for the larger and more attractive initiatives that we believe will begin to scale in 2027 and help us achieve our longer-term goals.

We continue to expect to meet our guidance for the year. We remain very confident in our outlook and the capacity we are building in the second half of 2026 positions us well to achieve our longer-term revenue targets while adjusting our portfolio more towards value-added solutions.

Talking about positioning for 2027, we're also building out more cold chain capacity in the second half. We believe that product line has hit an inflection point with our Climaliner Plus offering as an alternative to EPS foam.

The feedback in the marketplace has been outstanding, and we think it is poised for a step change in growth. Sustainable cold chain is one of the great opportunities out there right now.

And like Automation, it gives us another scalable revenue stream with low ongoing capital intensity. I'm extremely pleased with where we are and where we are headed.

It is never a straight line, but I have not been this excited about our product pipeline at any point in my time at Ranpak. I think we have some real game changers in the portfolio, and they will help drive us toward our goal of $800 million in top line by 2030.

We remain focused on growth while staying very disciplined on costs and operations to strengthen our margin profile. And I believe everything we are doing right now moves us in that direction.

With that, we'd like to open the line up for questions. Operator?

I guess, first off, on the Automation momentum that you're seeing so far this year, obviously, Q2 built on Q1. Can you just give us a sense, Omar, as it relates to whether these are existing customers that are proliferating the technology through their enterprises and production networks?

Is it new customers? How would you have us think about the split between the two?

Yes. It's actually both, Ghansham, which is quite exciting from our seat.

So you have some of the large enterprises, Walmart, Medline, which, again, we're helping them roll out in more facilities as well as new facilities, and that continues. And then what we're seeing is very decent activity with new customers.

So I'll highlight for you, we have formed a couple of key partnerships with integrators. One of them is one of the largest integrators in AS/RS.

And we've signed a partnership with them in the last few months and are rolling out some of their key accounts for end-of-line packaging. So it's a mix of both.

Clearly, the large enterprises will continue to drive a big part of the volume for the next couple of years, and that was part of our thinking. But we're seeing very good activity with new accounts.

And by the way, for the rest of the year, Ghansham, most of the revenue and our confidence in hitting the $60 million is contracted, and our funnel and pipeline for -- that we're building for '27 and, frankly, for 2028 is quite robust. So we really like the activity and how we're positioned in Automation.

Okay. That's helpful.

And then what is the impact on EBITDA specific to Automation in 2026 as it relates to the breakeven that you called out for the end of the year? And then if I could, on the paper business and the variability between EMEA and North America, just your thoughts as it relates to what's going on there?

Was -- did EMEA benefit from any sort of prebuy ahead of price increases, as they have done in the past during previous inflation cycles?

Sure. So on Automation, and I'll start there just with EBITDA, we still think we're on track for getting to breakeven later this year.

As you know, we're in the scaling phase. So as we scale more, which we're starting to get closer to that, we think the financial profile will improve significantly.

And the plan is to be sort of EBITDA-even towards the end of the year. And then starting next year, Automation will be an EBITDA-positive contributor.

So that's still intact. And based on what we're seeing in terms of volume and what we just discussed with both existing new accounts and the pipeline, we feel very, very confident that we're on track to hit that.

On PPS variability, I would say there's a couple of components here between Europe and U.S. One, in the U.S., we continue to see tremendous strong strength on the enterprise side and large customers.

The distribution channel has been a bit softer than we like. Frankly, our expectation, just from talking to them, is that you're going to see a pickup in that channel in the second half of the year.

So we're hoping to see some good activity there. And inventory and stock levels there are really, really small given just geopolitics, risk appetite in general.

In Europe, we're seeing better, broader strength. There was some prebuy earlier on, but our channel checking right now, Ghansham, show very, very low levels of inventory stocks, et cetera.

People are not stocked up. Obviously, people are trying to assess in Europe where the war is going and how that may impact energy prices and customer demand.

So I think the consumer there as well as some of our customers are being a little bit cautious. But as they get clarity on that, we'll see how volume trends behave.

But we're not entering Q3 with any high levels of stock or inventory at any of these customers. So we're expecting some decent activity.

But frankly, the war is a bigger factor in Europe than it is in North America.

Can you expand a little bit on the margins? I think, Bill, you mentioned that just there was a little bit of a timing between surcharge and input costs.

But just given what we're seeing in inflationary input costs, basically everywhere, your ability to pass through some of that and maybe just confidence level that you'll see a better margin profile in the second half?

Yes, sure. Happy to, Greg.

So as we said in the prepared statements, we did improve gross margin by about 150 bps year-over-year. So that was good to see.

There are some moving pieces related to that, right? In North America, we continue to make great progress being more efficient and taking cost out.

So the North America PPS business, we were able to improve margins by over 300 bps. In EMEA, as you pointed out, the surcharge went in place in May, but our input costs did increase starting in April, right?

So there was a lag there that we had to absorb. You're also seeing in EMEA a little bit of a trade-down of customers going to lower-dollar-price, lower-margin SKUs, particularly as it relates to void-fill, which creates a little bit of a mixed headwind.

But overall, I think we continue to operate more efficiently and I think we're doing a good job moving in the right direction for the things that are within our control. And then just as the rest of the year goes, we do expect to continue to improve the gross margins.

We'll continue to see improvement, we think, in North America as we get more efficient and pass on pricing. And in EMEA, we'll continue to work with the surcharge to make sure that we're covering additional costs.

Greg, if I may add, in the second half, in North America, we think there is room for price increases in the marketplace, in particular, in light of where plastic and some of the resin-based products are. So I think expect us to do something there that will help the margin profile.

And then I think, and I've said that in prior calls, we have really been working very hard on a number of Lean and Six Sigma initiatives that are starting to translate into the margin. It's still early days, but our expectations in the second half of the year, you will see that also come through in our margin profile.

There's a number of very important initiatives around quality, around efficiency, productivity, et cetera, and the big continuous improvement mentality inside the company, and it's starting to yield results. So hopefully, that's something you'll see in Q3 and Q4.

Okay. Perfect.

And following up on the comment of pruning the PPS portfolio, is this related -- I assume it is, but just to the installed base, starting to shrink a lot more in recent quarters than it has been historically. And maybe just you can expand a little bit upon this new strategy that you called out.

Yes. I think this is part of our strategy, Greg, to continue to improve the margin profile and financial profile.

I don't think it's going to be noticeable for you guys in terms of the top line, if you know what I mean, i.e., what we're doing inside there as we drive growth in good accounts and good opportunities, we're pruning some things that we feel financially are not yielding the type of results that we want. Part of it, to be honest with you, will deal with efficiency of fleet that you're referring to, where some accounts, they may have had maybe, let's say, more converters than needed given the actual volumes we're seeing today.

The other part of it may deal with some of the consumable businesses, with some of our enterprise partners where we have warrants. Again, we want to be a very good partner and fulfill their needs as much as possible, but we want to be prudent in terms of what does it mean for us in terms of bottom line and financial profile.

So I would say, consider it just healthy pruning that we feel, given what we're seeing from volume trends and the strength of the business, that it's wise to do that to enhance our financial profile.

Troy?

Maybe we can move on and see if Troy rejoins.

Thanks a lot, Ellen, and thank you all for joining us today. We look forward to speaking next quarter.