Ranpak touted runway in its agreements this year with Amazon and Walmart, as well as a newer enterprise customer, on a third-quarter earnings call Thursday.
Ranpak projects automation-heavy customer Walmart could spend $700 million in the next decade. In combination with Ranpak’s eight-year tie-up with Amazon, Ranpak CEO Omar Asali said the company sees potential for “over a billion dollars in revenue from these two customers alone over the next eight to 10 years.”
“I think you will see Walmart relatively quickly become probably the second largest customer we have, and there's quite a bit of room to grow in terms of their annual spend with us,” with impact expected to begin in Q4, growing in 2026 and beyond, Asali said Thursday. Asali said Ranpak is a beneficiary as Walmart invests further in e-commerce and fulfillment. “Some of our projects are in their next-generation facilities, so it's related to their build-out there.”
Asali also said Ranpak expects that each AutoFill void fill and package closing unit placed with Walmart will consume over $100,000 of paper per year, “which we believe should lead to a solid recurring revenue stream.”
Enterprise e-commerce accounts drove 3.7% volume growth for Ranpak’s North America business in Q3. Revenues in the North America business were up 10.9% year over year.
“Innovation in [protective packaging solutions] will remain a key area of focus for us as we look to expand globally and take further share from plastic and foam,” buoyed by growth with Amazon and Walmart, Asali said.
Asali also detailed a multi-year enterprise sales agreement with medical supply giant Medline. Ranpak will provide rightsizing solutions and other technology for as many as 14 of Medline’s distribution centers over the next several years. Medline noted earlier pilots with Ranpak in its annual sustainability report released in September. “By integrating Ranpak’s automated paper-based systems, these facilities have significantly reduced their reliance on plastic packaging materials,” Medline reported.
Even with the recent enterprise deals, Ranpak emphasizes it aims to serve a broad swath of customers. It recently launched a miniature version of its void fill equipment in certain geographies to serve customers with constrained packing environments.
“The last couple of years we’ve put more emphasis on making sure we’re winning our market share with the large enterprises, because that’s where we were under-indexed. But it’s certainly in addition to covering the small and medium-sized enterprises — it’s not in lieu of,” Asali told Packaging Dive in a Q&A when the Walmart deal was announced in August.
Overall, net sales in Q3 rose 8% year over year to nearly $100 million, which Ranpak attributed to higher automation sales, which increased 63% year over year. The company posted a net loss for the quarter of $10.4 million, compared with a loss of $8.1 million a year prior.
