02:53 PM EDT, 10/22/2025 (MT Newswires) -- Winpak Ltd. ( WIPKF ) , which manufactures and distributes high-quality packaging materials and related packaging machines, on Wednesday reported a drop in net income for the third quarter on lower revenues, while it warned exemptions from tariffs under USMCA may lapse within the next nine months which cold have a "sizeable" impact on growth plans and manufacturing costs. "The company is keenly focused on mobilizing strategic capital investments that enhance its resilience to a more protectionist trade environment," it said.

For Q3, WPK reported net income attributable to equity holders of the company was US$36.4 million, a contraction by $2.1 million or 5.5% from the comparable 2024 quarter. Net income was $36.513 million or $0.60 basic and diluted EPS, down from $39.309 million or $0.61.

Winpak ( WIPKF ) noted net finance income dampened earnings by $1.7 million. Also, gross profit reduced earnings by $1.5 million. The decrease in sales volumes lowered Earnings by $1.2 million. Conversely, operating expenses raised earnings by $1.0 million. In total, all remaining items boosted earnings by $1.3 million.

Revenue in the third quarter of 2025 was $283.0 million, $2.5 million or 0.9% less than the third quarter of 2024. Volumes fell by 3% when compared to the third quarter of 2024. Winpak ( WIPKF ) said: "Weakened customer demand within several product categories contributed to the result. The level of customer turnover thus far in 2025 has been consistent with recent historical experience. Within the flexible packaging operating segment, volume losses amounted to 3%. For the modified atmosphere packaging product group, the recent growth path reversed and volumes retreated by 3%. New dairy business was overshadowed by muted demand levels at the core protein accounts. The rigid packaging and flexible lidding operating segment experienced a drop in volumes of 3%. Rigid container volumes decreased by 10% due to a sizeable drop in specialty beverage and snack food container shipments. For the lidding product group, volumes surpassed the prior year by 5% predominantly because of higher retort petfood lidding volumes. Driven by the expansion in replacement parts sales, packaging machinery volumes advanced by 7%. Selling price and mix changes had a positive effect on revenue of $6.2 million. Foreign exchange lowered revenue by $0.2 million."

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