WEST Stock Forecast & Price Target

Westrock Coffee Co. has demonstrated substantial sales growth, with 2Q25 sales increasing approximately 35% to around $281 million, and total sales for 2026 projected to reach $1.22 billion, reflecting a positive revenue trajectory. The Beverage Solutions segment has experienced remarkable sales growth of 60.5%, achieving $263 million, alongside expansions in adjusted EBITDA margins that indicate improved operational efficiency. Additionally, ongoing investments in capacity and strong demand for flavors, extracts, and ingredients are expected to bolster future sales and EBITDA, further enhancing the company’s financial outlook.

Westrock Coffee's outlook is negatively impacted by significant gross margin compression of approximately 510 basis points, reducing margins to 14.7% due to rising coffee commodity costs and anticipated price adjustments for customers. The company has retracted its 2026 adjusted EBITDA expectations from a range of $130 million to $150 million to a lower estimate of $98 million, reflecting uncertainties in key customer demand influenced by ongoing industry consolidation. Additionally, broader economic risks, including volatile commodity costs, decreased consumer spending, and rising interest rates, further exacerbate the challenges Westrock Coffee faces in maintaining financial stability and growth.