WEST Stock Forecast & Price Target

Westrock Coffee Co exhibited a solid 6.5% increase in sales for 4Q24, reaching $229 million, and is projected to achieve significant growth in total sales, forecasting a rise of 17% to $1.1 billion for FY2026. The Sustainable Sourcing & Traceability segment reported an impressive 38% surge in sales, contributing to the overall positive outlook bolstered by anticipated revenue growth from new retail customers and production ramp-ups at the Conway, AR facility beginning in 2Q25. Management's expectations for approximately 50% annual growth in adjusted EBITDA over the next two years further enhance confidence in Westrock's financial trajectory.

Westrock Coffee Co. has provided adjusted EBITDA guidance for 2025 that falls below expectations, reflecting a projected range of $60 million to $73 million, largely due to anticipated demand softness linked to higher coffee prices and cautious production scaling at its Conway, AR facility. Additionally, the Beverage Solutions segment experienced a slight sales decline of 0.6% to $174 million, coupled with a compression of the adjusted EBITDA margin by approximately 60 basis points to 5.8%. The uncertainties surrounding the launch of the Conway facility, potential disruptions in global green coffee production, and risks related to consumer spending patterns further contribute to a negative outlook for the company's financial performance.