WEST Stock Forecast & Price Target

Westrock Coffee Co. reported a substantial 35% increase in 2Q25 sales, reaching approximately $281 million, and has set a new sales growth target of $1.22 billion for 2026, indicating confidence in continued revenue growth. The Beverage Solutions segment showed remarkable performance, with a 60.5% sales increase to $263 million and an expansion in adjusted EBITDA margins, further driving profitability. Additionally, the company's ongoing improvements in capacity and demand for flavors and extracts position it well for sustained growth, enhancing its overall financial outlook.

Westrock Coffee Co is facing a negative outlook due to significant gross margin compression of approximately 510 basis points, reducing margins to 14.7% largely as a result of rising coffee commodity costs and tariffs. The company's withdrawal of its 2026 adjusted EBITDA guidance, previously forecasted between $130 million and $150 million, reflects uncertainty in key customer demand amidst industry consolidation, specifically the acquisition of JDE Peet’s by Keurig Dr Pepper. Additionally, external risks such as volatile commodity prices, fluctuating consumer spending, and increasing interest rates further contribute to an uncertain operating environment, potentially impacting financial stability and growth.