WEST Stock Forecast & Price Target

Westrock Coffee Co experienced significant sales growth in the first and second quarters of fiscal year 2025, with sales increasing by 11.1% to $213.8 million and rising approximately 35% to around $281 million, respectively. The company anticipates a sales growth target of $1.22 billion for 2026, driven by favorable demand dynamics in its Beverage Solutions and Sustainable Sourcing and Traceability segments, with adjusted EBITDA remaining stable at $130 million. Notably, the Beverage Solutions segment achieved a 130 basis point improvement in adjusted EBITDA margin, while the Sustainable Sourcing and Traceability segment saw a 370 basis point margin expansion, underscoring the strong operational performance against the backdrop of rising green coffee prices.

Westrock Coffee Company faces a negative outlook primarily due to anticipated compression in adjusted EBITDA margins, which is expected to decline by 150 basis points to 4.5%, driven largely by rising coffee commodity costs and associated pricing pressures. The Beverage Solutions segment experienced a significant margin compression of 100 basis points to 5.8%, further exacerbating the overall decline in profitability as gross margins fell by 80 basis points to 19.1%. Additionally, the company’s exposure to increased consumer costs due to tariffs and higher commodity prices could adversely affect consumer spending and overall demand in a volatile economic environment characterized by rising interest rates and weakened consumer confidence.