WEST Stock Forecast & Price Target

Westrock Coffee Co. reported a significant sales increase of approximately 35% to around $281 million in 2Q25, highlighting robust demand across its segments, particularly in Beverage Solutions, which experienced a remarkable 60.5% growth to $263 million. The company has set a revised sales growth target of $1.22 billion for 2026, indicating strong momentum, while maintaining an adjusted EBITDA forecast of $130 million. Additionally, Westrock's successful capital raise of $30 million through the issuance of convertible notes is expected to enhance capacity and support further sales and EBITDA growth in the coming years.

Westrock Coffee's financial outlook is negatively impacted by significant gross margin compression of approximately 510 basis points resulting from rising coffee commodity costs, which are expected to be passed on to customers over time. Additionally, the company has withdrawn its 2026 adjusted EBITDA guidance of $130 million to $150 million due to uncertainties surrounding demand from a key customer affected by industry consolidation. The potential risks, including fluctuating commodity prices, consumer spending volatility, and broader economic factors such as rising interest rates and weakened consumer confidence, further exacerbate the company’s financial challenges.