Net sales increased 15% with 9% volume growth, led by strength in Americas, in Europe, Middle East and Africa regions.
Adjusted EBITDA increased 1%, and margins were under pressure at 19.8% compared to 22.6% last year.
On a per-share basis, earnings of $0.79 were up $0.03 compared to last year.
We generated free cash flow of $102 million in the first six months of the year, which compared to $129 million in the first half of last year.
We are raising our full year sales and adjusted earnings per share outlook and reiterating our prior guidance for adjusted EBITDA and free cash flow.
Our organic sales target is built up in a historically stable packaging market that grows 1% to 3%.
We've been adding to this base with our innovations in automation, digital and sustainability to take us to an organic sales growth target of 3% to 5%.
Our operating leverage target is over 30%, which drives adjusted EBITDA growth to 5% to 7%.
We're targeting adjusting earnings-per-share growth of greater than 10% and free cash flow conversion of more than 50%.
We approved a new $1 billion share repurchase program and recently increased our dividend by 25%.
We are leading a dramatic shift to a touchless, automated environment for all customers, resulting in more than 30% growth in our SEE automation portfolio.
Bookings for AUTOBAG and auto box equipment were up more than 50% in the first half of the year, and we're investing more than $30 million in capacity expansion to help meet the strong demand for our equipment solutions.
In the first half of the year, equipment, systems and service sales were up 26% and accounted for 8% of our net sales.
We're on track to achieve approximately $425 million or 12% growth in 2021, of which more than $250 million will come from equipment and systems.
We're confident in our ability to exceed $500 million by 2025.
When you factor in a 3 times plus solutions multiplier, including growth in parts and service from the installed base and the flow-through of materials, this results in a $5 billion plus potential growth opportunity over the 10-year solutions life cycle.
We are making significant progress on our 2025 sustainability pledge with nearly 50% of our solutions already designed for recyclability.
Earlier this year, we established a net-zero carbon emissions goal across our operations by 2040.
Between 2012 and 2020, our greenhouse gas emissions intensity decreased by a remarkable 50%.
In the second quarter, net sales totaled $1.3 billion, up 15% as reported, up 11% in constant dollars.
Food was up 6% in constant dollars versus last year, and protective increased 20%.
EMEA and the Americas were both up double digits: EMEA up 16%; and the Americas up 13%.
In the second quarter, overall volume growth was up 9% on favorable price of 3%.
Food volumes were up 4%; with the Americas, up 7%; and EMEA up 2%.
This was offset by a 3% decline in APAC, largely related to Australia herd rebuilding.
Protective volumes were up 15%; with the Americas, up 13%; and EMEA up 36%, while APAC had a modest decline.
Q2 price was favorable 3%.
You can see that Protective had 5% in favorable pricing, and Food was 1% due to timing of pricing actions and formula pass-throughs.
We have implemented several price increases and expect 2021 price realization to be $275 million.
We delivered adjusted EBITDA of $263 million, up 1% compared to last year, and margins of 19.8%, down 280 basis points, reflecting the impact of the current inflationary environment and supply chain disruptions.
We are leveraging our higher volumes at 40% as we experienced a more favorable product mix.
Despite favorable pricing in the quarter, you can see how higher input costs weighed on our EBITDA performance with an unfavorable price/cost spread of $36 million.
Operational costs increased approximately $13 million relative to last year.
This was partially offset by $13 million in Reinvent SEE productivity benefits.
Adjusted earnings per share in Q2 was $0.79 compared to $0.76 in Q2 2020.
Our adjusted tax rate was 25.6%, reflecting a more favorable mix of foreign earnings.
Our weighted average diluted shares outstanding in the quarter were 153 million.
We exited the quarter with 150 million shares outstanding.
We have achieved $28 million of benefits in the first half of the year and remain on track to realize approximately $65 million in 2021.
In Q2, Food net sales of $737 million were up 6% on a constant dollar basis.
Cryovac Barrier Bags and pouches returned to growth, increasing approximately 10% and accounting for nearly 50% of the segment sales.
Sales in case-ready and roll stock retail applications, which accounts for just over 40% of segment sales, were down low single digits as supply disruptions impacted our results.
Equipment parts and sales -- and service sales, which accounts for 8% of the segment, were up nearly 40% in the quarter.
Adjusted EBITDA in Food of $158 million in Q2 declined 6% compared to last year with margins at 21.5%, down 360 basis points.
In constant dollars, net sales increased 20% to $592 million.
Industrial was up approximately 30% relative to last year when automobile and general manufacturers were forced to temporarily shut down their operations.
Fulfillment, which is largely driven by e-commerce growth, was up approximately 10% on a global basis, led by double-digit growth in automated equipment, inflatable solutions, paper and temperature assurance.
The $30 million investments in capacity that Ted referenced earlier will help us meet increased customer demands for automation equipment.
As a reminder, approximately 55% of our Protective sales are derived from industrial end markets and the remaining 45% from fulfillment and e-commerce.
Adjusted EBITDA of $107 million increased 17% from Q2 with margins at 18.1%, down 100 basis points versus last year.
In the first half of 2021, we generated $102 million of free cash flow.
With SEE Ventures, we have invested approximately $40 million in early stage disruptive technologies and business models that are expected to accelerate our strategy and innovation efforts.
We repurchased 6.1 million shares for $299 million during the first six months of 2021, reflecting confidence in our vision, strategy and execution.
And as Ted noted, today, we announced a new $1 billion share repurchase program, continuing our commitment to return value to shareholders.
During the second quarter, we also announced an increase to our quarterly cash dividend of 25%.
For net sales, we estimate $5.4 billion to $5.5 billion or 10% to 12% as-reported growth and 8% to 10% in constant dollars compared to our previously provided $5.25 billion to $5.35 billion range.
At the midpoint, the $150 million increase in constant dollar sales largely reflects additional pricing.
We continue to anticipate adjusted EBITDA to be in the range of $1.12 billion to $1.15 billion.
On a reported basis, adjusted EBITDA is expected to grow 7% to 9%.
We are raising our 2021 outlook for adjusted earnings per share to $3.45 to $3.60, and we continue to expect a 45-55 first half, second half percentage split.
Our outlook assumes 153 million average shares outstanding, one million reduction from our prior guidance, given share repurchases in the first half, and an adjusted effective tax rate of approximately 26%.
And lastly, our free cash flow outlook continues to be $520 million to $570 million.
There is no change to our outlook for 2021 capex of approximately $210 million and Reinvent SEE restructuring and associated payments of approximately $40 million.
We will continue to focus on 0 harm and protecting our people as the pandemic continues.

Summary:
On a per-share basis, earnings of $0.79 were up $0.03 compared to last year.
We are raising our full year sales and adjusted earnings per share outlook and reiterating our prior guidance for adjusted EBITDA and free cash flow.
In the second quarter, net sales totaled $1.3 billion, up 15% as reported, up 11% in constant dollars.
Adjusted earnings per share in Q2 was $0.79 compared to $0.76 in Q2 2020.
For net sales, we estimate $5.4 billion to $5.5 billion or 10% to 12% as-reported growth and 8% to 10% in constant dollars compared to our previously provided $5.25 billion to $5.35 billion range.
We are raising our 2021 outlook for adjusted earnings per share to $3.45 to $3.60, and we continue to expect a 45-55 first half, second half percentage split.