Financial Performance - Net income for fiscal Q1 2026 increased to $176.6 million or $3.00 per diluted Class A share, compared to $6.6 million or $0.13 per diluted Class A share in the prior year[6]. - Adjusted EBITDA rose by 24.0% to $122.5 million, up from $98.8 million in the same quarter last year[6]. - Operating profit significantly rose to $256.6 million compared to $34.1 million in the prior year, reflecting a substantial improvement in operational efficiency[31]. - Net income attributable to Greif, Inc. was $174.6 million, a significant increase from $22.0 million in the same quarter of 2024[31]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A was $3.04, compared to $0.38 in the previous year[31]. - Net income for the three months ended December 31, 2025, was $182.9 million, a substantial increase from $11.3 million in 2024[41]. - Excluding adjustments, the net income for the three months ended December 31, 2025, was $26.6 million, with Class A earnings per share of $0.48 and a tax rate of 31.7%[44]. Sales and Revenue - Net sales for Customized Polymer Solutions increased by $10.7 million to $305.1 million, primarily due to $13.3 million from positive foreign currency translation impacts[13]. - Net sales for Durable Metal Solutions decreased by $1.1 million to $354.8 million, with a $18.6 million decline attributed to lower volumes[15]. - Net sales for Sustainable Fiber Solutions decreased by $32.1 million to $311.9 million, primarily due to $24.7 million from lower volumes[17]. - Total net sales for the three months ended December 31, 2025, were $994.8 million, a decrease of 2.0% from $1,016.7 million in 2024[37]. Cost and Efficiency - The company achieved $65.0 million of run-rate cost optimization by the end of Q1 2026, up from $50.0 million at the end of Q4 2025[6]. - Total gross profit increased to $202.6 million, up 1.6% from $199.4 million year-over-year[31]. - Total gross profit increased to $202.6 million in 2025, up from $199.4 million in 2024, reflecting a gross profit margin improvement[37]. - The company reported a significant increase in operating profit for the Sustainable Fiber Solutions segment, reaching $218.5 million in 2025, compared to $1.1 million in 2024[39]. Debt and Financial Position - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to the repayment of approximately $1,864.0 million from the sale of the Containerboard Business[6]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter[6]. - Long-term debt reduced to $655.1 million from $914.8 million, indicating improved financial leverage[33]. - The adjusted net debt as of December 31, 2025, was $668.4 million, down from $2,558.4 million as of January 31, 2025[48]. - Total debt as of December 31, 2025, was $944.0 million, while cash and cash equivalents were $243.5 million[46]. Cash Flow and Investments - The company reported a net cash used in operating activities of $24.4 million, contrasting with a net cash provided of $16.6 million in the same quarter of 2024[35]. - Free cash flow for the three months ended December 31, 2025, was $(57.4) million, compared to $(26.1) million in 2024, indicating a decline in cash generation[43]. - Cash paid for acquisition and integration related costs was $0.7 million in Q1 2026, down from $1.7 million in Q1 2025[43]. - Cash paid for taxes related to Containerboard Business divestment was $13.7 million in Q1 2026, reflecting ongoing strategic adjustments[43]. Other Financial Metrics - The company recorded an income tax rate of 24.4% for the first quarter, with an expected range of 26.0% to 30.0% for fiscal 2026[21]. - The trailing twelve months Credit Agreement EBITDA for the period ended December 31, 2025, was $573.7 million, compared to $705.7 million for the period ended January 31, 2025[48]. - The Innovative Closure Solutions segment reported total sales of $39.4 million in Q1 2026, with a gross profit margin of 22.6%, up from 18.8% in Q1 2025[37]. - The company incurred acquisition and integration related costs of $0.7 million and restructuring charges of $14.2 million for the three months ended December 31, 2025[44]. - Non-cash asset impairment charges amounted to $0.2 million for the three months ended December 31, 2025[44]. - The company reported a loss on disposal of properties, plants, and equipment of $215.7 million for the three months ended December 31, 2025[44].

Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. for the three months ended December 31, 2025, was $186.5 million, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, reflecting a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Liabilities - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, up from $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, indicating strong growth in equity[14] - The total long-lived assets, net as of December 31, 2025, were $1,335.9 million, a decrease from $1,355.8 million as of September 30, 2025[95] Cash Flow - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - Net cash used in operating activities was $(24.4) million for the three months ended December 31, 2025, compared to $16.6 million in 2024[13] - Net cash provided by investing activities was $427.3 million, a significant increase compared to $(22.4) million in the same period of 2024[13] - Proceeds from the issuance of long-term debt amounted to $540.3 million during the quarter[13] Dividends and Share Repurchase - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a per-share dividend of $0.56 for Class A shares and $0.83 for Class B shares[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - Customized Polymer Solutions generated $305.1 million in net sales, while Durable Metal Solutions generated $354.8 million, Sustainable Fiber Solutions generated $311.9 million, and Innovative Closure Solutions generated $23.0 million for the three months ended December 31, 2025[92] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is now classified as discontinued operations, impacting the company's financial results[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and qualifies as discontinued operations due to its strategic impact[31] Accounting and Compliance - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million in the same period of 2024[38] Taxation - Income tax expense for the quarter was $58.9 million, up from $6.8 million in the prior year, primarily due to a one-time discrete tax expense of $49.3 million related to the Soterra Divestiture[74] Other Comprehensive Income - The Company reported accumulated other comprehensive income of $(238.9) million as of December 31, 2025, compared to $(385.8) million as of December 31, 2024, showing improvement in this area[14] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]

Group 1 - Bank of America raised the price target on Greif (GEF) to $75 from $74 while maintaining a Neutral rating on the shares [1] - The firm updated its views on Packaging Corp. (PKG) and Greif following the companies' calendar Q4 calls [1]

Core Insights - Greif reported fiscal first-quarter 2026 results that met expectations despite ongoing softness in industrial demand, highlighting margin improvements driven by structural cost actions and increased shareholder returns through share repurchases [3][6][18] Financial Performance - Adjusted EBITDA increased by 24% year-over-year, with the adjusted EBITDA margin improving by 260 basis points to 12.3%, attributed to better price-cost dynamics and structural cost optimization [2][6] - The company reaffirmed the low end of its fiscal 2026 guidance, projecting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow, with an expected free cash flow conversion of approximately 50% [5][6] Capital Allocation - Greif's capital allocation strategy prioritizes shareholder returns and balance-sheet strength, with leverage at approximately 1.2x. The company completed $130 million of a $150 million buyback and approved an additional $300 million repurchase authorization [4][18] - The company aims to repurchase up to 2% of shares outstanding annually, subject to board approval and balanced against other capital needs [18] Segment Performance - In Customized Polymer Solutions, demand was flat overall, with slight increases in intermediate bulk container volumes and declines in small and large containers. The company expects improvements in small containers in the second quarter due to agricultural seasonality [8] - Durable Metal Solutions faced pressure due to softness across regions, particularly among chemical customers, while Sustainable Fiber Solutions saw declining converting volumes amid North American industrial softness [10][12] Cost Optimization - Greif achieved run-rate cost optimization savings of $65 million, with a fiscal year-end target of $80–$90 million, primarily through SG&A actions [13] - Management emphasized that the cost optimization efforts are structural rather than cyclical, contributing to improved profitability despite volume headwinds [2][6] Market Outlook - The company noted that customer conversations indicate continued muted demand conditions, but it is actively pursuing commercial opportunities and transforming its commercial organization [14] - Greif's SiOx barrier technology is operational on its first machine in France, with additional machines planned for deployment, although the financial impact in fiscal 2026 is not expected to be significant [19][20]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [9][10] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [10] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [11][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and small containers down low singles, while large containers declined mid-single digits [6][7] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to industrial softness in North America [7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to a strong price mix [7][8] Market Data and Key Metrics Changes - The overall market environment remains soft, particularly in fiber and steel, affecting demand across various segments [19] - The company noted that while some seasonality may improve small container volumes in Q2, the overall demand conditions are still muted [19][20] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with significant capital allocated to high-return investments and a disciplined approach to share repurchases [12][14] - The management is transforming the commercial team to focus on aggressive market capture, shifting from a "farmer" to a "hunter" mentality [20][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued muted demand environment but expressed confidence in the company's ability to manage costs and drive growth [15][19] - The company is optimistic about the potential for volume recovery in the latter half of the year, supported by ongoing commercial initiatives [48][50] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million authorization for future buybacks [4][13] - The company is actively addressing manufacturing costs and expects improvements as the year progresses [38] Q&A Session Summary Question: Insights on inventory management and volume trends - Management noted that demand conditions remain muted, particularly in fiber and steel, but some seasonality may improve volumes in Q2 [19][20] Question: CapEx and growth projects - The company is deploying additional capacity in Europe and Africa, particularly in the mining sector, which is showing significant growth [26][27] Question: Volume performance and EBITDA guidance - Management expressed confidence in achieving volume targets for the year despite a weaker Q1, citing ongoing commercial activities and customer wins [48][50] Question: Price cost spread in Fiber - Management indicated that the price cost spread will be more favorable in the second half of the year, with ongoing efforts to manage costs effectively [35][36] Question: Share repurchase strategy - The company plans to maintain a disciplined approach to share repurchases, with a commitment to a 2% annual buyback, while remaining open to potential acquisitions [66][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [9][10] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [10] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [11][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and small containers down low singles, while large containers declined mid-single digits [6][7] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to industrial softness in North America [7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to strong price mix [7][10] Market Data and Key Metrics Changes - The overall market environment remains soft, particularly in fiber and steel, affecting demand across various segments [19] - The company noted that while some segments may see seasonal improvements, the overall demand conditions are still muted [19][20] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with capital being deployed in areas with strong business cases, particularly in Europe and Africa [26][27] - The company is transforming its commercial team to focus on aggressive market capture, shifting from a "farmer" to a "hunter" mentality [20][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued muted demand environment but expressed confidence in the company's ability to manage costs and drive growth [15][19] - The company is optimistic about the potential for volume recovery in the second half of the year, supported by ongoing commercial initiatives [48][50] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million share repurchase authorization [4][13] - The company is committed to increasing dividends over time and maintaining a leverage ratio well below 2x [12][14] Q&A Session Summary Question: Insights on inventory management and volume trends - Management noted that demand conditions remain muted, particularly in fiber and steel, but some seasonality may improve volumes in Q2 [19][20] Question: CapEx and growth projects - The company is deploying additional capacity in Europe and Africa, particularly in the mining sector, which is seeing significant growth [26][27] Question: Volume performance and EBITDA guidance - Management expressed confidence in achieving volume targets for the year despite a weaker Q1, citing ongoing commercial activities and customer wins [48][50] Question: Price cost spread in fiber and polymer margins - Management indicated that the price cost spread for fiber will annualize in the second half of the year, with polymer margins impacted by product mix [35][36][38] Question: Share repurchase strategy and future capital allocation - The company will flex its capital allocation strategy based on market conditions and M&A opportunities, with a primary focus on organic growth [67][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [3][8] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [8] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [10][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and large containers down mid-single digits due to industrial softness [5][6] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to North American industrial softness [6][7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to strong price mix [7] Market Data and Key Metrics Changes - The overall industrial economy remains muted, impacting demand across various segments, particularly in fiber and steel [17] - The company noted that while conditions are still soft, there are signs of seasonality that may improve volumes in Q2 [17][18] - The mining sector in Southern Africa is showing significant growth, which may positively impact demand for certain products [25] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with capital being deployed in regions with strong business cases, particularly in Europe and Africa [25][26] - The company is transforming its commercial team to be more proactive in capturing market opportunities [18][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the continued muted demand environment but expresses confidence in the company's ability to manage costs and drive growth [13][17] - The company is optimistic about the potential for volume recovery in the latter half of the year, supported by ongoing commercial initiatives [49] - Management highlighted the importance of maintaining a strong balance sheet and low leverage to support future growth [4][12] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million share repurchase authorization [4][12] - The run rate cost optimization is currently at $65 million, with a commitment to reach $80 million-$90 million by year-end [5][10] Q&A Session Summary Question: Insights on volume performance and inventory management - Management noted that demand conditions remain muted, particularly in fiber and steel, but there are expectations for seasonal improvements in Q2 [17][18] Question: Updates on OCC and CapEx projects - Management confirmed expectations for flat OCC prices and highlighted ongoing capacity additions in various regions, particularly in Europe and Africa [25][26] Question: Volume expectations and implications for EBITDA guidance - Management expressed confidence that volumes will improve as the year progresses, supported by commercial activities and customer wins [49][51] Question: Price cost spread in fiber and polymer margins - Management indicated that the price cost spread will be more favorable in the second half of the year, with polymer margins impacted by product mix [35][36] Question: Share repurchase strategy and potential acquisitions - Management stated that capital deployment will be flexible, focusing primarily on organic growth while remaining open to strategic acquisitions [67][68]

First Quarter 2026 Earnings Conference Call January 28, 2026 1 R0 G113 B206 #0070CD R234 G118 B34 #F07623 Safe Harbor and Presentation Note R51 G63 B72 #333F48 R0 G40 B85 #002855 R116 G255 B11 #74FF6F R201 G244 B255 #C9F4FF Primary Colors: Secondary Colors: R52 G119 B98 #337761 R255 G199 B44 #FFC72C FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words "may," "will," "expect," "intend," ...

Core Insights - Greif reported net sales of $994.8 million for Fiscal Q1 2026, a decrease of 2.2% year over year, while net income rose significantly to $182.9 million from $11.3 million in Fiscal Q1 2025 [1][1][1] Financial Performance - Gross profit increased by 1.6% year over year to $202.6 million despite a decline in overall sales [1][1] - The company experienced a downturn in industrial demand, particularly from chemical customers, affecting all segments [1][1] - Sales in the durable metals segment were nearly $355 million, remaining flat year over year, while customized polymers sales increased to approximately $305 million [1][1] - The sustainable fibers segment saw a notable decline in sales from $344 million to about $312 million, with the company reporting 14,000 tons of downtime during the quarter [1][1] Cost Optimization - Greif achieved $65 million in run-rate cost optimization, aiming for a total of $120 million, with a target of $80 million to $90 million by year-end [1][1] - The company reduced its professional workforce by 10%, equating to 220 positions, while also investing in its commercial teams [1][1] M&A Strategy - Greif is focusing on organic growth but remains open to strategic acquisitions that could complement its operations, maintaining a robust pipeline of tuck-in deals [1][1] - The fiber business saw an operating profit increase of approximately $216 million due to the sale of timberlands that closed in October [1][1] Outlook - The company reaffirmed its low-end fiscal year 2026 guidance for adjusted EBITDA of $630 million and adjusted free cash flow of $315 million [1][1] - Expectations for volume growth are slight in the customized polymers and innovative closures segments, while durable metals and sustainable fibers are projected to be flat or slightly down [1][1]

Core Viewpoint - Greif, Inc. reported strong fiscal first quarter 2026 results, demonstrating significant growth in Adjusted EBITDA and net income, despite a challenging demand environment [6][9]. Financial Highlights - Net income increased to $176.6 million or $3.00 per diluted Class A share, compared to $6.6 million or $0.13 per diluted Class A share in the previous year, marking a substantial increase [9]. - Adjusted EBITDA rose by 24.0% to $122.5 million from $98.8 million year-over-year [9]. - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to debt repayment from the divestiture of the Containerboard Business [9]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter [9]. Segment Results - **Customized Polymer Solutions**: Net sales increased by $10.7 million to $305.1 million, driven by positive foreign currency translation impacts [15]. - **Durable Metal Solutions**: Net sales decreased by $1.1 million to $354.8 million, primarily due to lower volumes, but gross profit increased by $1.7 million to $70.7 million [17]. - **Sustainable Fiber Solutions**: Net sales decreased by $32.1 million to $311.9 million, largely due to lower volumes, while operating profit surged by $217.4 million to $218.5 million due to a gain from the sale of timberlands [19]. - **Innovative Closure Solutions**: Net sales increased by $0.6 million to $23.0 million, with gross profit rising by $1.4 million to $8.9 million [22]. Strategic Actions - The company executed approximately $130.0 million in share repurchases during the first quarter and obtained authorization for an additional $300.0 million in future repurchases [9]. - Greif reaffirmed its low-end guidance for fiscal 2026, estimating Adjusted EBITDA at $630.0 million and Adjusted Free Cash Flow at $315.0 million [26]. Company Outlook - The company acknowledges a multi-year period of industrial contraction and does not foresee a compelling demand inflection in the near term, maintaining a cautious outlook [25].