DELAWARE, Ohio, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in performance packaging products and services, today announced that it has been named to Newsweek’s America’s Most Responsible Companies 2026 list - for a seventh consecutive year. Greif has been included on the list every year since its inception, underscoring the company’s long-standing commitment to environmental stewardship, social responsibility, and strong corporate governance. This consistency reflects ...

Financial Performance - Net income for the two-month fourth quarter of fiscal 2025 decreased 227.4% to $(43.3) million or $(0.73) per diluted Class A share compared to $34.0 million or $0.58 per diluted Class A share in the same period last year [4]. - Adjusted EBITDA for the two-month fourth quarter increased 7.4% to $98.9 million compared to $92.1 million in the prior year [4]. - For the two months ended September 30, 2025, net sales were $701.3 million, a decrease of 3.6% from $724.9 million in the same period of 2024 [33]. - Gross profit for the eleven months ended September 30, 2025, was $871.5 million, up 6.5% from $817.8 million in 2024 [33]. - Net income attributable to Greif, Inc. for the eleven months ended September 30, 2025, was $840.0 million, compared to $243.8 million in 2024, representing a significant increase [33]. - The company reported a net income from continuing operations of $38.2 million for the eleven months ended September 30, 2025, down from $246.2 million in 2024 [33]. - Net income for the eleven months ended September 30, 2025, was $863.1 million, significantly higher than $269.5 million for the same period in 2024, marking an increase of approximately 220.5% [37]. - Operating profit for the eleven months ended September 30, 2025, was $167.6 million, compared to $313.1 million for the same period in 2024, indicating a significant decrease [48]. - Net income for the eleven months ended September 30, 2025, was $103.7 million, compared to $262.5 million for the same period in 2024 [52]. Debt and Cash Flow - Total debt decreased by $1,538.1 million to $1,202.5 million, resulting in a leverage ratio decrease to 1.63x from 3.48x [5]. - Net cash provided by operating activities decreased by $376.5 million to a use of $244.7 million in the two-month fourth quarter [4]. - Cash and cash equivalents increased to $256.7 million as of September 30, 2025, compared to $197.7 million at the end of October 2024, reflecting a growth of about 29.8% [37]. - Long-term debt decreased to $914.8 million as of September 30, 2025, from $2,626.2 million in October 2024, a reduction of approximately 65% [35]. - Net cash used in operating activities for the two months ended September 30, 2025, was $(244.7) million, compared to $131.8 million for the same period in 2024 [50]. - Free Cash Flow for the eleven months ended September 30, 2025, was $(85.2) million, a decrease from $124.6 million in 2024 [50]. - Total Debt as of September 30, 2025, was $1,202.5 million, significantly reduced from $2,740.6 million on October 31, 2024 [54]. - Net Debt decreased to $945.8 million as of September 30, 2025, from $2,542.9 million on October 31, 2024 [54]. - The Leverage Ratio improved to 1.63x as of September 30, 2025, down from 3.48x on October 31, 2024 [56]. Cost Optimization and Guidance - The anticipated cost optimization commitment was increased to $120 million from $100 million due to accelerated progress in 2025 [8]. - For fiscal 2026, the company provided low-end guidance of $630 million Adjusted EBITDA and $315 million Adjusted Free Cash Flow [8]. - Fiscal 2026 low-end guidance estimates for Adjusted EBITDA is $630 million and Adjusted free cash flow is $315 million [25]. - The company achieved cost optimization run-rate savings of approximately $50 million by the end of fiscal year 2025 [8]. Business Operations and Divestments - The company completed the divestment of its containerboard business for $1.8 billion, impacting financial results as of August 31, 2025 [2]. - The company has not identified any compelling demand inflection on the horizon, continuing to provide only low-end guidance based on current trends [24]. - The company operates in over 35 countries, focusing on performance packaging solutions for demanding industries [27]. Other Financial Metrics - Selling, general and administrative expenses increased to $601.9 million for the eleven months ended September 30, 2025, compared to $535.5 million in 2024, reflecting a rise of 12.3% [33]. - Interest expense, net for the eleven months ended September 30, 2025, was $56.1 million, an increase from $40.7 million in 2024 [33]. - The company incurred restructuring and other charges amounting to $62.6 million for the eleven months ended September 30, 2025, compared to $2.7 million in the same period of 2024 [48]. - Depreciation, depletion, and amortization expense for the eleven months ended September 30, 2025, totaled $212.7 million, up from $207.6 million in the previous year [48]. - The company recorded a gain on disposal of businesses of $1,097.5 million for the two months ended September 30, 2025, compared to a gain of $0.1 million in the same period of 2024 [37]. - The company experienced a non-cash asset impairment charge of $37.9 million for the eleven months ended September 30, 2025, compared to $2.3 million in the same period of 2024 [48]. - Adjusted EBITDA for the eleven months ended September 30, 2025, was $511.3 million, representing an increase from $495.9 million in the same period of 2024 [45]. - The combined Adjusted EBITDA for the two months ended September 30, 2025, was $122.7 million, slightly down from $127.4 million in the same period of 2024 [45]. - Adjusted EBITDA for the trailing twelve months ended September 30, 2025, was $773.5 million, an increase from $704.4 million for the trailing twelve months ended October 31, 2024 [56]. - Adjusted Free Cash Flow for the two months ended September 30, 2025, was $122.6 million, up from $98.6 million in 2024 [50]. - Earnings from discontinued operations per Class A common stock for the eleven months ended September 30, 2025, was $14.20, compared to $0.40 in 2024 [33]. - The Durable Metal Solutions segment reported net sales of $247.3 million for the two months ended September 30, 2025, down from $259.5 million in the same period of 2024, a decrease of approximately 4.5% [41]. - Operating profit for the Customized Polymer Solutions segment was a loss of $1.9 million for the two months ended September 30, 2025, compared to a profit of $9.1 million in the same period of 2024 [41]. - The company will host a conference call on November 6, 2025, to discuss the fourth quarter and fiscal 2025 results [26].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $99 million, a 7.4% increase year-over-year, with EBITDA margins expanding by 140 basis points due to better price-cost dynamics across all segments and cost optimization efforts [15][17] - Adjusted free cash flow improved by over 24.3% year-over-year, driven by increased EBITDA and strong working capital management [15] - Adjusted EPS for the quarter was $0.01 compared to $0.59 in the prior year quarter, impacted by non-recurring tax items and the nature of continuing operations after removing discontinued operations [16] Business Line Data and Key Metrics Changes - In the polymers segment, small containers showed positive volume momentum, while IBC and large polymer drums experienced mid-single-digit declines due to softness in industrial markets [11][12] - Durable metals volumes declined by 6.6%, reflecting weakness in industrial end markets [12] - Sustainable fiber volumes decreased by 7.7%, impacted by URB economic downtime and soft fiber drum demand [12] - Integrated solutions saw volume improvements driven by closures, with these products generating over 30% gross margin [12] Market Data and Key Metrics Changes - The company reported a Net Promoter Score of 72, an improvement of 3 points from the previous year, indicating enhanced customer service performance [5] - The macro environment remains challenging, with demand softness in construction and manufacturing affecting customer volumes [27] Company Strategy and Development Direction - The company is focused on a "Build to Last" strategy, emphasizing cost optimization, portfolio reshaping, and sustainable growth [6][24] - The divestiture of the containerboard and land management businesses has allowed the company to concentrate on areas with the greatest opportunity for EBITDA growth and margin expansion [5][24] - The cost optimization program has exceeded initial commitments, with anticipated cumulative savings raised from $50 million-$60 million to $80 million-$90 million for fiscal 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the macro environment but expressed confidence in the company's ability to generate cash and manage costs effectively [36] - The company anticipates a low-end guidance for fiscal 2026, assuming flat to low single-digit volume declines in metals and fiber, with low single-digit improvements in polymers and closures [18][19] - Management remains optimistic about capturing value as demand returns, supported by a strong balance sheet and cash flow generation [24][70] Other Important Information - The company plans to execute a $150 million open market repurchase plan and seeks board approval for a new stock repurchase authorization [22][23] - The anticipated capital expenditures for the year are approximately $155 million, with maintenance CapEx needs reduced by about $25 million [20] Q&A Session Summary Question: Can you provide more details on the growth in polymers and target markets? - Management noted that the agrochemicals market has been a significant growth area, particularly for small containers, despite overall demand softness in other sectors [27] Question: How should we think about EBITDA guidance for fiscal 2026? - Management indicated that the first quarter is expected to be the weakest, with subsequent quarters showing improvement [29] Question: If volumes come in weaker, can cost optimization offset that? - Management confirmed that cost optimization remains a lever to pull in response to volume weakness, with ongoing improvements in the program [33] Question: What are the expectations for the durable metals business in Europe? - Management highlighted that North American steel business has been down similarly to EMEA, but EMEA steel has shown consistent performance [66] Question: What is the outlook for M&A activity? - Management stated that while there is a solid pipeline for M&A, the focus remains on organic growth, with no transformational M&A expected [41][68]

Financial Performance & Divestments - The company divested its Containerboard Business for $1.8 billion[4] and Land Management for $462 million[8], resulting in gross proceeds of $2.3 billion[8] - Adjusted EBITDA increased by 7.4% from $92.1 million in Q4 2024 to $98.9 million in Q4 2025[23, 25] - Adjusted Free Cash Flow improved by 24.3% from $98.6 million to $122.6 million[23, 25] - The company initiates share repurchases of $150 million[34] Cost Optimization & Savings - The company is accelerating its cost optimization program, targeting $80-90 million in run-rate cost savings by the end of FY26[11] - The company is increasing its savings commitment to $120 million by the end of FY27[13, 14] - SG&A rationalization has yielded $35 million in cumulative savings[14] Segment Performance - Customized Polymer Solutions net sales increased from $199.0 million to $205.4 million, with gross profit margin improving from 20.0% to 22.2%[26] - Durable Metal Solutions net sales decreased from $259.5 million to $247.3 million, but gross profit margin improved from 19.2% to 20.3%[26] - Sustainable Fiber Solutions net sales decreased from $208.2 million to $196.6 million, but gross profit margin improved from 19.6% to 24.9%[26] FY26 Guidance - The company provides low-end 2026 guidance for Adjusted EBITDA of $630 million[29] and Adjusted Free Cash Flow of $315 million[29]

Core Insights - Greif, Inc. reported significant financial results for the two-month fourth quarter and eleven-month fiscal year 2025, highlighting a substantial decrease in net income and changes in operational performance due to the divestment of its Containerboard Business [1][2][3]. Financial Performance - For the two-month fiscal fourth quarter of 2025, net income decreased by 227.4% to $(43.3) million, or $(0.73) per diluted Class A share, compared to $34.0 million, or $0.58 per diluted Class A share in the same period of 2024 [6]. - Adjusted EBITDA for the fourth quarter increased by 7.4% to $98.9 million, while combined Adjusted EBITDA decreased by 3.7% to $122.7 million [6]. - For the eleven-month fiscal year, net income decreased by 93.2% to $15.1 million, or $0.28 per diluted Class A share, compared to $220.5 million, or $3.81 per diluted Class A share in the previous year [6]. - Adjusted EBITDA for the eleven-month period increased by 3.1% to $511.3 million, while combined Adjusted EBITDA rose by 10.9% to $702.6 million [6]. Operational Changes - The company divested its Containerboard Business for $1.8 billion, which is now classified as discontinued operations starting in Q3 2025 [2][3]. - The fiscal year-end was changed to September 30, resulting in an 11-month fiscal year for 2025 [3]. Debt and Cash Flow - Total debt decreased by $1,538.1 million to $1,202.5 million, and net debt decreased by $1,597.1 million to $945.8 million, leading to a leverage ratio reduction to 1.63x from 3.48x [7]. - Net cash provided by operating activities decreased by $376.5 million to a use of $244.7 million for the fourth quarter, while adjusted free cash flow increased by $24.0 million to $122.6 million [6]. Strategic Actions - The company achieved cost optimization run-rate savings of approximately $50 million by the end of fiscal year 2025 and increased its anticipated cost optimization commitment to $120 million [15]. - Plans for share repurchases in 2026 reflect confidence in the company's earnings power and operational leverage [9]. Market Outlook - The company noted a multi-year period of industrial contraction with no compelling demand inflection identified, leading to conservative guidance for fiscal 2026 [31][32]. - The low-end guidance for fiscal 2026 includes an estimated Adjusted EBITDA of $630 million and Adjusted Free Cash Flow of $315 million [32].

Core Insights - Greif, Inc. has been recognized as one of America's Top 100 Most Loved Workplaces for the fifth consecutive year, ranking 51st on the list [1][2] - The recognition highlights the company's commitment to employee experience and retention strategies in the current economy [1][2] Company Recognition - The honor reflects the values of empathy, integrity, and commitment that Greif promotes among its employees [2] - The recognition is seen as a testament to the spirit of the workforce, emphasizing a unified global team with a common purpose [2] Methodology of Rankings - The rankings were determined through research conducted by Best Practice Institute (BPI), utilizing the Love of Workplace Index and advanced sentiment analysis [3] - This methodology assesses various factors such as emotional connection, collaboration, respect, alignment of values, and achievement [3] Survey Details - Over 2.8 million U.S. employees were surveyed across diverse companies and industries, with hundreds of executives interviewed for additional context [4] - The companies represented span more than 50 industries, including Financial Services, Healthcare, Technology, and Construction [4] Validation of Rankings - The rankings are independently validated to reflect both employee experiences and a thorough external assessment of workplace practices [5] - This validation is crucial in an era where employees seek tangible proof of workplace quality rather than mere promises [5]

Core Insights - Greif, Inc. has successfully completed the sale of its timberlands business to Molpus Woodlands Group for $462 million, which will aid in debt reduction and enhance capital efficiency [1][2][7] Group 1: Timberlands Sale - The sale involves approximately 173,000 acres of timberlands located in the Southeastern United States [2][7] - This divestiture is part of Greif's ongoing portfolio optimization strategy, allowing the company to concentrate on its core business and invest in higher-margin markets [2][4] Group 2: Portfolio Optimization - In September, Greif also sold its containerboard business to Packaging Corporation of America, which includes two mills with a production capacity of 800,000 tons [3] - The cash proceeds from both sales are expected to reduce Greif's leverage ratio to below 1.2X, strengthening its balance sheet and generating interest savings [5][7] Group 3: Strategic Goals - The timberlands sale aligns with Greif's "Build to Last" strategy, marking a significant step towards improved capital efficiency and accelerated growth [4] - The company aims to reduce recurring capital expenditures, thereby unlocking value-creation opportunities [4] Group 4: Stock Performance - Greif's stock has increased by 0.7% over the past year, contrasting with a 14.3% decline in the industry [6]

Core Points - Greif, Inc. has completed the sale of its timberlands business to Molpus Woodlands Group for approximately $462 million after adjustments [1][2] - The sale is part of Greif's strategy to achieve the highest return on invested capital and is expected to lower the company's leverage ratio below 1.2x, enhancing its balance sheet and providing significant interest savings for fiscal 2026 [2] Company Overview - Greif, Inc. is a global leader in performance packaging, operating in 40 countries and providing innovative and tailored solutions for various industries [3] - The company emphasizes customer service, operational excellence, and sustainability in its packaging solutions [3]

Core Viewpoint - Greif, Inc. has appointed Dennis Hoffman as Senior Vice President, General Counsel, and Corporate Secretary, succeeding Gary Martz, who will retire on November 30, 2025 [1][3]. Group 1: Leadership Transition - Dennis Hoffman brings extensive experience in corporate law, governance, mergers and acquisitions, joint ventures, and environmental compliance, having worked closely with Gary Martz for the past 15 years [2]. - Ole Rosgaard, President and CEO, expressed confidence in Hoffman's leadership and business orientation, stating he is well-suited to guide Greif's legal, compliance, and governance agenda [3]. - Gary Martz has served in his role for over two decades, significantly contributing to Greif's corporate governance and strategic transactions, and will assist in the transition until his retirement [3]. Group 2: Company Overview - Greif, founded in 1877, operates in 40 countries and is a leader in performance packaging, providing innovative and tailored solutions for various industries [4]. - The company emphasizes customer service, operational excellence, and sustainability, aiming to create lasting value for stakeholders [4].

Core Points - Greif, Inc. will report its 2025 fourth quarter financial results on November 5, 2025, after market close [1] - A conference call to discuss the results will take place on November 6, 2025, at 8:30 a.m. ET [1] - The company will provide conference call slides along with the earnings press release [2] Conference Call Details - Participants can access the call through an online registration link, receiving a confirmation with dial-in details and a unique conference call code [3] - Phone lines will open at 8:00 a.m. ET on November 5, 2025 [3] - A digital replay of the conference call will be available two hours after the call on the company's website [3] Company Overview - Greif, founded in 1877, is a global leader in performance packaging, operating in 40 countries [4] - The company focuses on delivering innovative and tailored solutions for demanding industries, emphasizing customer service, operational excellence, and sustainability [4] - Greif's product offerings include Customized Polymer, Sustainable Fiber, Durable Metal, and Integrated Solutions [4]