DELAWARE, Ohio, April 25, 2025 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it has been recognized with a Gold and Silver Stevie® Award in the Management - Manufacturing category of the Annual American Business Awards®. Ole Rosgaard, President and CEO of Greif, was awarded with a Gold Stevie Award for Achievement in Management – Manufacturing, and Greif was awarded with a Silver Stevie Award for Company of the Year - Large ...

A month has gone by since the last earnings report for Greif (GEF) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Greif due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, estimates r ...

DELAWARE, Ohio, March 18, 2025 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, announced today it is implementing a price increase between $50 and $70 per short ton for all grades of uncoated recycled paperboard (URB) products and a minimum 7.5 percent increase on all tube and core and protective packaging products. The uncoated recycled paperboard increase is effective with new orders and shipments on and after April 21, 2025. The tube and c ...

Core Insights - Greif, Inc. has been awarded the Gallup Exceptional Workplace Award (GEWA) for the second consecutive year, recognizing its best-in-class workplace [1] - The company emphasizes the importance of colleague engagement and performance-focused culture, which is reflected in its global workforce of over 14,000 employees [2][3] Company Overview - Greif is a global leader in industrial packaging products and services, producing a variety of packaging solutions including steel, plastic, and fiber drums, as well as intermediate bulk containers and other specialty products [4] - The company operates more than 250 facilities across 37 countries, aiming to provide exceptional customer service [4]

Financial Performance - Net income decreased 87.2% to $8.6 million or $0.15 per diluted Class A share compared to $67.2 million or $1.17 per diluted Class A share in the prior year quarter[6] - Net income attributable to Greif, Inc. decreased to $8.6 million, down 87.8% from $67.2 million in the prior year[31] - Net income for the three months ended January 31, 2025, was $14.4 million, a decrease of 80.6% compared to $74.3 million in the same period of 2024[39] - Net income for the trailing twelve months ended January 31, 2025, was $228.8 million, down from $360.3 million for the same period in 2024, representing a decrease of approximately 36.4%[48] - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A common stock was $0.15, a decline of 87.9% from $1.17 in the same quarter of 2024[31] - The company reported a net cash used in operating activities of $30.8 million, compared to a net cash provided of $4.5 million in the same quarter of 2024[35] Revenue and Sales - Net sales for the three months ended January 31, 2025, were $1,265.8 million, an increase of 4.1% compared to $1,205.8 million in the same period of 2024[31] - Customized Polymer Solutions net sales increased by $67.1 million to $295.1 million, primarily due to $58.5 million from recent acquisitions[12] - Sustainable Fiber Solutions net sales increased by $32.6 million to $561.4 million, driven by $25.8 million from higher containerboard and boxboard prices[16] - The Durable Metal Solutions segment reported net sales of $342.2 million, a decrease of 7.6% from $370.5 million in the prior year[37] Adjusted EBITDA and Cash Flow - Adjusted EBITDA increased 5.9% to $145.1 million compared to $137.0 million in the prior year[6] - Total Adjusted EBITDA for the three months ended January 31, 2025, was $145.1 million, an increase of 5.9% compared to $137.0 million in the same period of 2024[37] - Adjusted EBITDA for the trailing twelve months ended January 31, 2025, was $712.4 million, a decline of 11.2% compared to $802.4 million for the same period in 2024[48] - Free cash flow for the three months ended January 31, 2025, was negative $66.5 million, compared to negative $51.1 million in the same period of 2024[43] - Projected free cash flow for fiscal 2025 is estimated at $220.0 million, with adjusted free cash flow expected to be $245.0 million[50] Debt and Liabilities - Total debt increased by $548.4 million to $2,840.2 million, primarily due to the acquisition of Ipackchem[6] - Total debt increased to $2,840.2 million as of January 31, 2025, from $2,291.8 million a year earlier, resulting in a net debt of $2,639.1 million[46] - The leverage ratio increased to 3.63x from 2.46x in the prior year quarter[6] - The leverage ratio increased to 3.63x as of January 31, 2025, compared to 2.46x a year earlier, showing a significant rise in leverage[48] - Total liabilities decreased to $4,375.8 million as of January 31, 2025, from $4,400.2 million as of October 31, 2024[33] Cost Management and Optimization - The company announced the closure of specific paperboard machines and mills as part of its cost optimization strategy, achieving $13.0 million in annual run-rate savings[6] - The company incurred non-cash asset impairment charges of $13.7 million during the quarter, compared to $1.3 million in the same period last year[31] - Restructuring charges amounted to $2.7 million for the three months ended January 31, 2025, compared to $5.7 million in the same period of 2024[39] - Cash paid for purchases of properties, plants, and equipment was $35.7 million for the three months ended January 31, 2025, down from $55.6 million in the prior year[43] Future Guidance - Fiscal 2025 low-end guidance for adjusted EBITDA is set at $710 million and adjusted free cash flow at $245 million[23] - Cash paid for purchases of properties, plants, and equipment is projected to be $171.0 million for fiscal 2025[50] - Cash paid for acquisition and integration-related costs is estimated at $17.0 million for fiscal 2025[50] - Cash paid for integration-related ERP systems and equipment is projected to be $6.0 million for fiscal 2025[50] - Cash paid for fiscal year-end change costs is estimated at $2.0 million for fiscal 2025[50]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $145 million, an improvement of $7 million compared to the prior year quarter [28] - Adjusted EPS for the quarter was $0.39, lower than the prior year primarily due to a non-recurrence of a one-time tax benefit of $48 million and $14 million of higher interest expense [28] - Adjusted free cash flow was a net use of $62 million, slightly higher than the prior year due to increased interest expense [29] Business Line Data and Key Metrics Changes - Polymers segment saw a volume increase of 2.7%, driven by demand in small containers and IBC in the ag and food sectors, particularly in EMEA [20] - Integrated Solutions experienced low double-digit growth in both caps and closures and paints, linings, and adhesives [20] - Fiber volumes were slightly up, with operating rates in both paper grades in line with the industry [21] - Metals segment continued to be impacted by a soft industrial economy, particularly in bulk chemicals and petrochemicals [21] Market Data and Key Metrics Changes - EMEA demonstrated the highest level of resilience, followed by APAC, while LATAM showed a slight downward trend and North America had the most bearish demand sentiment [24] - The overall demand in boxboard remained flat year-on-year, with specific subsegments showing declines [84] Company Strategy and Development Direction - The company announced a $100 million cost optimization initiative and a commitment to achieve $1 billion in EBITDA and $500 million in free cash flow by 2027 [7][10] - The organizational realignment into seven Strategic Business Units (SBUs) aims to enhance growth and streamline operations [16] - The decision to sell the timber portfolio is part of a strategy to reduce debt and focus on core business areas [17][91] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future volume growth, particularly in polymer markets, but noted uncertainty in the overall demand environment [54][100] - The company is well-positioned for growth despite current industrial economic challenges, with expectations of significant EBITDA lift once the industrial economy recovers [103] Other Important Information - The company has identified $5 million in run rate savings as part of its cost optimization efforts, with expectations to achieve at least $15 million to $25 million by the end of fiscal 2025 [13] - The planned closure of two facilities will reduce containerboard mill capacity by 100,000 tons and URB capacity by 90,000 tons, expected to be EBITDA positive by 2027 [26][27] Q&A Session Summary Question: Fiber segment performance relative to expectations - Management indicated that fiber performance was in line with expectations, but SG&A allocation impacted perceived profitability [45][46] Question: Differences in demand between EMEA and North America - Management explained that EMEA's resilience is due to targeted growth in GDP plus markets, while North America faces more bearish sentiment [50][51] Question: SG&A margin expectations for Q2 - Management expects steady improvement in EBITDA margins through the year, with volume lift leveraging fixed costs [63] Question: Timberland sale details - Management stated that the timberland sale is aimed at reducing debt and maximizing value, with ongoing interest from potential buyers [66][91] Question: Competitive landscape in polymers and metals - Management noted that they focus on value over volume, maintaining market position despite competition [94] Question: End markets with the greatest confidence - Management expressed excitement about growth in agrochemical and food and beverage markets, while noting the long runway for pharma [100][102]

Financial Performance - Net sales for the three months ended January 31, 2025, increased to $1,265.8 million, up 4.1% from $1,205.8 million in the same period of 2024[9] - Gross profit rose to $245.5 million, representing a 10.8% increase compared to $221.6 million in the prior year[9] - Net income attributable to Greif, Inc. decreased significantly to $8.6 million, down 87.8% from $67.2 million in the same quarter of 2024[9] - Basic earnings per share for Class A common stock dropped to $0.15, a decline of 87.9% from $1.17 in the previous year[9] - Net income for the three months ended January 31, 2025, was $14.4 million, a decrease of 80.6% compared to $74.3 million for the same period in 2024[14] - Total operating profit for the three months ended January 31, 2025, was $59.9 million, down 13.5% from $68.9 million in the same period of 2024[99] - Adjusted EBITDA for the three months ended January 31, 2025, was $145.1 million, up 5.9% from $137.0 million in the same period of 2024[123] Assets and Liabilities - Total assets as of January 31, 2025, were $6,585.7 million, a decrease from $6,647.6 million as of October 31, 2024[12] - Current liabilities increased to $1,217.8 million, compared to $1,014.4 million at the end of October 2024[13] - Long-term debt decreased to $2,422.2 million from $2,626.2 million as of October 31, 2024[13] - Total shareholders' equity as of January 31, 2025, was $2,078.9 million, down from $2,117.5 million as of October 31, 2024, a decrease of 1.8%[15] Cash Flow and Dividends - Cash and cash equivalents increased slightly to $201.1 million from $197.7 million at the end of October 2024[12] - The company declared cash dividends of $0.54 per share for Class A common stock, up from $0.52 in the previous year[9] - Dividends paid to Greif, Inc. shareholders were $31.0 million, compared to $29.7 million in the prior year, reflecting a 4.4% increase[15] - Net cash used in operating activities was $(30.8) million, a significant decline from $4.5 million provided in the same quarter last year[14] - Cash provided by financing activities increased to $62.5 million in Q1 2025 from $36.1 million in Q1 2024[151] Acquisitions and Restructuring - The Company acquired Ipackchem Group SAS for a total purchase price of $582.1 million, incurring transaction costs of $8.9 million[28] - Goodwill recognized from the Ipackchem acquisition amounted to $280.0 million, attributed to expected synergies and economies of scale[28] - The Company recorded restructuring charges of $2.7 million for the three months ended January 31, 2025, compared to $5.7 million for the same period in 2024[40] - The restructuring activities in 2025 focus on optimizing operations and transforming internal processes for long-term profitable earnings growth[39] Segment Performance - Customized Polymer Solutions segment reported net sales of $295.1 million, a 29.5% increase from $228.0 million in the same period of 2024[123] - Sustainable Fiber Solutions segment achieved net sales of $561.4 million, up 6.2% from $528.8 million in the same period of 2024[123] - Durable Metal Solutions segment net sales decreased to $342.2 million from $370.5 million in the same period of 2024, reflecting a decline of 7.0%[123] - Integrated Solutions segment reported net sales of $67.1 million, down from $78.5 million in the same period of 2024, a decrease of 14.3%[123] Financial Risks and Controls - The company continues to face risks including economic conditions, supply chain disruptions, and competitive pressures that may impact future performance[107] - There have been no material changes in the company's internal control over financial reporting during the most recent fiscal quarter[183] - The company's disclosure controls and procedures have been evaluated and deemed effective by the principal executive officer and principal financial officer[185] Other Financial Metrics - Depreciation, depletion, and amortization increased to $66.6 million from $60.4 million year-over-year, reflecting a rise of 3.2%[14] - SG&A expenses increased to $167.7 million in Q1 2025 from $145.8 million in Q1 2024, representing 13.2% of net sales compared to 12.1% in the previous year[127] - The company anticipates moderate increases in steel and resin prices, while other direct material prices are expected to remain stable throughout the year[129]

Core Viewpoint - Greif, Inc. reported disappointing financial results for the first quarter of fiscal 2025, with adjusted earnings per share significantly below expectations, primarily due to increased raw material costs and higher selling, general, and administrative expenses, despite a rise in revenues [1][3]. Financial Performance - Adjusted earnings per share for Q1 fiscal 2025 were 39 cents, missing the Zacks Consensus Estimate of 72 cents, and down 69.3% year over year [1][2]. - Total revenues increased by 5% year over year to $1.27 billion, but fell short of the Zacks Consensus Estimate of $1.30 billion [3]. - The cost of sales rose by 3.7% year over year to $1.02 billion, while gross profit increased by 10.8% to $245.5 million, resulting in a gross margin of 19.4%, up from 18.4% a year ago [3]. Expenses and EBITDA - Selling, general, and administrative expenses rose to $168 million from $146 million in the prior-year quarter [4]. - Adjusted EBITDA for the quarter was $145 million, reflecting a 5.9% year-over-year increase, with an adjusted EBITDA margin of 11.5% compared to 11.4% in the previous year [4]. Segment Performance - Customized Polymer Solutions segment revenues were $295 million, up from $228 million year over year, exceeding projections of $284 million, with adjusted EBITDA of $39.5 million [6]. - Durable Metal Solutions segment revenues decreased by 7.6% to $342 million, missing estimates of $375 million, but adjusted EBITDA slightly increased to $45 million [7]. - Sustainable Fiber Solutions segment revenues grew by 6.2% to $561 million, surpassing estimates of $556 million, although adjusted EBITDA fell to $51.5 million [8]. - Integrated Solutions segment revenues declined to $67 million from $79 million year over year, missing projections of $82 million, with adjusted EBITDA dropping to $8.9 million [9]. Cash and Debt Position - Cash and cash equivalents at the end of Q1 fiscal 2025 were $201 million, up from $179 million a year earlier, while cash used in operating activities was $30.8 million compared to a cash inflow of $4.5 million in the prior-year quarter [10]. - Long-term debt decreased to $2.42 billion from $2.63 billion as of the previous reporting period [10]. Dividend Announcement - Greif's board announced a quarterly cash dividend of 54 cents per share for Class A Common Stock and 81 cents for Class B Common Stock, payable on April 1, 2025 [11]. 2025 Outlook - The company anticipates a low end of adjusted free cash flow for fiscal 2025 to be $245 million and adjusted EBITDA to be at least $710 million, an increase from the previously announced $675 million [12]. Stock Performance - Greif's shares have increased by 0.7% over the past year, compared to a 14.6% growth in the industry [13].

Core Insights - Greif reported revenue of $1.27 billion for the quarter ended January 2025, reflecting a 5% increase year-over-year, but fell short of the Zacks Consensus Estimate of $1.3 billion, resulting in a surprise of -2.60% [1] - The company's EPS was $0.39, significantly lower than the $1.27 reported in the same quarter last year, and also below the consensus estimate of $0.72, leading to an EPS surprise of -45.83% [1] Financial Performance Metrics - Customized Polymer Solutions net sales were $295.10 million, exceeding the average estimate of $284.79 million from two analysts [4] - Integrated Solutions net sales were $67.10 million, below the average estimate of $73.66 million [4] - Sustainable Fiber Solutions net sales were $561.40 million, slightly below the estimated $572.23 million [4] - Durable Metal Solutions net sales were $342.20 million, also falling short of the average estimate of $356.12 million [4] - Gross profit for Customized Polymer Solutions was $60.60 million, surpassing the average estimate of $54.04 million [4] - Gross profit for Integrated Solutions was $18.40 million, below the average estimate of $22.28 million [4] - Gross profit for Sustainable Fiber Solutions was $103.40 million, slightly below the average estimate of $106.58 million [4] - Gross profit for Durable Metal Solutions was $63.10 million, falling short of the average estimate of $66.79 million [4] Stock Performance - Over the past month, Greif's shares returned -1.7%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Greif reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.72 per share, and down from $1.27 per share a year ago, representing an earnings surprise of -45.83% [1] - The company posted revenues of $1.27 billion for the quarter, missing the Zacks Consensus Estimate by 2.60%, compared to $1.21 billion in the same quarter last year [2] - Over the last four quarters, Greif has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Greif shares have lost about 0.9% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.17 on revenues of $1.42 billion, and for the current fiscal year, it is $4.11 on revenues of $5.22 billion [7] - The outlook for the Containers - Paper and Packaging industry, where Greif operates, is currently in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8]