Core Insights - Cuprina Holdings has secured exclusive licensing rights for Southeast Asia's first medical waste recycling technology, developed under the oversight of UNIDO and GEF, aimed at improving environmental management in the region [1][2][4] Group 1: Technology and Operations - The new technology utilizes advanced high-temperature steam treatment to sterilize and decontaminate medical waste, particularly plastic-based materials, avoiding the toxic emissions associated with incineration [3] - Cuprina plans to apply for operating licenses in Singapore to construct a facility for this technology and is engaging with local toxic waste disposal companies to integrate the new processes into the national waste management framework [4] Group 2: Market Opportunity - The biohazardous medical waste in Singapore increased from 4,400 tons in 2016 to 5,700 tons in 2020, reflecting a 5% annual growth rate due to rising healthcare demand and stricter infection control measures [5] - The global medical waste management market was valued at USD 34.06 billion in 2023 and is projected to reach USD 59.42 billion by 2030, growing at an annual rate of 8%, with Asia-Pacific identified as the fastest-growing region [6] Group 3: Strategic Vision - By establishing Singapore as the first hub for this technology outside of China, Cuprina aims to capture significant growth opportunities in Southeast Asia, where governments are tightening environmental standards [5] - Cuprina's CEO emphasized the importance of transitioning from incineration and landfill methods to a new model that protects public health and the environment while creating long-term shareholder value [7]

Company Overview - Greif, Inc (NYSE: GEF) is undergoing significant strategic changes by shedding lower-margin businesses and focusing on high-value end markets [1] - The company has demonstrated resilient profitability despite a sluggish macro backdrop and uneven segment volumes [1] Financial Performance - For 3Q25, Greif, Inc has shown strong financial performance, indicating effective management and strategic realignment [1]

Core Viewpoint - Greif, Inc. has successfully completed the sale of its containerboard business to Packaging Corporation of America, which is expected to enhance the company's capital efficiency and support its debt-reduction strategy [1][6]. Group 1: Deal Details - The definitive agreement for the sale was signed on July 1, 2025, and includes two containerboard mills with a production capacity of 800,000 tons, along with eight sheet feeder and corrugated plants across the U.S. [2] - The containerboard business generated revenues of $1.2 billion and EBITDA of $212 million for the fiscal year ending April 30, 2025 [2]. Group 2: Strategic Alignment - This divestment is part of Greif's "Build to Last" strategy, aimed at optimizing the portfolio, enhancing capital efficiency, and accelerating growth [3][6]. - Improved capital efficiency will reduce the need for recurring capital expenditures, enabling the company to pay down debt and create value [3]. Group 3: Financial Guidance Update - Following the divestment, Greif updated its fiscal 2025 adjusted EBITDA guidance to $507-$517 million, excluding $168 million in adjusted EBITDA year to date and $50 million anticipated for the fourth quarter from the sold business [4]. - The adjusted free cash flow guidance was revised to $290-$300 million from the previous $305-$315 million [4]. Group 4: Stock Performance - Greif's stock has increased by 7.2% over the past year, contrasting with a 9.9% decline in the industry [5].

Core Points - Greif, Inc. has completed the sale of its containerboard business to Packaging Corporation of America, marking a significant step forward for the company [1][2] - The transaction is expected to unlock immediate value for shareholders, enhance capital efficiency, and accelerate debt reduction [2] - Following the divestment, Greif has adjusted its 2025 full-year guidance to exclude $168 million of year-to-date Adjusted EBITDA and an implied fourth quarter performance of $50 million related to the containerboard business, revising the guidance to $507 million to $517 million of Adjusted EBITDA [3] Financial Adjustments - The Adjusted Free Cash Flow guidance has been adjusted by $15 million to a range of $290 million to $300 million due to the lack of expected cash contribution from the containerboard business operations in September [3] - Goldman Sachs acted as the exclusive financial advisor for Greif during this transaction [4] Company Overview - Greif, founded in 1877, is a global leader in performance packaging, operating in 40 countries and providing innovative solutions for various industries [5]

[Executive Summary & Strategic Overview](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Overview) Greif executed significant portfolio divestitures, achieved cost savings, and generated strong adjusted free cash flow, improving its financial position despite mixed demand [Key Strategic Actions and Announcements](index=1&type=section&id=Key%20Strategic%20Actions%20and%20Announcements) Greif announced significant portfolio changes, including the definitive agreement to divest its Containerboard Business for $1.8 billion and the planned sale of its timberlands business for $462.0 million. The company is also making progress on cost optimization initiatives, achieving $20.0 million in run-rate savings by Q3 2025 - Divestiture of Containerboard Business: Entered into a definitive agreement to sell for **$1.8 billion** in an all-cash transaction, expected to close effective **August 31, 2025**. This business is now presented as discontinued operations[3](index=3&type=chunk)[6](index=6&type=chunk) - Sale of Timberlands Business: Signed definitive agreement for **$462.0 million**, with closing anticipated **October 1, 2025**[6](index=6&type=chunk) - Cost Optimization: Achieved run-rate savings of **$20.0 million** by the end of Q3 2025, reaching the midpoint of the committed **$15 - $25 million** range[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ole Rosgaard highlighted strong adjusted free cash flow generation of $171 million, emphasizing the company's focus on cash production, cost optimization, and executing portfolio changes to achieve long-term commitments and create shareholder value despite mixed demand - CEO Ole Rosgaard stated, "Greif continued to execute this quarter, as evidenced in particular by our strong **$171 million** of adjusted free cash flow generation"[5](index=5&type=chunk) - The company is focused on "driving cash production, ramping up our cost optimization, and executing on portfolio changes" to achieve long-term commitments and create value for investors[5](index=5&type=chunk) [Fiscal Third Quarter 2025 Financial Highlights](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Financial%20Highlights) For continuing operations, net income decreased significantly due to a prior-year gain, but net income excluding adjustments increased by 11.6%. Combined Adjusted EBITDA saw an 11% increase, and adjusted free cash flow surged by $136.4 million. The company also reduced total and net debt, improving its leverage ratio to 3.1x Net Income (Continuing Operations) Comparison (in millions, except per share amounts) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :----------------------------------- | :-------- | :-------- | :--------- | | Net income | $39.3 | $78.0 | -49.6% | | Diluted Class A share | $0.67 | $1.35 | | | Net income (excluding adjustments) | $60.4 | $54.1 | +11.6% | | Diluted Class A share (excluding adjustments) | $1.03 | $0.92 | | Adjusted EBITDA Comparison (in millions) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Combined Adjusted EBITDA | $220.9 | $199.4 | +11% | | Adjusted EBITDA (continuing) | $160.7 | $157.0 | +2.4% | Cash Flow Comparison (in millions) | Metric | Q3 2025 | Q3 2024 | Change ($M) | | :--------------------------------- | :-------- | :-------- | :---------- | | Net cash provided by operating activities | $199.9 | $76.8 | +$123.1 | | Adjusted free cash flow | $170.7 | $34.3 | +$136.4 | Debt & Leverage Comparison (in millions, except leverage ratio) | Metric | Q3 2025 | Q3 2024 | Change ($M) | | :---------- | :---------- | :---------- | :---------- | | Total debt | $2,717.0 | $2,909.5 | -$192.5 | | Net debt | $2,431.8 | $2,715.3 | -$283.5 | | Leverage ratio | 3.1x | 3.6x | -0.5x | - The Board of Directors declared quarterly cash dividends reflecting an increase of **$0.02 per share** on Class A Common Stock and **$0.03 per share** on Class B Common Stock[6](index=6&type=chunk) [Segment Results (Continuing Operations)](index=3&type=section&id=Segment%20Results%20(Continuing%20Operations)) Segment performance varied, with Customized Polymer Solutions showing growth, Durable Metal and Sustainable Fiber Solutions improving profitability despite sales declines, and Integrated Solutions experiencing overall decreases [Net Sales Impact by Driver](index=3&type=section&id=Net%20Sales%20Impact%20by%20Driver) The table illustrates the percentage impact of currency translation, volume, and selling prices/product mix on net sales for each segment in Q3 2025 compared to Q3 2024. Customized Polymer Solutions saw overall growth, while Durable Metal and Sustainable Fiber Solutions experienced declines, primarily due to lower volumes Net Sales Impact by Segment (Q3 2025 vs Q3 2024) | Segment | Currency Translation | Volume | Selling Prices and Product Mix | Total Impact | | :----------------------- | :------------------- | :----- | :--------------------------- | :----------- | | Customized Polymer Solutions | 2.4% | 2.2% | 3.3% | 7.9% | | Durable Metal Solutions | 2.7% | (5.8)% | (2.7)% | (5.8)% | | Sustainable Fiber Solutions | (0.1)% | (7.6)% | 2.1% | (5.6)% | | Integrated Solutions | 0.8% | 2.6% | 1.2% | 4.6% | [Customized Polymer Solutions](index=3&type=section&id=Customized%20Polymer%20Solutions) This segment reported increased net sales and gross profit, driven by higher volumes, selling prices, and positive foreign currency translation. However, operating profit and Adjusted EBITDA slightly decreased due to higher SG&A and restructuring charges - Net sales increased by **$25.1 million** to **$339.8 million**, primarily due to **$7.0 million** from higher volumes and **$10.5 million** from higher average selling prices and positive foreign currency translation impacts[11](index=11&type=chunk)[39](index=39&type=chunk) Customized Polymer Solutions Financials (in millions) | Metric | 2025 | 2024 | Change ($M) | | :------------------- | :----- | :----- | :---------- | | Gross profit | $70.7 | $60.6 | +$10.1 | | Operating profit | $8.8 | $9.6 | -$0.8 | | Adjusted EBITDA | $39.4 | $40.5 | -$1.1 | [Durable Metal Solutions](index=3&type=section&id=Durable%20Metal%20Solutions) Despite a decrease in net sales primarily due to lower volumes, this segment achieved an increase in gross profit, operating profit, and Adjusted EBITDA, mainly benefiting from lower raw material costs - Net sales decreased by **$24.3 million** to **$399.8 million**, primarily due to **$24.6 million** attributable to lower volumes[13](index=13&type=chunk)[39](index=39&type=chunk) Durable Metal Solutions Financials (in millions) | Metric | 2025 | 2024 | Change ($M) | | :------------------- | :----- | :----- | :---------- | | Gross profit | $86.4 | $85.7 | +$0.7 | | Operating profit | $37.6 | $36.2 | +$1.4 | | Adjusted EBITDA | $47.7 | $45.6 | +$2.1 | - The increase in gross profit was primarily due to lower raw material costs[13](index=13&type=chunk) [Sustainable Fiber Solutions](index=3&type=section&id=Sustainable%20Fiber%20Solutions) This segment experienced a decline in net sales due to lower volumes, partially offset by higher prices. However, gross profit and Adjusted EBITDA increased, primarily due to lower raw material and manufacturing costs, despite a decrease in operating profit from higher restructuring charges - Net sales decreased by **$17.6 million** to **$308.0 million**, primarily due to **$24.5 million** attributable to lower volumes, partially offset by **$6.8 million** from higher published containerboard and boxboard prices[15](index=15&type=chunk)[39](index=39&type=chunk) Sustainable Fiber Solutions Financials (in millions) | Metric | 2025 | 2024 | Change ($M) | | :------------------- | :----- | :----- | :---------- | | Gross profit | $75.4 | $67.9 | +$7.5 | | Operating profit | $23.2 | $35.9 | -$12.7 | | Adjusted EBITDA | $65.5 | $57.1 | +$8.4 | - The increase in gross profit was primarily due to lower raw material costs and lower manufacturing costs[15](index=15&type=chunk) [Integrated Solutions](index=3&type=section&id=Integrated%20Solutions) The Integrated Solutions segment saw decreases across net sales, gross profit, operating profit, and Adjusted EBITDA, largely attributed to the Delta Divestiture in the prior year - Net sales decreased by **$13.4 million** to **$87.1 million**, primarily due to a **$14.3 million** impact from the Delta Divestiture during the third quarter of 2024[17](index=17&type=chunk)[39](index=39&type=chunk) Integrated Solutions Financials (in millions) | Metric | 2025 | 2024 | Change ($M) | | :------------------- | :----- | :----- | :---------- | | Gross profit | $24.8 | $30.7 | -$5.9 | | Operating profit | $3.5 | $55.0 | -$51.5 | | Adjusted EBITDA | $8.1 | $13.8 | -$5.7 | - Operating profit decreased primarily due to a **$46.1 million** gain from the Delta Divestiture during the third quarter of 2024[18](index=18&type=chunk) [Financial Position, Dividends & Outlook](index=4&type=section&id=Financial%20Position%2C%20Dividends%20%26%20Outlook) Greif reported Q3 2025 tax rates, declared increased quarterly dividends, and provided fiscal 2025 guidance for Combined Adjusted EBITDA and Adjusted free cash flow [Tax Summary](index=4&type=section&id=Tax%20Summary) Greif recorded an income tax rate of 21.1% for Q3 2025, with an adjusted tax rate of 22.4%. The company anticipates its fiscal 2025 tax rate, both reported and excluding adjustments, to range between 27.0% and 32.0% Q3 2025 Tax Rates | Metric | Rate | | :------------------------------------ | :----- | | Income tax rate | 21.1% | | Tax rate excluding the impact of adjustments | 22.4% | - For fiscal 2025, the company expects its tax rate and its tax rate excluding adjustments to range between **27.0%** to **32.0%**[19](index=19&type=chunk) [Dividend Summary](index=4&type=section&id=Dividend%20Summary) The Board of Directors declared increased quarterly cash dividends of $0.56 per share for Class A Common Stock and $0.84 per share for Class B Common Stock, payable on October 1, 2025 Quarterly Cash Dividends Declared (August 26, 2025, per share) | Stock Class | Dividend Per Share | | :------------------- | :----------------- | | Class A Common Stock | $0.56 | | Class B Common Stock | $0.84 | - These dividends reflect an increase of **$0.02 per share** on Class A Common Stock and **$0.03 per share** on Class B Common Stock from the prior quarter's dividends[6](index=6&type=chunk) [Company Outlook](index=5&type=section&id=Company%20Outlook) Greif provided its fiscal 2025 outlook for Combined Adjusted EBITDA and Adjusted free cash flow, with the latter including cash flows from the Containerboard Business Fiscal 2025 Outlook (in millions) | Metric | Reported at Q3 Range | | :---------------------- | :------------------- | | Combined Adjusted EBITDA | $725 - $735 | | Adjusted free cash flow | $305 - $315 | - Fiscal 2025 Adjusted free cash flow guidance includes cash flows from the Containerboard Business[21](index=21&type=chunk)[53](index=53&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited financial statements show a slight decrease in net sales, increased operating cash flow, a stronger balance sheet with reduced debt, and higher total assets [Statements of Income](index=7&type=section&id=Statements%20of%20Income) For the three months ended July 31, 2025, net sales from continuing operations were $1,134.7 million, a slight decrease from the prior year. Net income from continuing operations was $44.7 million, while net income from discontinued operations was $24.7 million Condensed Consolidated Statements of Income (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net sales | $1,134.7 | $1,164.9 | | Gross profit | $257.3 | $244.9 | | Operating profit | $73.1 | $136.7 | | Net income from continuing operations | $44.7 | $84.5 | | Net income from discontinued operations, net of tax | $24.7 | $9.1 | | Net income attributable to Greif, Inc. | $64.0 | $87.1 | Diluted Earnings Per Share Attributable to Greif, Inc. Common Shareholders (Class A, per share) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Earnings from continuing operations per Class A common stock | $0.67 | $1.34 | | Earnings from discontinued operations per Class A common stock | $0.43 | $0.16 | | Class A common stock (total) | $1.10 | $1.50 | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) As of July 31, 2025, total assets increased to $6,735.1 million from $6,647.6 million at October 31, 2024. Current assets saw a notable increase, primarily driven by cash and cash equivalents and current assets held for sale. Total debt decreased, contributing to a stronger equity position Condensed Consolidated Balance Sheets (in millions) | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------- | :------------ | :--------------- | | Total Assets | $6,735.1 | $6,647.6 | | Cash and cash equivalents | $285.2 | $197.7 | | Current assets held for sale | $465.2 | $202.4 | | Total Liabilities | $4,405.6 | $4,400.2 | | Total Greif, Inc. equity | $2,194.2 | $2,082.4 | - Total debt (current portion of long-term debt + long-term debt) decreased from **$2,722.0 million** (Oct 31, 2024) to **$2,315.1 million** (July 31, 2025)[31](index=31&type=chunk) [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) For the three months ended July 31, 2025, net cash provided by operating activities significantly increased to $199.9 million from $76.8 million in the prior year. Net cash used in investing activities remained relatively stable, while net cash used in financing activities increased substantially due to net payments on long-term debt and purchases of redeemable noncontrolling interest Condensed Consolidated Statements of Cash Flows (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | | :---------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $199.9 | $76.8 | | Net cash provided by (used in) investing activities | $(38.5) | $(41.2) | | Net cash provided by (used in) financing activities | $(136.8) | $(43.2) | | Net increase (decrease) in cash and cash equivalents | $32.5 | $(1.8) | | Cash and cash equivalents, end of period | $285.2 | $194.2 | - Cash flows from the Containerboard Business are included within the adjusted free cash flow[33](index=33&type=chunk) [Non-GAAP Financial Measures Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides detailed reconciliations for key non-GAAP financial measures, including Adjusted EBITDA, free cash flow, net debt, and leverage ratio, highlighting improved performance and fiscal 2025 guidance [Adjusted EBITDA from Discontinued Operations](index=10&type=section&id=Adjusted%20EBITDA%20from%20Discontinued%20Operations) Adjusted EBITDA from discontinued operations (Containerboard Business) for the three months ended July 31, 2025, was $60.2 million, a significant increase from $42.4 million in the prior year, primarily driven by higher net income from discontinued operations Adjusted EBITDA from Discontinued Operations (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net income - discontinued operations | $24.7 | $9.1 | | Operating profit - discontinued operations | $53.1 | $34.3 | | Adjusted EBITDA - discontinued operations | $60.2 | $42.4 | [Combined Adjusted EBITDA](index=10&type=section&id=Combined%20Adjusted%20EBITDA) Combined Adjusted EBITDA, which includes both continuing and discontinued operations, increased by 11% to $220.9 million for the third quarter of 2025, reflecting growth in both segments Combined Adjusted EBITDA (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Change ($M) | | :-------------------------- | :----- | :----- | :---------- | | Adjusted EBITDA (continuing) | $160.7 | $157.0 | +$3.7 | | Adjusted EBITDA (discontinued) | $60.2 | $42.4 | +$17.8 | | Combined Adjusted EBITDA | $220.9 | $199.4 | +$21.5 | [Financial Highlights by Segment (Non-GAAP)](index=11&type=section&id=Financial%20Highlights%20by%20Segment%20(Non-GAAP)) This section provides a breakdown of net sales, gross profit, operating profit, and Adjusted EBITDA for each of Greif's continuing segments, as well as Combined Adjusted EBITDA. Customized Polymer Solutions and Sustainable Fiber Solutions showed growth in gross profit and Adjusted EBITDA, while Durable Metal Solutions maintained strong Adjusted EBITDA despite sales decline. Integrated Solutions saw declines across the board Net Sales by Segment (Three Months Ended July 31, in millions) | Segment | 2025 | 2024 | Change ($M) | | :----------------------- | :----- | :----- | :---------- | | Customized Polymer Solutions | $339.8 | $314.7 | +$25.1 | | Durable Metal Solutions | $399.8 | $424.1 | -$24.3 | | Sustainable Fiber Solutions | $308.0 | $325.6 | -$17.6 | | Integrated Solutions | $87.1 | $100.5 | -$13.4 | | Total net sales | $1,134.7 | $1,164.9 | -$30.2 | Adjusted EBITDA by Segment (Three Months Ended July 31, in millions) | Segment | 2025 | 2024 | Change ($M) | | :----------------------- | :----- | :----- | :---------- | | Customized Polymer Solutions | $39.4 | $40.5 | -$1.1 | | Durable Metal Solutions | $47.7 | $45.6 | +$2.1 | | Sustainable Fiber Solutions | $65.5 | $57.1 | +$8.4 | | Integrated Solutions | $8.1 | $13.8 | -$5.7 | | Total Adjusted EBITDA | $160.7 | $157.0 | +$3.7 | Combined Adjusted EBITDA (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Change ($M) | | :------------------------ | :----- | :----- | :---------- | | Combined Adjusted EBITDA | $220.9 | $199.4 | +$21.5 | [Consolidated Adjusted EBITDA](index=12&type=section&id=Consolidated%20Adjusted%20EBITDA) This reconciliation details the calculation of Consolidated Adjusted EBITDA from net income for continuing operations, showing an increase to $160.7 million in Q3 2025 from $157.0 million in Q3 2024 Consolidated Adjusted EBITDA Reconciliation (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net income (continuing operations) | $44.7 | $84.5 | | Operating profit | $73.1 | $136.7 | | Adjusted EBITDA | $160.7 | $157.0 | | Plus: Adjusted EBITDA - discontinued operations | $60.2 | $42.4 | | Combined Adjusted EBITDA | $220.9 | $199.4 | [Segment Adjusted EBITDA](index=13&type=section&id=Segment%20Adjusted%20EBITDA) This section provides a detailed reconciliation of Adjusted EBITDA for each segment, starting from operating profit. It highlights the specific adjustments made for depreciation, acquisition costs, restructuring, impairment, and other items to arrive at segment-level Adjusted EBITDA and Combined Adjusted EBITDA Segment Adjusted EBITDA Reconciliation (Three Months Ended July 31, 2025, in millions) | Metric | Customized Polymer Solutions | Durable Metal Solutions | Sustainable Fiber Solutions | Integrated Solutions | Consolidated | | :------------------------------------ | :--------------------------- | :---------------------- | :-------------------------- | :------------------- | :----------- | | Operating profit | $8.8 | $37.6 | $23.2 | $3.5 | $73.1 | | Depreciation and amortization expense | $23.7 | $7.3 | $25.4 | $2.4 | $58.8 | | Restructuring and other charges | $3.3 | $5.2 | $15.6 | $1.1 | $25.2 | | Adjusted EBITDA | $39.4 | $47.7 | $65.5 | $8.1 | $160.7 | | Plus: Adjusted EBITDA - discontinued operations | — | — | $60.2 | — | $60.2 | | Combined Adjusted EBITDA | $39.4 | $47.7 | $125.7 | $8.1 | $220.9 | [Adjusted Free Cash Flow](index=15&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted free cash flow significantly increased to $170.7 million in Q3 2025 from $34.3 million in Q3 2024, driven by a substantial increase in net cash provided by operating activities and adjustments for nonrecurring costs Adjusted Free Cash Flow Reconciliation (Three Months Ended July 31, in millions) | Metric | 2025 | 2024 | Change ($M) | | :---------------------------------------- | :----- | :----- | :---------- | | Net cash provided by operating activities | $199.9 | $76.8 | +$123.1 | | Cash paid for purchases of properties, plants and equipment | $(40.8) | $(44.8) | +$4.0 | | Free cash flow | $159.1 | $32.0 | +$127.1 | | Cash paid for acquisition and integration related costs | $1.3 | $2.0 | -$0.7 | | Cash paid for integration related ERP systems and equipment | $1.1 | $0.2 | +$0.9 | | Cash paid for other nonrecurring costs | $9.2 | $0.1 | +$9.1 | | Adjusted free cash flow | $170.7 | $34.3 | +$136.4 | - The cash flows from Containerboard Business are included within adjusted free cash flow[46](index=46&type=chunk) [Net Income, Class A EPS, and Tax Rate Before Adjustments](index=16&type=section&id=Net%20Income%2C%20Class%20A%20EPS%2C%20and%20Tax%20Rate%20Before%20Adjustments) This reconciliation shows that while reported net income and diluted Class A EPS decreased year-over-year, net income and diluted Class A EPS *excluding adjustments* increased for Q3 2025, indicating improved underlying operational performance Net Income, Class A EPS, and Tax Rate Before Adjustments (Three Months Ended July 31, 2025, in millions, except per share amounts) | Metric | Reported | Excluding Adjustments | | :------------------------------------ | :------- | :-------------------- | | Net Income Attributable to Greif, Inc. | $39.3 | $60.4 | | Diluted Class A Per Share | $0.67 | $1.03 | | Tax Rate | 21.1% | 22.4% | Net Income, Class A EPS, and Tax Rate Before Adjustments (Three Months Ended July 31, 2024, in millions, except per share amounts) | Metric | Reported | Excluding Adjustments | | :------------------------------------ | :------- | :-------------------- | | Net Income Attributable to Greif, Inc. | $78.0 | $54.1 | | Diluted Class A Per Share | $1.34 | $0.92 | | Tax Rate | 28.6% | 23.0% | [Net Debt](index=17&type=section&id=Net%20Debt) Greif's net debt decreased by $283.5 million to $2,431.8 million as of July 31, 2025, compared to July 31, 2024, primarily due to a reduction in total debt and an increase in cash and cash equivalents Net Debt Reconciliation (in millions) | Metric | July 31, 2025 | July 31, 2024 | Change ($M) | | :---------------------- | :------------ | :------------ | :---------- | | Total debt | $2,717.0 | $2,909.5 | -$192.5 | | Cash and cash equivalents | $(285.2) | $(194.2) | -$91.0 | | Net debt | $2,431.8 | $2,715.3 | -$283.5 | [Leverage Ratio](index=18&type=section&id=Leverage%20Ratio) The company's leverage ratio improved to 3.1x as of July 31, 2025, down from 3.6x in the prior year, reflecting a decrease in adjusted net debt and an increase in trailing twelve-month Credit Agreement EBITDA Leverage Ratio Reconciliation | Metric | Trailing Twelve Months Ended 7/31/2025 | Trailing Twelve Months Ended 7/31/2024 | Change ($M) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :---------- | | Credit Agreement EBITDA | $775.1 million | $730.5 million | +$44.6 million | | Adjusted net debt | $2,382.2 million | $2,608.5 million | -$226.3 million | | Leverage ratio | 3.1x | 3.6x | -0.5x | - Credit Agreement EBITDA includes total company consolidated results, which includes continuing operations and discontinued operations, as approved by creditors[51](index=51&type=chunk) [Projected 2025 Guidance Reconciliation: Adjusted Free Cash Flow](index=19&type=section&id=Projected%202025%20Guidance%20Reconciliation%3A%20Adjusted%20Free%20Cash%20Flow) Greif provided a reconciliation for its fiscal 2025 Adjusted free cash flow guidance, projecting a range of $305.0 million to $315.0 million, which includes cash flows from the Containerboard Business Fiscal 2025 Guidance Range for Adjusted Free Cash Flow (in millions) | Metric | Scenario 1 | Scenario 2 | | :---------------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $430.0 | $435.0 | | Cash paid for purchases of properties, plants and equipment | $(150.5) | $(139.5) | | Free cash flow | $279.5 | $295.5 | | Adjusted free cash flow | $305.0 | $315.0 | - Cash flows from the Containerboard Business are included in the fiscal 2025 Adjusted free cash flow guidance[53](index=53&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) This section provides details on the upcoming conference call, an overview of Greif's business, and important disclaimers regarding forward-looking statements and associated risks [Conference Call & Investor Relations](index=5&type=section&id=Conference%20Call%20%26%20Investor%20Relations) Greif will host a conference call on August 28, 2025, to discuss Q3 2025 results. Investor relations contact information is provided for further inquiries - A conference call to discuss third quarter 2025 results will be held on **August 28, 2025**, at **8:30 a.m. Eastern Time (ET)**[22](index=22&type=chunk) - Investor Relations contact: Bill D'Onofrio, Vice President, Corporate Development & Investor Relations[23](index=23&type=chunk) [About Greif](index=5&type=section&id=About%20Greif) Greif, founded in 1877, is a global leader in performance packaging across 40 countries, offering innovative solutions in Customized Polymer, Sustainable Fiber, Durable Metal, and Integrated Solutions, with a focus on customer service, operational excellence, and sustainability - Founded in **1877**, Greif is a global leader in performance packaging located in **40 countries**[23](index=23&type=chunk) - The company delivers trusted, innovative, and tailored solutions across Customized Polymer, Sustainable Fiber, Durable Metal, and Integrated Solutions[23](index=23&type=chunk) - Greif is committed to legendary customer service, operational excellence, and global sustainability[23](index=23&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections. Investors are cautioned not to place undue reliance on these statements, and a detailed discussion of risks is available in the company's Form 10-K - All forward-looking statements are based on assumptions and expectations, but the Company can give no assurance that these expectations will prove to be correct[24](index=24&type=chunk) - Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those forecasted, projected or anticipated[24](index=24&type=chunk) - Investors should not place undue reliance on forward-looking statements and should refer to "Risk Factors" in Part I, Item 1A of the most recently filed Form 10-K for a detailed discussion of significant risks[26](index=26&type=chunk)

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20Financial%20Information) This part provides the company's comprehensive financial statements and related disclosures [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Greif, Inc. and its subsidiaries, including statements of income, comprehensive income, balance sheets, cash flows, and changes in shareholders' equity, along with detailed notes explaining the basis of presentation, significant accounting policies, acquisitions, divestitures, debt, financial instruments, and segment information [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's income statement data for the specified periods, detailing net sales, profit metrics, and earnings per share Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended July 31 | (in millions, except per share amounts) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net sales | $1,134.7 | $1,164.9 | | Gross profit | $257.3 | $244.9 | | Operating profit | $73.1 | $136.7 | | Net income attributable to Greif, Inc. | $64.0 | $87.1 | | Earnings per Class A common stock - diluted | $1.10 | $1.50 | | Earnings per Class B common stock - diluted | $1.66 | $2.26 | Condensed Consolidated Statements of Income (Unaudited) - Nine Months Ended July 31 | (in millions, except per share amounts) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net sales | $3,231.8 | $3,247.9 | | Gross profit | $711.9 | $671.2 | | Operating profit | $162.6 | $260.5 | | Net income attributable to Greif, Inc. | $119.9 | $198.7 | | Earnings per Class A common stock - diluted | $2.07 | $3.44 | | Earnings per Class B common stock - diluted | $3.10 | $5.16 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income data, including net income and other comprehensive income components Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three Months Ended July 31 | (in millions) | 2025 | 2024 | | :------------ | :--- | :--- | | Net income | $69.4 | $93.6 | | Other comprehensive income (loss), net of tax | $25.8 | $(13.4) | | Comprehensive income attributable to Greif, Inc. | $89.7 | $73.7 | Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Nine Months Ended July 31 | (in millions) | 2025 | 2024 | | :------------ | :--- | :--- | | Net income | $138.3 | $219.9 | | Other comprehensive income (loss), net of tax | $72.6 | $(25.9) | | Comprehensive income attributable to Greif, Inc. | $192.0 | $173.7 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (Unaudited) - As of July 31, 2025 and October 31, 2024 | (in millions) | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | **ASSETS** | | | | Total current assets | $1,995.4 | $1,549.4 | | Total long-term assets | $3,605.5 | $3,715.2 | | Properties, plants and equipment, net | $1,134.2 | $1,383.0 | | Total assets | $6,735.1 | $6,647.6 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total current liabilities | $1,411.7 | $1,014.4 | | Total long-term liabilities | $2,993.9 | $3,385.8 | | Total Greif, Inc. shareholders' equity | $2,194.2 | $2,082.4 | | Total shareholders' equity | $2,238.1 | $2,117.5 | | Total liabilities and shareholders' equity | $6,735.1 | $6,647.6 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) - Nine Months Ended July 31 | (in millions) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $303.3 | $168.8 | | Net cash used in investing activities | $(70.2) | $(703.8) | | Net cash (used in) provided by financing activities | $(188.3) | $541.7 | | Net increase in cash and cash equivalents | $87.5 | $13.3 | | Cash and cash equivalents at end of period | $285.2 | $194.2 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity, including net income, other comprehensive income, and dividends Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - Nine Months Ended July 31, 2025 | (in millions) | Common Stock Amount | Treasury Stock Amount | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Greif, Inc. Equity | | :------------ | :------------------ | :-------------------- | :---------------- | :-------------------------------------------- | :----------------------- | | Balance as of October 31, 2024 | $230.3 | $(279.0) | $2,486.2 | $(355.1) | $2,082.4 | | Net income | | | $119.9 | | $119.9 | | Other comprehensive income (loss) | | | | $72.1 | $72.1 | | Dividends paid to Greif, Inc. shareholders | | | $(93.8) | | $(93.8) | | Balance as of July 31, 2025 | $246.6 | $(276.5) | $2,507.1 | $(283.0) | $2,194.2 | Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - Nine Months Ended July 31, 2024 | (in millions) | Common Stock Amount | Treasury Stock Amount | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Greif, Inc. Equity | | :------------ | :------------------ | :-------------------- | :---------------- | :-------------------------------------------- | :----------------------- | | Balance as of October 31, 2023 | $208.4 | $(281.9) | $2,337.9 | $(316.5) | $1,947.9 | | Net income | | | $198.7 | | $198.7 | | Other comprehensive income (loss) | | | | $(25.0) | $(25.0) | | Dividends paid to Greif, Inc. shareholders | | | $(89.8) | | $(89.8) | | Balance as of July 31, 2024 | $228.4 | $(279.0) | $2,449.0 | $(341.5) | $2,056.9 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements [NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=NOTE%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis for preparing the interim financial statements, details a change in the Company's fiscal year, explains the reclassification of the Containerboard Business as discontinued operations, and describes the recent changes in segment reporting structure. It also mentions newly adopted and recently issued accounting standards - The Company is changing its fiscal year, effective for the **2025 fiscal year**. The **2025 fiscal year** began on **November 1, 2024**, and will end on **September 30, 2025**, consisting of **eleven months**. Thereafter, the fiscal year will begin on **October 1** and end on **September 30** of the following year[19](index=19&type=chunk) - The Containerboard Business divestiture qualifies as discontinued operations and its financial results have been reclassified for all periods presented, with related assets and liabilities classified as held for sale[22](index=22&type=chunk)[23](index=23&type=chunk) - The Company changed its reporting structure to a material solution-based structure, resulting in a change from three to **four reportable segments**: Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions, and Integrated Solutions. Prior period segment information has been recast[24](index=24&type=chunk)[26](index=26&type=chunk) - The Company is evaluating the potential impact of recently issued ASUs: ASU 2024-03 (Expense Disaggregation Disclosures), ASU 2023-09 (Improvements to Tax Disclosures), and ASU 2023-07 (Improvements to Reportable Segment Disclosures), with effective dates ranging from **fiscal year 2025 to 2027**[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [NOTE 2 — ACQUISITIONS AND DIVESTITURES](index=12&type=section&id=NOTE%202%20%E2%80%94%20ACQUISITIONS%20AND%20DIVESTITURES) This note details the Company's divestiture activities, including the intended sales of the Soterra Business and the Containerboard Business, and the completed Ipackchem acquisition, providing financial impacts and reclassifications - On **August 5, 2025**, the Company entered into a definitive agreement to sell its Soterra land management business for approximately **$462.0 million**, with net cash proceeds to be used for debt repayment. This divestiture does not qualify as discontinued operations[32](index=32&type=chunk) - On **June 30, 2025**, the Company agreed to sell its Containerboard Business for **$1,800.0 million**, expected to close by **August 31, 2025**. This divestiture qualifies as discontinued operations and its financial results are presented separately[33](index=33&type=chunk) Containerboard Business Results from Discontinued Operations (Unaudited) | (in millions) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $317.2 | $289.3 | $871.6 | $783.1 | | Operating profit | $53.1 | $34.3 | $142.1 | $77.5 | | Net income from discontinued operations | $24.7 | $9.1 | $61.5 | $12.2 | Ipackchem Acquisition Summary (March 26, 2024) | (in millions) | Amount Recognized as of Acquisition Date | | :------------ | :--------------------------------------- | | Cash consideration | $582.1 | | Total identifiable net assets | $301.1 | | Goodwill | $281.0 | [NOTE 3 — GOODWILL](index=17&type=section&id=NOTE%203%20%E2%80%94%20GOODWILL) This note details the impact of the Company's segment realignment on its reporting units and the allocation of goodwill. It confirms that no impairment was found after testing, though one reporting unit has low headroom, and summarizes goodwill balances by segment - The Company's segment realignment resulted in a change from three to **four reportable segments** and new reporting units, with goodwill allocated on a relative fair value basis[47](index=47&type=chunk)[49](index=49&type=chunk) - Goodwill impairment testing immediately before and after the segment realignment concluded that the estimated fair value of each reporting unit exceeded its carrying value, with the Customized Polymer Solutions – Small Plastics/Jerrycans reporting unit having a **2% headroom**[50](index=50&type=chunk) Changes in Carrying Amount of Goodwill by Segment (Nine Months Ended July 31, 2025) | (in millions) | Global Industrial Packaging | Paper Packaging & Services | Customized Polymer Solutions | Durable Metal Solutions | Sustainable Fiber Solutions | Integrated Solutions | Total | | :------------ | :-------------------------- | :------------------------- | :--------------------------- | :---------------------- | :-------------------------- | :------------------- | :---- | | Balance at October 31, 2024 | $1,148.3 | $507.2 | $— | $— | $— | $— | $1,655.5 | | Segment recast | $(1,148.3) | $(507.2) | $607.9 | $401.8 | $475.9 | $169.9 | $— | | Goodwill acquired / Measurement period adjustment | $— | $— | $(10.0) | $— | $— | $— | $(10.0) | | Currency translation | $— | $— | $28.2 | $14.3 | $— | $7.8 | $50.3 | | Balance at July 31, 2025 | $— | $— | $626.1 | $416.1 | $475.9 | $177.7 | $1,695.8 | [NOTE 4 — RESTRUCTURING CHARGES](index=19&type=section&id=NOTE%204%20%E2%80%94%20RESTRUCTURING%20CHARGES) This note provides a reconciliation of restructuring reserves, detailing the charges incurred for employee separation and other costs during the three and nine months ended July 31, 2025 and 2024, and outlines the remaining expected costs Restructuring Charges (in millions) | Period | 2025 | 2024 | | :----- | :--- | :--- | | Three Months Ended July 31 | $25.2 | $2.7 | | Nine Months Ended July 31 | $42.5 | $1.6 | - The focus for **2025 restructuring activities** is to optimize operations amidst industrial activity contraction and transform the Company's internal processes and portfolio for long-term profitable earnings growth[51](index=51&type=chunk) - Remaining amounts expected to be incurred from open or formulated restructuring plans totaled **$30.3 million** as of **July 31, 2025**[54](index=54&type=chunk) [NOTE 5 — DEBT](index=20&type=section&id=NOTE%205%20%E2%80%94%20DEBT) This note summarizes the Company's long-term and short-term debt, including details on the 2022 and 2023 Credit Agreements and accounts receivable credit facilities, along with their terms, interest rates, and compliance with covenants Long-Term Debt Summary (in millions) | | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | 2022 Credit Agreement - Term Loans | $1,641.3 | $1,707.4 | | 2023 Credit Agreement - Term Loan | $283.1 | $288.8 | | Accounts receivable credit facilities | $— | $357.9 | | 2022 Credit Agreement - Revolving Credit Facility | $395.7 | $373.7 | | Total long-term debt, net | $2,219.3 | $2,626.2 | - The **2022 Credit Agreement** includes an **$800.0 million** secured revolving credit facility and various secured term loan facilities (A-1, A-2, A-4), with the Incremental Term Loan A-4 (**$300.0 million**) used to repay funds for the Ipackchem acquisition[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The **2023 Credit Agreement** provides a **$300.0 million** secured term loan facility, used to repay and refinance a portion of the **2022 Credit Agreement** borrowings[61](index=61&type=chunk) Short-Term Debt Summary (in millions) | | July 31, 2025 | October 31, 2024 | | :---------------------------- | :------------ | :--------------- | | Accounts receivable credit facilities | $386.6 | $— | | Other debt | $15.3 | $18.6 | | Total | $401.9 | $18.6 | - The U.S. Receivables Financing Facility Agreement (U.S. RFA) provides a **$290.0 million** facility, with **$284.3 million** outstanding as of **July 31, 2025**. The European RFA provides a **€100.0 million** facility, with **$102.3 million** outstanding as of **July 31, 2025**[65](index=65&type=chunk)[68](index=68&type=chunk) [NOTE 6 — FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS](index=22&type=section&id=NOTE%206%20%E2%80%94%20FINANCIAL%20INSTRUMENTS%20AND%20FAIR%20VALUE%20MEASUREMENTS) This note details the Company's financial instruments, including recurring fair value measurements for interest rate derivatives, foreign exchange hedges, and cross-currency swaps, as well as non-recurring fair value measurements related to asset impairment charges Recurring Fair Value Measurements (in millions) - July 31, 2025 | | Assets | Liabilities | | :---------------------- | :----- | :---------- | | Interest rate derivatives | $29.4 | $(7.2) | | Foreign exchange hedges | $1.0 | $(0.8) | | Cross currency swap | $5.8 | $(47.0) | - The Company has interest rate swaps with a total notional amount of **$1,362.5 million**, effectively converting variable rate debt to a fixed rate of **2.99%**. Gains reclassified to earnings from these contracts were **$4.6 million** (Q3 2025) and **$14.8 million** (YTD 2025)[70](index=70&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk) - Foreign currency forward contracts outstanding totaled **$219.6 million** as of **July 31, 2025**, used to reduce volatility from foreign exchange rate changes[74](index=74&type=chunk) - Cross currency interest rate swaps synthetically swap **$534.9 million** of U.S. fixed rate debt to Euro denominated fixed rate debt. A cash settlement of certain cross-currency swap contracts resulted in a cash receipt of **$22.5 million** in Q1 2025[78](index=78&type=chunk)[81](index=81&type=chunk) - Non-cash asset impairment charges for the nine months ended July 31, 2025, totaled **$27.8 million**, primarily related to properties, plants and equipment, and definite-lived intangibles across various segments[84](index=84&type=chunk) [NOTE 7 – STOCK-BASED COMPENSATION](index=27&type=section&id=NOTE%207%20%E2%80%93%20STOCK-BASED%20COMPENSATION) This note outlines the stock-based compensation activities, including the granting of restricted stock units (RSUs) and performance stock units (PSUs) under the Long-Term Incentive Plan, and the shares issued upon vesting - The Company granted **123,800 RSUs** on **December 13, 2024**, with a weighted average fair value of **$66.61**, for the performance period ending **September 30, 2027**[87](index=87&type=chunk) - The Company granted **215,953 PSUs** on **December 13, 2024**, with a weighted average fair value of **$61.19**, for the performance period ending **September 30, 2027**[89](index=89&type=chunk) [NOTE 8 — INCOME TAXES](index=27&type=section&id=NOTE%208%20%E2%80%94%20INCOME%20TAXES) This note details the income tax expense for the period, highlighting the increase compared to the prior year due to a one-time tax benefit in 2024 and the impact of the Delta Divestiture. It also addresses the impact of the OBBBA and deferred tax liabilities from the Ipackchem acquisition - Income tax expense for the nine months ended July 31, 2025, was **$38.0 million**, an increase of **$22.0 million** compared to **$16.0 million** in 2024. This increase was primarily due to a one-time discrete tax benefit of **$48.1 million** recognized in 2024 and a **$17.3 million** gain from the Delta Divestiture in 2024[92](index=92&type=chunk) - The One Big Beautiful Bill Act (OBBBA), enacted on **July 4, 2025**, permanently extends several major provisions of the Tax Cuts and Jobs Act of 2017. The Company determined it does not have a material effect on the current quarter's income tax provision, with most provisions affecting the **2026 fiscal year**[93](index=93&type=chunk) - A deferred tax liability of **$63.6 million** was recorded through purchase accounting as part of the Ipackchem Acquisition, primarily due to temporary differences in intangible assets, property, plant and equipment, and inventory[94](index=94&type=chunk) [NOTE 9 — POST RETIREMENT BENEFIT PLANS](index=28&type=section&id=NOTE%209%20%E2%80%94%20POST%20RETIREMENT%20BENEFIT%20PLANS) This note presents the components of net periodic pension cost for the three and nine months ended July 31, 2025 and 2024, and outlines expected employer contributions Net Periodic Pension Cost (Benefit) (in millions) | Period | 2025 | 2024 | | :----- | :--- | :--- | | Three Months Ended July 31 | $(0.4) | $(0.9) | | Nine Months Ended July 31 | $(1.1) | $(3.0) | - The Company expects to make employer contributions of **$5.9 million** during **2025**[95](index=95&type=chunk) [NOTE 10 — CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES](index=28&type=section&id=NOTE%2010%20%E2%80%94%20CONTINGENT%20LIABILITIES%20AND%20ENVIRONMENTAL%20RESERVES) This note discusses the Company's potential exposure to litigation and regulatory matters, and details its environmental reserves, including the basis for estimation and the potential for future charges - The Company accrues for contingencies related to litigation and regulatory matters when a liability is probable and estimable, regularly reviewing accruals for adequacy[98](index=98&type=chunk) - Environmental reserves were **$17.1 million** as of **July 31, 2025**, and **$16.5 million** as of **October 31, 2024**, primarily based on environmental studies and third-party cost estimates[99](index=99&type=chunk) [NOTE 11 — EARNINGS PER SHARE](index=28&type=section&id=NOTE%2011%20%E2%80%94%20EARNINGS%20PER%20SHARE) This note explains the Company's two-class method for computing earnings per share (EPS) for its Class A and Class B Common Stock, detailing the dividend distribution proportion and providing a reconciliation of shares used in the calculation - The Company applies the 'two-class method' for EPS calculation, allocating earnings based on a **40% to 60% dividend split** for Class A and Class B shareholders, respectively[101](index=101&type=chunk)[102](index=102&type=chunk) Numerator for Basic and Diluted EPS (in millions) | Period | Net income from continuing operations attributable to Greif, Inc. | Net income from discontinued operations attributable to Greif, Inc. | Net income attributable to Greif, Inc. | Cash dividends | Undistributed earnings attributable to Greif, Inc. | | :----- | :-------------------------------------------------------------- | :---------------------------------------------------------------- | :------------------------------------- | :------------- | :----------------------------------------------- | | Three Months Ended July 31, 2025 | $39.3 | $24.7 | $64.0 | $(31.4) | $32.6 | | Three Months Ended July 31, 2024 | $78.0 | $9.1 | $87.1 | $(30.1) | $57.0 | | Nine Months Ended July 31, 2025 | $58.4 | $61.5 | $119.9 | $(93.8) | $26.1 | | Nine Months Ended July 31, 2024 | $186.5 | $12.2 | $198.7 | $(89.8) | $108.9 | Shares Outstanding (in thousands) | | July 31, 2025 | October 31, 2024 | | :-------------------- | :------------ | :--------------- | | Class A Common Stock | 26,169,944 | 25,850,270 | | Class B Common Stock | 21,331,127 | 21,331,127 | [NOTE 12 — COMPREHENSIVE INCOME (LOSS)](index=31&type=section&id=NOTE%2012%20%E2%80%94%20COMPREHENSIVE%20INCOME%20(LOSS)) This note provides a rollforward of accumulated other comprehensive income (loss), detailing changes related to foreign currency translation, derivative financial instruments, and minimum pension liability adjustments for the nine months ended July 31, 2025 and 2024 Rollforward of Accumulated Other Comprehensive Income (Loss) (in millions) - Nine Months Ended July 31, 2025 | | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | | :-------------------------- | :--------------------------- | :------------------------------- | :----------------------------------- | :-------------------------------------------- | | Balance as of October 31, 2024 | $(314.1) | $33.9 | $(74.9) | $(355.1) | | Other comprehensive income (loss) | $95.0 | $(21.4) | $(1.5) | $72.1 | | Balance as of July 31, 2025 | $(219.1) | $12.5 | $(76.4) | $(283.0) | Rollforward of Accumulated Other Comprehensive Income (Loss) (in millions) - Nine Months Ended July 31, 2024 | | Foreign Currency Translation | Derivative Financial Instruments | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | | :-------------------------- | :--------------------------- | :------------------------------- | :----------------------------------- | :-------------------------------------------- | | Balance as of October 31, 2023 | $(317.7) | $71.7 | $(70.5) | $(316.5) | | Other comprehensive income (loss) | $14.8 | $(35.5) | $(4.3) | $(25.0) | | Balance as of July 31, 2024 | $(302.9) | $36.2 | $(74.8) | $(341.5) | [NOTE 13 — BUSINESS SEGMENT INFORMATION](index=31&type=section&id=NOTE%2013%20%E2%80%94%20BUSINESS%20SEGMENT%20INFORMATION) This note details the Company's new four-segment reporting structure, providing descriptions of products and services for each segment. It also presents disaggregated net sales by geographic area and segment, along with segment operating profit, depreciation, and total assets - Effective **November 1, 2024**, the Company realigned its organizational structure into **four reportable business segments**: Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions, and Integrated Solutions[107](index=107&type=chunk) Net Sales by Segment and Geographic Area (in millions) - Three Months Ended July 31, 2025 | Segment | United States | Europe, Middle East and Africa | Asia Pacific and Other Americas | Total | | :-------------------------- | :------------ | :----------------------------- | :------------------------------ | :---- | | Customized Polymer Solutions | $139.4 | $139.2 | $61.2 | $339.8 | | Durable Metal Solutions | $71.6 | $238.0 | $90.2 | $399.8 | | Sustainable Fiber Solutions | $294.3 | $0.2 | $13.5 | $308.0 | | Integrated Solutions | $65.2 | $12.9 | $9.0 | $87.1 | | Total net sales | $570.5 | $390.3 | $173.9 | $1,134.7 | Operating Profit by Segment (in millions) | Segment | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Customized Polymer Solutions | $8.8 | $9.6 | $28.8 | $26.9 | | Durable Metal Solutions | $37.6 | $36.2 | $95.1 | $99.8 | | Sustainable Fiber Solutions | $23.2 | $35.9 | $30.3 | $61.8 | | Integrated Solutions | $3.5 | $55.0 | $8.4 | $72.0 | | Total operating profit | $73.1 | $136.7 | $162.6 | $260.5 | Total Assets by Segment (in millions) | Segment | July 31, 2025 | October 31, 2024 | | :-------------------------- | :------------ | :--------------- | | Customized Polymer Solutions | $1,947.8 | $1,818.7 | | Durable Metal Solutions | $1,045.8 | $1,183.8 | | Sustainable Fiber Solutions | $2,904.7 | $2,788.8 | | Integrated Solutions | $311.0 | $403.1 | | Total segments | $6,209.3 | $6,194.4 | | Corporate and other | $525.8 | $453.2 | | Total assets | $6,735.1 | $6,647.6 | [NOTE 14 — REDEEMABLE NONCONTROLLING INTERESTS](index=34&type=section&id=NOTE%2014%20%E2%80%94%20REDEEMABLE%20NONCONTROLLING%20INTERESTS) This note describes the nature of redeemable noncontrolling interests in joint ventures and details the repurchase of a 20% ownership interest, along with a summary of changes in the redeemable noncontrolling interest balance - On **May 30, 2025**, the Company redeemed the remaining **20% ownership interest** in one of its noncontrolling interests for **$38.7 million**, increasing its ownership to **100%**[116](index=116&type=chunk) Change in Redeemable Noncontrolling Interest (in millions) - Nine Months Ended July 31, 2025 | | Redeemable Noncontrolling Interest | | :------------------------------------ | :------------------------------- | | Balance as of October 31, 2024 | $129.9 | | Current period mark to redemption value | $4.9 | | Repurchase of redeemable shareholder interest | $(40.9) | | Redeemable noncontrolling interest share of income | $5.2 | | Dividends to redeemable noncontrolling interest and other | $(7.7) | | Balance as of July 31, 2025 | $91.4 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=35&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial condition and results of operations, including a general overview, detailed segment reviews for the third quarter and year-to-date, and an analysis of liquidity and capital resources [General Information](index=35&type=section&id=GENERAL) This subsection introduces the Management's Discussion and Analysis, highlights the Company's fiscal year change, and reiterates the reclassification of the Containerboard Business as discontinued operations and the intended sale of the Soterra Business - The Company's **2025 fiscal year** began on **November 1, 2024**, and will end on **September 30, 2025**, consisting of **eleven months**. Subsequent fiscal years will run from **October 1** to **September 30**[119](index=119&type=chunk) - The Containerboard Business is presented as discontinued operations starting in the **third quarter of 2025** due to a definitive agreement for its sale for **$1,800.0 million**, expected to close by **August 31, 2025**[126](index=126&type=chunk) - A definitive agreement was entered on **August 5, 2025**, to sell the Soterra land management business for approximately **$462.0 million**, expected to close **October 1, 2025**. This divestiture does not qualify as discontinued operations[127](index=127&type=chunk) [Business Segments Overview](index=36&type=section&id=BUSINESS%20SEGMENTS) This section describes the Company's new four-segment reporting structure, effective November 1, 2024, outlining the primary products and services offered by each segment - The Company operates in **four reportable business segments**: Customized Polymer Solutions (plastic drums, IBCs, small plastics), Durable Metal Solutions (steel drums), Sustainable Fiber Solutions (fiber drums, recycled board, timberland management), and Integrated Solutions (paints, linings, closure systems, recycled fiber, adhesives)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) [Critical Accounting Policies](index=36&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This subsection confirms no material changes to critical accounting policies and provides a detailed discussion on goodwill valuation, including the impact of segment realignment and impairment testing results - There have been no material changes to the Company's critical accounting policies from the disclosures in the **2024 Form 10-K**[136](index=136&type=chunk) - The segment realignment led to changes in reporting units and a reallocation of goodwill. Impairment testing showed that the fair value of each reporting unit exceeded its carrying value, though the Customized Polymer Solutions – Small Plastics/Jerrycans unit had a low headroom of **2%**[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) Goodwill Balance by Reporting Unit (in millions) | Reporting Unit | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Customized Polymer Solutions - Small Plastics/Jerrycans | $369.0 | $357.7 | | Customized Polymer Solutions - Large/Medium Plastics | $130.2 | $128.0 | | Customized Polymer Solutions - Intermediate Bulk Containers | $126.9 | $122.2 | | Durable Metal Solutions | $416.1 | $401.8 | | Sustainable Fiber Solutions - Boxboard & Converted | $475.9 | $475.9 | | Integrated Solutions | $177.7 | $169.9 | | Total | $1,695.8 | $1,655.5 | [Results of Operations - Third Quarter](index=39&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the Company's consolidated and segment-level financial performance for the three months ended July 31, 2025, compared to the prior year, covering net sales, gross profit, SG&A expenses, operating profit, net income, and Adjusted EBITDA, along with key trends and income tax expense Consolidated Financial Performance (Three Months Ended July 31) | (in millions) | 2025 | 2024 | | :------------ | :--- | :--- | | Net sales | $1,134.7 | $1,164.9 | | Operating profit | $73.1 | $136.7 | | Adjusted EBITDA | $160.7 | $157.0 | - Net sales decreased by **$30.2 million (2.6%)** to **$1,134.7 million** in Q3 2025, primarily due to lower volumes (**$40.1 million**), partially offset by positive foreign currency translation impacts[152](index=152&type=chunk) - Gross profit increased by **$12.4 million (5.1%)** to **$257.3 million** in Q3 2025, driven by lower raw material costs. Gross profit margin improved to **22.7%** from **21.0%** in Q3 2024[153](index=153&type=chunk) - Operating profit decreased by **$63.6 million (46.5%)** to **$73.1 million** in Q3 2025, and net income decreased by **$39.8 million (47.1%)** to **$44.7 million**. Adjusted EBITDA increased by **$3.7 million (2.4%)** to **$160.7 million**[155](index=155&type=chunk) - Volumes in small plastics improved, but no compelling customer demand inflection is anticipated for the remainder of the year. Prices for steel, resin, old corrugated containers, other direct materials, transportation, labor, and utilities are expected to remain relatively stable[156](index=156&type=chunk) Segment Performance (Three Months Ended July 31, 2025 vs 2024) | Segment | Net Sales Change | Gross Profit Change | Operating Profit Change | Adjusted EBITDA Change | | :-------------------------- | :--------------- | :------------------ | :---------------------- | :--------------------- | | Customized Polymer Solutions | Up $25.1M | Up $10.1M | Down $0.8M | Down $1.1M | | Durable Metal Solutions | Down $24.3M | Up $0.7M | Up $1.4M | Up $2.1M | | Sustainable Fiber Solutions | Down $17.6M | Up $7.5M | Down $12.7M | Up $8.4M | | Integrated Solutions | Down $13.4M | Down $5.9M | Down $51.5M | Down $5.7M | - Income tax expense decreased by **$21.7 million** to **$11.8 million** in Q3 2025, primarily due to a gain from the Delta Divestiture in 2024[174](index=174&type=chunk) [Results of Operations - Year-to-Date](index=45&type=section&id=Year-to-Date%20Results) This section analyzes the Company's consolidated and segment-level financial performance for the nine months ended July 31, 2025, compared to the prior year, covering net sales, gross profit, SG&A expenses, operating profit, net income, and Adjusted EBITDA, along with income tax expense Consolidated Financial Performance (Nine Months Ended July 31) | (in millions) | 2025 | 2024 | | :------------ | :--- | :--- | | Net sales | $3,231.8 | $3,247.9 | | Operating profit | $162.6 | $260.5 | | Adjusted EBITDA | $412.4 | $403.8 | - Net sales decreased by **$16.1 million (0.5%)** to **$3,231.8 million** in YTD 2025, primarily due to lower volumes (**$57.1 million**), the Delta Divestiture (**$40.8 million**), and negative foreign currency impacts (**$11.3 million**), partially offset by recent acquisitions (**$97.2 million**)[179](index=179&type=chunk) - Gross profit increased by **$40.7 million (6.1%)** to **$711.9 million** in YTD 2025, mainly due to lower raw material costs. Gross profit margin improved to **22.0%** from **20.7%** in YTD 2024[180](index=180&type=chunk) - Operating profit decreased by **$97.9 million (37.6%)** to **$162.6 million** in YTD 2025, and net income decreased by **$130.9 million (63.0%)** to **$76.8 million**. Adjusted EBITDA increased by **$8.6 million (2.1%)** to **$412.4 million**[182](index=182&type=chunk) Segment Performance (Nine Months Ended July 31, 2025 vs 2024) | Segment | Net Sales Change | Gross Profit Change | Operating Profit Change | Adjusted EBITDA Change | | :-------------------------- | :--------------- | :------------------ | :---------------------- | :--------------------- | | Customized Polymer Solutions | Up $135.9M | Up $47.7M | Up $1.9M | Up $12.2M | | Durable Metal Solutions | Down $87.4M | Down $8.4M | Down $4.7M | Down $2.6M | | Sustainable Fiber Solutions | Down $23.9M | Up $16.6M | Down $31.5M | Up $14.1M | | Integrated Solutions | Down $40.7M | Down $15.2M | Down $63.6M | Down $15.1M | - Income tax expense increased by **$22.0 million** to **$38.0 million** in YTD 2025, primarily due to a one-time discrete tax benefit of **$48.1 million** in 2024 and a **$17.3 million** gain from the Delta Divestiture in 2024[196](index=196&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the Company's primary sources and uses of liquidity, the expected impact of divestiture proceeds on debt repayment, and provides a detailed analysis of cash flows from operating, investing, and financing activities, along with an overview of financial obligations and instruments - Primary liquidity sources are operating cash flows, borrowings under senior secured credit facilities, and proceeds from trade accounts receivable credit facilities. These are expected to be sufficient for anticipated needs for at least **12 months**[197](index=197&type=chunk) - Net cash proceeds from the sales of the Containerboard Business (**$1,800.0 million**) and Soterra Business (**$462.0 million**) will be used for debt repayment[199](index=199&type=chunk) Cash Flow Summary (Nine Months Ended July 31, in millions) | | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $303.3 | $168.8 | | Net cash used in investing activities | $(70.2) | $(703.8) | | Net cash (used in) provided by financing activities | $(188.3) | $541.7 | | Net increase in cash and cash equivalents | $87.5 | $13.3 | | Cash and cash equivalents at end of period | $285.2 | $194.2 | - Net cash provided by operating activities increased to **$303.3 million** in YTD 2025 from **$168.8 million** in YTD 2024, primarily due to favorable changes in accounts receivable and inventories[200](index=200&type=chunk)[201](index=201&type=chunk) - Net cash used in investing activities decreased significantly to **$(70.2) million** in YTD 2025 from **$(703.8) million** in YTD 2024, mainly due to the Ipackchem acquisition in 2024[200](index=200&type=chunk)[205](index=205&type=chunk) - Net cash used in financing activities was **$(188.3) million** in YTD 2025, compared to **$541.7 million** provided in YTD 2024, reflecting debt repayments in 2025 versus significant borrowings for the Ipackchem acquisition in 2024[200](index=200&type=chunk)[206](index=206&type=chunk) - As of **July 31, 2025**, the Company had **$404.3 million** of available borrowing capacity under its **$800.0 million** secured revolving credit facility[211](index=211&type=chunk) - The U.S. RFA was amended on **August 28, 2025**, to provide an accounts receivable financing facility of **$200.0 million**[218](index=218&type=chunk) - The Company received **$22.5 million** from a cash settlement of certain cross-currency swap contracts in Q1 2025[227](index=227&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=55&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section addresses the Company's internal control over financial reporting and disclosure controls and procedures, confirming their effectiveness and reporting no material changes [Changes in Internal Control Over Financial Reporting](index=55&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This subsection reports on any changes to the company's internal control over financial reporting - There has been no change in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting during the most recent fiscal quarter[229](index=229&type=chunk) [Disclosure Controls and Procedures](index=55&type=section&id=Disclosure%20Controls%20and%20Procedures) This subsection confirms the effectiveness of the company's disclosure controls and procedures - The Company's management, with the participation of its principal executive officer and principal financial officer, concluded that its disclosure controls and procedures were effective as of the end of the reporting period[230](index=230&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=Part%20II.%20Other%20Information) This part includes additional disclosures such as risk factors and exhibits [ITEM 1A. RISK FACTORS](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that there have been no material changes to the Company's risk factors since its last Annual Report on Form 10-K - There have been no material changes in the Company's risk factors from those disclosed in the **2024 Form 10-K**[231](index=231&type=chunk) [ITEM 6. EXHIBITS](index=56&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including amendments to agreements and certifications - Exhibits include Amendment No.1 to the Purchase and Agreement (dated **July 15, 2025**), Omnibus Amendment and Amendment No. 8 to the Third Amended and Restated Transfer and Administration Agreement (dated **August 28, 2025**), and Certifications of the Chief Executive Officer and Chief Financial Officer[232](index=232&type=chunk) [SIGNATURES](index=57&type=section&id=SIGNATURES) This section contains the official signatures for the Quarterly Report on Form 10-Q - The report was signed on **August 28, 2025**, by Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer of Greif, Inc[234](index=234&type=chunk)

Core Insights - Greif, Inc. (GEF) reported adjusted earnings per share (EPS) of $1.03 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of 81 cents, marking a 12% year-over-year improvement excluding discontinued operations [1][10] - Total sales decreased by 2.6% year over year to $1.13 billion, falling short of the Zacks Consensus Estimate of $1.47 billion [2][10] - The company announced a quarterly cash dividend increase, reflecting its capital allocation strategy, with dividends to be paid on October 1, 2025 [11] Financial Performance - The cost of sales decreased by 4.6% year over year to $877 million, resulting in a gross profit of $257 million, which is a 5.1% increase from the prior year [2] - Gross margin improved to 22.7% from 21% in the previous year [2][10] - Selling, general and administrative (SG&A) expenses rose to $157 million from $153 million year over year [3] Segment Performance - Customized Polymer Solutions segment revenues were $340 million, up from $315 million year over year, but below the projected $356 million [5] - Durable Metal Solutions segment revenues fell by 5.7% to $400 million, exceeding the estimated $393 million, with adjusted EBITDA of $48 million [6] - Sustainable Fiber Solutions segment revenues decreased by 5.4% to $308 million, missing the estimated $645 million, while adjusted EBITDA rose to $65.5 million from $57 million [7] - Integrated Solutions segment revenues totaled $87 million, down from $100.5 million year over year, with adjusted EBITDA of $8.1 million [8] Cash Position and Outlook - Cash and cash equivalents at the end of Q3 fiscal 2025 were $285 million, up from $198 million at the end of fiscal 2024 [9] - Operating cash flow increased significantly to $200 million from $77 million year over year [9] - Long-term debt decreased to $2.22 billion from $2.63 billion [9] - The company expects fiscal 2025 adjusted EBITDA to be between $725 million and $735 million [13] Stock Performance - Greif's shares have increased by 7% over the past year, contrasting with a 10.9% decline in the industry [14]

Core Viewpoint - Greif, Inc. is conducting its Q3 2025 earnings call, focusing on strategic updates and financial results, with key insights from the CEO and CFO [3]. Group 1: Company Overview - The earnings call is led by Bill D'Onofrio, with contributions from CEO Ole Rosgaard and CFO Larry Hilsheimer [3]. - The company is addressing its planned divestment of the containerboard business, which will be reflected in discontinued operations [5]. Group 2: Financial Reporting - The call will include discussions on non-GAAP financial measures, with reconciliations to GAAP metrics provided in the presentation appendix [5]. - The company emphasizes the importance of discussing only material public information during the call [4].

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $4 million with EBITDA margins up by 70 basis points, driven by improved price-cost dynamics in Fiber, Polymers, and Integrated segments [15] - Free cash flow rose by almost 400% to $171 million in the quarter, demonstrating the resilience of the business model [15] Business Line Data and Key Metrics Changes - Customized polymer volumes increased by 2.2%, with low double-digit growth in small containers, while IBCs and large drums saw mid-single-digit declines [12] - Durable metals volumes declined by 5.8%, reflecting softness in North America and low single-digit declines in EMEA [13] - Sustainable fiber volumes decreased by 7.6%, with URB mills operating above 90% capacity [13] - Integrated Solutions volumes grew by 2.6%, led by strong volumes in recycled fiber [14] Market Data and Key Metrics Changes - The markets chosen for investment are resilient despite a mixed macro environment, with targeted end markets like agrochemicals, pharma, and food and beverage outperforming [12] - Customer sentiment remains cautious, and the overall macro economy is not robust, impacting volume performance [14] Company Strategy and Development Direction - The company is executing a "Build to Last" strategy, focusing on reshaping the portfolio, optimizing cost structures, and targeting markets with strong competitive advantages [22] - The divestment of the containerboard business is expected to close soon, with cash proceeds anticipated to lower the leverage ratio below 1.2 times [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 commitments, emphasizing that as demand recovers, operating leverage will significantly enhance results [22] - The operating environment remains soft in North America and EMEA, particularly in the chemical sector, but the company is focused on growth in polymers [52][53] Other Important Information - The company has achieved $20 million in run-rate savings towards its fiscal 2025 commitments, with a focus on cost optimization and operational efficiency [10] - The planned divestitures are part of a strategy to concentrate efforts on markets with the greatest growth potential [10] Q&A Session Summary Question: How much of the guidance raise for the year was related to containerboard? - Management indicated that there was no containerboard impact in raising guidance, which was primarily due to SG&A cost reductions [26] Question: Can you comment on price-cost trends entering fiscal fourth quarter? - Steel costs have been relatively flat, with no significant changes expected in pricing [27] Question: What is the current normalized EBITDA for containerboard? - The trailing 12-month EBITDA for containerboard was $218 million, with a current monthly figure of $25 million [32] Question: Is increasing exposure to more defensive end markets a strategic priority? - The focus remains on end markets that are growing faster than GDP, such as food and chemicals [47] Question: What is the upper leverage range comfortable for potential deals? - The target leverage ratio is between 2 to 2.5 times, with the ability to handle larger deals if they meet strategic criteria [69]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $4 million with EBITDA margins up by 70 basis points due to improved price-cost dynamics in Fiber, Polymers, and Integrated segments [14] - Free cash flow rose by almost 400% to $171 million in the quarter, demonstrating the resilience of the business model [14] Business Line Data and Key Metrics Changes - Customized polymer volumes increased by 2.2%, driven by low double-digit growth in small containers, while IBCs and large drums saw mid-single-digit declines [10] - Durable metals volumes declined by 5.8%, reflecting softness in North America and low single-digit declines in EMEA [11] - Sustainable fiber volumes decreased by 7.6%, with URB mills operating above 90% capacity [11] - Integrated Solutions volumes grew by 2.6%, led by strong recycled fiber volumes [12] Market Data and Key Metrics Changes - The markets chosen for investment are resilient despite a mixed macro environment, with targeted end markets like agrochemicals and pharma outperforming [10] - Customer sentiment remains cautious, and the overall macro economy is not robust, impacting volume performance [12] Company Strategy and Development Direction - The company is executing a "Build to Last" strategy, focusing on reshaping the portfolio and optimizing cost structures [20] - Divestments of the containerboard and Timberland businesses are aimed at concentrating efforts on high-growth markets, with expected cash proceeds of approximately €1.75 billion [8] - The company aims to achieve $100 million in cost reductions, with $20 million in run rate savings already achieved [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 commitments, emphasizing that as demand recovers, operating leverage will significantly enhance results [20] - The operating environment remains cautious, particularly in North America and EMEA, with no significant changes expected from tariffs [49] Other Important Information - The company plans to close the divestment of its containerboard business by the end of the month, with a focus on capital efficiency and durable shareholder returns [8] - The company has a solid pipeline for M&A opportunities, focusing on businesses that generate at least 18% EBITDA margin and 50% free cash flow conversion [61] Q&A Session Summary Question: How much of the guidance raise for the year was related to containerboard? - Management indicated that there was no containerboard impact in raising guidance, which was primarily due to SG&A cost reductions [24] Question: Can you comment on price-cost trends entering fiscal fourth quarter? - Steel costs have been relatively flat, with no significant changes expected in pricing [25] Question: What is the current normalized EBITDA for containerboard? - The trailing 12-month EBITDA for containerboard was $218 million, with current monthly figures at $25 million [29] Question: How do you view capital allocation following divestitures? - The company expects consistent cash flow generation and prioritizes dividends, maintenance, debt paydown, and organic growth [35][38] Question: What is the expected margin recovery in Integrated Solutions? - OCC pricing was a significant driver of margin squeeze, and the company is focused on maintaining a secure supply chain for recycled fiber [76]