[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]

Financial Performance - Adjusted EBITDA increased to $160.7 million compared to $157.0 million in Q3 FY24[15] - Adjusted EBITDA percentage improved to 14.2% from 13.5% in Q3 FY24[15] - Adjusted Class A Earnings Per Share increased to $1.03 from $0.92 in Q3 FY24[15] - Adjusted Free Cash Flow significantly increased to $170.7 million from $34.3 million in Q3 FY24[15] Portfolio Transformation - The company entered into a definitive agreement to divest the Containerboard business for $1.8 billion, expected to close effective August 31st, 2025[4] - The company also entered into a definitive agreement to divest the Land Management business for $462 million ($2,671/acre), anticipated October 1st[6,17] - Post-close, the anticipated proforma leverage ratio is less than 1.2x, targeting a range of 2.0 – 2.5x[6] Cost Optimization - The company achieved $20 million in run-rate savings as of Q3'25[6] - The company is committed to achieving $100 million in run-rate savings by 2027[6] - The company announced the closure of the Merced, CA steel and polymer plant as part of cost optimization efforts[6,17] Segment Performance - Customized Polymer Solutions net sales increased from $314.7 million to $339.8 million[18] - Durable Metal Solutions net sales decreased from $424.1 million to $399.8 million[18] - Sustainable Fiber Solutions net sales decreased from $325.6 million to $308.0 million[18] - Integrated Solutions net sales slightly increased from $86.2 million to $87.1 million[18] Guidance - The company provided 2025 Adjusted Free Cash Flow guidance of $305 - $315 million[22]

Core Insights - Greif, Inc. reported fiscal third quarter 2025 results, highlighting a significant decrease in net income primarily due to a prior year gain from divestiture [1][6] - The company is in the process of divesting its containerboard business for $1.8 billion, which will be classified as discontinued operations starting Q3 2025 [2][6] Financial Highlights - Net income decreased by 49.6% to $39.3 million or $0.67 per diluted Class A share compared to $78.0 million or $1.35 per diluted Class A share in Q3 2024 [6] - Adjusted EBITDA increased by 2.4% to $160.7 million compared to $157.0 million in the prior year [6] - Combined Adjusted EBITDA rose by 11% to $220.9 million from $199.4 million [6] - Net cash provided by operating activities increased by $123.1 million to $199.9 million [6] - Adjusted free cash flow increased by $136.4 million to $170.7 million [6] Segment Performance - Customized Polymer Solutions net sales increased by $25.1 million to $339.8 million, driven by higher volumes and selling prices [10] - Durable Metal Solutions net sales decreased by $24.3 million to $399.8 million, primarily due to lower volumes [14] - Sustainable Fiber Solutions net sales decreased by $17.6 million to $308.0 million, impacted by lower volumes [16] - Integrated Solutions net sales decreased by $13.4 million to $87.1 million, affected by the Delta Divestiture [18] Strategic Actions - The company achieved run-rate savings of $20 million from cost optimization initiatives by the end of Q3 2025, already at the midpoint of its $15 - $25 million target range [6] - A definitive agreement was signed for the sale of the timberlands business for $462 million, expected to close on October 1, 2025 [6] Dividend Information - The Board of Directors declared quarterly cash dividends of $0.56 per share for Class A Common Stock and $0.84 per share for Class B Common Stock, reflecting an increase from the previous quarter [22]

Core Viewpoint - Greif, Inc. announces the retirement of Gary Martz, Executive Vice President, General Counsel, and Corporate Secretary, effective November 30, 2025, after over two decades of service, highlighting his significant contributions to the company's legal and operational foundations [1][2]. Company Leadership and Transition - Gary Martz joined Greif in 2002 as the first in-house counsel and developed a global function overseeing corporate governance, compliance, mergers and acquisitions, and litigation, among other areas [2]. - Ole Rosgaard, President and CEO, acknowledges Martz's foundational role and expresses gratitude for his leadership and legal expertise, which have been vital to Greif's global success [3]. - Dennis Hoffman will take over as Senior Vice President, General Counsel, and Secretary on October 1, bringing extensive experience in corporate law and a strong understanding of Greif's values [5]. Company Background - Greif, founded in 1877, operates in 40 countries and is recognized as a leader in performance packaging, providing innovative solutions for various industries [6].

Core Insights - Greif, Inc. (GEF) is set to announce its third-quarter fiscal 2025 financial results on August 27, with total revenue expected to reach $1.47 billion, reflecting a 1.2% increase year-over-year [1][5] - The earnings per share (EPS) estimate stands at $1.40, indicating a significant 35.9% rise compared to the same quarter last year [1][5] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Greif's total revenues is $1.47 billion, which is a 1.2% increase from the previous year's quarter [1] - The EPS estimate of $1.40 represents a 35.9% increase from the year-ago reported number [1][5] Earnings Surprise History - Greif's earnings have exceeded the Zacks Consensus Estimates in two of the last four quarters, with an average negative surprise of 10.7% [3][4] Segment Performance - The Customized Polymer Solutions segment is anticipated to drive growth, with projected revenues of $356 million for Q3, a 13% increase from $315 million in the prior-year quarter [10][11] - The Durable Metal Solutions segment is expected to see a 7.3% year-over-year decline in revenues to $393 million, attributed to a 3.9% drop in volumes and unfavorable pricing [12] - The Sustainable Fiber Solutions segment is projected to achieve revenues of $645 million for Q2, indicating a 3.2% year-over-year growth, driven by favorable pricing [14] - The Integrated Solutions segment's revenues are expected to decline by 16.9% to $75 million, impacted by unfavorable pricing and the Delta divestiture [15][16] Volume and Pricing Trends - Overall volume increased by 0.9% in Q1 but dipped by 1.4% in Q2, with pricing contributing positively by 2.2% and 1.1% in the respective quarters [7][8] - In the Customized Polymer Solutions segment, volume rose by 1.5% in Q2, supported by a favorable product mix and strong demand in key markets [9] Stock Performance - Greif's shares have increased by 10.2% over the past year, compared to the industry's growth of 21.2% [19]

Core Viewpoint - Greif (GEF) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Greif's Earnings Outlook - The upgrade for Greif reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - Greif is projected to earn $4.05 per share for the fiscal year ending October 2025, with a year-over-year change of zero [7]. - Over the past three months, the Zacks Consensus Estimate for Greif has increased by 7.4% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating [8][9]. Conclusion - Greif's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].