Core Viewpoint - Greif's shares have increased by approximately 9.5% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Estimates Movement - Estimates for Greif have remained flat over the past month, indicating no significant changes in analyst expectations [2] VGM Scores - Greif currently holds a Growth Score of B, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of B, which is relevant for investors not focused on a single strategy [3] Outlook - Greif has a Zacks Rank of 1 (Strong Buy), suggesting expectations for above-average returns in the upcoming months [4]

Core Insights - Greif, Inc. has entered into a definitive agreement with Packaging Corporation of America to divest its Containerboard business, which includes its CorrChoice sheet feeder network, aimed at debt reduction and unlocking value-creation opportunities [1][3][7] Group 1: Business Overview - Greif's containerboard business consists of two mills with a production capacity of 800,000 tons and includes eight sheet feeder and corrugated plants across the U.S. [2][7] - The containerboard business generated revenues of $1.2 billion and EBITDA of $212 million for the fiscal year ending April 30, 2025 [2][7] Group 2: Strategic Implications - The divestiture aligns with Greif's Build to Last strategy, enhancing portfolio optimization, capital efficiency, and growth acceleration [3][7] - The transaction is expected to close by the end of fiscal 2025, pending regulatory approvals, with Packaging Corp paying Greif $1.8 billion in cash [4][7] Group 3: Financial Performance - In Q2 of fiscal 2025, Greif reported adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate of $1.08, reflecting a year-over-year improvement of 43.4% [5] - Revenues for the same quarter increased by 1.1% year over year to $1.39 billion, although it fell short of the Zacks Consensus Estimate of $1.43 billion [5] Group 4: Stock Performance - Greif's stock has appreciated by 26.4% over the past year, contrasting with a 3.2% decline in the industry [6]

Core Insights - In times of market volatility, investors often prefer value investing, seizing opportunities to buy undervalued stocks as others sell at lower prices [1][2] Value Investment Strategy - Value investing can lead to "value traps" where stocks underperform due to persistent issues rather than temporary problems [3] - Key metrics for identifying value stocks include dividend yield, P/E ratio, and P/B ratio [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for assessing a stock's intrinsic value [4][5] - A low PEG ratio is favorable for value investors, but it has limitations, such as not accounting for changing growth rates [5] Screening Criteria for Value Stocks - Effective screening criteria for value stocks include a PEG ratio less than the industry median, a P/E ratio below the industry median, Zacks Rank 1 or 2, market capitalization over $1 billion, average 20-day volume greater than 50,000, and upward earnings estimate revisions greater than 5% [6] Selected Stocks - Carnival Corporation (CCL) has a five-year growth rate of 28.5% and a Zacks Rank 2 with a Value Score of A [7][9] - Harmony Gold Mining (HMY) shows a long-term historical growth rate of 73.4%, a Zacks Rank 1, and a Value Score of B [7][10][11] - Dollar Tree (DLTR) has a five-year expected growth rate of 6.7% and a Zacks Rank 2 with a Value Score of B [7][12][13] - Greif, Inc. (GEF) has a long-term expected earnings growth rate of 9.9%, a Value Score of A, and a Zacks Rank of 1 [7][14]

Greif Inc. Containerboard Divestment Conference Call Summary Company Overview - **Company**: Greif Inc. (GEF) - **Event**: Containerboard Divestment Conference Call - **Date**: July 01, 2025 Key Points Industry and Company Focus - **Divestment Announcement**: Greif announced the divestment of its containerboard business for **$1.8 billion** [4] - **Strategic Rationale**: The divestment aligns with Greif's "build to last" strategy, aimed at enhancing capital efficiency and focusing on high-margin packaging solutions [4][6] - **Remaining Portfolio**: Post-divestment, Greif will concentrate on its URB (Unbleached Recycled Board) business and polymer-based solutions, which are expected to grow faster than GDP [8][9] Financial Implications - **EBITDA and Cash Flow Goals**: Greif aims to achieve **$1 billion** in EBITDA and **$500 million** in free cash flow by 2027 [5] - **Debt Reduction**: 100% of the proceeds from the divestment will be used to pay down debt, positioning Greif with a leverage ratio below **2.0 times** [5][10] - **Cost Savings**: The divestment is expected to lower annual interest expenses by **$85 million** and recurring maintenance capital expenditures by **$25 million** [11] Market Position and Strategy - **Focus on Leadership**: Greif aims to maintain a number one or two position in its chosen markets, emphasizing that it was not a leader in the containerboard market [22][23] - **Growth Areas**: The company is targeting growth in high-margin sectors such as food and beverage, pharmaceuticals, and agrochemicals [9][12] - **Capital Allocation**: Greif will continue to prioritize safety and maintenance CapEx while also increasing shareholder returns through dividends and share repurchases [11][12] Future Outlook - **Growth Opportunities**: Greif is committed to pursuing high-return organic capital expenditures and strategic M&A opportunities within its targeted growth areas [12][41] - **EBITDA Growth Drivers**: The company has identified several drivers to achieve its EBITDA target, including volume growth and business optimization [13][14] - **Market Trends**: North America remains sluggish, particularly in metal markets, but acquired companies in the agricultural space are performing well [90][91] Additional Considerations - **Regulatory Approvals**: The transaction is subject to customary conditions, including regulatory approvals, which may affect the closing timeline [6] - **Synergies and Cost Structure**: Greif will work on optimizing support functions and addressing overhead costs post-divestment [37][65] - **Market Dynamics**: The company expects to be a net seller in the open market for OCC (Old Corrugated Containers) after the divestment, which may impact its business dynamics [61] Conclusion - Greif's divestment of its containerboard business marks a significant strategic shift aimed at enhancing shareholder value and focusing on high-growth, high-margin opportunities. The company is committed to maintaining financial discipline while pursuing growth in its remaining business segments.

Transaction Overview - Greif has signed an agreement to sell its Containerboard business for $1.8 billion in cash to Packaging Corporation of America[4] - The transaction reflects a multiple of 8.5x LTM Fiscal Q2-25 Adjusted EBITDA of $212 million[4, 30] - The company expects to achieve a pro-forma leverage ratio below 2.0x after the transaction[4] - The transaction is expected to close by the end of fiscal year 2025[4] Strategic Goals - The company reaffirms its 2027 financial targets of $1 billion Adjusted EBITDA and $500 million Adjusted Free Cash Flow[4] - The company is targeting an Adjusted EBITDA margin of 18%+[21] - The company is shifting its product mix towards higher growth and less cyclical end markets[5, 6] Capital Allocation - The company anticipates annual interest savings of $85 million and annual maintenance CAPEX savings of $25 million[10] - The company plans to allocate capital with 50% towards returning cash to shareholders, 30% towards investing for growth, and 20% towards maintaining a strong foundation[9] - The company is targeting Adjusted EBITDA of $1B+ at 2.0-2.5x leverage[15] 2025 Guidance - The company is raising the low-end of its Adjusted EBITDA guidance to $725 million and Adjusted Free Cash Flow guidance to $280 million[25]

Core Viewpoint - Greif, Inc. has announced the divestiture of its Containerboard business for $1.8 billion to Packaging Corporation of America, which aligns with its strategy to enhance capital efficiency and focus on growth priorities [2][4]. Financial Impact - The cash proceeds from the divestiture will be allocated to debt repayment, resulting in a pro-forma leverage ratio below 2.0x after closing, with further reductions expected from the planned divestiture of Greif's timberland business [3]. - This transaction is expected to unlock value-creation opportunities and enhance capital utilization, reducing recurring capital needs [8]. Strategic Rationale - The sale is part of Greif's "Build to Last" strategy, aimed at sharpening the company's portfolio and advancing growth priorities [4]. - The remaining material solutions will maintain leadership positions to drive margin expansion and cash flow generation [4]. Conference Call - Greif will host an investor call on July 1, 2025, to discuss the rationale for the divestment and its impact on proforma business operations [5].

Group 1 - Shore Bancshares, Inc. (SHBI) has a Zacks Rank 1 and its current year earnings estimate increased by 7.1% over the last 60 days [1] - Shore's shares gained 15.1% over the last three months, outperforming the S&P 500's 10% advance [1] - Worthington Enterprises, Inc. (WOR) has a Zacks Rank 1 with a current year earnings estimate increase of 16.2% over the last 60 days [2] - Worthington's shares gained 27.4% over the last three months, significantly outperforming the S&P 500's 10% advance [2] - Greif, Inc. (GEF) holds a Zacks Rank 1 and its current year earnings estimate increased by 6.9% over the last 60 days [3] - Greif's shares gained 18% over the last three months, also outperforming the S&P 500's 10% advance [3] - All three companies possess strong momentum characteristics, with Shore and Worthington having Momentum Scores of A, while Greif has a Momentum Score of B [1][2][3]

Group 1 - Greif (GEF) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Packaging Corp. (PKG) has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system favors stocks with strong earnings estimate revisions, which is a key factor for value investors [2][3] - GEF has a forward P/E ratio of 16.16, compared to PKG's forward P/E of 18.56, suggesting GEF may be undervalued [5] Group 2 - GEF's PEG ratio is 1.64, indicating a better valuation relative to its expected earnings growth compared to PKG's PEG ratio of 2.51 [5] - GEF has a P/B ratio of 1.39, significantly lower than PKG's P/B of 3.77, further supporting GEF's valuation advantage [6] - Based on various valuation metrics, GEF holds a Value grade of A, while PKG has a Value grade of C, indicating GEF is the superior value option [6]

Consumer Discretionary Sector Overview - The consumer discretionary sector typically thrives during strong economic conditions, characterized by low interest rates and robust job growth [1] - Recent employment data indicates a decline in job additions, with only 139,000 jobs added in May 2025 compared to 272,000 in May 2024, suggesting potential challenges for the sector [2] - The Consumer Discretionary Select Sector SPDR Fund (XLY) is down over 2% year-to-date, contrasting with a 3% increase in the broader S&P 500 [3] Greif Inc. Performance - Greif Inc. has a 12-month stock price forecast of $74.17, indicating a 14.15% upside potential based on 7 analyst ratings, with a current price of $64.97 [3] - The company has a strong dividend yield of 3.36% and a payout ratio of 60.85%, reflecting its stability over nearly 140 years in business [4] - Greif's earnings per share (EPS) of $1.19 exceeded analyst expectations by 11 cents, with quarterly revenue showing a year-over-year increase of just over 1% [5] - The company is targeting $25 million in savings for the current fiscal year and $100 million by the end of fiscal 2027 through cost optimization efforts [6] - Greif's operational structure mitigates tariff impacts by selling products close to manufacturing locations, enhancing its competitive position [7] O-I Glass Inc. Performance - O-I Glass has a 12-month stock price forecast of $15.88, representing a 16.56% upside based on 8 analyst ratings, with a current price of $13.62 [9] - The company benefits from increasing demand for glass containers as consumers shift away from plastics, positioning it well for future growth [9] - O-I's Fit to Win program has successfully improved operational efficiency, contributing $61 million in benefits and leading to an adjusted EPS of 40 cents, surpassing analyst predictions by 22 cents [10] - Future projections indicate adjusted earnings for 2025 could surge up to 85% above 2024 levels, with strong analyst support reflected in six Buy ratings [11] Silgan Holdings Inc. Performance - Silgan Holdings has a 12-month stock price forecast of $63.11, indicating a 15.42% upside based on 9 analyst ratings, with a current price of $54.68 [12] - The company reported an 11% year-over-year revenue increase, with EPS of 82 cents exceeding expectations by 4 cents [13] - Despite strong performance, recent executive turnover introduces uncertainty, particularly in the U.S. metal containers business [14] - Analysts remain optimistic, with all nine ratings for Silgan shares classified as Buy [15]

[Greif Reports Fiscal Second Quarter 2025 Results](index=1&type=section&id=Greif%20Reports%20Fiscal%20Second%20Quarter%202025%20Results) [Fiscal Second Quarter 2025 Financial Highlights](index=1&type=section&id=Fiscal%20Second%20Quarter%202025%20Financial%20Highlights) Greif reported strong Q2 2025 results with adjusted net income up **42.8%** to **$68.7 million** and Adjusted EBITDA up **26.0%** to **$213.9 million**, improving liquidity and reducing leverage to **3.3x** Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $47.3M | $44.4M | +6.5% | | Net Income (Adjusted) | $68.7M | $48.1M | +42.8% | | Diluted Class A EPS | $0.82 | $0.77 | +6.5% | | Diluted Class A EPS (Adjusted) | $1.19 | $0.83 | +43.4% | | Adjusted EBITDA | $213.9M | $169.7M | +26.0% | | Net Cash from Operating Activities | $136.4M | $87.5M | +$48.9M | | Adjusted Free Cash Flow | $109.6M | $59.0M | +$50.6M | | Total Debt | $2,775.2M | $2,916.1M | -$140.9M | | Leverage Ratio | 3.3x | 3.4x | -0.1x | [Strategic Actions and Announcements](index=1&type=section&id=Strategic%20Actions%20and%20Announcements) Greif is executing its 'Build to Last' strategy, achieving **$10.0 million** in cost savings and progressing with timberland sale for debt reduction - The company is making progress on the sale of its timberland business and plans to use the proceeds for further debt reduction[6](index=6&type=chunk) - The cost optimization program is ahead of schedule, with **$10.0 million** in run-rate savings achieved, targeting **$15.0 million to $25.0 million** by end of fiscal 2025[6](index=6&type=chunk) - CEO Ole Rosgaard highlighted Greif's strong quarter, balancing financial execution with strategic progress, demonstrating resilience and positioning for future value creation[5](index=5&type=chunk) [Segment Performance](index=3&type=section&id=Fiscal%20Second%20Quarter%202025%20Segment%20Results) [Customized Polymer Solutions](index=3&type=section&id=Customized%20Polymer%20Solutions) Customized Polymer Solutions saw significant growth, with net sales up **$43.7 million** to **$329.3 million** and Adjusted EBITDA up **$18.5 million** to **$53.4 million**, driven by acquisitions Customized Polymer Solutions Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $329.3M | $285.6M | +15.3% | | Gross Profit | $76.7M | $55.5M | +38.2% | | Operating Profit | $25.8M | $6.3M | +309.5% | | Adjusted EBITDA | $53.4M | $34.9M | +53.0% | - Net sales growth was primarily due to **$38.8 million** in contributions from recent acquisitions[10](index=10&type=chunk) [Durable Metal Solutions](index=3&type=section&id=Durable%20Metal%20Solutions) Durable Metal Solutions experienced a decline, with net sales down **$34.8 million** to **$378.9 million**, due to lower volumes and selling prices, impacting profitability Durable Metal Solutions Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $378.9M | $413.7M | -8.4% | | Gross Profit | $82.9M | $89.3M | -7.2% | | Operating Profit | $54.1M | $56.5M | -4.2% | | Adjusted EBITDA | $63.7M | $64.5M | -1.2% | - The decrease in net sales was primarily driven by lower volumes (**$18.6 million**) and lower average selling prices (**$12.3 million**)[12](index=12&type=chunk) [Sustainable Fiber Solutions](index=3&type=section&id=Sustainable%20Fiber%20Solutions) Sustainable Fiber Solutions achieved strong profit growth, with Adjusted EBITDA up **$30.0 million** to **$79.5 million**, driven by higher prices despite lower volumes Sustainable Fiber Solutions Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $599.1M | $580.1M | +3.3% | | Gross Profit | $132.7M | $93.7M | +41.6% | | Operating Profit | $25.9M | $18.9M | +37.0% | | Adjusted EBITDA | $79.5M | $49.5M | +60.6% | - Net sales increased primarily due to **$29.0 million** from higher published prices, partially offset by a **$9.1 million** impact from lower volumes[14](index=14&type=chunk) [Integrated Solutions](index=3&type=section&id=Integrated%20Solutions) Integrated Solutions' performance declined, with net sales down **$13.2 million** to **$78.4 million**, primarily due to the Delta Petroleum Company divestiture Integrated Solutions Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $78.4M | $91.6M | -14.4% | | Gross Profit | $27.2M | $31.6M | -13.9% | | Operating Profit | $12.8M | $16.4M | -22.0% | | Adjusted EBITDA | $17.3M | $20.8M | -16.8% | - The decrease in net sales was primarily due to a **$15.2 million** impact from the Delta Divestiture[17](index=17&type=chunk) [Financial Summaries & Outlook](index=4&type=section&id=Financial%20Summaries%20%26%20Outlook) [Tax Summary](index=4&type=section&id=Tax%20Summary) Greif's Q2 2025 income tax rate was **35.5%** (adjusted **32.8%**), with full-year fiscal 2025 projected between **27.0%** and **32.0%** - The income tax rate for Q2 2025 was **35.5%**, and the tax rate excluding adjustments was **32.8%**[20](index=20&type=chunk) - For fiscal year 2025, the expected tax rate (including and excluding adjustments) is projected to be between **27.0%** and **32.0%**[20](index=20&type=chunk) [Dividend Summary](index=4&type=section&id=Dividend%20Summary) Greif's Board declared quarterly cash dividends for Class A and Class B Common Stock, payable July 1, 2025, to shareholders of record June 17, 2025 Quarterly Dividend Declaration | Stock Class | Dividend per Share | | :--- | :--- | | Class A Common Stock | $0.54 | | Class B Common Stock | $0.81 | [Company Outlook](index=5&type=section&id=Company%20Outlook) Despite industrial contraction, Greif raised its fiscal year 2025 low-end guidance for Adjusted EBITDA to **$725 million** and Adjusted Free Cash Flow to **$280 million** due to strong Q2 performance - The company has not identified any compelling demand inflection on the horizon after a multi-year period of industrial contraction[22](index=22&type=chunk) Raised Fiscal 2025 Low-End Guidance | Metric (in millions) | Guidance Estimate | | :--- | :--- | | Adjusted EBITDA | $725 | | Adjusted free cash flow | $280 | [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Greif's Q2 2025 net sales increased to **$1,385.7 million**, with gross profit at **$319.5 million** and net income at **$47.3 million** (**$0.82** per diluted Class A share) Income Statement Summary (Three Months Ended April 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $1,385.7 | $1,371.0 | | Gross profit | $319.5 | $270.1 | | Operating profit | $118.6 | $98.1 | | Net income attributable to Greif, Inc. | $47.3 | $44.4 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of April 30, 2025, Greif's total assets were **$6,754.4 million**, with total liabilities of **$4,448.2 million** and long-term debt at **$2,290.9 million** Balance Sheet Summary | (in millions) | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,754.4 | $1,549.4 | | Total assets | $6,754.4 | $6,647.6 | | Long-term debt | $2,290.9 | $2,626.2 | | Total liabilities | $4,448.2 | $4,400.2 | | Total equity | $2,175.0 | $2,117.5 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities significantly increased to **$136.4 million** in Q2 2025, with cash and cash equivalents rising by **$51.6 million** during the quarter Cash Flow Summary (Three Months Ended April 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $136.4 | $87.5 | | Net cash used in investing activities | $(12.7) | $(609.0) | | Net cash (used in) provided by financing activities | $(116.2) | $548.8 | | Net increase in cash and cash equivalents | $51.6 | $16.7 | | Cash and cash equivalents, end of period | $252.7 | $196.0 | [GAAP to Non-GAAP Reconciliations](index=11&type=section&id=GAAP%20TO%20NON-GAAP%20RECONCILIATION) [Consolidated Adjusted EBITDA Reconciliation](index=11&type=section&id=CONSOLIDATED%20ADJUSTED%20EBITDA) Greif reconciled GAAP Net Income to Adjusted EBITDA, which reached **$213.9 million** in Q2 2025, up from **$169.7 million** in the prior year Adjusted EBITDA Reconciliation (Three Months Ended April 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $54.5 | $52.0 | | Plus: Interest, Taxes, D&A, etc. | $130.9 | $105.9 | | Plus: Restructuring, Impairment, and other charges | $28.5 | $5.8 | | **Adjusted EBITDA** | **$213.9** | **$169.7** | [Net Income and EPS Before Adjustments Reconciliation](index=15&type=section&id=NET%20INCOME%2C%20CLASS%20A%20EARNINGS%20PER%20SHARE%20AND%20TAX%20RATE%20BEFORE%20ADJUSTMENTS) Greif's Q2 2025 GAAP net income of **$47.3 million** (**$0.82** per share) adjusted to **$68.7 million** (**$1.19** per share) after excluding specific costs Adjusted Net Income & EPS Reconciliation (Three Months Ended April 30) | (in millions, except per share) | 2025 | 2024 | | :--- | :--- | :--- | | Net Income Attributable to Greif, Inc. (GAAP) | $47.3 | $44.4 | | Diluted Class A EPS (GAAP) | $0.82 | $0.77 | | Total Adjustments | $21.4 | $3.7 | | **Net Income Attributable to Greif, Inc. (Adjusted)** | **$68.7** | **$48.1** | | **Diluted Class A EPS (Adjusted)** | **$1.19** | **$0.83** | [Adjusted Free Cash Flow Reconciliation](index=14&type=section&id=ADJUSTED%20FREE%20CASH%20FLOW) Adjusted Free Cash Flow for Q2 2025 significantly increased to **$109.6 million** from **$59.0 million** in the prior year, driven by strong operating cash flow Adjusted Free Cash Flow Reconciliation (Three Months Ended April 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $136.4 | $87.5 | | Less: Purchases of properties, plants and equipment | $(30.0) | $(41.0) | | Free cash flow | $106.4 | $46.5 | | Plus: Specific cash costs (acquisition, ERP, etc.) | $3.2 | $12.5 | | **Adjusted free cash flow** | **$109.6** | **$59.0** | [Net Debt and Leverage Ratio Reconciliation](index=16&type=section&id=NET%20DEBT%20and%20LEVERAGE%20RATIO) Greif's net debt decreased by **$197.6 million** to **$2,522.5 million**, improving the leverage ratio to **3.3x** as of April 30, 2025 Net Debt Calculation | (in millions) | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Total debt | $2,775.2 | $2,916.1 | | Less: Cash and cash equivalents | $(252.7) | $(196.0) | | **Net debt** | **$2,522.5** | **$2,720.1** | - The leverage ratio improved to **3.3x** as of April 30, 2025, down from **3.4x** as of April 30, 2024[49](index=49&type=chunk) [Projected 2025 Guidance Reconciliation](index=18&type=section&id=PROJECTED%202025%20GUIDANCE%20RECONCILIATION) Greif projects fiscal 2025 low-end Adjusted Free Cash Flow guidance at **$280.0 million**, based on **$431.0 million** in operating cash flow Fiscal 2025 Low-End Adjusted Free Cash Flow Guidance Reconciliation | (in millions) | Estimate | | :--- | :--- | | Net cash provided by operating activities | $431.0 | | Less: Cash paid for purchases of properties, plants and equipment | $(171.0) | | Free cash flow | $260.0 | | Plus: Cash paid for acquisition, ERP, and other costs | $20.0 | | **Adjusted free cash flow** | **$280.0** |