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

Core Insights - Greif, Inc. reported a significant decrease in net income for the fiscal first quarter of 2025, down 87.2% to $8.6 million or $0.15 per diluted Class A share compared to $67.2 million or $1.17 per diluted Class A share in the prior year quarter, primarily due to a non-recurring income tax benefit in the previous year [7][34] - The company is actively managing a period of industrial contraction while transforming its internal processes and portfolio for long-term growth, including plans to divest its Soterra land management holdings [4][23] - Adjusted EBITDA increased by 5.9% to $145.1 million compared to $137.0 million in the prior year quarter, indicating resilience in the new business model despite headwinds [7][41] Financial Highlights - Total net sales for the first quarter of 2025 were $1,265.8 million, an increase from $1,205.8 million in the same quarter of 2024 [34][42] - Net cash provided by operating activities decreased by $35.3 million to a use of $30.8 million, while adjusted free cash flow decreased by $13.7 million to a use of $61.9 million [7][50] - Total debt increased by $548.4 million to $2,840.2 million, primarily due to the acquisition of Ipackchem, leading to an increase in net debt to $2,639.1 million [7][8] Segment Performance - Customized Polymer Solutions saw net sales increase by $67.1 million to $295.1 million, primarily due to contributions from recent acquisitions [12][42] - Durable Metal Solutions experienced a net sales decrease of $28.3 million to $342.2 million, impacted by negative foreign currency translation and lower volumes [14][42] - Sustainable Fiber Solutions reported a net sales increase of $32.6 million to $561.4 million, driven by higher containerboard and boxboard prices [17][42] Strategic Actions - The company intends to divest approximately 176,000 acres of timberland in the Southeastern United States, with proceeds aimed at debt reduction [7][23] - Closure of the A1 uncoated recycled paperboard machine in Austell, GA, and the containerboard and uncoated recycled paperboard mill in Fitchburg, MA, has been announced as part of cost optimization efforts [7][23] - Progress on cost optimization projects has achieved $13.0 million in annual run-rate savings by the end of the first quarter of 2025 [7][23] Company Outlook - The company anticipates continued industrial contraction with no compelling demand inflection identified, providing only low-end guidance based on current trends [23][24] - Fiscal 2025 low-end guidance estimates adjusted EBITDA at $710 million and adjusted free cash flow at $245 million [24][25]

Core Points - Greif, Inc. will report its 2025 first quarter financial results on February 26, 2025, after market close [1] - A conference call to discuss the results will take place on February 27, 2025, at 8:30 a.m. ET [1] - The company aims to be the best customer service company globally, producing a wide range of industrial packaging products [3] Company Overview - Greif, Inc. is a global leader in industrial packaging products and services, with a diverse product range including steel, plastic, and fiber drums, intermediate bulk containers, and various specialty products [3] - The company operates over 250 facilities in 37 countries, employing more than 14,000 colleagues to serve both global and regional customers [3] - Greif also manages timber properties in the southeastern United States, further diversifying its operations [3]

Group 1 - Greif, Inc. is highlighted as an interesting company in the market, particularly in the context of its operations and potential [1] - The company is involved in the oil and natural gas sector, focusing on cash flow generation which is crucial for value and growth prospects [1] Group 2 - The investment service provided by Crude Value Insights includes a stock model account with over 50 stocks, emphasizing in-depth cash flow analyses of exploration and production firms [2] - Subscribers have access to live chat discussions regarding the oil and gas sector, enhancing community engagement and information sharing [2]

Core Points - Greif will permanently cease production at the Number 1 Paperboard Machine (A1) in Austell, GA, and close the containerboard and uncoated recycled paperboard (URB) mill in Fitchburg, MA due to increased costs and declining demand in key markets [1][2] - Approximately 140 positions will be impacted by these closures, with the A1 asset expected to cease production by the end of March 2025 and the Fitchburg mill by May 2025 [2][3] - The closures will reduce Greif's containerboard capacity by 100,000 tons and URB capacity by 90,000 tons, aiming to refine market participation and maximize profitability [2][3] Company Overview - Greif is a global leader in industrial packaging products and services, producing a variety of packaging solutions including steel, plastic, and fiber drums, as well as containerboard and specialty products [4] - The company operates over 250 facilities in 37 countries, employing more than 14,000 colleagues to serve both global and regional customers [4]

Financial Performance - The Company reported total net sales of $5,448.1 million for the fiscal year ended October 31, 2024, compared to $5,405.7 million in the previous year, reflecting a slight increase[37]. - Total operating profit for 2024 was $464.6 million, a decrease of 23.3% from $605.5 million in 2023[39]. - Total capital expenditures for 2024 were $174.2 million, down 20.2% from $218.2 million in 2023[39]. - Depreciation, depletion, and amortization expense increased to $261.3 million in 2024 from $230.6 million in 2023, reflecting a rise of 13.3%[39]. Segment Performance - The Global Industrial Packaging segment generated net sales of $3,124.3 million, while Paper Packaging & Services contributed $2,303.5 million, and Land Management accounted for $20.3 million[37]. - Global Industrial Packaging segment reported an operating profit of $341.1 million, up from $334.3 million in 2023, while Paper Packaging & Services segment saw a decline to $115.6 million from $264.1 million[39]. Shareholder Information - The average Class A shares outstanding increased to 25,751,386 in 2024 from 25,592,928 in 2023, while diluted shares decreased slightly to 25,977,401[28]. - The Company’s basic Class A EPS was calculated using a two-class method, reflecting a 40% to 60% split between Class A and Class B shareholders[24]. - Basic Class A shares outstanding increased to 25,751,386 in 2024 from 25,592,928 in 2023[28]. Cash Flow and Liabilities - Operating cash flows used for operating liabilities amounted to $71.9 million in 2024, up from $64.3 million in 2023[32]. - The Company’s lease liabilities included $69.6 million in new operating lease liabilities and $6.4 million in new finance lease liabilities for the year ended October 31, 2024[32]. - Leased assets obtained in exchange for new operating lease liabilities were $69.6 million in 2024, down from $95.0 million in 2023[32]. Other Comprehensive Loss and Accruals - The Company’s accumulated other comprehensive loss at year-end was $114.3 million, an increase from $109.2 million at the beginning of the year[20]. - As of October 31, 2024, the Company accrued $9.8 million for the Diamond Alkali Superfund Site, indicating potential future charges that could impact earnings[23]. - The Company accrued $9.8 million for the Diamond Alkali Superfund Site as of October 31, 2024[23]. Timber Management - The Company operates on approximately 175,000 acres of timber properties, focusing on sustainable long-term yields through active harvesting and regeneration[35]. - The company aims to maintain a consistent cutting schedule for timber sales, despite market and weather fluctuations[35]. - The value of timberland is assessed based on various factors, including proximity to population centers and anticipated growth, requiring ongoing review and re-characterization[36]. Employee Benefits - The Company’s contributions to 401(k) plans were $29.0 million in 2024, slightly down from $29.1 million in 2023[21].

Greif, Inc. (GEF) reported adjusted earnings per share (EPS) of $1.13 for fourth-quarter fiscal 2024 (ended Oct. 31, 2024), which surpassed the Zacks Consensus Estimate of $1.08. GEF’s bottom line declined 29% year over year as higher input and labor costs as well as selling, general and administrative expenses offset the gain from improved sales.Including one-time items, Greif’s EPS was $1.08 compared with $1.16 in the prior-year quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calenda ...

Financial Data and Key Metrics Changes - The corrected Q4 net income excluding adjustments was $65.5 million, with diluted Class A earnings per share at $1.13, compared to the originally reported figures of $49.6 million and $0.85 per share [8][27]. - Fourth quarter adjusted EBITDA was $198 million, down from $202 million year-over-year [26]. - Adjusted free cash flow for Q4 was $145 million, an increase from $136 million in the previous year [27]. Business Line Data and Key Metrics Changes - In the GIP segment, adjusted EBITDA increased by $4 million, but EBITDA margins decreased by 70 basis points [31]. - The PPS segment experienced an adjusted EBITDA decline of $8 million and a margin decline of 240 basis points year-over-year, although sequentially, EBITDA margin improved by 220 basis points [32]. - Containerboard and corrugated volumes showed solid performance with operating rates over 90%, while URB and tube and core volumes lagged due to soft demand [33]. Market Data and Key Metrics Changes - EMEA remained the strongest region, although volumes were slightly down sequentially [22]. - North America saw a significant volume decline of almost 18% on a two-year basis, with GIP demand remaining choppy [23]. - LATAM showed improvement, while APAC continued to be soft, resulting in a neutral year-over-year demand impact [25]. Company Strategy and Development Direction - The company is focusing on optimizing its operating model to leverage core competitive advantages and aims to double its size in the future [11][12]. - The strategic business units will be organized around four material solutions: customized polymer solutions, durable metal solutions, sustainable fiber solutions, and integrated solutions [12]. - The company plans to invest further in polymer-based products and caps and closures, which are expected to grow over time [17]. Management's Comments on Operating Environment and Future Outlook - The management acknowledged the ongoing industrial contraction, which has lasted for 25 months, and emphasized the importance of this soft macroeconomic environment in formulating fiscal 2025 guidance [21][22]. - Despite the challenging environment, the company is outperforming market expectations in EMEA due to ongoing business model optimization [22]. - Management expressed confidence in the recovery of volumes in North America, attributing current softness to the extended demand contraction cycle [24]. Other Important Information - The company has allocated over $1 billion in capital for margin growth and acquisitions, and it is targeting at least $100 million in cost reductions by the end of fiscal 2027 [19][20]. - The company will provide further details on its new segments and financial highlights at the upcoming Investor Day [15][47]. Q&A Session Summary Question: Future investment areas beyond customized Polymer Solutions - Management indicated that while Polymer Solutions is a primary focus, investments will also be made in fiber-based and metals-based businesses, particularly in automation and caps and closures [52][54]. Question: Commentary on leverage perspective - Management expressed comfort with the current leverage ratio, noting that recovery in demand would quickly improve the ratio [56]. Question: Details on the $100 million cost reduction program - Management clarified that the program is not fixing anything broken but aims to enhance efficiency through SG&A rationalization, network optimization, and operating efficiencies [64][66]. Question: Volume assumptions for fiscal 2025 guidance - Management provided insights into expected volume uplifts in the containerboard and polymer solutions segments, while anticipating contraction in metal solutions [72][73]. Question: High-end scenario for fiscal 2025 guidance - Management refrained from providing a high-end guidance scenario due to uncertainty in the industrial recession's duration but noted potential drivers for upside [78][81]. Question: Demand trends for the new IBC plant in Malaysia - Management did not comment on individual plants but emphasized the overall growth in the premium end of the polymer market [87]. Question: Variance in Ipackchem relative to deal model - Management acknowledged a shortfall in Ipackchem's contribution compared to initial expectations but expressed confidence in long-term profitability [98][100]. Question: Impact of tariffs on volume outlook - Management indicated that tariffs would not significantly impact the business, as raw materials are sourced and produced locally [108]. Question: First quarter performance outlook - Management noted that the first quarter typically experiences a slower ramp-up, with some drag expected in the metals business due to decreasing steel prices [113].

DELAWARE, Ohio, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Correction: Fourth quarter 2024 net income, excluding the impact of adjustments, revised to $65.5 million and 2024 Class A diluted earnings per share, excluding adjustments, revised to $1.13. In the earnings release issued earlier today, the fourth quarter 2024 net income, excluding the impact of adjustments, incorrectly presented a $16.0 million income tax expense related to “(gain) loss on disposal of businesses, net”. This resulted in stating net income, ...

Greif (GEF) reported $1.42 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 8.3%. EPS of $0.85 for the same period compares to $1.56 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.41 billion, representing a surprise of +0.34%. The company delivered an EPS surprise of -21.30%, with the consensus EPS estimate being $1.08.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...