Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $145 million, an improvement of $7 million compared to the prior year quarter [28] - Adjusted EPS for the quarter was $0.39, lower than the prior year primarily due to a non-recurrence of a one-time tax benefit of $48 million and $14 million of higher interest expense [28] - Adjusted free cash flow was a net use of $62 million, slightly higher than the prior year due to increased interest expense [29] Business Line Data and Key Metrics Changes - Polymers segment saw a 2.7% increase driven by demand in small containers and IBC in the ag and food sectors, particularly in EMEA [20] - Integrated Solutions experienced low double-digit growth in both caps and closures and paints, linings, and adhesives [20] - Fiber volumes were slightly up, with operating rates in both paper grades in line with the industry [21] - Metals segment continued to be impacted by a soft industrial economy, particularly in bulk chemicals and petrochemicals [21] Market Data and Key Metrics Changes - EMEA demonstrated the highest level of resilience, followed by APAC, while LATAM showed a slight downward trend and North America had the most bearish demand sentiment [24] - Demand trends in boxboard were flat year-on-year, with specific subsegments like URB showing softness [84] Company Strategy and Development Direction - Company announced a $100 million cost optimization initiative and a commitment to achieve $1 billion EBITDA and $500 million free cash flow by 2027 [7][10] - The decision to sell the timber portfolio of approximately 176 acres was made to reduce debt and refocus on core growth areas [17] - The company is focusing on growing in GDP-plus growth markets such as agrochemicals, food and beverage, and pharmaceuticals [99] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future volume growth, noting that while some markets showed sequential improvements, no clear inflection point had been observed [54] - The company remains committed to operational excellence and customer-centric growth, aiming to create continuing value for stakeholders [106] Other Important Information - The organizational realignment in 2024 resulted in new strategic business units (SBUs) to better visualize portfolio fit and growth objectives [16] - The company is experiencing short-term SG&A cost inflation as it reallocates resources for long-term value creation [31] Q&A Session Summary Question: Fiber segment performance relative to expectations - Management indicated that fiber performance was in line with expectations, but SG&A allocation protocols may have caused confusion regarding profitability [45][46] Question: Differences in demand between EMEA and North America - Management explained that the difference is due to end market exposure, with growth in agrochemical markets contributing to EMEA's resilience [50][51] Question: Margin expectations for Q2 and beyond - Management expects EBITDA margins to steadily improve through the year, driven by volume lift and fixed cost leverage [63] Question: Timberland sale details - Management stated that the timberland sale is aimed at reducing debt and that the value of timberland has been increasing due to various factors [66][72] Question: Demand trends in boxboard - Management noted that total boxboard demand is flat year-on-year, with specific subsegments showing varying performance [84] Question: Competitive landscape in polymers and metals - Management emphasized a focus on value over volume, maintaining confidence in market position despite competitive pressures [90][95] Question: Exciting end markets and concerns - Management highlighted agrochemicals and food and beverage as exciting markets, while expressing caution regarding the pharma space due to long lead times [99][100]

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

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

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

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

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

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]