We recently published 10 Stocks With Monster Gains. Graphic Packaging (NYSE:GPK) was one of the top performers on Wednesday. Graphic Packaging bounced back by 10.31 percent on Wednesday to close at $13.70 apiece as investors appeared to have hunted for bargains after falling to a level that left the stock just 6 percent shy of its 52-week low a day earlier. This followed the company’s disappointing earnings performance on Tuesday, with both profits and sales declining after navigating a challenging mark ...

I have a deep appreciation for the role we play not just in protecting products or reducing costs, but in shaping and enhancing brand perception. Enabling sustainability goals, and delivering exceptional quality and reliability. That perspective is what attracted me to Graphic Packaging. And it will shape how I approach the business and manage towards the substantial opportunities we have ahead. Today, I will spend some time on how I am assessing the business. What excites me about the foundation we have an ...

Graphic Packaging Company (NYSE:GPK) Q4 2025 Earnings call February 03, 2026 10:00 AM ET Company ParticipantsCharles D. Lischer - SVP and Interim Chief Financial OfficerMark W. Connelly - SVP of Investor Strategy and DevelopmentRobbert Rietbroek - President and CEOConference Call ParticipantsArun Viswanathan - Managing Director and Lead Equity Research AnalystGabe Hajde - Director and Senior Equity Research AnalystGhansham Panjabi - Senior Research AnalystLewis Merrick - AnalystMark Weintraub - Senior Resea ...

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $2.1 billion, flat year-over-year, with volumes and pricing down slightly less than 1%, offset by a $40 million foreign exchange benefit [26] - For the full year 2025, net sales were $8.6 billion, down approximately 2%, with adjusted EBITDA around $1.4 billion, reflecting pressures from competitive pricing and softer packaging volumes [27][28] - Adjusted EPS for the full year was $1.80, with a net leverage of 3.8x due to EBITDA headwinds and share repurchases [28] Business Line Data and Key Metrics Changes - The company is experiencing pressure on adjusted EBITDA due to competitive pricing and reduced packaging volumes, which together reduced adjusted EBITDA by approximately $40 million compared to the previous year [26] - The adjusted divestiture accounted for $150 million of the $190 million decrease in net sales for the full year [27] Market Data and Key Metrics Changes - The external environment remains challenged, with overcapacity in commodity bleached paperboard markets impacting finished packaging prices [10] - Demand trends for consumer staples are uneven due to affordability and macroeconomic uncertainty, with expectations of improvement in the future [10] Company Strategy and Development Direction - The company is focused on enhancing profitability through cost actions and operational efficiencies, reducing inventory, and prioritizing free cash flow generation [13][19] - A comprehensive operational and business review is underway to optimize the company's footprint and resources [10][12] - The growth strategy emphasizes disciplined organic growth, customer-centric approaches, and innovation to drive market share [20][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the current macroeconomic environment but emphasizes a focus on controllable factors to create lasting value [11] - The company expects to generate adjusted free cash flow between $700 million and $800 million in 2026, driven by reduced capital spending and inventory optimization [14][19] - Management is optimistic about restoring top-line growth and improving margins as market conditions normalize [15][50] Other Important Information - Total capital spend for 2025 was $935 million, higher than targeted, with expectations to drop to approximately $450 million in 2026 [18][19] - The company aims to achieve an investment-grade credit rating by 2030 as part of its Vision 2030 commitments [15][23] Q&A Session Summary Question: How will the new CEO's approach differ from previous strategies? - The new CEO emphasizes a focus on cost reduction, productivity, and operational excellence while maintaining strong customer relationships [41][42] Question: What are the plans for inventory reduction? - The company plans to reduce inventory from 20% to 15% of sales, focusing on recycled, bleached, and cup stock, while ensuring customer service remains unaffected [45][46] Question: How does the pricing dynamic in paperboard affect the industry? - The CEO notes that the bleached paperboard market is oversupplied, impacting pricing and returns, while recycled and unbleached markets are in better balance [48][49] Question: What factors will determine core versus non-core assets? - The company will focus on durable competitive advantages and synergies, particularly in its North America and Europe food and beverage business, while reviewing smaller businesses for potential divestiture [57][59] Question: What is the company's stance on dividends? - The immediate priority is debt paydown, with no commitment to change the dividend policy for 2026, but future growth in dividends is expected as leverage decreases [60]

Graphic Packaging Company (NYSE:GPK) Q4 2025 Earnings call February 03, 2026 10:00 AM ET Speaker1Good day, everyone, and welcome to the Graphic Packaging Holding Company fourth quarter and full year 2025 conference call. At this time, all participants are placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Mark Connelly. Sir, the floor is yours.Speaker0Good morning. We have with us today R ...

Forward-Looking Statements CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Any statements of the Company's expectations in these slides, including, but not limited to, statements regarding full-year 2026 capital expenditures, free cash flow ("FCF") and Adj. Cash Flow, 2026 Net Sales, volumes, Adjusted EBITDA, Adjusted EPS, capital spending, interest expense, cash taxes, working capital and pension expense, effective tax rate, and depreciation and amortization, year-end 2026 Net Leverage, and post ...

Graphic Packaging (GPK) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.33%. A quarter ago, it was expected that this packaging company would post earnings of $0.54 per share when it actually produced earnings of $0.58, delivering a surprise of +7.41%.Over the last four quarters, ...

Financial Performance - 2025 net sales were $8.6 billion, a decrease of 2% from $8.8 billion in 2024[1] - 2025 net income was $444 million, down from $658 million in 2024, representing a decline of 32.5%[3] - Fourth quarter 2025 net sales were $2.1 billion, essentially flat compared to $2.1 billion in the same quarter last year[5] - Fourth quarter 2025 adjusted net income was $85 million, or $0.29 per diluted share, compared to $179 million, or $0.59 per diluted share in the same quarter of 2024[2] - Full-year 2025 adjusted EBITDA was $1.395 billion, down 17% from $1.682 billion in 2024[8] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $1,395 million, down 17.1% from $1,682 million in 2024[28] - The company reported a decrease in EBITDA to $1,342 million in 2025 from $1,677 million in 2024, reflecting a decline of 19.9%[28] - The adjusted earnings per share (diluted) for 2025 was $1.80, down from $2.49 in 2024[28] Future Guidance - The company expects 2026 net sales to be between $8.4 billion and $8.6 billion, with adjusted EBITDA guidance of $1.05 billion to $1.25 billion[13] Capital Expenditures - Capital expenditures for full-year 2025 were $935 million, a decrease from $1.203 billion in the prior year[11] - Capital spending for 2025 was $935 million, a reduction of 22.2% from $1,203 million in 2024[30] Shareholder Returns - The company returned approximately $281 million to shareholders in 2025 through dividends and share repurchases[12] Debt and Leverage - Total debt for full-year 2025 was $5.592 billion, an increase from $5.209 billion in 2024[9] - The net leverage ratio increased to 3.8 in 2025 from 3.0 in 2024, indicating a higher level of debt relative to adjusted EBITDA[30] - The company reported a net debt of $5,331 million in 2025, an increase from $5,052 million in 2024[30] Cash Flow - Net cash provided by operating activities increased to $854 million in 2025, compared to $840 million in 2024[30] - Adjusted net cash provided by operating activities was $1,104 million in 2025, compared to $1,176 million in 2024[30] - The company had a net cash increase of $104 million in 2025, compared to a decrease of $5 million in 2024[24] Project Updates - The Waco, Texas greenfield recycled paperboard manufacturing facility project is substantially complete, with total projected costs of approximately $1.67 billion[11]

Core Insights - Graphic Packaging Holding Company reported a decrease in net sales and net income for the year 2025 compared to 2024, with net sales at $8.6 billion and net income at $444 million [1][3] - The company is focusing on operational excellence, customer service, cost structure improvement, and generating substantial free cash flow to strengthen its balance sheet and return capital to shareholders [4] Financial Performance - **Net Sales**: Fourth quarter 2025 net sales were $2,103 million, slightly up from $2,095 million in the same quarter of 2024. Full-year 2025 net sales decreased by 2% to $8,617 million from $8,807 million in 2024 [5][6] - **Net Income**: Fourth quarter net income was $71 million, or $0.24 per diluted share, down from $138 million, or $0.46 per diluted share in the same quarter of 2024. Full-year net income was $444 million, or $1.48 per diluted share, compared to $658 million, or $2.16 per diluted share in 2024 [2][3] - **EBITDA**: Fourth quarter EBITDA decreased by 19% to $305 million from $376 million in the same quarter of 2024. Full-year EBITDA decreased by 20% to $1,342 million from $1,677 million in 2024 [7][8] Operational Highlights - **Capital Expenditures**: Capital expenditures in the fourth quarter of 2025 were $127 million, down from $310 million in the same quarter of 2024. Full-year capital expenditures were $935 million, compared to $1,203 million in 2024 [10] - **Debt Levels**: Total debt for full-year 2025 was $5,592 million, an increase from $5,209 million in 2024. The net debt was $5,331 million, up from $5,052 million in 2024, resulting in a net leverage ratio of 3.8x compared to 3.0x in 2024 [9] Future Guidance - The company expects 2026 net sales to be between $8.4 billion and $8.6 billion, with adjusted EBITDA projected between $1.05 billion and $1.25 billion. The anticipated adjusted free cash flow for 2026 is between $700 million and $800 million [12][13]

Core Viewpoint - Glancy Prongay & Murray LLP is investigating potential claims against the board of directors of Graphic Packaging Holding Company for possible breaches of fiduciary duties to shareholders [1] Group 1 - The investigation is focused on whether the board acted in the best interests of shareholders [1] - The law firm is inviting shareholders of Graphic Packaging to participate in the investigation [1]