Graphic Packaging (GPK) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.93%. A quarter ago, it was expected that this packaging company would post earnings of $0.63 per share when it actually produced earnings of $0.59, delivering a surprise of -6.35%.Over the last four quarters, t ...

Graphic Packaging Holding Company Reports First Quarter 2025 Financial Results Highlights ATLANTA, May 1, 2025 - Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported first quarter 2025 results. Net Income in first quarter 2025 was $127 million, or $0.42 per diluted share, versus $165 million, or $0.53 per diluted share in first quarter 2024. First quarter 2025 and 2024 Net Income was impacted by special items ...

May 1, 2025 © 2025 Graphic Packaging Holding Company 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 the timing of the completion and startup of the Waco, Texas facility, the timing of the closure of the Middletown, Ohio recycled paperboard manufacturing facility, Innovation Sales Growth in 2025, inflation, decreases in consumer spending and growth in mass re ...

Core Viewpoint - Graphic Packaging Holding Company reported a decline in net income and sales for the first quarter of 2025, attributing the results to a challenging economic environment and increased input costs [2][3][5]. Financial Performance - Net income for Q1 2025 was $127 million, or $0.42 per diluted share, down from $165 million, or $0.53 per diluted share in Q1 2024 [2][24]. - Adjusted net income for Q1 2025 was $154 million, or $0.51 per diluted share, compared to $203 million, or $0.66 per diluted share in Q1 2024 [2][26]. - Net sales decreased by 6% to $2,120 million in Q1 2025 from $2,259 million in Q1 2024, influenced by divestitures and unfavorable foreign exchange impacts [5][16]. Operational Insights - EBITDA for Q1 2025 decreased by 17% to $353 million, with adjusted EBITDA at $365 million, down from $443 million in the same quarter last year [6][24]. - The adjusted EBITDA margin was 17.2% in Q1 2025, compared to 19.6% in Q1 2024 [6][24]. Debt and Capital Management - Total debt increased by $526 million to $5,735 million in Q1 2025, with net debt rising to $5,606 million [7][25]. - The net leverage ratio was 3.5x in Q1 2025, up from 3.0x in Q4 2024 [7][25]. - Capital expenditures for Q1 2025 were $313 million, slightly down from $331 million in the same quarter last year [8][11]. Future Guidance - The company expects full-year 2025 net sales between $8.2 billion and $8.5 billion, adjusted EBITDA between $1.4 billion and $1.6 billion, and adjusted EPS between $1.75 and $2.25 [9][10]. - The guidance reflects anticipated volume declines and input cost inflation, with increased uncertainty in macroeconomic conditions [9][10]. Strategic Initiatives - The company announced a new $1.5 billion share repurchase authorization, increasing the total available authorization to $1.865 billion [4][10]. - A ten percent increase in the quarterly dividend was announced in February 2025 [4].

Core Viewpoint - Graphic Packaging Holding Company has announced a new $1.5 billion share repurchase authorization, increasing the total available authorization to $1.865 billion as of April 30, 2025 [1][2]. Group 1: Share Repurchase Authorization - The new authorization allows for share repurchases through open market transactions, privately negotiated deals, and Rule 10b5-1 plans, depending on market conditions and the company's financial status [2]. - The previous share repurchase authorization from July 27, 2023, had $365 million remaining, which is now combined with the new authorization [1]. Group 2: Financial Strategy and Dividend - The company's President and CEO, Michael Doss, indicated that capital spending needs will decline significantly as the Vision 2025 investment nears completion, allowing for excess cash generation [3]. - The Board of Directors has approved a 10% increase in the quarterly dividend to $0.11 per share, which was paid on April 5, 2025, to stockholders of record as of March 15, 2025 [3]. Group 3: Commitment to Shareholder Returns - The company plans to measure potential investments against the alternative of repurchasing stock and aims to return a substantial amount of cash to shareholders through dividends and share repurchases in the future [4].

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Graphic Packaging Holding Company to determine if its directors breached fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is being conducted on behalf of the shareholders of Graphic Packaging Holding Company [1]. - Shareholders interested in more information regarding their rights and options can contact Purcell & Lefkowitz LLP for free [2]. - Purcell & Lefkowitz LLP specializes in representing shareholders affected by securities fraud and corporate misconduct [3].

Core Viewpoint - Graphic Packaging Holding Company will permanently close its Middletown, Ohio, coated recycled paperboard manufacturing facility around June 1, 2025, as part of a strategy to consolidate production into its Kalamazoo, Michigan, and Waco, Texas facilities, impacting approximately 130 employees [1][2]. Group 1 - The closure is aimed at enhancing the company's competitive advantage in paperboard manufacturing while improving environmental efficiency, including water and energy usage [2][3]. - The investments in Kalamazoo and Waco are critical for delivering high-quality, economically advantageous paperboard in North America, with the Waco facility nearing completion [3]. Group 2 - Graphic Packaging is recognized as a global leader in sustainable consumer packaging, focusing on reducing the environmental footprint through the use of renewable and recycled materials [5]. - The company operates a global network of design and manufacturing facilities, serving well-known brands across various sectors, including food and beverage [5].

Group 1 - Graphic Packaging (NYSE: GPK) has shown flat performance since February 2024, underperforming the market which has returned 15% during the same period [1] - The company is characterized by a focus on high-quality stocks and businesses led by disciplined capital allocators, aiming for exceptional returns on capital and long-term capital compounding [1]

Core Insights - Graphic Packaging Holding Company is a global leader in sustainable consumer packaging, focusing on reducing the environmental footprint of packaging solutions [1][2]. Group 1: Company Presentations - Stephen R. Scherger, Executive Vice President and CFO, will present at the Bank of America Securities Global Agriculture and Materials Conference on February 27th at 11:15am ET [1]. - Michael P. Doss, President and CEO, will present at the Raymond James Institutional Investors Conference on March 3rd at 10:25am ET [1]. - Both presentations will be available live and in replay via webcast, accessible from the Graphic Packaging website [2]. Group 2: Company Overview - Graphic Packaging is headquartered in Atlanta, Georgia, and specializes in designing and producing consumer packaging primarily from renewable or recycled materials [2]. - The company operates a global network of design and manufacturing facilities, serving well-known brands in various sectors including food, beverage, foodservice, household, and other consumer products [2].

Environmental Compliance and Sustainability - In 2024, the Company spent $65 million on capital projects to maintain compliance with environmental laws, with estimated expenditures of $53 million and $91 million for 2025 and 2026 respectively[56]. - The Company aims to achieve 90% renewable fuel use in wood fiber paperboard manufacturing facilities and raise purchased renewable electricity to 50% by 2030[59]. - The Company estimates significant compliance costs due to complex environmental laws and regulations, which may become more stringent over time[58]. - The Company is positioned to benefit from increased consumer demand for lower-carbon products and technologies, driven by climate change legislation[58]. Financial Performance and Valuation - As of October 1, 2024, the Company performed a quantitative impairment test and found that all reporting units with goodwill had a fair value exceeding their carrying value, with the Europe reporting unit exceeding by 24%[184]. - The Company has a valuation allowance of $45 million against net deferred tax assets as of December 31, 2024, up from $37 million in the previous year[187]. - The discount rate used for goodwill impairment testing ranged from 7% to 8%, with a transaction multiple of 9.0 times for terminal period cash flows[184]. Tax and Currency Management - The Company has not provided for deferred U.S. income taxes on outside basis differences of approximately $80 million in its international subsidiaries due to the intention to indefinitely reinvest earnings[189]. - The Company has provided deferred income taxes for future withholding tax expenses related to its equity investment in a joint venture, asserting permanent reinvestment of earnings in its Canadian subsidiary[188]. - The Company utilizes a currency hedging program and has entered into natural gas swap contracts to manage future energy cost increases, with realized gains and losses included in financial results[176].