Greif(US:GEF)2025-11-10 21:41Financial Performance - Net income for the two-month fourth quarter of fiscal 2025 decreased 227.4% to $(43.3) million or $(0.73) per diluted Class A share compared to $34.0 million or $0.58 per diluted Class A share in the same period last year [4]. - Adjusted EBITDA for the two-month fourth quarter increased 7.4% to $98.9 million compared to $92.1 million in the prior year [4]. - For the two months ended September 30, 2025, net sales were $701.3 million, a decrease of 3.6% from $724.9 million in the same period of 2024 [33]. - Gross profit for the eleven months ended September 30, 2025, was $871.5 million, up 6.5% from $817.8 million in 2024 [33]. - Net income attributable to Greif, Inc. for the eleven months ended September 30, 2025, was $840.0 million, compared to $243.8 million in 2024, representing a significant increase [33]. - The company reported a net income from continuing operations of $38.2 million for the eleven months ended September 30, 2025, down from $246.2 million in 2024 [33]. - Net income for the eleven months ended September 30, 2025, was $863.1 million, significantly higher than $269.5 million for the same period in 2024, marking an increase of approximately 220.5% [37]. - Operating profit for the eleven months ended September 30, 2025, was $167.6 million, compared to $313.1 million for the same period in 2024, indicating a significant decrease [48]. - Net income for the eleven months ended September 30, 2025, was $103.7 million, compared to $262.5 million for the same period in 2024 [52]. Debt and Cash Flow - Total debt decreased by $1,538.1 million to $1,202.5 million, resulting in a leverage ratio decrease to 1.63x from 3.48x [5]. - Net cash provided by operating activities decreased by $376.5 million to a use of $244.7 million in the two-month fourth quarter [4]. - Cash and cash equivalents increased to $256.7 million as of September 30, 2025, compared to $197.7 million at the end of October 2024, reflecting a growth of about 29.8% [37]. - Long-term debt decreased to $914.8 million as of September 30, 2025, from $2,626.2 million in October 2024, a reduction of approximately 65% [35]. - Net cash used in operating activities for the two months ended September 30, 2025, was $(244.7) million, compared to $131.8 million for the same period in 2024 [50]. - Free Cash Flow for the eleven months ended September 30, 2025, was $(85.2) million, a decrease from $124.6 million in 2024 [50]. - Total Debt as of September 30, 2025, was $1,202.5 million, significantly reduced from $2,740.6 million on October 31, 2024 [54]. - Net Debt decreased to $945.8 million as of September 30, 2025, from $2,542.9 million on October 31, 2024 [54]. - The Leverage Ratio improved to 1.63x as of September 30, 2025, down from 3.48x on October 31, 2024 [56]. Cost Optimization and Guidance - The anticipated cost optimization commitment was increased to $120 million from $100 million due to accelerated progress in 2025 [8]. - For fiscal 2026, the company provided low-end guidance of $630 million Adjusted EBITDA and $315 million Adjusted Free Cash Flow [8]. - Fiscal 2026 low-end guidance estimates for Adjusted EBITDA is $630 million and Adjusted free cash flow is $315 million [25]. - The company achieved cost optimization run-rate savings of approximately $50 million by the end of fiscal year 2025 [8]. Business Operations and Divestments - The company completed the divestment of its containerboard business for $1.8 billion, impacting financial results as of August 31, 2025 [2]. - The company has not identified any compelling demand inflection on the horizon, continuing to provide only low-end guidance based on current trends [24]. - The company operates in over 35 countries, focusing on performance packaging solutions for demanding industries [27]. Other Financial Metrics - Selling, general and administrative expenses increased to $601.9 million for the eleven months ended September 30, 2025, compared to $535.5 million in 2024, reflecting a rise of 12.3% [33]. - Interest expense, net for the eleven months ended September 30, 2025, was $56.1 million, an increase from $40.7 million in 2024 [33]. - The company incurred restructuring and other charges amounting to $62.6 million for the eleven months ended September 30, 2025, compared to $2.7 million in the same period of 2024 [48]. - Depreciation, depletion, and amortization expense for the eleven months ended September 30, 2025, totaled $212.7 million, up from $207.6 million in the previous year [48]. - The company recorded a gain on disposal of businesses of $1,097.5 million for the two months ended September 30, 2025, compared to a gain of $0.1 million in the same period of 2024 [37]. - The company experienced a non-cash asset impairment charge of $37.9 million for the eleven months ended September 30, 2025, compared to $2.3 million in the same period of 2024 [48]. - Adjusted EBITDA for the eleven months ended September 30, 2025, was $511.3 million, representing an increase from $495.9 million in the same period of 2024 [45]. - The combined Adjusted EBITDA for the two months ended September 30, 2025, was $122.7 million, slightly down from $127.4 million in the same period of 2024 [45]. - Adjusted EBITDA for the trailing twelve months ended September 30, 2025, was $773.5 million, an increase from $704.4 million for the trailing twelve months ended October 31, 2024 [56]. - Adjusted Free Cash Flow for the two months ended September 30, 2025, was $122.6 million, up from $98.6 million in 2024 [50]. - Earnings from discontinued operations per Class A common stock for the eleven months ended September 30, 2025, was $14.20, compared to $0.40 in 2024 [33]. - The Durable Metal Solutions segment reported net sales of $247.3 million for the two months ended September 30, 2025, down from $259.5 million in the same period of 2024, a decrease of approximately 4.5% [41]. - Operating profit for the Customized Polymer Solutions segment was a loss of $1.9 million for the two months ended September 30, 2025, compared to a profit of $9.1 million in the same period of 2024 [41]. - The company will host a conference call on November 6, 2025, to discuss the fourth quarter and fiscal 2025 results [26].