Financial 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 from $724.9 million in the same period of 2024, representing a decline of approximately 3.6% [33]. - Gross profit for the eleven months ended September 30, 2025, was $871.5 million, compared to $817.8 million in 2024, reflecting an increase of about 6.5% [33]. - Net income attributable to Greif, Inc. for the two months ended September 30, 2025, was $720.1 million, significantly higher than $45.1 million in the same period of 2024 [33]. - The company reported a net loss from continuing operations of $38.6 million for the two months ended September 30, 2025, compared to a profit of $38.5 million in 2024 [33]. - Operating profit for the two months ended September 30, 2025, was $5.0 million, down from $52.6 million in the same period of 2024, indicating a decline of 90.5% [41]. - 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, representing a growth of 220.5% [37]. Cash Flow and Debt Management - Adjusted free cash flow increased by $24.0 million to $122.6 million for the two-month period [4]. - Net cash provided by operating activities decreased by $376.5 million to a use of $244.7 million in the two-month period [4]. - Cash and cash equivalents increased to $256.7 million as of September 30, 2025, compared to $197.7 million at the end of the previous period, marking a growth of 29.7% [37]. - The company’s cash flows from operating activities showed a net cash used of $244.7 million for the two months ended September 30, 2025, compared to a net cash provided of $131.8 million in the same period of 2024 [37]. - Free Cash Flow for the eleven months ended September 30, 2025, was $(85.2) million, a decrease from $124.6 million in the prior year [50]. - 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]. - Long-term debt decreased to $914.8 million as of September 30, 2025, from $2,626.2 million in the previous period, a reduction of 65.2% [37]. - Net Debt decreased to $945.8 million as of September 30, 2025, from $2,542.9 million a year earlier [54]. - The Leverage Ratio improved to 1.63x as of September 30, 2025, down from 3.48x on October 31, 2024 [56]. Business Operations and Strategic Decisions - The company completed the divestment of its containerboard business for $1.8 billion, impacting financial results as of August 31, 2025 [2]. - The company achieved cost optimization run-rate savings of approximately $50.0 million by the end of fiscal year 2025, increasing the anticipated total commitment to $120.0 million [8]. - The company has not identified any compelling demand inflection on the horizon, continuing to provide only low-end guidance based on current trends [24]. - For fiscal 2026, the company provided low-end guidance of $630.0 million for Adjusted EBITDA and $315.0 million for Adjusted Free Cash Flow [8]. - The company will host a conference call on November 6, 2025, to discuss the fourth quarter and fiscal 2025 results [26]. - Greif operates in over 35 countries, focusing on performance packaging solutions for various industries [27]. Expenses and Charges - Selling, general and administrative expenses increased to $126.0 million for the two months ended September 30, 2025, from $91.9 million in the same period of 2024, marking a rise of approximately 37% [33]. - Interest expense, net for the eleven months ended September 30, 2025, was $56.1 million, up from $40.7 million in 2024, indicating an increase of about 38% [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 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 2024 [48]. - The company reported acquisition and integration-related costs of $7.1 million for the eleven months ended September 30, 2025, compared to $17.4 million in 2024 [48]. - Non-cash asset impairment charges for the eleven months ended September 30, 2025, were $37.9 million, compared to $2.3 million in 2024 [48]. - Cash paid for taxes related to Containerboard Business divestment amounted to $381.1 million for the eleven months ended September 30, 2025 [50].
Greif(GEF_B) - 2025 Q4 - Annual Results