Greif(US:GEF)2026-01-30 22:03Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. for the three months ended December 31, 2025, was $186.5 million, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, reflecting a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Liabilities - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, up from $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, indicating strong growth in equity[14] - The total long-lived assets, net as of December 31, 2025, were $1,335.9 million, a decrease from $1,355.8 million as of September 30, 2025[95] Cash Flow - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - Net cash used in operating activities was $(24.4) million for the three months ended December 31, 2025, compared to $16.6 million in 2024[13] - Net cash provided by investing activities was $427.3 million, a significant increase compared to $(22.4) million in the same period of 2024[13] - Proceeds from the issuance of long-term debt amounted to $540.3 million during the quarter[13] Dividends and Share Repurchase - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a per-share dividend of $0.56 for Class A shares and $0.83 for Class B shares[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - Customized Polymer Solutions generated $305.1 million in net sales, while Durable Metal Solutions generated $354.8 million, Sustainable Fiber Solutions generated $311.9 million, and Innovative Closure Solutions generated $23.0 million for the three months ended December 31, 2025[92] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is now classified as discontinued operations, impacting the company's financial results[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and qualifies as discontinued operations due to its strategic impact[31] Accounting and Compliance - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million in the same period of 2024[38] Taxation - Income tax expense for the quarter was $58.9 million, up from $6.8 million in the prior year, primarily due to a one-time discrete tax expense of $49.3 million related to the Soterra Divestiture[74] Other Comprehensive Income - The Company reported accumulated other comprehensive income of $(238.9) million as of December 31, 2025, compared to $(385.8) million as of December 31, 2024, showing improvement in this area[14] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]