Financial Performance - Net income for fiscal Q1 2026 increased to $176.6 million or $3.00 per diluted Class A share, compared to $6.6 million or $0.13 per diluted Class A share in the prior year[6]. - Adjusted EBITDA rose by 24.0% to $122.5 million from $98.8 million, reflecting strong operational performance despite a muted demand environment[6]. - Operating profit significantly rose to $256.6 million compared to $34.1 million in the prior year, reflecting a substantial improvement in operational efficiency[31]. - Net income attributable to Greif, Inc. was $174.6 million, a significant increase from $22.0 million in the same quarter of 2024[31]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A was $3.04, compared to $0.38 in the previous year[31]. - Net income for Q1 2026 was $182.9 million, a substantial increase from $11.3 million in Q1 2025[41]. - The net income for the trailing twelve months ended December 31, 2025, was $1,043.2 million, significantly higher than $228.8 million for the previous period[48]. Sales and Revenue - Net sales for Customized Polymer Solutions increased by $10.7 million to $305.1 million, primarily due to positive foreign currency translation impacts[13]. - Net sales for Sustainable Fiber Solutions decreased by $32.1 million to $311.9 million, mainly due to lower volumes[17]. - Total net sales for the three months ended December 31, 2025, were $994.8 million, a decrease of 2.0% from $1,016.7 million in 2024[37]. - The Innovative Closure Solutions segment reported total sales of $39.4 million in Q1 2026, with a gross profit margin of 22.6%, up from 18.8% in Q1 2025[37]. - Durable Metal Solutions maintained stable sales at $354.8 million in Q1 2026, slightly down from $355.9 million in Q1 2025[37]. Cost and Optimization - The company achieved $65.0 million of run-rate cost optimization by the end of Q1 2026, up from $50.0 million at the end of Q4 2025[6]. - Adjusted free cash flow for Q1 2026 was $(41.0) million, worsening from $(23.3) million in Q1 2025[43]. Debt and Financial Leverage - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to the repayment of debt from the sale of the Containerboard Business and timberlands[6]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter, indicating a significant reduction in financial leverage[6]. - Long-term debt reduced to $655.1 million from $914.8 million, indicating improved financial leverage[33]. - Total debt as of December 31, 2025, was $944.0 million, while cash and cash equivalents were $243.5 million, leading to a net debt of $700.5 million[46]. - The leverage ratio for the period ended December 31, 2025, was 1.2x, a significant decrease from 3.6x for the period ended January 31, 2025[48]. Cash Flow and Assets - 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[35]. - The company reported a net cash used in operating activities of $24.4 million, contrasting with a net cash provided of $16.6 million in the same quarter of 2024[35]. Taxation - The effective income tax rate for Q1 2026 was recorded at 24.4%, with an expected range of 26.0% to 30.0% for the fiscal year[21]. - The adjusted net income, excluding adjustments, was $26.6 million, resulting in adjusted Class A earnings per share of $0.48, with a tax rate of 31.7%[44]. Other Financial Metrics - The trailing twelve months adjusted EBITDA for the period ended December 31, 2025, was $744.1 million, compared to $712.4 million for the previous period[48]. - Greif, Inc. incurred acquisition and integration related costs of $6.1 million and restructuring charges of $76.2 million during the trailing twelve months ended December 31, 2025[48]. - The company reported a non-cash pension settlement charge of $0.9 million and other costs amounting to $34.9 million for the same period[48]. - The company experienced a gain on disposal of properties, plants, and equipment of $215.7 million, compared to a loss of $2.4 million in the prior year[35]. - Greif, Inc. experienced a loss on disposal of properties, plants, and equipment, netting a loss of $222.8 million for the trailing twelve months ended December 31, 2025[48].
Greif(GEF_B) - 2026 Q1 - Quarterly Results