Graphic Packaging(GPK) Prnewswire·2025-05-01 10:30Core 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].