Graphic Packaging profit declines in third quarter

Core Insights - Graphic Packaging Holding Company reported a decline in Q3 results due to reduced prices and volumes, with net income falling to $142 million from $165 million year-on-year [1] - Adjusted net income also decreased to $172 million compared to $194 million a year earlier, and earnings per diluted share dropped to $0.48 from $0.55 [1][2] Financial Performance - Quarterly net sales decreased by 1% year-on-year to $2.19 billion from $2.22 billion, influenced by lower pricing and demand in the Americas, partially offset by moderate international growth and a favorable foreign exchange impact of $24 million [2] - EBITDA fell by 13% to $361 million from $417 million, with adjusted EBITDA at $383 million, down from $433 million in the prior-year quarter [2][3] - The adjusted EBITDA margin narrowed to 17.5% from 19.5% a year ago [3] Debt and Capital Expenditure - Total debt increased to $5.94 billion from $5.21 billion at the end of 2024 [3] - Capital expenditure was $267 million, compared to $313 million in the same quarter of 2024 [3] Shareholder Returns - In the first nine months of 2025, the company returned $248 million to shareholders through dividends and share buybacks, including the repurchase of approximately 1.8 million shares for $39 million in Q3 [3] Year-to-Date Performance and Outlook - For the nine months ended September 30, net income totaled $373 million, down from $520 million a year earlier, with adjusted EBITDA at $1.08 billion compared to $1.28 billion a year ago [4] - The company expects full-year net sales between $8.4 billion and $8.6 billion, adjusted EBITDA of $1.40 billion to $1.45 billion, and adjusted earnings per share in the range of $1.80 to $2.00 [4] - The outlook reflects year-to-date performance and efforts to align production with orders, with noted high volume and market uncertainty due to weakened consumer confidence [5] Future Production and Efficiency - The company anticipates reaching full production in 12 to 18 months, with the Waco facility expected to become the world's most efficient producer of recycled paperboard [6]