Graphic Packaging (GPK) Soars 8.9% on Reaffirmed Growth Outlook Despite Dismal Q3

Core Insights - Graphic Packaging Holding Company (NYSE:GPK) experienced a significant stock price increase of 8.88% to close at $17.05, breaking a five-day losing streak, as investors reacted positively to its maintained revenue guidance for the full year despite a disappointing third-quarter earnings report [1][3]. Financial Performance - The company's net income for the third quarter decreased by 14% to $142 million, down from $165 million in the same period last year [2]. - Net sales also saw a slight decline of 1%, totaling $2.19 billion compared to $2.2 billion year-on-year [2]. Guidance and Outlook - Graphic Packaging reaffirmed its full-year net sales guidance for 2025, projecting between $8.4 billion and $8.6 billion, but adjusted its outlook for adjusted EBITDA to a range of $1.40 billion to $1.45 billion and adjusted EPS to between $1.80 and $2 [3]. - The revisions in guidance were attributed to year-to-date performance, adjustments to match production with orders (approximately $15 million), and a broader range of potential outcomes for the fourth quarter due to high volume and market uncertainty [4]. Operational Developments - The company announced the early commencement of commercial operations at its new recycled paperboard manufacturing facility in Waco, Texas, with full production expected within the next 12 to 18 months [5]. - The Waco facility is projected to be the world's most efficient producer of recycled paperboard, offering the highest quality outside of its Kalamazoo, Michigan facility, marking a significant step in the company's Vision 2025 transformation [6].