Greif Reports Fiscal First Quarter 2026 Results

Core Viewpoint - Greif, Inc. reported strong fiscal first quarter 2026 results, demonstrating significant growth in Adjusted EBITDA and net income, despite a challenging demand environment [6][9]. Financial Highlights - Net income 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 previous year, marking a substantial increase [9]. - Adjusted EBITDA rose by 24.0% to $122.5 million from $98.8 million year-over-year [9]. - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to debt repayment from the divestiture of the Containerboard Business [9]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter [9]. Segment Results - Customized Polymer Solutions: Net sales increased by $10.7 million to $305.1 million, driven by positive foreign currency translation impacts [15]. - Durable Metal Solutions: Net sales decreased by $1.1 million to $354.8 million, primarily due to lower volumes, but gross profit increased by $1.7 million to $70.7 million [17]. - Sustainable Fiber Solutions: Net sales decreased by $32.1 million to $311.9 million, largely due to lower volumes, while operating profit surged by $217.4 million to $218.5 million due to a gain from the sale of timberlands [19]. - Innovative Closure Solutions: Net sales increased by $0.6 million to $23.0 million, with gross profit rising by $1.4 million to $8.9 million [22]. Strategic Actions - The company executed approximately $130.0 million in share repurchases during the first quarter and obtained authorization for an additional $300.0 million in future repurchases [9]. - Greif reaffirmed its low-end guidance for fiscal 2026, estimating Adjusted EBITDA at $630.0 million and Adjusted Free Cash Flow at $315.0 million [26]. Company Outlook - The company acknowledges a multi-year period of industrial contraction and does not foresee a compelling demand inflection in the near term, maintaining a cautious outlook [25].