Greif emphasizes cost-cutting, organic growth in 2026

Core Insights - Greif reported net sales of $994.8 million for Fiscal Q1 2026, a decrease of 2.2% year over year, while net income rose significantly to $182.9 million from $11.3 million in Fiscal Q1 2025 [1][1][1] Financial Performance - Gross profit increased by 1.6% year over year to $202.6 million despite a decline in overall sales [1][1] - The company experienced a downturn in industrial demand, particularly from chemical customers, affecting all segments [1][1] - Sales in the durable metals segment were nearly $355 million, remaining flat year over year, while customized polymers sales increased to approximately $305 million [1][1] - The sustainable fibers segment saw a notable decline in sales from $344 million to about $312 million, with the company reporting 14,000 tons of downtime during the quarter [1][1] Cost Optimization - Greif achieved $65 million in run-rate cost optimization, aiming for a total of $120 million, with a target of $80 million to $90 million by year-end [1][1] - The company reduced its professional workforce by 10%, equating to 220 positions, while also investing in its commercial teams [1][1] M&A Strategy - Greif is focusing on organic growth but remains open to strategic acquisitions that could complement its operations, maintaining a robust pipeline of tuck-in deals [1][1] - The fiber business saw an operating profit increase of approximately $216 million due to the sale of timberlands that closed in October [1][1] Outlook - The company reaffirmed its low-end fiscal year 2026 guidance for adjusted EBITDA of $630 million and adjusted free cash flow of $315 million [1][1] - Expectations for volume growth are slight in the customized polymers and innovative closures segments, while durable metals and sustainable fibers are projected to be flat or slightly down [1][1]