Graphic Packaging sees lower profits in 2025

Financial Performance - Graphic Packaging reported a net income of $71 million in Q4 2025, down 48% from $138 million in the same period last year [1] - EBITDA for the quarter declined by 19% to $305 million from $376 million a year earlier [1] - Annual net sales edged down 2% to $8.6 billion from the prior year's $8.8 billion [3] - Yearly EBITDA dropped by 20% to $1.3 billion from last year's $1.7 billion [3] Sales and Operations - Quarterly net sales reached $2.1 billion, nearly flat from last year's $2.09 billion [1] - A 1% drop in price and volume led to a $32 million reduction in packaging operations sales, offset by a favorable $40 million impact from foreign currency movements [2] - Innovation sales growth for the quarter reached $56 million, with annual growth totaling $213 million, or around 2.5% of annual net sales [2][3] Debt and Shareholder Returns - Total debt increased to $5.5 billion at year-end 2025, up from $5.2 billion a year earlier [4] - The company returned approximately $281 million to shareholders during the year through dividends and share buybacks [4] - Dividends declared reached $33 million for the final quarter and totaled $131 million for the full year [4] Future Outlook - For 2026, Graphic Packaging projects net sales between $8.4 billion and $8.6 billion, adjusted EBITDA within a range of $1.05 billion to $1.25 billion, and adjusted earnings per share between $0.75 and $1.15 [5] - The company aims to drive operational excellence, improve cost structure, and enhance free cash flow to strengthen the balance sheet and return capital to shareholders [6]