This Fund Dumped $13 Million in Graphic Packaging Stock Amid 50% Share Slide and Slumping Profits

Core Insights - Atlantic Investment Management, Inc. has completely exited its position in Graphic Packaging, selling all 645,584 shares for an estimated $12.63 million [2][10] - The exit reflects a strategic shift away from Graphic Packaging, which had previously represented 7.3% of the fund's 13F reportable assets under management [8] Company Overview - Graphic Packaging is a leading provider of fiber-based packaging solutions, with a global customer base and a diverse product portfolio [6] - The company focuses on innovation and operational efficiency, leveraging integrated manufacturing capabilities and a broad distribution network [6] Financial Performance - As of February 17, 2026, Graphic Packaging's stock price was $12.37, down 53.2% over the past year, significantly underperforming the S&P 500's approximately 13% gain [8] - In 2025, net sales decreased by 2% to $8.6 billion, while net income fell to $444 million from $658 million the previous year, indicating compressed margins [11] - The company's net leverage increased to 3.8x from 3.0x, despite $935 million in capital expenditures primarily related to its $1.67 billion Waco project [11] Future Outlook - Management is targeting adjusted free cash flow of $700 million to $800 million in 2026, alongside guidance for lower adjusted EBITDA and EPS of $0.75 to $1.15, reflecting operational challenges [12] - The exit by Atlantic Investment Management may indicate a preference for reallocating capital towards businesses with stronger earnings momentum amid rising leverage and shrinking margins [12]