Financial Performance - Net income for fiscal Q1 2026 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 prior year[6]. - Adjusted EBITDA rose by 24.0% to $122.5 million from $98.8 million, reflecting strong operational performance despite a muted demand environment[6]. - Operating profit significantly rose to $256.6 million compared to $34.1 million in the prior year, reflecting a substantial improvement in operational efficiency[31]. - Net income attributable to Greif, Inc. was $174.6 million, a significant increase from $22.0 million in the same quarter of 2024[31]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A was $3.04, compared to $0.38 in the previous year[31]. - Net income for Q1 2026 was $182.9 million, a substantial increase from $11.3 million in Q1 2025[41]. - The net income for the trailing twelve months ended December 31, 2025, was $1,043.2 million, significantly higher than $228.8 million for the previous period[48]. Sales and Revenue - Net sales for Customized Polymer Solutions increased by $10.7 million to $305.1 million, primarily due to positive foreign currency translation impacts[13]. - Net sales for Sustainable Fiber Solutions decreased by $32.1 million to $311.9 million, mainly due to lower volumes[17]. - Total net sales for the three months ended December 31, 2025, were $994.8 million, a decrease of 2.0% from $1,016.7 million in 2024[37]. - The Innovative Closure Solutions segment reported total sales of $39.4 million in Q1 2026, with a gross profit margin of 22.6%, up from 18.8% in Q1 2025[37]. - Durable Metal Solutions maintained stable sales at $354.8 million in Q1 2026, slightly down from $355.9 million in Q1 2025[37]. Cost and Optimization - The company achieved $65.0 million of run-rate cost optimization by the end of Q1 2026, up from $50.0 million at the end of Q4 2025[6]. - Adjusted free cash flow for Q1 2026 was $(41.0) million, worsening from $(23.3) million in Q1 2025[43]. Debt and Financial Leverage - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to the repayment of debt from the sale of the Containerboard Business and timberlands[6]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter, indicating a significant reduction in financial leverage[6]. - Long-term debt reduced to $655.1 million from $914.8 million, indicating improved financial leverage[33]. - Total debt as of December 31, 2025, was $944.0 million, while cash and cash equivalents were $243.5 million, leading to a net debt of $700.5 million[46]. - The leverage ratio for the period ended December 31, 2025, was 1.2x, a significant decrease from 3.6x for the period ended January 31, 2025[48]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[35]. - The company reported a net cash used in operating activities of $24.4 million, contrasting with a net cash provided of $16.6 million in the same quarter of 2024[35]. Taxation - The effective income tax rate for Q1 2026 was recorded at 24.4%, with an expected range of 26.0% to 30.0% for the fiscal year[21]. - The adjusted net income, excluding adjustments, was $26.6 million, resulting in adjusted Class A earnings per share of $0.48, with a tax rate of 31.7%[44]. Other Financial Metrics - The trailing twelve months adjusted EBITDA for the period ended December 31, 2025, was $744.1 million, compared to $712.4 million for the previous period[48]. - Greif, Inc. incurred acquisition and integration related costs of $6.1 million and restructuring charges of $76.2 million during the trailing twelve months ended December 31, 2025[48]. - The company reported a non-cash pension settlement charge of $0.9 million and other costs amounting to $34.9 million for the same period[48]. - The company experienced a gain on disposal of properties, plants, and equipment of $215.7 million, compared to a loss of $2.4 million in the prior year[35]. - Greif, Inc. experienced a loss on disposal of properties, plants, and equipment, netting a loss of $222.8 million for the trailing twelve months ended December 31, 2025[48].

Financial Performance - Net income for fiscal Q1 2026 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 prior year[6]. - Adjusted EBITDA rose by 24.0% to $122.5 million, up from $98.8 million in the same quarter last year[6]. - Operating profit significantly rose to $256.6 million compared to $34.1 million in the prior year, reflecting a substantial improvement in operational efficiency[31]. - Net income attributable to Greif, Inc. was $174.6 million, a significant increase from $22.0 million in the same quarter of 2024[31]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A was $3.04, compared to $0.38 in the previous year[31]. - Net income for the three months ended December 31, 2025, was $182.9 million, a substantial increase from $11.3 million in 2024[41]. - Excluding adjustments, the net income for the three months ended December 31, 2025, was $26.6 million, with Class A earnings per share of $0.48 and a tax rate of 31.7%[44]. Sales and Revenue - Net sales for Customized Polymer Solutions increased by $10.7 million to $305.1 million, primarily due to $13.3 million from positive foreign currency translation impacts[13]. - Net sales for Durable Metal Solutions decreased by $1.1 million to $354.8 million, with a $18.6 million decline attributed to lower volumes[15]. - Net sales for Sustainable Fiber Solutions decreased by $32.1 million to $311.9 million, primarily due to $24.7 million from lower volumes[17]. - Total net sales for the three months ended December 31, 2025, were $994.8 million, a decrease of 2.0% from $1,016.7 million in 2024[37]. Cost and Efficiency - The company achieved $65.0 million of run-rate cost optimization by the end of Q1 2026, up from $50.0 million at the end of Q4 2025[6]. - Total gross profit increased to $202.6 million, up 1.6% from $199.4 million year-over-year[31]. - Total gross profit increased to $202.6 million in 2025, up from $199.4 million in 2024, reflecting a gross profit margin improvement[37]. - The company reported a significant increase in operating profit for the Sustainable Fiber Solutions segment, reaching $218.5 million in 2025, compared to $1.1 million in 2024[39]. Debt and Financial Position - Total debt decreased by $1,896.2 million to $944.0 million, primarily due to the repayment of approximately $1,864.0 million from the sale of the Containerboard Business[6]. - The leverage ratio improved to 1.2x from 3.6x in the prior year quarter[6]. - Long-term debt reduced to $655.1 million from $914.8 million, indicating improved financial leverage[33]. - The adjusted net debt as of December 31, 2025, was $668.4 million, down from $2,558.4 million as of January 31, 2025[48]. - Total debt as of December 31, 2025, was $944.0 million, while cash and cash equivalents were $243.5 million[46]. Cash Flow and Investments - The company reported a net cash used in operating activities of $24.4 million, contrasting with a net cash provided of $16.6 million in the same quarter of 2024[35]. - Free cash flow for the three months ended December 31, 2025, was $(57.4) million, compared to $(26.1) million in 2024, indicating a decline in cash generation[43]. - Cash paid for acquisition and integration related costs was $0.7 million in Q1 2026, down from $1.7 million in Q1 2025[43]. - Cash paid for taxes related to Containerboard Business divestment was $13.7 million in Q1 2026, reflecting ongoing strategic adjustments[43]. Other Financial Metrics - The company recorded an income tax rate of 24.4% for the first quarter, with an expected range of 26.0% to 30.0% for fiscal 2026[21]. - The trailing twelve months Credit Agreement EBITDA for the period ended December 31, 2025, was $573.7 million, compared to $705.7 million for the period ended January 31, 2025[48]. - The Innovative Closure Solutions segment reported total sales of $39.4 million in Q1 2026, with a gross profit margin of 22.6%, up from 18.8% in Q1 2025[37]. - The company incurred acquisition and integration related costs of $0.7 million and restructuring charges of $14.2 million for the three months ended December 31, 2025[44]. - Non-cash asset impairment charges amounted to $0.2 million for the three months ended December 31, 2025[44]. - The company reported a loss on disposal of properties, plants, and equipment of $215.7 million for the three months ended December 31, 2025[44].

Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. for the three months ended December 31, 2025, was $186.5 million, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, reflecting a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Liabilities - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, up from $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, indicating strong growth in equity[14] - The total long-lived assets, net as of December 31, 2025, were $1,335.9 million, a decrease from $1,355.8 million as of September 30, 2025[95] Cash Flow - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - Net cash used in operating activities was $(24.4) million for the three months ended December 31, 2025, compared to $16.6 million in 2024[13] - Net cash provided by investing activities was $427.3 million, a significant increase compared to $(22.4) million in the same period of 2024[13] - Proceeds from the issuance of long-term debt amounted to $540.3 million during the quarter[13] Dividends and Share Repurchase - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a per-share dividend of $0.56 for Class A shares and $0.83 for Class B shares[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - Customized Polymer Solutions generated $305.1 million in net sales, while Durable Metal Solutions generated $354.8 million, Sustainable Fiber Solutions generated $311.9 million, and Innovative Closure Solutions generated $23.0 million for the three months ended December 31, 2025[92] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is now classified as discontinued operations, impacting the company's financial results[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and qualifies as discontinued operations due to its strategic impact[31] Accounting and Compliance - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million in the same period of 2024[38] Taxation - Income tax expense for the quarter was $58.9 million, up from $6.8 million in the prior year, primarily due to a one-time discrete tax expense of $49.3 million related to the Soterra Divestiture[74] Other Comprehensive Income - The Company reported accumulated other comprehensive income of $(238.9) million as of December 31, 2025, compared to $(385.8) million as of December 31, 2024, showing improvement in this area[14] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]

Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. was $186.5 million for the three months ended December 31, 2025, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, indicating a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Equity - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, compared to $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, reflecting a growth of approximately 43.4% year-over-year[14] Debt and Cash Flow - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - The company reported net cash used in operating activities of $24.4 million for the three months ended December 31, 2025, compared to net cash provided of $16.6 million in 2024[13] - The Company had $288.9 million in short-term debt as of December 31, 2025, compared to $287.7 million as of September 30, 2025[50] Dividends and Share Repurchase - The company paid dividends of $32.5 million to Greif, Inc. shareholders during the three months ended December 31, 2025[13] - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a dividend per Class A share of $0.56 and Class B share of $0.83[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - The Customized Polymer Solutions segment reported net sales of $305.1 million in Q4 2025, up from $294.4 million in Q4 2024, reflecting a growth of approximately 2.4%[92][93] - The Durable Metal Solutions segment achieved net sales of $354.8 million in Q4 2025, compared to $355.9 million in Q4 2024, showing a slight decline of about 0.3%[92][93] - The Sustainable Fiber Solutions segment reported net sales of $311.9 million in Q4 2025, down from $344.0 million in Q4 2024, reflecting a decline of about 9.3%[92][93] - The Innovative Closure Solutions segment generated net sales of $23.0 million in Q4 2025, compared to $22.4 million in Q4 2024, indicating a growth of approximately 2.7%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is classified as discontinued operations, impacting the company's financial results significantly[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling approximately 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and this divestiture qualifies as discontinued operations due to its significant impact on the Company's financial results[31] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million for the same period in 2024[38] - The Company incurred $4.5 million in employee separation costs as part of its restructuring efforts during the three months ended December 31, 2025[38] - The Company has remaining expected restructuring costs of $26.6 million as of December 31, 2025[40] Accounting and Reporting Changes - The company has reclassified its financial results to reflect the new reportable segments, including the change from Integrated Solutions to Innovative Closure Solutions, effective October 1, 2025[21] - The fiscal year for Greif, Inc. now begins on October 1 and ends on September 30, aligning with the recent changes in reporting structure[24] - The Company adopted new accounting standards related to segment reporting in November 2023, which did not materially impact its financial position or results[25] - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company is evaluating the impact of adopting new accounting standards on its financial position and results of operations[27] Other Financial Metrics - The Company recorded realized gains of $0.3 million and unrealized net losses of $(0.8) million for the three months ended December 31, 2025, under foreign exchange hedges[61] - The Company wrote down long-lived assets with a carrying value of $0.7 million to a fair value of $0.5 million, resulting in recognized asset impairment charges of $0.2 million for the three months ended December 31, 2025[66] - The Company granted 131,518 restricted stock units (RSUs) on November 3, 2025, with a weighted average fair value of $56.75[69] - The Company granted 215,586 performance stock units (PSUs) on November 3, 2025, with a weighted average fair value of $53.71[71] - The Company reported a basic and diluted EPS of $6.59 and $6.59, respectively, for the three months ended December 31, 2025[80] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]

Greif has reported a net income of $176.6m, or $3.00 per share, for the fiscal first quarter (Q1) 2026, up from $6.6m, or $0.13 per share, for the same period last year. Excluding adjustments, net income climbed to $26.6m, or $0.48 per share, marking a year-on-year rise of 146.3%. The company cited advancements in managing manufacturing expenses and reductions in selling, general and administrative costs as key factors, recording $65m in annualised cost savings so far out of a targeted $120m. Adjusted ...

Financial Data and Key Metrics Changes - Fourth quarter net income was $102 million or $1.13 per share, while excluding special items, it was $209 million or $2.32 per share, compared to $222 million or $2.47 per share in Q4 2024 [3][4] - Fourth quarter net sales increased to $2.4 billion in 2025 from $2.1 billion in 2024, and total company EBITDA, excluding special items, rose to $486 million from $439 million [4][5] - Full-year 2025 earnings were $888 million or $9.84 per share, up from $815 million or $9.04 per share in 2024 [4] Business Line Data and Key Metrics Changes - Packaging segment EBITDA, excluding special items, was $476 million with sales of $2.2 billion in Q4 2025, compared to $426 million and $2 billion in Q4 2024, resulting in a margin increase to 21.7% from 21.5% [7] - For the full year 2025, packaging segment EBITDA was $1.83 billion with sales of $8.3 billion, a margin of 22.1%, compared to $1.6 billion and $7.7 billion in 2024 [8] - Paper segment EBITDA, excluding special items, was $37 million with sales of $154 million in Q4 2025, compared to $39 million and $151 million in Q4 2024 [17] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix were $0.50 per share above Q4 2024, but down $0.32 per share compared to Q3 2025 [11] - Export containerboard prices were flat compared to Q4 2024 and down $0.01 from Q3 2025, with export sales volume up 12,000 tons from Q3 2025 but down 15,000 tons from Q4 2024 [11] - Legacy corrugated shipments per day were down 1.7% versus last year's record Q4, although legacy box plant shipments were the second highest ever [12] Company Strategy and Development Direction - The company is focused on integrating the acquired Greif operations and improving operational efficiency, with plans for gas turbine energy projects to enhance energy independence and reduce costs [10][23] - The company aims to maintain a balanced approach to capital allocation, investing in growth while returning value to shareholders through dividends and buybacks [24] - The company is optimistic about demand improvement in 2026, with expectations for solid year-over-year growth in corrugated volume and strong shipment volume from acquired plants [24] Management's Comments on Operating Environment and Future Outlook - Management noted that operational performance was strong across the mill and corrugated systems, with good cost management throughout the company [9] - The company expects to face inflationary pressures on costs, particularly in labor, energy, and materials, but anticipates benefits from the Wallula reconfiguration starting in March [26] - Management expressed confidence in the underlying demand trends, citing improvements in consumer sentiment and GDP growth as positive indicators for the business [53][64] Other Important Information - Cash provided by operations reached a record $443 million in Q4, with free cash flow of $124 million after capital expenditures of $319 million [19] - The company has planned annual outages in 2026, which are expected to impact earnings significantly, with estimated costs of about $1.39 per share [21] - The company ended the year with a cash balance of $668 million and liquidity of about $1.25 billion [20] Q&A Session Summary Question: Can you provide more granularity on cost increases in the containerboard business? - Management indicated that costs are expected to increase due to seasonal weather impacts and inflationary pressures, but specific numbers were not provided [30][31] Question: What is the impact of winter storms on guidance for the quarter? - Management noted that winter storms caused some plants to be down, impacting shipments, but the mills managed to run through the storms effectively [32][34] Question: What gives comfort regarding reliability issues at the Massillon mill? - Management highlighted significant operational improvements made at the Massillon mill, which included extensive rebuilding efforts [39][40] Question: How are the Greif acquisition commitments being handled? - Management confirmed that they are discontinuing the purchase commitments made by Greif and moving forward with PCA's operational strategies [49] Question: What is the outlook for containerboard pricing and demand? - Management expects containerboard pricing to increase and demand to remain strong, with improvements noted across various customer segments [52][64]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [9][10] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [10] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [11][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and small containers down low singles, while large containers declined mid-single digits [6][7] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to industrial softness in North America [7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to a strong price mix [7][8] Market Data and Key Metrics Changes - The overall market environment remains soft, particularly in fiber and steel, affecting demand across various segments [19] - The company noted that while some seasonality may improve small container volumes in Q2, the overall demand conditions are still muted [19][20] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with significant capital allocated to high-return investments and a disciplined approach to share repurchases [12][14] - The management is transforming the commercial team to focus on aggressive market capture, shifting from a "farmer" to a "hunter" mentality [20][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued muted demand environment but expressed confidence in the company's ability to manage costs and drive growth [15][19] - The company is optimistic about the potential for volume recovery in the latter half of the year, supported by ongoing commercial initiatives [48][50] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million authorization for future buybacks [4][13] - The company is actively addressing manufacturing costs and expects improvements as the year progresses [38] Q&A Session Summary Question: Insights on inventory management and volume trends - Management noted that demand conditions remain muted, particularly in fiber and steel, but some seasonality may improve volumes in Q2 [19][20] Question: CapEx and growth projects - The company is deploying additional capacity in Europe and Africa, particularly in the mining sector, which is showing significant growth [26][27] Question: Volume performance and EBITDA guidance - Management expressed confidence in achieving volume targets for the year despite a weaker Q1, citing ongoing commercial activities and customer wins [48][50] Question: Price cost spread in Fiber - Management indicated that the price cost spread will be more favorable in the second half of the year, with ongoing efforts to manage costs effectively [35][36] Question: Share repurchase strategy - The company plans to maintain a disciplined approach to share repurchases, with a commitment to a 2% annual buyback, while remaining open to potential acquisitions [66][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [9][10] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [10] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [11][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and small containers down low singles, while large containers declined mid-single digits [6][7] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to industrial softness in North America [7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to strong price mix [7][10] Market Data and Key Metrics Changes - The overall market environment remains soft, particularly in fiber and steel, affecting demand across various segments [19] - The company noted that while some segments may see seasonal improvements, the overall demand conditions are still muted [19][20] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with capital being deployed in areas with strong business cases, particularly in Europe and Africa [26][27] - The company is transforming its commercial team to focus on aggressive market capture, shifting from a "farmer" to a "hunter" mentality [20][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued muted demand environment but expressed confidence in the company's ability to manage costs and drive growth [15][19] - The company is optimistic about the potential for volume recovery in the second half of the year, supported by ongoing commercial initiatives [48][50] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million share repurchase authorization [4][13] - The company is committed to increasing dividends over time and maintaining a leverage ratio well below 2x [12][14] Q&A Session Summary Question: Insights on inventory management and volume trends - Management noted that demand conditions remain muted, particularly in fiber and steel, but some seasonality may improve volumes in Q2 [19][20] Question: CapEx and growth projects - The company is deploying additional capacity in Europe and Africa, particularly in the mining sector, which is seeing significant growth [26][27] Question: Volume performance and EBITDA guidance - Management expressed confidence in achieving volume targets for the year despite a weaker Q1, citing ongoing commercial activities and customer wins [48][50] Question: Price cost spread in fiber and polymer margins - Management indicated that the price cost spread for fiber will annualize in the second half of the year, with polymer margins impacted by product mix [35][36][38] Question: Share repurchase strategy and future capital allocation - The company will flex its capital allocation strategy based on market conditions and M&A opportunities, with a primary focus on organic growth [67][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [3][8] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [8] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [10][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and large containers down mid-single digits due to industrial softness [5][6] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to North American industrial softness [6][7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to strong price mix [7] Market Data and Key Metrics Changes - The overall industrial economy remains muted, impacting demand across various segments, particularly in fiber and steel [17] - The company noted that while conditions are still soft, there are signs of seasonality that may improve volumes in Q2 [17][18] - The mining sector in Southern Africa is showing significant growth, which may positively impact demand for certain products [25] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with capital being deployed in regions with strong business cases, particularly in Europe and Africa [25][26] - The company is transforming its commercial team to be more proactive in capturing market opportunities [18][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the continued muted demand environment but expresses confidence in the company's ability to manage costs and drive growth [13][17] - The company is optimistic about the potential for volume recovery in the latter half of the year, supported by ongoing commercial initiatives [49] - Management highlighted the importance of maintaining a strong balance sheet and low leverage to support future growth [4][12] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million share repurchase authorization [4][12] - The run rate cost optimization is currently at $65 million, with a commitment to reach $80 million-$90 million by year-end [5][10] Q&A Session Summary Question: Insights on volume performance and inventory management - Management noted that demand conditions remain muted, particularly in fiber and steel, but there are expectations for seasonal improvements in Q2 [17][18] Question: Updates on OCC and CapEx projects - Management confirmed expectations for flat OCC prices and highlighted ongoing capacity additions in various regions, particularly in Europe and Africa [25][26] Question: Volume expectations and implications for EBITDA guidance - Management expressed confidence that volumes will improve as the year progresses, supported by commercial activities and customer wins [49][51] Question: Price cost spread in fiber and polymer margins - Management indicated that the price cost spread will be more favorable in the second half of the year, with polymer margins impacted by product mix [35][36] Question: Share repurchase strategy and potential acquisitions - Management stated that capital deployment will be flexible, focusing primarily on organic growth while remaining open to strategic acquisitions [67][68]

First Quarter 2026 Earnings Conference Call January 28, 2026 1 R0 G113 B206 #0070CD R234 G118 B34 #F07623 Safe Harbor and Presentation Note R51 G63 B72 #333F48 R0 G40 B85 #002855 R116 G255 B11 #74FF6F R201 G244 B255 #C9F4FF Primary Colors: Secondary Colors: R52 G119 B98 #337761 R255 G199 B44 #FFC72C FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words "may," "will," "expect," "intend," ...