Financial Data and Key Metrics Changes - In Q1 2025, Graphic Packaging reported sales of $2.1 billion, adjusted EBITDA of $365 million, and margins of 17.2%, with adjusted EPS at $0.51, all significantly below expectations due to weaker volumes and input cost inflation [5][27][28] - Adjusted EBITDA was impacted by a $34 million headwind from price, volume, and mix, while input cost inflation amounted to $21 million [29] Business Line Data and Key Metrics Changes - The Americas business experienced a volume decline of approximately 1%, while the non-integrated international business saw a volume increase of about 3% [27] - Innovation sales growth was reported at $44 million for the quarter, driven by new contributions in various product categories [11] Market Data and Key Metrics Changes - Volumes in the Americas were disappointing, down about 1%, while international markets showed slight growth but began to pull back due to economic uncertainty [8][9] - The food market represented approximately 38% of packaging sales, with mixed results across product categories, while beverage sales, accounting for about 25% of overall packaging sales, saw its first decline after two years of strong performance [14][16] Company Strategy and Development Direction - The company is transitioning from Vision 2025 to Vision 2030, focusing on reinvestment and returning capital to stockholders, with a new $1.5 billion share repurchase authorization approved by the Board [7][34] - The Waco recycled paperboard investment is on track for a fourth-quarter startup, with expectations of generating substantial excess cash over the next several years [5][8] Management Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has significantly declined, impacting volumes across markets, and a 2% volume decline is now the base case for 2025 [22][32] - Input cost inflation is expected to continue, with price increases announced to help recover margins [29][30] Other Important Information - The company plans to maintain capital spending in the $700 million range for 2025, with expectations of generating innovation sales growth of at least 2% [33][34] - The company is committed to improving its environmental footprint and enhancing its competitive advantage through innovation [25] Q&A Session Summary Question: Trends in volume decline and affordability issues - Management acknowledged that affordability is a key factor affecting volumes, with customers experiencing volume declines of approximately 3% to 4% [45][46] Question: Guidance assumptions for price-cost dynamics - Management expects to see a positive price contribution late in 2025, with efforts to recover inflation through pricing actions [52][53] Question: Supply-demand balance and potential industry actions - Management indicated that they will take rolling market-related downtime to match supply with demand, and noted recent closures by competitors that could help balance the market [61][62] Question: Revised guidance and EBITDA margin expectations - Management clarified that the revised guidance reflects a temporary impact from inflation, with a path back to previous margin levels expected through pricing recovery and the Waco project [94][95]