Financial Data and Key Metrics Changes - The company reported a 40% increase in adjusted EBITDA year-to-date compared to the same period in 2024, with an adjusted EBITDA margin expansion of 370 basis points [10][12] - Third quarter EBITDA improved by 28%, with a margin expansion of approximately 300 basis points [14] - Free cash flow in the quarter increased sequentially to $150 million, driven by strong growth in operating cash flow [15] Business Line Data and Key Metrics Changes - The packaging solutions business in North America grew EBITDA sequentially by 28%, reflecting the progress made with the 80/20 implementation [11] - In EMEA, adjusted EBITDA for the third quarter was $209 million, with a sequential margin expansion despite soft demand [28] Market Data and Key Metrics Changes - North American box industry shipments are now expected to decline approximately 1%-1.5% for the full year, down from an initial expectation of a 1%-1.5% increase [12] - EMEA box volume expectations have also been revised down to closer to 1% from an initial 2%-3% range [12] Company Strategy and Development Direction - The company is focused on a transformation plan to reinforce its leadership in sustainable packaging solutions, emphasizing cost initiatives and customer experience [5][6] - The strategy includes simplifying the organization by exiting select businesses and markets, with a focus on becoming exclusively a sustainable packaging business [6][8] - The company is implementing the Lighthouse model to improve operational efficiency and service levels across its North American box system and is beginning to roll it out in EMEA [7][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging macro conditions in North America and EMEA but expressed confidence in the company's ability to control its destiny through a customer-centric approach [5][12] - The company expects continued EBITDA improvement in North America, building on strong first-half momentum, while also addressing market softness in EMEA [12][24] Other Important Information - The company plans to close the sale of GCF by year-end, pending regulatory approval, and intends to reinvest the proceeds into its Packaging Solutions businesses [13][18] - The company has adjusted its 2025 and 2027 targets due to market softness, now expecting $24 billion in net sales and adjusted EBITDA of $3 billion for 2025 [36] Q&A Session Summary Question: Differences in EMEA vs North America Opportunities - Management noted that EMEA does have excess box capacity and that the complexity in Europe differs from North America, where there was significant excess mill capacity [41][42] Question: Volume Growth Assumptions for 2027 Target - The company expects volume growth of 1%-1.5% in North America and 1%-2% in Europe over time, reflecting a soft market outlook [58][59] Question: EBITDA Benefit from Mill Closures - Management indicated that the closure of Savannah would have an effectively neutral EBITDA impact, while Riceboro's closure would provide modest positive benefits [88][92] Question: Free Cash Flow Movement - The decline in free cash flow guidance was primarily due to a slowdown in the market, with an expected $500 million profit loss impacting cash flow [66][68] Question: Drivers of Box Shipments Increase - The increase in box shipments in September and October was attributed to strategic customer engagement and a focus on attractive markets [73][76]