Financial Data and Key Metrics Changes - The second quarter adjusted operating earnings per share was $0.20, down from $0.23 in the first quarter, with price and mix increasing by $0.21 per share due to strong price realization in Packaging Solutions North America [27][28] - Free cash flow for the second quarter was $54 million, with expectations for the full year ranging from $100 million to $300 million [25][26] - The company is holding its 2025 EBITDA guidance, targeting $600 million, and aims for $1.1 billion by 2027 [6][20] Business Line Data and Key Metrics Changes - In Packaging Solutions North America, on-time delivery improved from 92% in Q4 of the previous year to 97% in Q2 [15] - Volume in Packaging Solutions North America was seasonally higher, while EMEA experienced lower volume due to macroeconomic uncertainty [23][36] - The company announced the closure of four facilities and the sale of three facilities in North America to reduce complexity and minimize costs [17] Market Data and Key Metrics Changes - Industry demand in North America has been stable but softer than last year, with expectations for stable box demand in Q3 and potential upside in Q4 [11][12] - EMEA box shipments slowed by approximately 1% in Q2, primarily due to market softness, although June showed signs of recovery [13] - The company anticipates a moderate increase in demand in EMEA in the second half of the year, driven by seasonal growth in fast-moving consumer goods [14] Company Strategy and Development Direction - The company is focused on a transformational journey aiming for $6 billion in EBITDA by 2027, with a strategy centered around the "eightytwenty" initiative to drive operational excellence [6][8] - The company is committed to a relentless pursuit of commercial excellence and cost reduction to build a stronger organization [21][22] - The strategic review of the global Southern Fibers business is ongoing, with no changes to the expected timeline [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the market share gap in North America despite soft market conditions in the U.S. and EMEA [6][12] - The management acknowledged ongoing mill reliability issues, attributing them to years of underinvestment, and emphasized the need for consistent capital reinvestment [50][94] - The outlook for EMEA remains cautious due to macroeconomic volatility, but management believes the trough was reached in early Q2 [67] Other Important Information - The company has proposed to close five UK plants, which is expected to yield approximately $25 million in savings [20] - The company is nearing its goal of a $600 million run rate in cost-out actions by year-end [20] Q&A Session Summary Question: Concerns about mill reliability issues - Management acknowledged that mill reliability issues have been building for years due to underinvestment and emphasized the need for consistent capital reinvestment into strategic assets [50][52] Question: Outlook for North America and EMEA - Management expressed confidence in North America due to improved commercial actions and the implementation of the eightytwenty initiative, while EMEA's outlook remains subject to market conditions [60][67] Question: July box volumes and customer inventories - Management indicated that the market is relatively flat, with no evidence of significant restocking among customers, and highlighted the cautious approach of customers regarding net investment spending [76][80] Question: Opportunities for accelerating reinvestment in mills - Management stated that while there is a focus on mill reliability, the ability to accelerate reinvestment is constrained by the need to avoid funding non-strategic assets [94][96] Question: Update on exiting non-strategic export markets - Management reported progress in exiting non-strategic export markets, indicating they are about halfway through the process [100][102]