Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $99 million, a 7.4% increase year-over-year, with EBITDA margins expanding by 140 basis points due to better price-cost dynamics across all segments and cost optimization efforts [15][17] - Adjusted free cash flow improved by over 24.3% year-over-year, driven by increased EBITDA and strong working capital management [15] - Adjusted EPS for the quarter was $0.01 compared to $0.59 in the prior year quarter, impacted by non-recurring tax items and the nature of continuing operations after removing discontinued operations [16] Business Line Data and Key Metrics Changes - In the polymers segment, small containers showed positive volume momentum, while IBC and large polymer drums experienced mid-single-digit declines due to softness in industrial markets [11][12] - Durable metals volumes declined by 6.6%, reflecting weakness in industrial end markets [12] - Sustainable fiber volumes decreased by 7.7%, impacted by URB economic downtime and soft fiber drum demand [12] - Integrated solutions saw volume improvements driven by closures, with these products generating over 30% gross margin [12] Market Data and Key Metrics Changes - The company reported a Net Promoter Score of 72, an improvement of 3 points from the previous year, indicating enhanced customer service performance [5] - The macro environment remains challenging, with demand softness in construction and manufacturing affecting customer volumes [27] Company Strategy and Development Direction - The company is focused on a "Build to Last" strategy, emphasizing cost optimization, portfolio reshaping, and sustainable growth [6][24] - The divestiture of the containerboard and land management businesses has allowed the company to concentrate on areas with the greatest opportunity for EBITDA growth and margin expansion [5][24] - The cost optimization program has exceeded initial commitments, with anticipated cumulative savings raised from $50 million-$60 million to $80 million-$90 million for fiscal 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the macro environment but expressed confidence in the company's ability to generate cash and manage costs effectively [36] - The company anticipates a low-end guidance for fiscal 2026, assuming flat to low single-digit volume declines in metals and fiber, with low single-digit improvements in polymers and closures [18][19] - Management remains optimistic about capturing value as demand returns, supported by a strong balance sheet and cash flow generation [24][70] Other Important Information - The company plans to execute a $150 million open market repurchase plan and seeks board approval for a new stock repurchase authorization [22][23] - The anticipated capital expenditures for the year are approximately $155 million, with maintenance CapEx needs reduced by about $25 million [20] Q&A Session Summary Question: Can you provide more details on the growth in polymers and target markets? - Management noted that the agrochemicals market has been a significant growth area, particularly for small containers, despite overall demand softness in other sectors [27] Question: How should we think about EBITDA guidance for fiscal 2026? - Management indicated that the first quarter is expected to be the weakest, with subsequent quarters showing improvement [29] Question: If volumes come in weaker, can cost optimization offset that? - Management confirmed that cost optimization remains a lever to pull in response to volume weakness, with ongoing improvements in the program [33] Question: What are the expectations for the durable metals business in Europe? - Management highlighted that North American steel business has been down similarly to EMEA, but EMEA steel has shown consistent performance [66] Question: What is the outlook for M&A activity? - Management stated that while there is a solid pipeline for M&A, the focus remains on organic growth, with no transformational M&A expected [41][68]

Financial Data and Key Metrics Changes - The company reported net sales of $2 billion, a 15% increase from the prior year, primarily driven by growth in dispensing products and the Vayner acquisition [22][23] - Adjusted EBIT for the quarter was $221 million, an 8% year-over-year increase, attributed to strong growth in dispensing products and improved price costs in custom containers [23] - Adjusted EPS was $1.22, slightly above the prior year quarter, despite higher interest expenses and a higher tax rate [23] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 23% increase in sales compared to the prior year, driven by the inclusion of Vayner and higher volumes of high-value dispensing products [23] - Metal containers sales increased by 13%, with a 4% growth in unit volumes, primarily from pet food markets [24][25] - Custom containers sales increased by 1%, with volumes growing by 4% after adjusting for lower margin business exited [25][26] Market Data and Key Metrics Changes - The North American consumer market has shown bifurcation, with high-end products performing well while lower-tier products are impacted by inflation and muted wage growth [10][11] - The company expects a mid-single-digit percentage decline in volumes for dispensing and specialty closures and custom containers in the fourth quarter [12][27] - Metal containers volumes are expected to grow by a mid-single-digit percentage, driven by strong growth in pet food and higher fruit and vegetable volumes [12][27] Company Strategy and Development Direction - The company continues to focus on organic growth and cost reduction initiatives, with expectations for continued growth in the dispensing and specialty closures segment [7][16] - The long-term customer relationships and partnerships are seen as key differentiators, providing stability and growth opportunities [18] - The company is positioned to capture growth in healthcare and pharma markets, with expectations for meaningful contributions in 2026 [8][19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer trends have bifurcated, with high-end products continuing to perform well while lower-tier products face challenges [10][11] - The company anticipates a reduction in volumes for certain personal care and home care products in the fourth quarter, leading to proactive inventory reductions [12][27] - Despite challenges, management remains optimistic about the long-term growth trajectory and free cash flow generation [20][28] Other Important Information - The company returned over $120 million to shareholders through dividends and share repurchases [6] - The integration of the Vayner acquisition has been successful, contributing to growth in dispensing products [7][22] - The company expects free cash flow of approximately $430 million for the year, a 10% increase from the prior year [28] Q&A Session Summary Question: What do you attribute the current volume decline to compared to previous cycles? - Management highlighted unique one-off instances such as a large customer bankruptcy and poor weather affecting sports drinks, differentiating this cycle from previous destocking events [31][32] Question: Do you see risks of volume declines extending to pet food? - Management expressed confidence in the pet food segment, expecting continued growth and indicating that the current challenges are isolated to specific markets [37] Question: Why did the Dispensing and Specialty Closures segment miss previous growth expectations? - Management attributed the miss to late September changes in the personal care and home care market, which were not anticipated until late in the quarter [42][43] Question: What are the expectations for free cash flow despite a lower outlook for Q4? - Management indicated that proactive cost reductions and inventory management would help maintain free cash flow expectations for the year [87] Question: How does the company view the North American hot fill beverage market? - Management believes it remains a stable and growing market, despite recent challenges, and is well-positioned with major players [78][80]

Financial Data and Key Metrics Changes - The company reported net sales of $2 billion for the third quarter, a 15% increase from the prior year, primarily driven by growth in dispensing products and the Vayner acquisition [22] - Adjusted EBIT for the quarter was $221 million, an 8% year-over-year increase, attributed to strong growth in dispensing products and improved price costs in custom containers [23] - Adjusted EPS was $1.22, slightly above the prior year quarter, despite higher interest expenses and a higher tax rate [23] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 23% increase in sales compared to the prior year, mainly due to the inclusion of Vayner sales and higher volumes of high-value dispensing products [24] - Metal containers sales increased by 13% year-over-year, driven by favorable price mix and a 4% increase in unit volumes, particularly in pet food markets [25] - Custom containers sales grew by 1% year-over-year, with volumes increasing by 4% when excluding lower margin business exited for cost reduction [26] Market Data and Key Metrics Changes - The North American consumer market has shown bifurcation, with high-end products performing well while lower-tier consumers are more selective due to inflation and muted wage growth [10][11] - The company expects a mid-single-digit percentage decline in volumes for dispensing and specialty closures and custom containers in the fourth quarter, while metal containers are expected to grow by a mid-single-digit percentage [27] Company Strategy and Development Direction - The company continues to focus on organic growth and high-value dispensing products, with expectations for mid-single-digit growth in the dispensing segment [14] - The long-term customer relationships and partnerships are emphasized as key differentiators, providing stability and growth opportunities [18] - The company is looking for acquisition opportunities to expand its Dispensing and Specialty Closures business, targeting similar growth profiles to past acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has been impacted by unique challenges, including customer bankruptcies and poor weather affecting sports drink volumes [32] - The company anticipates higher earnings and free cash flow in 2026, despite the current year's challenges [20] - Management remains confident in the ability to execute on plans and drive growth, despite some market unpredictability [20] Other Important Information - The company returned over $120 million to shareholders through dividends and share repurchases [6] - The integration of the Vayner acquisition has been successful, contributing to growth and additional contractual volume [7] Q&A Session Summary Question: What do you attribute the current volume decline to compared to previous cycles? - Management highlighted unique one-off instances affecting specific markets, contrasting the current situation with the broad destocking cycle experienced in 2023 [31] Question: Do you see the weakness in personal care and home care markets broadening to pet food? - Management expressed confidence in the pet food segment, expecting continued growth despite challenges in other areas [37] Question: Why did the Dispensing and Specialty Closures segment miss previous revenue growth expectations? - Management attributed the miss to late September changes in the personal care and home care market, which were not anticipated earlier [43] Question: What are the expectations for free cash flow despite a lower outlook for the fourth quarter? - Management indicated that proactive cost reductions and inventory management would help maintain free cash flow estimates [87] Question: How does the company plan to instill confidence in its strategy moving forward? - Management emphasized the importance of performance and accountability, focusing on delivering results in the fourth quarter and maintaining free cash flow [51]

Financial Data and Key Metrics Changes - The company reported net sales of $2 billion, a 15% increase from the prior year, primarily driven by growth in dispensing products and the Vayner acquisition [20] - Adjusted EBIT for the quarter was $221 million, an 8% year-over-year increase, attributed to strong growth in dispensing products and improved price costs in custom containers [21] - Adjusted EPS was $1.22, slightly above the prior year quarter, despite higher interest expenses and a higher tax rate [21] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 23% increase in sales compared to the prior year, mainly due to the inclusion of Vayner sales and higher volumes of high-value dispensing products [22] - Food and beverage closures volumes declined by 5%, driven by a double-digit decline in North American hot fill products, particularly for sports drinks [22] - The Metal Containers segment experienced a 13% increase in sales, supported by favorable price mix and a 4% increase in unit volumes, particularly in pet food markets [22][23] Market Data and Key Metrics Changes - North American consumer trends have bifurcated, with high-end products performing well while lower-tier products are impacted by inflation and muted wage growth [9] - The company anticipates a mid-single-digit percentage decline in volumes for dispensing and specialty closures and custom containers in the fourth quarter, while metal containers volumes are expected to grow by a mid-single-digit percentage [11][25] Company Strategy and Development Direction - The company continues to focus on organic growth and cost reduction initiatives, with expectations for mid-single-digit growth in dispensing products and a strong pipeline of product innovation [12][14] - The long-term customer relationships and contractual agreements provide stability and growth opportunities, particularly in the pet food market [16][17] - The company is well-positioned for future growth, with plans to invest in additional capacity in 2026 to support contractual volume growth [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has been challenging due to specific customer bankruptcies and adverse weather affecting sports drink volumes [30][31] - The company remains optimistic about the high-end fragrance and beauty markets, expecting continued double-digit growth [9][35] - Management emphasized the importance of delivering free cash flow and achieving deleveraging objectives as they navigate the current market conditions [18][48] Other Important Information - The company has maintained its free cash flow estimate of approximately $430 million for the year, reflecting a 10% increase from the prior year [26] - Capital expenditures are expected to be around $300 million, with a focus on working capital improvements [26] Q&A Session Summary Question: What are the reasons for the recent volume declines? - Management attributed the declines to unique one-off instances such as customer bankruptcies and poor weather affecting specific markets [30][31] Question: Why did the Dispensing and Specialty Closures segment miss revenue expectations? - The miss was due to late September changes in the personal care and home care market, which were not anticipated until late in the month [40] Question: How does the company plan to instill confidence in its strategy? - Management emphasized the importance of performance delivery and accountability, focusing on free cash flow and growth in 2025 [48][64] Question: What is the outlook for the hot fill beverage market? - Management believes the hot fill beverage market remains stable and expects recovery in volumes after addressing inventory corrections [70][72] Question: What is the status of the customer undergoing bankruptcy? - The customer is expected to resolve its bankruptcy proceedings around year-end, with volumes aligning with expectations [73][74]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $4 million with EBITDA margins up by 70 basis points, driven by improved price-cost dynamics in Fiber, Polymers, and Integrated segments [15] - Free cash flow rose by almost 400% to $171 million in the quarter, demonstrating the resilience of the business model [15] Business Line Data and Key Metrics Changes - Customized polymer volumes increased by 2.2%, with low double-digit growth in small containers, while IBCs and large drums saw mid-single-digit declines [12] - Durable metals volumes declined by 5.8%, reflecting softness in North America and low single-digit declines in EMEA [13] - Sustainable fiber volumes decreased by 7.6%, with URB mills operating above 90% capacity [13] - Integrated Solutions volumes grew by 2.6%, led by strong volumes in recycled fiber [14] Market Data and Key Metrics Changes - The markets chosen for investment are resilient despite a mixed macro environment, with targeted end markets like agrochemicals, pharma, and food and beverage outperforming [12] - Customer sentiment remains cautious, and the overall macro economy is not robust, impacting volume performance [14] Company Strategy and Development Direction - The company is executing a "Build to Last" strategy, focusing on reshaping the portfolio, optimizing cost structures, and targeting markets with strong competitive advantages [22] - The divestment of the containerboard business is expected to close soon, with cash proceeds anticipated to lower the leverage ratio below 1.2 times [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 commitments, emphasizing that as demand recovers, operating leverage will significantly enhance results [22] - The operating environment remains soft in North America and EMEA, particularly in the chemical sector, but the company is focused on growth in polymers [52][53] Other Important Information - The company has achieved $20 million in run-rate savings towards its fiscal 2025 commitments, with a focus on cost optimization and operational efficiency [10] - The planned divestitures are part of a strategy to concentrate efforts on markets with the greatest growth potential [10] Q&A Session Summary Question: How much of the guidance raise for the year was related to containerboard? - Management indicated that there was no containerboard impact in raising guidance, which was primarily due to SG&A cost reductions [26] Question: Can you comment on price-cost trends entering fiscal fourth quarter? - Steel costs have been relatively flat, with no significant changes expected in pricing [27] Question: What is the current normalized EBITDA for containerboard? - The trailing 12-month EBITDA for containerboard was $218 million, with a current monthly figure of $25 million [32] Question: Is increasing exposure to more defensive end markets a strategic priority? - The focus remains on end markets that are growing faster than GDP, such as food and chemicals [47] Question: What is the upper leverage range comfortable for potential deals? - The target leverage ratio is between 2 to 2.5 times, with the ability to handle larger deals if they meet strategic criteria [69]