Financial Data and Key Metrics Changes - The second quarter revenue met expectations, with a goal of achieving $6 billion in EBITDA by 2027 [6][7] - Adjusted operating earnings per share for the second quarter was $0.20, down from $0.23 in the first quarter [27] - Free cash flow for the second quarter was $54 million, with expectations for the full year ranging from $100 million to $300 million [25][27] Business Line Data and Key Metrics Changes - In Packaging Solutions North America, on-time delivery improved from 92% to 97% [15] - Volume in Packaging Solutions North America was seasonally higher, while EMEA experienced lower volumes due to market softness [23][36] - The company expects to achieve a run rate of approximately $650 million in commercial excellence benefits by the end of the year [16][20] Market Data and Key Metrics Changes - Industry demand in North America remained stable but softer than the previous year, with expectations for stable box demand in the third quarter [11][12] - EMEA box shipments slowed by approximately 1% in the second quarter, but June showed signs of recovery [13] - The company anticipates a moderate increase in demand 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, deploying the "eightytwenty" strategy to drive improvements and synergies [7][8] - Strategic decisions include closing and selling facilities to reduce complexity and minimize costs [18][20] - The company aims to build a pure play packaging business, emphasizing stability and predictability [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing mill reliability issues, attributing them to years of underinvestment and emphasizing the need for consistent capital reinvestment [48][90] - The outlook for North America is positive, with expectations of closing the gap to industry standards by the fourth quarter [12][56] - In Europe, the company is experiencing variability due to market conditions, but remains committed to achieving its EBITDA targets [66][68] Other Important Information - The company has proposed to close five UK plants, which is expected to yield approximately $25 million in savings [19] - The strategic review of the global Southern Fibers business is ongoing, with no changes to the expected timeline [22] 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 [48][49] Question: Outlook for North America and EMEA - Management expressed confidence in North America, citing improvements in commercial operations and the potential for growth, while acknowledging the challenges in Europe due to market conditions [56][62] Question: July box volumes and customer inventories - Management indicated that the market remains relatively flat, with cautious customer behavior and no significant evidence of restocking anticipated [72][74] 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 prioritize strategic assets [90][92] Question: Update on exiting non-strategic export markets - Management confirmed progress in exiting non-strategic export markets, emphasizing that not all export is detrimental [94]