This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Packaging Corporation of America is closing multiple manufacturing sites before year’s end, the company revealed in Worker Adjustment and Retraining Notification (WARN) notices this month. PCA is closing a full-line plant in Allentown, Pennsylvania, come Dec. 1, impacting 60 employees. Weeks later, come Dec. 19, PCA plans to shutter a full-line plant in Salisb ...

Key Takeaways Greif finalized the $462M sale of its timberlands unit to Molpus Woodlands Group.The sale covers about 173,000 acres in the Southeastern United States.GEF expects the leverage ratio to fall below 1.2X, strengthening its balance sheet.Greif, Inc. (GEF) announced that it closed the previously stated sale of its timberlands business to Molpus Woodlands Group. This move will help Greif's debt-reduction efforts and boost its capital efficiency.Details of Greif’s Timberlands SaleIn early August, Gre ...

Core Viewpoint - The class-action lawsuit against major containerboard manufacturers alleges price-fixing and market manipulation, claiming a coordinated effort to inflate prices by approximately 30% since late 2020 [2][3][4]. Group 1: Lawsuit Details - The lawsuit was initiated by Artuso Pastry Foods Corp. in July 2025, naming eight major containerboard manufacturers as defendants [1]. - Graphic Packaging International was voluntarily dismissed from the case on 25 September 2025, leaving seven defendants accused of conspiring to raise prices [2][5]. - The plaintiffs allege that the defendants engaged in coordinated price increases through seven hikes from November 2020 to the present, despite weak demand [3]. Group 2: Antitrust Allegations - The lawsuit claims that the actions of the defendants constitute a violation of U.S. antitrust laws, suggesting they operated as a "cartel" to manipulate market prices [4]. - Over 85% of the U.S. containerboard market is reportedly controlled by a small number of companies, which may facilitate collusive behavior [4]. Group 3: Industry Response and Legal Proceedings - Most defendants have not publicly commented on the litigation, but Georgia-Pacific has denied the claims, asserting they are without merit [5]. - The case is set to proceed against the remaining companies, with a status update required by 17 December 2025 [6]. - Plaintiffs are seeking treble damages, which could lead to settlements or increased scrutiny of pricing practices in the sector [6]. Group 4: Market Implications - The ongoing litigation has significant implications for the broader containerboard market, potentially affecting pricing and market stability [7].

Core Viewpoint - Smurfit Westrock Plc is facing significant challenges, including a decline in stock performance and a net loss in its latest earnings report, despite showing resilience in net sales and adjusted EBITDA growth [3][5][6]. Company Overview - Smurfit Westrock Plc is headquartered in Dublin, Ireland, and is a global provider of sustainable paper-based packaging solutions, manufacturing various products including containerboard and consumer packaging [1]. - The company has a market capitalization of approximately $22.6 billion, serving customers in over 40 countries across multiple sectors such as food, beverage, retail, e-commerce, and industrial [2]. Stock Performance - The stock has decreased more than 25.8% from its 52-week high of $56.99 in November 2024, while the S&P 500 Index has gained 8.4% during the same period [3]. - Over the past 52 weeks, Smurfit Westrock's stock has declined 11.6%, and year-to-date, it is down 21.5%, contrasting with the broader index's 15.4% increase in the past year [4]. Earnings Report - In the latest earnings report on July 30, the company reported a net loss of $26 million for Q2 2025, compared to a net profit of $132 million in the same quarter last year, largely due to $280 million in restructuring costs [5]. - Despite the loss, net sales reached $7.9 billion, a year-over-year increase of 167.4%, and adjusted EBITDA was $1.21 billion, up 152.7% year over year [6]. Future Outlook - Management expects adjusted EBITDA of approximately $1.3 billion for the next quarter and has maintained its full-year forecast between $5 billion and $5.2 billion, assuming stable market conditions [7]. - The company anticipates long-term support from increasing packaging needs driven by the growth of e-commerce and steady demand in food, beverage, and healthcare markets [7].

Company Overview - International Paper Company (IP) is a leading producer of fiber-based packaging, pulp, and paper products, with a market cap of $24.5 billion [1] - The company offers a range of industrial packaging solutions, including containerboard, corrugated packaging, specialty papers, and pulp for hygiene and personal care items [1] Market Position - IP is classified as a "large-cap stock," highlighting its size, influence, and dominance in the packaging and containers industry [2] - The company has a strong reputation for innovation and sustainability, aligning with the increasing demand for eco-friendly products from customers and regulators [2] Stock Performance - IP shares have declined 23.1% from their 52-week high of $60.36, reached on November 25, 2024, and have underperformed compared to the Consumer Discretionary Select Sector SPDR Fund (XLY), which returned 14.7% over the same period [3] - Over the past 52 weeks, IP has declined 7.1%, significantly lagging behind XLY's 22.5% increase [4] - Year-to-date, IP shares are down 13.7%, while XLY has risen by 7.6% [4] Recent Earnings Report - Following its Q2 earnings release, IP shares dropped 12.9% on July 31 [5] - The company's revenue increased by 42.9% year-over-year to $6.8 billion, meeting consensus estimates, but its adjusted operating EPS of $0.20 fell short of analyst expectations by 47.4% [5] - A significant decline in margins due to cost headwinds, weaker demand in Europe, and increased depreciation and amortization expenses led to a 63.6% annual decline in adjusted operating earnings per share [5] - Free cash flow contracted 67.7% year-over-year to $54 million, raising investor concerns and contributing to the stock's selloff [5]

Core Insights - The paper and packaging industry is currently facing significant demand challenges, with executives from various companies expressing a pessimistic outlook for the near future [2][3][4] - Analysts suggest that while a modest recovery in demand may be on the horizon, it is not expected to be dramatic, and the worst of the downturn may be over [7][18] Demand and Supply Dynamics - International Paper's CEO indicated that current demand is nearing a bottom, while GPI's CEO noted an unusual period of volume weakness [1] - Box shipments are projected to decline by 3% year over year in Q3 2025, with a full-year decline of approximately 2.5% to 3% expected [3] - BofA's box survey indicates a slight improvement in growth expectations, with a decrease of 0.2% anticipated for the next two quarters, compared to a 1% decline previously [4] - Containerboard producers have announced closures totaling about 3.9 million tons, or 9.5% of North American capacity, which is expected to help rebalance supply and demand [7][8] Capacity Adjustments - The industry has seen unprecedented capacity reductions, with 5.4 million tons cut since 2023, marking a significant correction in the market [9][10] - Analysts believe that these capacity cuts are necessary to address the years of oversupply that have affected both North American and global markets [5][10] Pricing Trends - Prices for old corrugated containers (OCC) surged by 245% year over year by mid-2024 but have since declined due to weak containerboard demand [12][13] - Analysts expect OCC prices to continue declining in the coming months, although a modest uptick in demand could lead to price increases by the end of the year [14] Tariff and Trade Impacts - Tariffs have not significantly impacted fiber demand but have affected the demand for goods shipped in boxes, with containerboard production for export dropping nearly 12% year over year [15][16] - Current tariffs are considered mild compared to previous levels, which may help stabilize the market as trade tensions ease [16] Future Outlook - Analysts predict that the downward trend in corrugated demand may ease in Q4, supported by potential interest rate cuts and progress on tariff resolutions [18] - A slow and mild recovery is anticipated, with RaboResearch expecting flat linerboard pricing through the first half of 2026 and a potential price increase later in the year [19] - Industry observers are closely monitoring a class action price-fixing lawsuit against top containerboard producers, which could influence future pricing strategies [20][21]

Core Viewpoint - Greif, Inc. has successfully completed the sale of its containerboard business to Packaging Corporation of America, which is expected to enhance the company's capital efficiency and support its debt-reduction strategy [1][6]. Group 1: Deal Details - The definitive agreement for the sale was signed on July 1, 2025, and includes two containerboard mills with a production capacity of 800,000 tons, along with eight sheet feeder and corrugated plants across the U.S. [2] - The containerboard business generated revenues of $1.2 billion and EBITDA of $212 million for the fiscal year ending April 30, 2025 [2]. Group 2: Strategic Alignment - This divestment is part of Greif's "Build to Last" strategy, aimed at optimizing the portfolio, enhancing capital efficiency, and accelerating growth [3][6]. - Improved capital efficiency will reduce the need for recurring capital expenditures, enabling the company to pay down debt and create value [3]. Group 3: Financial Guidance Update - Following the divestment, Greif updated its fiscal 2025 adjusted EBITDA guidance to $507-$517 million, excluding $168 million in adjusted EBITDA year to date and $50 million anticipated for the fourth quarter from the sold business [4]. - The adjusted free cash flow guidance was revised to $290-$300 million from the previous $305-$315 million [4]. Group 4: Stock Performance - Greif's stock has increased by 7.2% over the past year, contrasting with a 9.9% decline in the industry [5].

Core Points - Greif, Inc. has completed the sale of its containerboard business to Packaging Corporation of America, marking a significant step forward for the company [1][2] - The transaction is expected to unlock immediate value for shareholders, enhance capital efficiency, and accelerate debt reduction [2] - Following the divestment, Greif has adjusted its 2025 full-year guidance to exclude $168 million of year-to-date Adjusted EBITDA and an implied fourth quarter performance of $50 million related to the containerboard business, revising the guidance to $507 million to $517 million of Adjusted EBITDA [3] Financial Adjustments - The Adjusted Free Cash Flow guidance has been adjusted by $15 million to a range of $290 million to $300 million due to the lack of expected cash contribution from the containerboard business operations in September [3] - Goldman Sachs acted as the exclusive financial advisor for Greif during this transaction [4] Company Overview - Greif, founded in 1877, is a global leader in performance packaging, operating in 40 countries and providing innovative solutions for various industries [5]

Financial Performance - Adjusted EBITDA increased to $160.7 million compared to $157.0 million in Q3 FY24[15] - Adjusted EBITDA percentage improved to 14.2% from 13.5% in Q3 FY24[15] - Adjusted Class A Earnings Per Share increased to $1.03 from $0.92 in Q3 FY24[15] - Adjusted Free Cash Flow significantly increased to $170.7 million from $34.3 million in Q3 FY24[15] Portfolio Transformation - The company entered into a definitive agreement to divest the Containerboard business for $1.8 billion, expected to close effective August 31st, 2025[4] - The company also entered into a definitive agreement to divest the Land Management business for $462 million ($2,671/acre), anticipated October 1st[6,17] - Post-close, the anticipated proforma leverage ratio is less than 1.2x, targeting a range of 2.0 – 2.5x[6] Cost Optimization - The company achieved $20 million in run-rate savings as of Q3'25[6] - The company is committed to achieving $100 million in run-rate savings by 2027[6] - The company announced the closure of the Merced, CA steel and polymer plant as part of cost optimization efforts[6,17] Segment Performance - Customized Polymer Solutions net sales increased from $314.7 million to $339.8 million[18] - Durable Metal Solutions net sales decreased from $424.1 million to $399.8 million[18] - Sustainable Fiber Solutions net sales decreased from $325.6 million to $308.0 million[18] - Integrated Solutions net sales slightly increased from $86.2 million to $87.1 million[18] Guidance - The company provided 2025 Adjusted Free Cash Flow guidance of $305 - $315 million[22]

Core Viewpoint - International Paper is undergoing significant strategic changes, including the sale of its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, aimed at enhancing its focus on sustainable packaging solutions and improving its cost position [2][3]. Group 1: Sale of Global Cellulose Fibers Business - The sale of the Global Cellulose Fibers (GCF) business is valued at $1.5 billion, with adjustments including preferred stock issuance of $190 million [2]. - The GCF business generated $2.8 billion in revenue in 2024 and employs 3,300 people across nine manufacturing facilities [3]. - The transaction is expected to close by the end of the year, pending regulatory approvals [2]. Group 2: Strategic Changes in North America - International Paper is investing $250 million to convert the 16 machine at the Riverdale mill in Selma, Alabama, to produce containerboard [6]. - The company will permanently close the Savannah containerboard mill, Savannah packaging facility, and Riceboro mills, resulting in a net reduction of approximately one million tons in annual containerboard capacity [7]. - These changes will impact around 1,100 hourly and salaried positions, with the company committed to providing severance packages and outplacement assistance [4][5]. Group 3: Management Insights - The CEO of International Paper expressed confidence in the transition of GCF to AIP, highlighting the business's alignment with strategic customers and its potential for long-term success [3]. - AIP's partner noted GCF's strong position for future growth, supported by sustainable resources and long-term customer relationships [3].