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 Insights - Greif, Inc. reported fiscal third quarter 2025 results, highlighting a significant decrease in net income primarily due to a prior year gain from divestiture [1][6] - The company is in the process of divesting its containerboard business for $1.8 billion, which will be classified as discontinued operations starting Q3 2025 [2][6] Financial Highlights - Net income decreased by 49.6% to $39.3 million or $0.67 per diluted Class A share compared to $78.0 million or $1.35 per diluted Class A share in Q3 2024 [6] - Adjusted EBITDA increased by 2.4% to $160.7 million compared to $157.0 million in the prior year [6] - Combined Adjusted EBITDA rose by 11% to $220.9 million from $199.4 million [6] - Net cash provided by operating activities increased by $123.1 million to $199.9 million [6] - Adjusted free cash flow increased by $136.4 million to $170.7 million [6] Segment Performance - Customized Polymer Solutions net sales increased by $25.1 million to $339.8 million, driven by higher volumes and selling prices [10] - Durable Metal Solutions net sales decreased by $24.3 million to $399.8 million, primarily due to lower volumes [14] - Sustainable Fiber Solutions net sales decreased by $17.6 million to $308.0 million, impacted by lower volumes [16] - Integrated Solutions net sales decreased by $13.4 million to $87.1 million, affected by the Delta Divestiture [18] Strategic Actions - The company achieved run-rate savings of $20 million from cost optimization initiatives by the end of Q3 2025, already at the midpoint of its $15 - $25 million target range [6] - A definitive agreement was signed for the sale of the timberlands business for $462 million, expected to close on October 1, 2025 [6] Dividend Information - The Board of Directors declared quarterly cash dividends of $0.56 per share for Class A Common Stock and $0.84 per share for Class B Common Stock, reflecting an increase from the previous quarter [22]

Core Insights - Greif, Inc. (GEF) reported adjusted earnings per share (EPS) of $1.19 for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.08, marking a year-over-year increase of 43.4% [1][10] - Total revenues increased by 1.1% year over year to $1.39 billion, although this fell short of the Zacks Consensus Estimate of $1.43 billion [2][10] - The gross margin improved to 23.1%, up from 19.7% in the prior year, with gross profit rising 18.3% to $319.5 million [2][10] Financial Performance - Selling, general and administrative expenses rose to $173 million from $167 million in the prior year [3] - Adjusted EBITDA increased by 26% year over year to $214 million, with an adjusted EBITDA margin of 15.4%, compared to 12.4% in the previous year [3][10] - Cash and cash equivalents at the end of Q2 fiscal 2025 were $253 million, up from $198 million at the end of fiscal 2024, with cash generated from operating activities totaling $136 million compared to $87.5 million in the prior year [9] Segment Performance - Customized Polymer Solutions segment revenues were $329 million, up from $286 million year over year, with adjusted EBITDA of $53 million, exceeding estimates [5] - Durable Metal Solutions segment revenues decreased by 8.4% year over year to $379 million, with adjusted EBITDA of $63.7 million, slightly lower than the previous year [6] - Sustainable Fiber Solutions segment revenues grew by 3.3% year over year to $599 million, with adjusted EBITDA rising to $79.5 million from $49.5 million in the prior year [7] - Integrated Solutions segment revenues fell to $78 million from $92 million year over year, with adjusted EBITDA of $17.3 million compared to $20.8 million in the previous year [8] Outlook - Greif raised its fiscal 2025 adjusted EBITDA low-end forecast to $725 million from $710 million [10][12] - The company expects the low end of fiscal 2025 adjusted free cash flow to be $280 million [12] Dividend Announcement - Greif's board announced a quarterly cash dividend of 54 cents per share for Class A Common Stock and 81 cents per share for Class B Common Stock, payable on July 1, 2025 [11] Stock Performance - Greif's shares have declined by 9.5% over the past year, compared to an 8.4% decline in the industry [13]

Financial Performance - Adjusted EBITDA for Q2 2025 was $213.9 million, compared to $169.7 million in Q2 FY24[17] - Adjusted EBITDA percentage increased to 15.4% in Q2 2025 from 12.4% in Q2 FY24[17] - Adjusted Class A Earnings Per Share increased to $1.19 in Q2 2025 from $0.83 in Q2 FY24[17] - Adjusted Free Cash Flow increased to $109.6 million in Q2 2025 from $59.0 million in Q2 FY24[17] - The company is raising the low-end guidance for Adjusted EBITDA to $725 million (previously $710 million) and Adjusted Free Cash Flow to $280 million (previously $245 million)[23] Segment Performance - Customized Polymer Solutions net sales increased to $329.3 million in Q2 2025 from $285.6 million in Q2 2024[20] - Durable Metal Solutions net sales decreased to $378.9 million in Q2 2025 from $413.7 million in Q2 2024[20] - Sustainable Fiber Solutions net sales increased to $599.1 million in Q2 2025 from $580.1 million in Q2 2024[20] - Integrated Solutions net sales increased to $78.4 million in Q2 2025 from $76.4 million in Q2 2024[20] Cost Optimization - The company is on pace to meet its 2025 run-rate cost commitment of $100 million[7] - The company has a savings commitment of $15-25 million for FY25 run-rate[7] - The company achieved $10 million in year-end run-rate savings as of Q2 2025[7] Other Key Points - The company anticipates a maximum annual impact of $10 million in cost before mitigating actions due to global trade monitoring[16]

Core Viewpoint - Greif, Inc. (GEF) is expected to report second-quarter fiscal 2025 financial results on June 4, with total revenues projected at $1.43 billion, reflecting a 4% increase year-over-year, and earnings estimated at $1.08 per share, indicating a 31.7% rise from the previous year [1][5]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for total revenues in Q2 is $1.43 billion, a 4% increase from the prior year's quarter [1]. - Earnings per share are estimated at $1.08, representing a 31.7% increase year-over-year [1][5]. - Earnings estimates have decreased by 2.7% over the past 60 days [1]. Earnings Surprise History - Greif's earnings have surpassed Zacks Consensus Estimates in two of the last four quarters, with an average surprise of -11.67% [2][3]. Segment Performance - Customized Polymer Solutions segment is projected to see a revenue increase of 23.1% to $351.5 million in Q2, driven by a 2.2% volume growth and a 2.1% favorable pricing impact [9][10]. - Durable Metal Solutions segment is expected to decline by 6.7% in revenue to $386 million, with a projected 2% drop in volumes [12]. - Sustainable Fiber Solutions segment is anticipated to grow 4.1% in revenue to $603.8 million, supported by a 1.1% volume increase and a 3.1% favorable pricing impact [14]. - Integrated Solutions segment is projected to decline by 11.7% in revenue to $80.8 million, impacted by unfavorable pricing and foreign currency effects [15]. Adjusted EBITDA Projections - Adjusted EBITDA for Q2 is forecasted to rise by 10.8% to $188 million, aided by efficiency gains and SG&A rationalization [5][16]. Stock Performance - Greif's stock has decreased by 13.9% over the past year, compared to a 10.8% decline in the industry [19].