Greif (GEF) Earnings Call Presentation

Transaction Overview - Greif has signed an agreement to sell its Containerboard business for $1.8 billion in cash to Packaging Corporation of America[4] - The transaction reflects a multiple of 8.5x LTM Fiscal Q2-25 Adjusted EBITDA of $212 million[4, 30] - The company expects to achieve a pro-forma leverage ratio below 2.0x after the transaction[4] - The transaction is expected to close by the end of fiscal year 2025[4] Strategic Goals - The company reaffirms its 2027 financial targets of $1 billion Adjusted EBITDA and $500 million Adjusted Free Cash Flow[4] - The company is targeting an Adjusted EBITDA margin of 18%+[21] - The company is shifting its product mix towards higher growth and less cyclical end markets[5, 6] Capital Allocation - The company anticipates annual interest savings of $85 million and annual maintenance CAPEX savings of $25 million[10] - The company plans to allocate capital with 50% towards returning cash to shareholders, 30% towards investing for growth, and 20% towards maintaining a strong foundation[9] - The company is targeting Adjusted EBITDA of $1B+ at 2.0-2.5x leverage[15] 2025 Guidance - The company is raising the low-end of its Adjusted EBITDA guidance to $725 million and Adjusted Free Cash Flow guidance to $280 million[25]