Graphic Packaging Holding Co

Latest Results (26.09.2025):

Graphic Packaging Holding Company reported its second quarter 2025 financial results, showcasing a mix of challenges and strategic advancements. The company experienced a decrease in net income compared to the same period last year, impacted by special items and amortization charges. Despite these hurdles, Graphic Packaging continued to invest in sustainability and innovation, positioning itself for future growth.

Net Income Decline

In the second quarter of 2025, Graphic Packaging Holding Company reported a net income of $104 million, or $0.34 per diluted share, compared to $190 million, or $0.62 per diluted share in the second quarter of 2024. The decline was primarily due to special items and amortization of purchased intangibles. Excluding these factors, adjusted net income was $128 million, down from $183 million the previous year.

Operating Performance

Net sales for the second quarter of 2025 decreased by 1% to $2,204 million compared to $2,237 million in the same quarter last year. The reduction was driven by the divestiture of the Augusta, GA facility and lower open market sales, partially offset by favorable foreign exchange impacts and a modest increase in packaging volumes. Adjusted EBITDA also declined by 16% to $336 million, reflecting challenges such as price decreases and increased costs related to labor and materials.

Strategic Investments and Shareholder Returns

Graphic Packaging maintained its commitment to sustainability with its Waco, Texas recycled paperboard investment on track for a Q4 2025 startup. The company repurchased $111 million of its shares in the second quarter, reducing outstanding shares by 1.6%. Additionally, the Recycled Materials Association added paper cups to recycling specifications, highlighting the company's focus on environmentally friendly packaging solutions.

Future Outlook

The company expects full-year 2025 net sales to range between $8.4 billion and $8.6 billion, with adjusted EBITDA between $1.45 billion and $1.55 billion. Capital spending is projected to be approximately $850 million, primarily due to the Waco facility. Graphic Packaging anticipates generating ample cash flow to support dividends and share repurchases, aiming to achieve investment-grade status over time.