Graphic Packaging Holding Co

Latest Results (21.12.2024):

Net Sales Decline

Graphic Packaging Holding Co reported net sales of $2,216 million for the third quarter of 2024, a decrease from $2,349 million in the same quarter of 2023. This 6% decline was primarily due to the divestiture of the Augusta, GA bleached paperboard manufacturing facility and reduced open market sales participation, which impacted sales by $109 million. Additionally, there was a $35 million net decline in sales from packaging operations, where price declines were partially offset by volume growth.

Net Income and Earnings Per Share

For the third quarter of 2024, Graphic Packaging Holding Co reported a net income of $165 million, or $0.55 per diluted share, consistent with the $170 million, or $0.55 per diluted share, reported in the third quarter of 2023. The results were impacted by special items and amortization of purchased intangibles, with a net charge of $29 million in 2024 compared to $59 million in 2023. Adjusted net income was $194 million, or $0.64 per diluted share, down from $229 million, or $0.74 per diluted share, in the prior year.

EBITDA Performance

Graphic Packaging Holding Co's EBITDA for the third quarter of 2024 was $417 million, a decrease of $31 million from the third quarter of 2023. Adjusted EBITDA was $433 million, down from $482 million in the previous year. The decline was mainly due to the divestiture of the Augusta facility and related price and volume declines, as well as weather and power issues. Despite these challenges, the company maintained an adjusted EBITDA margin of 19.5%, compared to 20.5% in the prior year.

Debt and Capital Expenditures

In the third quarter of 2024, Graphic Packaging Holding Co reduced its total debt by $178 million to $5,430 million, and net debt decreased by $158 million to $5,304 million. The company's net leverage ratio was 3.1x, slightly higher than the 3.0x reported in the third quarter of 2023. Capital expenditures increased to $313 million from $207 million in the previous year, reflecting accelerated equipment purchases for the Waco, Texas facility.

2024 Guidance and 2025 Outlook

Graphic Packaging Holding Co updated its 2024 financial guidance, projecting full-year adjusted EBITDA between $1.68 billion and $1.73 billion, and adjusted earnings per diluted share between $2.49 and $2.61. For 2025, the company targets financial results in line with its Vision 2030 model, aiming for low single-digit sales growth, mid single-digit adjusted EBITDA growth, and high single-digit adjusted EPS growth.