#USA #Atlanta #Sustainable Packaging #Graphic Packaging #Q3 2025

Graphic Packaging Holding Company Reports Q3 2025 Financial Results

Graphic Packaging Holding Company (NYSE: GPK), a prominent player in sustainable consumer packaging solutions, has announced its financial results for the third quarter of 2025. The company has faced some challenges, including a small decline in net sales and packaging volumes, as it continues to innovate in a competitive market.

Key Financial Metrics

For the third quarter of 2025, Graphic Packaging reported:

• - Net Income: $142 million, or $0.48 per diluted share, down from $165 million, or $0.55 per diluted share in Q3 2024. This decrease includes special items and amortization charges that impacted both periods, namely a net charge of $30 million this quarter.
• - Adjusted Net Income: Excluding these one-time items, the adjusted net income stood at $172 million, or $0.58 per diluted share, compared to $194 million, or $0.64 per diluted share in the same quarter last year.
• - Net Sales: Declined by 1%, totaling $2.19 billion versus $2.22 billion in the prior year, largely driven by reduced volumes and pricing pressures in the Americas, though offset somewhat by positive growth in international markets and beneficial foreign exchange impacts.

Operational Progress and Highlights

Despite the challenges, the company's President and CEO, Michael Doss, emphasized their operational successes in the quarter. Key highlights included a significant reduction in inventory and the growth of innovative sales. This innovation in product development is opening new marketplaces for paperboard packaging, demonstrating the company's commitment to sustainability.

A notable milestone was reached when the new recycled paperboard manufacturing facility in Waco, Texas produced its first commercially viable rolls ahead of schedule. Doss praised the team's hard work and thanked the local community and Texas Government for their support, stating, "Waco will emerge as the world’s most efficient producer of recycled paperboard."

Debt and Shareholder Returns

The company reported a total debt of approximately $5.94 billion in Q3 2025, up from $5.21 billion at the end of Q4 2024. However, it managed to return about $248 million to shareholders through both dividends and share repurchase activities over the first nine months of the year. Notably, in Q3 alone, Graphic Packaging repurchased about 1.8 million shares for $39 million.

Looking Ahead: 2025 Annual Guidance

Looking ahead, Graphic Packaging anticipates full-year 2025 net sales, adjusted EBITDA, and adjusted EPS to be approximately $8.4 billion to $8.6 billion, $1.40 billion to $1.45 billion, and $1.80 to $2.00, respectively. The guidance reflects a mix of higher market demand uncertainty and pricing adjustments to align production with orders. The company remains focused on its goals under the Vision 2030 initiative, emphasizing innovation and operational excellence while enhancing returns to stockholders.

Conclusion

As Graphic Packaging navigates through a challenging economic environment, its focus on innovation, efficiency, and sustainable practices positions it well for future growth. With ongoing investment in production capabilities and commitment to environmental sustainability, Graphic Packaging is set to continue its leadership in the packaging industry.

The company will host a conference call today to discuss these results in greater detail, providing shareholders and industry analysts with deeper insights into its strategic direction and financial health.