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Jan 31, 2025
Greif Q1 2025 Earnings Report
Greif reported a decline in Q1 2025 net income despite revenue growth.
Key Takeaways
Greif posted Q1 2025 revenue of $1.27 billion, reflecting a 5.0% increase year-over-year. However, net income declined 87.2% to $8.6 million due to a prior-year tax benefit. Adjusted EBITDA rose 5.9% to $145.1 million, supported by strong performance in the Sustainable Fiber Solutions segment. The company continues restructuring efforts, including divestitures and mill closures, to optimize its portfolio and reduce costs.
Revenue grew 5.0% year-over-year to $1.27 billion.
Net income declined 87.2% to $8.6 million due to a prior-year tax benefit.
Adjusted EBITDA increased 5.9% to $145.1 million.
Strategic initiatives include the planned sale of 176,000 acres of timberland and the closure of two mills.
Revenue by Segment
Forward Guidance
Greif expects continued revenue stability in 2025, with Adjusted EBITDA projected at $710 million. The company remains cautious about near-term industrial demand but is taking steps to optimize its portfolio and reduce costs.
Positive Outlook
- Projected Adjusted EBITDA of $710 million for 2025.
- Continued cost optimization efforts targeting $13 million in savings.
- Expansion in Sustainable Fiber Solutions segment driven by price improvements.
- Plan to divest 176,000 acres of timberland to reduce debt.
- Strong market position with diversified revenue streams across packaging and forestry.
Challenges Ahead
- Ongoing industrial contraction impacting demand.
- Net income decline due to prior-year tax benefits and restructuring charges.
- High debt levels, with total debt increasing to $2.84 billion.
- Expected continued challenges in Durable Metal Solutions due to weak demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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