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Dec 31, 2025
Greif Q1 2026 Earnings Report
Greif reported strong Q1 2026 results with a significant increase in net income, improved adjusted EBITDA, and operating income driven by cost optimization and asset divestitures.
Key Takeaways
Greif delivered robust Q1 2026 performance, posting higher net income and operating profit due to gains from asset sales and cost-cutting initiatives. Adjusted EBITDA grew 24%, and leverage dropped significantly after debt repayment.
Net income rose to $176.6 million from $6.6 million a year ago, primarily driven by a $216 million gain on timberlands divestiture.
Adjusted EBITDA increased 24% year-over-year to $122.5 million.
Adjusted free cash flow was -$41 million, impacted by operating cash use and CapEx.
Leverage ratio improved significantly to 1.2x from 3.6x following major debt repayment.
Revenue by Segment
Forward Guidance
Greif reaffirmed its low-end fiscal 2026 guidance with confidence in execution despite a muted demand environment.
Positive Outlook
- Reaffirmed low-end Adjusted EBITDA guidance of $630 million.
- Reaffirmed Adjusted Free Cash Flow guidance of $315 million.
- Momentum in cost optimization with $65 million run-rate savings achieved.
- Disciplined capital return with $130 million in share repurchases completed in Q1.
- Strong balance sheet with improved leverage supporting flexibility.
Challenges Ahead
- Muted demand outlook persists with no near-term industrial recovery seen.
- Adjusted free cash flow declined due to absence of Containerboard business contributions.
- Q1 free cash flow usage impacted by CapEx and other costs.
- Volume declines across most segments weigh on top-line growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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