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Mar 31, 2025
Graphic Packaging Q1 2025 Earnings Report
Reported first quarter 2025 financial results
Key Takeaways
Graphic Packaging Holding Company reported a decline in Net Sales, Net Income, and Adjusted EBITDA for the first quarter of 2025 compared to the same period last year. The decline was attributed to a divestiture, unfavorable foreign exchange impacts, and a challenging economic and consumer environment, although the company saw modest volume increase overall and continued improvement in its International business.
Net Sales decreased 6% to $2,120 million in Q1 2025, primarily due to a divestiture and unfavorable foreign exchange.
Net Income was $127 million, or $0.42 per diluted share in Q1 2025, down from $165 million, or $0.53 per diluted share in Q1 2024.
Adjusted EBITDA decreased 17% to $365 million in Q1 2025, with the Adjusted EBITDA Margin at 17.2%.
Capital expenditures were $313 million in Q1 2025, and the company announced a new $1.5 billion share repurchase authorization.
Forward Guidance
For the full year 2025, the company expects Net Sales between $8.2 billion and $8.5 billion, Adjusted EBITDA between $1.4 billion and $1.6 billion, and Adjusted EPS between $1.75 and $2.25. Capital spending is expected to be around $700 million.
Positive Outlook
- Waco, Texas recycled paperboard investment on track for Q4 2025 startup.
- Capital spending needs decline substantially as the Waco investment nears completion.
- New $1.5 billion share repurchase authorization approved.
- Ten percent increase in quarterly dividend announced in February.
- Expectation to return substantial cash to stockholders through dividends and share repurchase.
Challenges Ahead
- Full-year 2025 Net Sales guidance reduced.
- Full-year 2025 Adjusted EBITDA guidance reduced.
- Full-year 2025 Adjusted EPS guidance reduced.
- Expectation of a 2% volume decline for the full year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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