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Jun 30, 2025
Graphic Packaging Q2 2025 Earnings Report
Graphic Packaging reported Q2 2025 results with steady volumes and cash generation despite margin pressure.
Key Takeaways
Graphic Packaging delivered Q2 2025 revenue of $2.2 billion, slightly down year-over-year, as divestitures and cost inflation weighed on margins. Net income and adjusted EBITDA declined, but packaging volumes were modestly higher, and capital spending remained elevated due to strategic investments.
Revenue was $2.2 billion, down 1% from Q2 2024 due to divestitures.
Net income fell to $104 million, with EPS of $0.34.
Adjusted EBITDA declined to $336 million, with margin at 15.3%.
Capital expenditures totaled $228 million, mainly for Waco facility investment.
Revenue by Geographic Location
Forward Guidance
Graphic Packaging reaffirmed full-year guidance with expectations for strong cash generation in 2026 following strategic capital investments in 2025.
Positive Outlook
- Full-year net sales expected between $8.4B–$8.6B.
- Adjusted EBITDA guidance reaffirmed at $1.45B–$1.55B.
- Adjusted EPS forecast in the range of $1.90–$2.20.
- Waco recycled paperboard facility on track for Q4 2025 start-up.
- Anticipated decline in capital spending in 2026 to support cash generation.
Challenges Ahead
- Adjusted EBITDA margin declined 270 bps YoY to 15.3%.
- Higher labor and input costs pressured profitability.
- Net leverage ratio increased to 3.7x from 3.0x in Q4 2024.
- Adjusted cash flow remained negative due to elevated capex.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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