Loading...
•
Sep 30
Graphic Packaging Q3 2025 Earnings Report
Graphic Packaging Holding Company reported its third quarter 2025 financial results, with a decrease in net sales and net income compared to the prior year.
Key Takeaways
Graphic Packaging Holding Company experienced a challenging third quarter in 2025, with net sales decreasing by 1% to $2,190 million and net income falling to $142 million from $165 million in the prior year. Adjusted EBITDA also saw a significant decline, primarily due to lower prices, volumes, and input cost inflation. Despite these headwinds, the company successfully reduced inventory and made progress on its Waco, Texas recycled paperboard manufacturing facility, which began commercial production ahead of schedule.
Net Sales decreased by 1% to $2,190 million in Q3 2025 compared to $2,216 million in Q3 2024, driven by lower volumes and prices in the Americas.
Net Income for Q3 2025 was $142 million, or $0.48 per diluted share, down from $165 million, or $0.55 per diluted share, in Q3 2024.
Adjusted EBITDA decreased by 13% to $383 million in Q3 2025 from $433 million in Q3 2024, with the Adjusted EBITDA Margin at 17.5% compared to 19.5% in the prior year.
The Waco, Texas recycled paperboard manufacturing facility commenced commercial production ahead of schedule, marking the completion of the Vision 2025 transformation.
Graphic Packaging
Graphic Packaging
Graphic Packaging Revenue by Geographic Location
Revenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
For the full year 2025, Graphic Packaging expects Net Sales to be between $8.4 billion and $8.6 billion, Adjusted EBITDA between $1.40 billion and $1.45 billion, and Adjusted EPS between $1.80 and $2.00. These revisions reflect year-to-date performance, production adjustments, and a wider range of potential fourth-quarter outcomes due to high volume and market uncertainty.
Positive Outlook
- Completion of Vision 2025 transformation with the Waco facility ahead of schedule.
- Continued focus on Vision 2030 priorities: innovation, execution, reaching investment grade, and returning cash to stockholders.
- Innovation sales growth continues to open new markets for paperboard packaging.
- Anticipation of easing food affordability challenges to reveal full cash-generating potential.
- Strategic share repurchases, reducing net shares outstanding by 2.3% year-to-date.
Challenges Ahead
- Full-year 2025 guidance for Net Sales, Adjusted EBITDA, and Adjusted EPS revised downwards.
- Volume and market uncertainty remain unusually high.
- Sluggish consumer volumes impacting performance.
- Lower prices and volumes in the Americas contributed to the decline in Adjusted EBITDA.
- Input and other cost inflation negatively impacted Adjusted EBITDA.