| Imagery Source: Wikimedia Commons/Jordiferrer |
| Information Source: Graphic Packaging Holding Company |
| Highlights |
- Packaging volumes -1% in Americas, +3% in International
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- Innovation Sales Growth of $44 million
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- Announced the closure of Middletown, Ohio, recycled paperboard manufacturing facility
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- Waco, Texa,s recycled paperboard investment on track for Q4 2025 startup
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- Announced new $1.5 billion share repurchase authorisation
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| Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported first quarter 2025 results. |
| Net Income in the first quarter of 2025 was $127 million, or $0.42 per diluted share, versus $165 million, or $0.53 per diluted share, in the first quarter of 2024. First quarter 2025 and 2024 Net Income was impacted by special items and amortisation of purchased intangibles of $27 million and $38 million, respectively. Excluding special items and amortisation of purchased intangibles, Adjusted Net Income for the first quarter of 2025 was $154 million, or $0.51 per diluted share, and $203 million, or $0.66 per diluted share, in the first quarter of 2024. |
| Michael Doss, the Company's President and CEO, said, "First quarter results fell short of our expectations in a challenging economic and consumer environment. Consumers are redoubling their efforts to find value as food prices continue to rise. Meanwhile, promotional activity is driving mix and brand switching, rather than incremental foot traffic and volume gains. Against that backdrop, we saw a small volume decline in the Americas business, but continued improvement in our International business. Leveraging our growing cost and quality advantage and the strength of our innovation portfolio, we continue to gain market position as we partner with customers in a rapidly changing market. |
| We saw an uptick in input cost inflation during the quarter, and responded with a price increase intended to bring margins back to a more normal range. With our Waco, Texas, recycled paperboard investment nearing completion, our capital spending needs decline substantially, and yesterday our Board of Directors approved a new $1.5 billion share repurchase authorisation, taking the total available authorisation to $1.865 billion. In February, we announced a ten per cent increase in our quarterly dividend. We expect to return substantial cash to stockholders in the months and years ahead through a growing dividend and share repurchases." |
| Operating Results |
| Net Sales |
| First quarter 2025 Net Sales decreased 6% to $2,120 million, versus $2,259 million in the same quarter last year. The decline was driven by a $110 million impact from the divestiture of the Augusta, GA, bleached paperboard manufacturing facility and reduced open market sales participation, and a $27 million unfavourable foreign exchange impact. Modest price pressure was offset by a modest volume increase. |
| EBITDA |
| First quarter 2025 EBITDA decreased 17% to $353 million. Excluding the impact of business combinations and other special items, Adjusted EBITDA was $365 million versus $443 million in the same quarter last year. The decline in Adjusted EBITDA was driven by a $25 million decline relating to the divestiture of the Augusta, GA bleached paperboard manufacturing facility and reduced open market sales participation; a $34 million decline in price, volume, and mix; higher costs which were partially offset by Net Performance, and a $6 million unfavorable foreign exchange impact. First quarter Adjusted EBITDA Margin was 17.2% in 2025, and 19.6% in 2024. |
| Other Results |
| Total Debt (Long-Term, Short-Term and Current Portion) increased $526 million during first quarter 2025 to $5,735 million, compared to fourth quarter 2024. Net Debt (Total Debt less Cash and Cash Equivalents) increased $554 million during first quarter 2025 to $5,606 million, compared to fourth quarter 2024. The Company's first quarter 2025 Net Leverage Ratio was 3.5x compared to 3.0x in the fourth quarter of 2024. |
| Capital expenditures in first quarter 2025 were $313 million, versus $331 million in the same quarter last year. |
| The Company returned approximately $30 million to stockholders during the first three months of 2025 through regular dividends. |
| 2025 Annual Guidance and Commentary |
| The Company currently expects full-year 2025 Net Sales, Adjusted EBITDA, and Adjusted EPS, including foreign exchange impact, of $8.2 billion to $8.5 billion, $1.4 billion to $1.6 billion, and $1.75 to $2.25, respectively. The reductions from prior guidance reflect an expectation of a 2% volume decline and $80 million of input cost inflation at the midpoint. The range of guidance has been widened to reflect higher macroeconomic and consumer spending uncertainty. |
| Full-year 2025 capital spending is currently expected to be in the range of $700 million as the Company's Waco, Texas, recycled paperboard investment moves toward completion later this year. |
| For the full document, click the link below |
| Graphic Packaging Holding Company |
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