Graphic Packaging Holding Co.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 3 February 2026: press release. Guidance figures: 3 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Fourth-quarter net income declined: Net income was $71 million in the quarter, compared with $138 million a year earlier. Non-recurring and special items and purchased-intangible amortization reduced net income by $14 million. Source
• Full-year sales fell 2%: Full-year Net Sales were $8,617 million, down from $8,807 million. The company reported the decline as driven by the divestiture and by packaging operations. Source
• Fourth-quarter Adjusted EBITDA fell $93 million: Adjusted EBITDA was $311 million against $404 million, with Adjusted EBITDA margin at 14.8 percent against 19.3 percent. Foreign exchange added $8 million. Source
• Full-year Adjusted EBITDA fell $287 million: Full-year Adjusted EBITDA was $1,395 million against $1,682 million, with margin at 16.2 percent against 19.1 percent. Positive Net Performance and $13 million of favorable foreign exchange partly offset the decline. Source
• Waco facility substantially complete: Total Waco project cost is expected at about $1.67 billion, including about $80 million of capitalized interest. Spend through year-end 2025 was $1.58 billion. Source
• Net leverage rose to 3.8x: The 2025 Net Leverage Ratio was 3.8 times, up from 3.0 times for 2024. Source
• Comprehensive review of operations launched: The CEO initiated a review of organization structure, operations and footprint, and a selective review of the portfolio, to focus resources where value is created. Source

“Consumer affordability created a challenging market for our customers and competitive pressure remains a near-term headwind.”

Robbert Rietbroek, President and CEO

Guidance

What changed from last quarter

• New guidance: 2026 guidance given for Net Sales, Adjusted EBITDA and Adjusted EPS. The prior release gave 2025 guidance, which is now replaced by 2025 actual results. Source
• Guidance kept: Adjusted Free Cash Flow and 2026 capital spending guidance described as continuing. No new figures given for these two items. Source
• New: Robbert Rietbroek is named President and CEO in this release. The prior release named Michael Doss in that role. Source
• New: Management initiated a comprehensive review of organization structure, operations and footprint, and a selective review of the portfolio. Source
• Ended: The prior release said the Vision 2025 transformation was complete and that focus moved to Vision 2030 priorities.

Results and growth drivers

• Fourth-quarter net income declined: Net income was $71 million in the quarter, compared with $138 million a year earlier. Non-recurring and special items and purchased-intangible amortization reduced net income by $14 million. Source
• Adjusted quarterly earnings per share fell: Excluding special items and purchased-intangible amortization, Adjusted Net Income was $85 million, or $0.29 per diluted share, against $179 million, or $0.59 a year earlier. Source
• Full-year sales fell 2%: Full-year Net Sales were $8,617 million, down from $8,807 million. The company reported the decline as driven by the divestiture and by packaging operations. Source
• Full-year net income declined: Full-year net income was $444 million, or $1.48 per diluted share, against $658 million, or $2.16 per diluted share, in 2024. Full-year Adjusted EPS was $1.80, against $2.49. Source
• Fourth-quarter sales were flat: Fourth-quarter Net Sales were $2,103 million, against $2,095 million a year earlier, essentially unchanged in the period. Source

Segments, regions and currency

• Augusta divestiture reduced sales: The 2024 sale of the Augusta, Georgia bleached paperboard facility cut 2025 sales by $150 million, and the company said it reduced Adjusted EBITDA by $30 million. Source
• Packaging sales fell on price and volume: Full-year packaging operations sales fell $97 million. Price declined about 1 percent and volume was flat. Source
• Fourth-quarter packaging sales declined: Packaging operations sales fell $32 million in the fourth quarter, reflecting about a 1 percent decline in price and volume, offset by a $40 million favorable foreign exchange impact. Source

“I have initiated a comprehensive review of our organization structure, operations, and footprint, and a selective review of our portfolio”

Robbert Rietbroek, President and CEO

Costs, margins and pricing

• Fourth-quarter Adjusted EBITDA fell $93 million: Adjusted EBITDA was $311 million against $404 million, with Adjusted EBITDA margin at 14.8 percent against 19.3 percent. Foreign exchange added $8 million. Source
• Production cuts weighed on performance: Net Performance was negative in the quarter because of decisions to curtail production and reduce inventory. Source
• Full-year Adjusted EBITDA fell $287 million: Full-year Adjusted EBITDA was $1,395 million against $1,682 million, with margin at 16.2 percent against 19.1 percent. Positive Net Performance and $13 million of favorable foreign exchange partly offset the decline. Source
• Non-recurring charges excluded from EBITDA: Other non-recurring items of $12 million in the quarter, excluded from Adjusted EBITDA, covered CEO severance and one-time software charges. Source

Products and customers

• Fourth-quarter innovation sales grew $56 million: Innovation Sales Growth, defined as incremental sales of products with a significant change in materials, functionality or design, was $56 million in the quarter. Source
• Full-year innovation sales near 2.5%: Full-year Innovation Sales Growth was $213 million, about 2.5 percent of Net Sales. Source
• Affordability pressured customers: The CEO described a challenging market for customers from consumer affordability, and competitive pressure as a near-term headwind. Source

“As we move into 2026, our priorities are clear: drive operational excellence; deliver exceptional customer service; improve our cost structure; and drive substantial free cash flow to strengthen the balance sheet and return capital to shareholders.”

Robbert Rietbroek, President and CEO

Capital, debt and cash

• Full-year capital spending fell: Full-year capital spending was $935 million, against $1,203 million in the prior year. Source
• Fourth-quarter capital spending fell: Fourth-quarter capital spending was $127 million, against $310 million in the same quarter of 2024. Source
• Waco facility substantially complete: Total Waco project cost is expected at about $1.67 billion, including about $80 million of capitalized interest. Spend through year-end 2025 was $1.58 billion. Source
• Total debt rose: Total Debt was $5,592 million at year-end 2025, and Net Debt was $5,331 million, up from $5,052 million. Source
• Net leverage rose to 3.8x: The 2025 Net Leverage Ratio was 3.8 times, up from 3.0 times for 2024. Source

Shareholder returns

• $281 million returned in 2025: Returns to stockholders through regular dividends and share repurchases totalled about $281 million over the twelve months of 2025. Source
• Share count reduction unchanged from third quarter: Year-to-date repurchases were about 6.8 million shares for $150 million, and net shares outstanding fell about 2.3 percent. The third-quarter release gave the same year-to-date figures. Source
• Dividends declared in 2025: Regular dividends declared were $33 million in the fourth quarter and $131 million for the full year. Source

Strategy and leadership

• Comprehensive review of operations launched: The CEO initiated a review of organization structure, operations and footprint, and a selective review of the portfolio, to focus resources where value is created. Source
• Four 2026 priorities named: The CEO listed operational excellence, customer service, cost structure, and free cash flow to strengthen the balance sheet and return capital. Source
• New CEO named in release: Robbert Rietbroek is identified as President and CEO. The prior release identified Michael Doss in that role. Source

2026 guidance drivers

• Inventory actions reduce 2026 EBITDA: Actions taken to reduce inventory and generate free cash flow are expected to reduce 2026 Adjusted EBITDA by $130 million. Source
• Incentive compensation accrual in 2026: An accrual of about $100 million, non-cash in 2026, reflects a return to more normal incentive compensation. Source
• January weather and production effects: January weather and production impacts are cited among the 2026 factors, with other operating items described as largely offsetting. Source

Risks management discussed

• Demand: Consumer affordability is cited as creating a challenging market for customers, with competitive pressure a near-term headwind. Source
• Operational: Production curtailment taken to reduce inventory reduced Net Performance in the quarter. Source
• Operational: January weather and production impacts are cited as a factor in the 2026 guidance. Source
• Financial: Net leverage increased to 3.8 times from 3.0 times, and Net Debt increased to $5,331 million. Source

Earlier plans management reported on

• Ahead: The third-quarter release said Waco produced its first saleable rolls in October, ahead of plan.
• Met: The third-quarter release stated that completion of the Vision 2025 transformation was marked.
• Not stated: Management said it continues to expect Adjusted Free Cash Flow of $700 million to $800 million in 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.