Graphic Packaging Holding Co.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 November 2026: press release. Guidance figures: 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales flat, volume up 1%: Net Sales were $2,192 million against $2,190 million. Volume/mix added $19 million, while price fell $15 million and foreign exchange and other reduced sales by $2 million. Source
• Adjusted net income of $67 million: Adjusted Net Income, excluding special items and purchased-intangible amortization, was $67 million, or $0.23 per diluted share, against $172 million, or $0.58, a year earlier. Source
• Adjusted EBITDA margin fell to 13.2%: Adjusted EBITDA was $289 million, against $383 million in the same quarter of 2025, which gives the margin shown. Source
• Inflation drove most of decline: Of the $94 million Adjusted EBITDA decline, $83 million came from commodity input and operating cost inflation, $15 million from lower price, and $3 million from lower volume/mix. Source
• Adjusted Cash Flow reached $314 million: Year-to-date Adjusted Cash Flow was $314 million, against negative $332 million a year earlier. Operating cash flow was $295 million for the nine months. Source
• Sales, EBITDA and EPS expectations: Full-year 2026 expectations are approximately $8.6 billion of Net Sales, $1.05 billion of Adjusted EBITDA, and $0.65 of Adjusted EPS. Source

“In the third quarter, we demonstrated progress on our near-term strategic priorities.”

Robbert Rietbroek, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Adjusted Cash Flow and capital spending guidance continued unchanged from the prior quarter. Source

Sales and volume growth

• Net sales flat, volume up 1%: Net Sales were $2,192 million against $2,190 million. Volume/mix added $19 million, while price fell $15 million and foreign exchange and other reduced sales by $2 million. Source
• Innovation sales growth reported: The release gives $42 million of Innovation Sales Growth but describes that figure as second quarter growth. Source
• Net income down year over year: Net Income was $22 million, or $0.07 per diluted share, compared with $142 million, or $0.48 per diluted share, in the same quarter of 2025. Source
• Adjusted net income of $67 million: Adjusted Net Income, excluding special items and purchased-intangible amortization, was $67 million, or $0.23 per diluted share, against $172 million, or $0.58, a year earlier. Source
• Special items and amortization charged: Net charges from non-recurring and special items and purchased-intangible amortization totaled $45 million in 2026 and $30 million in 2025. Source

Adjusted EBITDA and margin

• Adjusted EBITDA margin fell to 13.2%: Adjusted EBITDA was $289 million, against $383 million in the same quarter of 2025, which gives the margin shown. Source
• Margin rose sequentially again: Management said revenue and volume grew year over year and that Adjusted EBITDA margin expanded sequentially for a second straight quarter. Source
• Reported EBITDA down 30%: EBITDA was $254 million against $361 million a year earlier. Adjusted EBITDA excludes business combinations and other non-recurring and special items. Source

“Our decisive actions to enhance and optimize the business this year support continued margin improvement, strong cash flow generation, and a return to EBITDA growth next year.”

Robbert Rietbroek, President and Chief Executive Officer

Costs, pricing and inflation

• Inflation drove most of decline: Of the $94 million Adjusted EBITDA decline, $83 million came from commodity input and operating cost inflation, $15 million from lower price, and $3 million from lower volume/mix. Source
• Net performance and currency offset part: Net Performance contributed a positive $2 million and favorable foreign exchange $5 million, partly offsetting the decline. Source
• Cost actions said to add leverage: Management said structural cost actions created positive operating leverage and position the company to capture commercial excellence and price benefits. Source
• Special items excluded from EBITDA: Special items of $28 million in the quarter, against $22 million a year earlier, were excluded from Adjusted EBITDA as items management does not view as ongoing performance. Source

Cash, debt and capital spending

• Adjusted Cash Flow reached $314 million: Year-to-date Adjusted Cash Flow was $314 million, against negative $332 million a year earlier. Operating cash flow was $295 million for the nine months. Source
• Net debt lower than prior periods: Net Debt was $5,183 million at September 30, 2026, against $5,331 million at December 31, 2025 and $5,483 million at June 30, 2026. Source
• Capital spending well below prior year: Quarterly capital spending was $64 million against $267 million a year earlier. Nine-month capital spending was $287 million against $808 million. Source
• Dividends paid through nine months: Regular dividends returned about $98 million to stockholders in the first nine months of 2026. Source

Full-year 2026 guidance

• Sales, EBITDA and EPS expectations: Full-year 2026 expectations are approximately $8.6 billion of Net Sales, $1.05 billion of Adjusted EBITDA, and $0.65 of Adjusted EPS. Source
• Cash flow guidance reaffirmed: Management reaffirmed 2026 Adjusted Cash Flow of $600 million to $700 million, which it describes as an increase from $169 million in 2025. Source
• Capital spending ceiling maintained: 2026 capital spending is expected below $450 million, alongside the Adjusted Cash Flow range. Source

Strategy and leadership

• Leadership team strengthened this year: Management said it has strengthened its leadership team and sharpened its focus on commercial and operational excellence since the start of 2026. Source
• Focus on profitable growth and cash: Management said it remains focused on profitable growth, sustained cash flow, and long-term value creation for shareholders. Source
• Near-term priorities show progress: Management said the third quarter showed progress on near-term strategic priorities, including year-over-year revenue and volume growth. Source

Coming up, as management said on 3 November 2026

• Price improvements expected from Q4: Management expects benefits from commercial excellence initiatives and price improvements in the fourth quarter and into 2027. Source

Figures management reported

Risks management discussed

• External: Management cites elevated inflation and credits structural cost reduction and productivity initiatives for its relative performance. Source
• Regulatory: Other non-recurring items include legal costs from securities class action and derivative action lawsuits, partly offset by a non-cash lease termination gain. Source
• Financial: The net leverage ratio was 4.8x at the end of the quarter, up from 3.8x at year-end 2025. Source

Earlier plans management reported on

• Met: Management says it has delivered structural cost reductions and productivity improvements this year. Source
• Not stated: Management reaffirmed the 2026 Adjusted Cash Flow range. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.