Graphic Packaging Holding Company reported a challenging year with declining net sales and net income, impacted by customer affordability issues and strategic inventory reduction efforts. The company is undertaking a comprehensive review of its operations and portfolio to improve its cost structure and drive free cash flow.
Fourth quarter Net Sales were basically flat at $2,103 million, versus $2,095 million in the same quarter last year, with a $40 million favorable impact from foreign exchange.
neutralFull-year 2025 Net Sales decreased 2% to $8,617 million, versus $8,807 million in the prior year, with a $57 million favorable impact from foreign exchange.
neutralInnovation Sales Growth was $213 million for the full year, representing approximately 2.5% of Net Sales.
neutralAffirming 2026 Adjusted Free Cash Flow target of $700 million to $800 million.
positiveFull-year 2025 Net Income decreased to $444 million, versus $658 million in 2024, a decline of 32.5%.
negativeFull-year 2025 Net Sales decreased 2% to $8,617 million, versus $8,807 million in the prior year, driven by a $150 million negative impact from the 2024 divestiture and $97 million net decline in sales from packaging operations.
negativeFourth quarter Adjusted EBITDA was $311 million versus $404 million in the same quarter last year, a decline of 23%.
negativeFull-year Adjusted EBITDA decreased 17% to $1,395 million versus $1,682 million in the prior year.
negativeFourth quarter Adjusted EBITDA Margin was 14.8% in 2025, down from 19.3% in 2024.
negativeFull-year Adjusted EBITDA Margin was 16.2% in 2025, down from 19.1% in 2024.
negativeTotal Debt increased to $5,592 million for full-year 2025 compared to $5,209 million for full-year 2024. Net Debt increased to $5,331 million compared to $5,052 million.
negativeThe Company's 2025 Net Leverage Ratio was 3.8x compared to 3.0x for full-year 2024.
negative2026 guidance for Adjusted EBITDA is expected to be $1.05 billion to $1.25 billion, reflecting a $130 million negative impact from actions taken to reduce inventory and generate free cash flow.
attentionQ3 2025 EPS was $0.48 (-12.7% YoY) and Operating Margin was 10.7% (-187 bps YoY).
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Consumer affordability created a challenging market for our customers and competitive pressure remains a near-term headwind.
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.
I have initiated a comprehensive review of our organization structure, operations, and footprint, and a selective review of our portfolio to ensure that our resources are focused where we can create the greatest value for our shareholders.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.