Graphic Packaging profit declines in third quarter

Graphic Packaging Holding Company, a US-based consumer packaging firm, has reported a hit to its third quarter (Q3) results over reduced prices and volumes.

Net income fell to $142m in the third quarter ended 30 September 2025, from $165m in the same period last year.

Adjusted net income, excluding special items and amortisation of purchased intangibles, declined to $172m compared with $194m a year earlier.

Earnings per diluted share for the quarter stood at $0.48, compared with $0.55 in Q3 2024.

On an adjusted basis, it was $0.58, down from $0.64 in the prior-year quarter.

Quarterly net sales slipped 1% year on year to $2.19bn from $2.22bn, reflecting lower pricing and demand in the Americas, partly offset by moderate international growth and a $24m favourable foreign exchange impact.

Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 13% to $361m from $417m.

On an adjusted basis, EBITDA stood at $383m, down from $433m in the prior-year quarter.

The adjusted EBITDA margin narrowed to 17.5% from 19.5% a year ago.

Total debt at quarter end increased to $5.94bn from $5.21bn at the end of 2024.

Capital expenditure amounted to $267m, compared with $313m in the same quarter of 2024.

During the first nine months of 2025, the company returned $248m to shareholders through dividends and share buybacks, including the repurchase of around 1.8 million shares for $39m in the third quarter.

For the period ended 30 September 2025, net income totalled $373m, down from $520m a year earlier.

Adjusted EBITDA for the nine months to September stood at $1.08bn, compared with $1.28bn a year ago, with the margin narrowing to 16.6% from 19.0%.

For the full year, Graphic Packaging expects net sales between $8.4bn and $8.6bn, adjusted EBITDA of $1.40bn to $1.45bn, and adjusted earnings per share in the range of $1.80 to $2.00.

The company said the outlook reflects year-to-date performance and efforts to align production with orders, adding that “volume and market uncertainty remain unusually high given a stretched consumer and weakened consumer confidence.”

Graphic Packaging president and CEO Michael Doss said: "Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging.

“As food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent.

“We expect to reach full production in 12 to 18 months. Waco will be the world's most efficient producer of recycled paperboard, with the highest quality available anywhere outside of our own Kalamazoo, Michigan facility.”

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"Graphic Packaging profit declines in third quarter " was originally created and published by Packaging Gateway, a GlobalData owned brand.

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