Graphic Packaging Company (GPK) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and market position

• Operates as a global leader in sustainable consumer packaging with 23,000 employees and 100 facilities in 26 countries.

• Holds 3,100 patents and generates 95% of sales from recyclable products.

• Maintains strong relationships with top global consumer brands, retailers, and quick-serve restaurants.

• Expanding product offerings in food, beverage, household, and health & beauty segments.

• Focuses on innovation and technical capabilities to support customer sustainability goals.

Strategic priorities and operational initiatives

• Five key priorities: enhance profitability, reduce inventory and capital spend, drive disciplined organic growth, prioritize free cash flow, and conduct a comprehensive business review.

• Plans to reduce 2026 SG&A costs by $60 million and deploy AI tools for efficiency.

• Capital spending to be reduced to 5% or below net sales by 2026, with tighter governance.

• Inventory targeted at 15%-16% of sales long-term, aiming for 17% in 2026.

• Targeting $700-$800 million in adjusted free cash flow in 2026.

Financial outlook and capital allocation

• Focused on paying down $500 million in debt and achieving investment-grade credit rating by 2030.

• Short-term capital allocation prioritizes debt reduction; medium-term includes share repurchases.

• Recent credit agreement adjustments allow for inventory reduction and leverage management through 2027.

• CapEx to remain below 5% of sales, with ongoing evaluation of discretionary projects.

• Productivity projects will continue, especially those with high returns and short paybacks.