Graphic Packaging Company (GPK) 4th Annual London Industrials Conference summary

Strategic transformation and growth platforms

• Shifted from a North American, supermarket-focused carton business in 2017 to a global leader in sustainable consumer packaging by 2023, with significant expansion into Europe and diversification across all store aisles.

• Identified five key growth verticals—trays and bowls, cups and containers, multi-packs, paperboard canisters, and strength packaging—targeting $15 billion in plastic substitution opportunities.

• Innovation and sustainability drive growth, with a robust plan for greenhouse gas reduction approved by the Science Based Targets group.

• Major acquisitions, including International Paper’s consumer board business and AR Packaging, transformed the portfolio, expanded scale, and enhanced innovation, especially in Europe.

• European innovation platforms are increasingly scaled to the U.S., with products like Boardio and KeelClip gaining traction across markets.

Financial model, capital allocation, and investment priorities

• Targets low single-digit sales growth, mid single-digit EBITDA growth, and high single-digit EPS growth post-2025, with CapEx normalizing to 5% of sales after major projects conclude.

• Waco facility, a $1 billion investment, will make the company the lowest-cost recycled paperboard producer in North America, with substantial EBITDA contributions expected from 2026 onward.

• Capital allocation prioritizes reinvestment, growing dividends, opportunistic share repurchases, and selective tuck-in M&A as alternatives to CapEx.

• Plans to achieve investment-grade status by 2030, balancing deleveraging with share buybacks when stock is attractive.

• No further large expansionary projects are planned; focus shifts to innovation, execution, and incremental improvements.

Operational efficiency and competitive advantage

• Modernization strategy consolidates production into fewer, more efficient facilities, reducing costs and sustaining capital needs.

• Kalamazoo and Waco investments provide unique quality and cost advantages, enabling substitution of recycled for bleached paperboard and creating a competitive moat.

• Integration is pursued only where it delivers a clear customer or cost advantage; in Europe, board is sourced externally due to lack of integration benefits.

• Automation and productivity projects, such as new presses and facility upgrades, drive margin improvements and operational flexibility.

• Sustaining capital needs are minimized by having a small number of modern, well-invested facilities, freeing up resources for innovation and sustainability initiatives.