Graphic Packaging Company (GPK) Q2 2026 earnings summary

Executive summary

• Q2 2026 results were in line to modestly above expectations, with net sales of $2.188 billion, adjusted EBITDA of $247 million, and adjusted EPS of $0.14, driven by strong cost discipline and operational improvements despite inflationary pressures.

• Net income was $24 million, or $0.08 per diluted share, compared to $104 million in Q2 2025.

• Structural cost actions are expected to generate $85 million in annual savings, partially offsetting $150 million in anticipated 2026 inflation.

• Strategic focus remains on organic growth, profitability, operational optimization, and disciplined capital allocation.

• Completed divestiture of Croatia facility, announced closure of Lebanon, TN, and evaluating Winsford, UK, as part of ongoing footprint optimization.

Financial highlights

• Net sales declined 1% year-over-year to $2.188 billion, with flat volumes and lower pricing partially offset by innovation and favorable currency.

• Adjusted EBITDA was $247 million (margin 11.3%), down from $336 million (15.3%) in Q2 2025, mainly due to $60 million in input and operating cost inflation.

• Adjusted EPS was $0.14, benefiting from a $6 million tax reserve release; full-year tax rate expected at 25%.

• Adjusted cash flow increased to $138 million year-over-year; capital expenditures were $83 million in Q2 2026, down from $228 million in Q2 2025.

• Net leverage ratio rose to 4.7x, with net debt at $5.483 billion at quarter end.

Outlook and guidance

• Full-year 2026 net sales expected at the high end of $8.4–$8.6 billion guidance; adjusted EBITDA forecasted at the low end of $1.05–$1.25 billion due to inflation.

• Adjusted EPS guidance lowered to $0.65–$0.90, reflecting higher interest expense.

• Adjusted cash flow guidance updated to $600–$700 million; capital spending expected below $450 million.

• Net leverage targeted at 4.6x by year-end, with $400–$500 million debt paydown planned.

• Q3 adjusted EBITDA expected in the range of $280–$300 million.