Graphic Packaging Company (GPK) Q4 2025 earnings summary

Executive summary

• New CEO with global CPG experience initiated a comprehensive review of operations, structure, and portfolio to drive operational excellence, cost reduction, and customer-centric growth.

• Transformation office established, external advisors engaged, and organizational changes implemented to drive productivity, cost savings, and accountability.

• Focus on innovation, faster commercialization, disciplined organic growth, and aligning resources to high-return opportunities.

• Emphasis on enhancing profitability, generating free cash flow, and optimizing capital allocation.

Financial highlights

• Q4 2025 net sales were $2.1B (+0.4% YoY); full-year 2025 net sales $8.6B (-2.2% YoY), primarily due to Augusta divestiture and lower packaging prices.

• Q4 2025 net income was $71M (-48.6% YoY); full-year 2025 net income $444M (-32.5% YoY).

• Q4 2025 adjusted EBITDA was $311M (-23.0% YoY); full-year 2025 adjusted EBITDA $1,395M (-17.1% YoY); margin fell to 16.2%.

• Adjusted EPS for 2025 was $1.80, down from $2.49 in 2024; net leverage ended at 3.8x, up from 3.0x.

• Returned $281M to shareholders in 2025 via dividends and share repurchases; 6.8M shares repurchased, reducing net shares by 2.3%.

Outlook and guidance

• 2026 net sales expected at $8.4B–$8.6B, with volumes ranging from -1% to +1%.

• 2026 Adjusted EBITDA guidance: $1.05B–$1.25B (reported), $1.2B–$1.4B (pro forma, excluding temporary curtailment).

• Adjusted Free Cash Flow projected at $700M–$800M in 2026, driven by lower capex and inventory reduction.

• Adjusted EPS expected at $0.75–$1.15 for 2026.

• Capital spending to drop to ~$450M in 2026, below 5% of sales.