Greif (GEF) Q2 2026 earnings summary

Executive summary

• Achieved $75 million in run-rate cost optimization and completed $150 million share repurchase, maintaining strong financial performance despite macro volatility and regional volume softness.

• Adjusted EBITDA increased 7.5% year-over-year to $156.8 million, with margin up 110 bps to 14.6%.

• Adjusted EPS rose over 60% year-over-year, driven by higher EBITDA, lower interest, and favorable tax rates.

• Adjusted free cash flow more than doubled year-over-year to $179.3 million, reflecting strong working capital management.

• Completed divestiture of containerboard business and Soterra land assets, using proceeds to repay $1,864 million in debt and reduce leverage to 1.1x.

Financial highlights

• Net sales for Q2 2026 were $1,072.8 million, nearly flat year-over-year.

• Adjusted EBITDA for Q2 2026 was $156.8 million, up from $145.9 million in Q2 2025, with margin at 14.6%.

• Adjusted EPS reached $1.10, up from $0.68 year-over-year.

• Adjusted free cash flow was $179.3 million, up from $86.6 million year-over-year.

• Operating profit for Q2 2026 was $35.4 million, down from $60.7 million in Q2 2025, mainly due to higher SG&A expenses.

Outlook and guidance

• Fiscal 2026 low-end guidance for Adjusted EBITDA is $610 million and for adjusted free cash flow is $315 million, reflecting a conservative outlook due to ongoing industrial softness and geopolitical risks.

• Volume assumptions revised downward for metals, fiber, and closures; polymers expected to remain flat.

• Management anticipates subdued industrial demand and persistent inflationary pressures, with no near-term demand inflection expected.

• Expected tax rate for fiscal 2026 is 26.0–30.0%, and 28.0–32.0% excluding adjustments.