Graphic Packaging Reports 1Q 2025 Financial Results

Graphic Packaging reported first quarter 2025 results.

First quarter 2025 net sales decreased 6% to $2,120 million, versus $2,259 million in the same quarter last year. The decline was driven by a $110 million impact from the divestiture of the Augusta, GA bleached paperboard manufacturing facility and reduced open market sales participation, and a $27 million unfavorable foreign exchange impact. Modest price pressure was offset by a modest volume increase.

First quarter 2025 EBITDA decreased 17% to $353 million. Excluding the impact of business combinations and other special items, adjusted EBITDA was $365 million versus $443 million in the same quarter last year.

Net income in first quarter 2025 was $127 million, or $0.42 per diluted share, versus $165 million, or $0.53 per diluted share in first quarter 2024. First quarter 2025 and 2024 net income was impacted by special items and amortization of purchased intangibles of $27 million and $38 million, respectively.

“First quarter results fell short of our expectations in a challenging economic and consumer environment,” Michael Doss, Graphic Packaging’s president and CEO, said. “Consumers are redoubling their efforts to find value as food prices continue to rise. Meanwhile, promotional activity is driving mix and brand switching, rather than incremental foot traffic and volume gains. Against that backdrop, we saw a small volume decline in the Americas business, but continued improvement in our International business. Leveraging our growing cost and quality advantage and the strength of our innovation portfolio, we continue to gain market position as we partner with customers in a rapidly changing market.

“We saw an uptick in input cost inflation during the quarter, and responded with a price increase intended to bring margins back to a more normal range,” added Doss. “With our Waco, Texas recycled paperboard investment nearing completion, our capital spending needs decline substantially, and yesterday our Board of Directors approved a new $1.5 billion share repurchase authorization, taking the total available authorization to $1.865 billion.”