Graphic Packaging Reports 4Q, Full-Year 2024 Results

Graphic Packaging Holding Company reported fourth-quarter and full-year 2024 results.

Net sales decreased 7% or $621 million to $8,807 million for the full year 2024, compared to $9,428 million in the prior year. The decline was driven by a $389 million negative impact from the divestiture of the Augusta, GA bleached paperboard manufacturing facility and bleached paperboard price and volume declines, and a $235 million net decline in sales from packaging operations, where price and volume declined.

Net sales decreased 7% or $154 million to $2,095 million in the fourth quarter of 2024, compared to $2,249 million in the prior year period. The decline was driven primarily by a $103 million negative impact from the divestiture of the Augusta, GA bleached paper-board manufacturing facility and bleached paperboard price and volume declines, and a $22 million net decline in sales from packaging operations, where price declines were partially offset by volume growth.

“In 2024, we demonstrated the value of the Graphic Packaging business model, generating a level of consistency and profitability in line with other leading consumer packaging companies,” said Michael Doss, the company’s president and CEO.

“We delivered strong and steady margins and significant new consumer packaging innovations,” Doss noted. “Our strategic investments in capabilities, innovation, and competitive advantage have positioned the company for long-term value creation. In 2025, we will build on that success, driving competitive advantage in recycled paperboard across all of North America, and expanding our innovation capabilities into new markets and new product categories around the world.

“The past two years have presented unusual volume challenges for the industry and our customers,” added Doss. “Customer destocking is largely over, but consumers are stretched and searching for value in their everyday purchases. Across grocery, convenience, e-commerce and mass retail, Graphic Packaging is responding to our customers’ evolving needs by creating the more circular, more functional, and more convenient packaging that consumers prefer. As the last of our major asset investments comes to completion in 2025, capital spending will decline significantly, and we will deploy excess cash to create substantial value for our stockholders.

EBITDA for the full year 2024 was $1,677 million, $118 million lower than 2023. After adjusting both periods for business combinations and other special items, adjusted EBITDA was $1,682 million for the full year 2024 versus $1,876 million for the full year 2023. Full-year 2024 adjusted EBITDA margin was 19.1% versus 19.9% for the full year 2023.

EBITDA for the fourth quarter of 2024 was $376 million, $68 million lower than the fourth quarter of 2023. After adjusting both periods for business combinations and other special items, adjusted EBITDA was $404 million in the fourth quarter of 2024 versus $457 million in the fourth quarter of 2023.

Net income for fourth quarter 2024 was $138 million, or $0.46 per share, based upon 302.7 million weighted average diluted shares. This compares to fourth quarter 2023 net income of $196 million, or $0.64 per share, based upon 308.5 million weighted average diluted shares.

For the full year 2024, net income was $658 million, or $2.16 per share, based upon 305.1 million weighted average diluted shares. This compares to 2023 net income of $723 million, or $2.34 per share, based upon 309.1 million weighted average diluted shares.

Total debt (long-term, short-term and current portion) decreased $221 million during the fourth quarter of 2024 to $5,209 million compared to the third quarter of 2024. The company’s fourth-quarter 2024 net leverage ratio was 3.0x compared to 3.1x at the end of the third quarter 2024.