{"id":11513,"date":"2026-02-04T08:02:18","date_gmt":"2026-02-04T13:02:18","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=11513"},"modified":"2026-02-04T08:02:18","modified_gmt":"2026-02-04T13:02:18","slug":"graphic-packaging-sees-lower-profits-in-2025","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=11513","title":{"rendered":"Graphic Packaging sees lower profits in 2025"},"content":{"rendered":"


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The company\u2019s quarterly net sales reached $2.1bn. Credit: mariakray \/ Shutterstock.com. <\/figcaption><\/figure>\n<\/p><\/div>\n

Graphic Packaging reported a net income of $71m in the fourth quarter of 2025, down 48% from $138m in the same period last year.<\/p>\n

The results included net charges for special items and amortisation of purchased intangibles totalling $14m, compared to $41m in the prior year.<\/p>\n

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EBITDA for the quarter declined by 19% to $305m from $376m a year earlier.<\/p>\n

The company\u2019s quarterly net sales reached $2.1bn, nearly flat from last year\u2019s $2.09bn.<\/p>\n

A 1% drop in price and volume led to a $32m reduction in packaging operations sales, offset by a favourable $40m impact from foreign currency movements.<\/p>\n

Innovation sales growth for the quarter reached $56m.<\/p>\n

For the full year, net income was $444m, equal to $1.48 per diluted share, compared to $658m, or $2.16 per share, in 2024.<\/p>\n

Full-year results reflected charges of $95m for non-recurring items and amortisation of intangibles, slightly less than the previous year\u2019s $101m.<\/p>\n

Annual net sales edged down 2% to $8.6bn from the prior year\u2019s $8.8bn.<\/p>\n

This decrease was mainly due to a $150m reduction following the sale of a bleached paperboard facility in Augusta and related price and volume declines, along with a $97m decrease in packaging operations sales as prices fell by about 1% and volumes held steady.<\/p>\n

Innovation sales growth over the year totalled $213m, or around 2.5% of annual net sales.<\/p>\n

Yearly EBITDA dropped by 20% to $1.3bn from last year\u2019s $1.7bn.<\/p>\n

Total debt increased to $5.5bn at year-end 2025, up from $5.2bn a year earlier.<\/p>\n

Net debt amounted to $5.3bn versus the previous year\u2019s figure of $5.05bn.<\/p>\n

The company returned approximately $281m to shareholders during the year through dividends and share buybacks.<\/p>\n

Around 6.8 million shares were repurchased for roughly $150m, reducing outstanding shares by approximately 2.3%. <\/p>\n

Dividends declared reached $33m for the final quarter and totalled $131m for the full year.<\/p>\n

Looking forward to 2026, Graphic Packaging projects net sales between $8.4bn and $8.6bn, adjusted EBITDA within a range of $1.05bn to $1.25bn, and adjusted earnings per share between $0.75 and $1.15.<\/p>\n

Graphic Packaging president and CEO Robbert Rietbroek, who took on the roles last\u00a0month<\/a>, said: \u201cConsumer affordability created a challenging market for our customers, and competitive pressure remains a near-term headwind. <\/p>\n

\u201cAs we move into 2026, our priorities are clear: drive operational excellence; deliver exceptional customer service; improve our cost structure; and drive substantial free cash flow to strengthen the balance sheet and return capital to shareholders.<\/p>\n

\u201cI have initiated a comprehensive review of our organisation structure, operations, and footprint, and a selective review of our portfolio to ensure that our resources are focused where we can create the greatest value for our shareholders.\u201d<\/p>\n

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