"First quarter results were strong relative to expectations as we delivered towards the high end of our guidance, driven by the hard work of our talented global team and their disciplined execution." – Robbert Rietbroek, President and CEO, Graphic Packaging Holding Company.
May 5, 2026- Graphic Packaging Holding Company today reported first quarter 2026 results.
Net Sales in first quarter 2026 were $2,156 million, versus $2,120 million in first quarter 2025. Net Loss in first quarter 2026 was ($43) million, or $(0.14) per diluted share, versus Net Income of $127 million, or $0.42 per diluted share in first quarter 2025. First quarter 2026 and 2025 Net (Loss) Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $71 million and $27 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the first quarter of 2026 was $28 million, or $0.09 per diluted share, and $154 million, or $0.51 per diluted share in first quarter 2025.
"First quarter results were strong relative to expectations as we delivered towards the high end of our guidance, driven by the hard work of our talented global team and their disciplined execution," said Robbert Rietbroek, President and Chief Executive Officer. "Our year-over-year improvement in volume and net sales demonstrated the resilience of our business as we successfully navigated weather and other external disruptions to our operations. We also effectively managed the business to mitigate the incremental inflation in the quarter, supporting bottom-line performance."
"We completed our 90-day business review and are taking decisive actions to optimize our operational footprint, reduce structural costs, and impose greater discipline across capital and operating decisions. These actions are already reshaping the business.
"Looking ahead, we are focused on delivering on our commitments including expanding margins, accelerating free cash flow, strengthening the balance sheet, and deploying capital with rigor — while continuing to drive operational excellence and serve customers through innovation, service, and sustainable packaging solutions that support our growth in partnership with our customers."
Following the comprehensive 90-day business review, the Company has identified actions to drive improvements in profitability and overall performance of the business.
First quarter 2026 Net Sales increased 2% to $2,156 million, versus $2,120 million in the same quarter last year. The $36 million increase was driven by a 1% increase, or $18 million, in higher volumes and a $50 million favorable foreign exchange impact, partially offset by a 2% decrease, or $32 million, in price. Innovation Sales Growth in the first quarter was $42 million.
First quarter 2026 EBITDA decreased 55% to $159 million from $353 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $232 million versus $365 million in the same quarter last year. The $133 million decline in Adjusted EBITDA was driven by the impact of unfavorable Net Performance of $56 million, lower price, volume, and mix of $46 million, as well as input and other cost inflation of $37 million, partially offset by a foreign exchange benefit of $6 million. First quarter Adjusted EBITDA Margin was 10.8% in 2026, and 17.2% in 2025.
Total Debt (Long-Term, Short-Term and Current Portion) was $5,772 million in first quarter 2026 compared to $5,592 million in fourth quarter 2025. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,583 million in first quarter 2026 compared to $5,331 million in fourth quarter 2025. The Company's first quarter 2026 Net Leverage Ratio was 4.4x compared to 3.8x in fourth quarter 2025.
Capital expenditures in first quarter 2026 were $140 million, versus $313 million in the same quarter last year.
The Company returned approximately $32 million to stockholders during the first three months of 2026 through regular dividends.
The Company is reiterating 2026 Net Sales, Adjusted EBITDA, and Adjusted EPS guidance of $8.4 billion to $8.6 billion, $1.05 billion to $1.25 billion, and $0.75 to $1.15, respectively.
The Company continues to expect 2026 Adjusted Cash Flow in the range of $700 million to $800 million, and 2026 capital spending of approximately $450 million.
Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products.
SOURCE: Graphic Packaging Holding Company