Nov. 3, 2026 - Graphic Packaging Holding Company (NYSE: GPK) today reported third quarter 2026 results.
Net Sales in third quarter 2026 were $2,192 million, versus $2,190 million in third quarter 2025. Net Income was $22 million, or $0.07 per diluted share, versus Net Income of $142 million, or $0.48 per diluted share in third quarter 2025. Third quarter 2026 and 2025 Net Income were impacted by net charges from non-recurring and special items and amortization of purchased intangibles of $45 million and $30 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the third quarter of 2026 was $67 million, or $0.23 per diluted share, and $172 million, or $0.58 per diluted share in third quarter 2025.
President and CEO Robbert Rietbroek commented, "In the third quarter, we demonstrated progress on our near-term strategic priorities. We drove year-over-year revenue and volume growth and for the second consecutive quarter, expanded Adjusted EBITDA margin sequentially. Our strong relative performance despite elevated inflation reflects the resilience of our business and the benefits of our structural cost reduction and productivity initiatives. Importantly, these actions have created positive operating leverage and better position us to capture benefits from our commercial excellence initiatives and price improvements in the fourth quarter and into 2027. Our decisive actions to enhance and optimize the business this year support continued margin improvement, strong cash flow generation, and a return to EBITDA growth next year."
"Since the beginning of the year, we have strengthened our leadership team, sharpened our focus on commercial and operational excellence and delivered structural cost reductions and productivity improvements. I am proud of what our team has accomplished in a short period of time and the alignment we are creating between our strategy, investments and the most attractive market opportunities. We remain focused on delivering profitable growth, generating sustained cash flow and creating long-term value for shareholders."
Third quarter 2026 Net Sales increased to $2,192 million, versus $2,190 million in the same quarter last year. The $2 million increase in Net Sales was driven by a 1% increase, or $19 million, in volume/mix, partially offset by a 1% decrease, or $15 million, of price and $2 million of unfavorable foreign exchange/other impact. Innovation Sales Growth in the second quarter was $42 million.
Third quarter 2026 EBITDA decreased 30% to $254 million from $361 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $289 million versus $383 million in the same quarter last year. The $94 million decline in Adjusted EBITDA was driven by $83 million of increased commodity input and operating cost inflation, $15 million of unfavorable price impact, $3 million of lower volume/mix, partially offset by positive $2 million of Net Performance and $5 million of favorable foreign exchange. Third quarter Adjusted EBITDA Margin was 13.2% in 2026, down from 17.5% in the third quarter of 2025.
Total Debt (Long-Term, Short-Term and Current Portion) was $5,520 million in third quarter 2026 compared to $5,592 million in fourth quarter 2025 and $5,688 million in second quarter 2026. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,183 million in third quarter 2026, a decline of $148 million and $300 million, as compared to $5,331 million in fourth quarter 2025 and $5,483 million in second quarter 2026. The Company's third quarter 2026 Net Leverage Ratio was 4.8x compared to 3.8x in fourth quarter 2025.
Capital expenditures in third quarter 2026 were $64 million, versus $267 million in the same quarter last year.The Company returned approximately $98 million to stockholders during the first nine months of 2026 through regular dividends.
The Company expects 2026 Net Sales, Adjusted EBITDA, and Adjusted EPS of approximately $8.6 billion, $1.05 billion, and $0.65, respectively.
The Company continues to expect 2026 Adjusted Cash Flow in the range of $600 million to $700 million, and 2026 capital spending below $450 million.
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. The company 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