Quarterly ResultMay 5, 2026, 08:07 AM
Graphic Packaging Q1 Net Sales $2.16B; Net Loss $(43)M; Reaffirms 2026 Guidance
AI Summary
Graphic Packaging Holding Company reported first quarter 2026 financial results, with Net Sales increasing 2% to $2,156 million. However, the company posted a Net Loss of $(43) million, a significant decline from Net Income of $127 million in the prior year, primarily due to non-recurring and special items. The company completed a 90-day business review, implementing cost reduction initiatives including a workforce reduction of over 500 roles and identifying $200 million in capital avoidance. Despite the net loss, Graphic Packaging reaffirmed its full-year 2026 guidance for Net Sales, Adjusted EBITDA, Adjusted EPS, and Adjusted Cash Flow.
Key Highlights
- Net Sales increased 2% to $2,156 million in Q1 2026 from $2,120 million in Q1 2025.
- Net Loss was $(43) million, or $(0.14) per diluted share, compared to Net Income of $127 million, or $0.42 per diluted share in Q1 2025.
- Adjusted Net Income decreased to $28 million ($0.09 per diluted share) from $154 million ($0.51 per diluted share) year-over-year.
- Reduced inventory by $48 million during the quarter and streamlined the organization by over 500 roles.
- Identified over $200 million in capital avoidance and reaffirmed 2026 capital spending guidance of $450 million.
- Reaffirmed full year 2026 guidance: Net Sales $8.4B-$8.6B, Adjusted EBITDA $1.05B-$1.25B, Adjusted EPS $0.75-$1.15.
- Adjusted Cash Flow guidance reaffirmed at $700 million to $800 million for full year 2026.
- Net Leverage Ratio increased to 4.4x in Q1 2026 from 3.8x in Q4 2025.