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Greif Reports Fourth Quarter and Fiscal 2026 Results

GEFGEF.BGEF-B
  • Greif, Inc. reported a net loss of $6.5 million ($0.11 per diluted Class A share) for the fourth quarter of fiscal 2026, compared to a net loss of $24.3 million in the prior year quarter.
  • Net income excluding adjustments for the fourth quarter increased 46.1% to $49.1 million ($0.87 per diluted share), while Adjusted EBITDA decreased 3.1% to $163.0 million.
  • For the full fiscal year 2026, net income rose to $261.5 million ($4.54 per diluted share), and Adjusted EBITDA grew 11.7% to $625.7 million.
  • Net cash provided by operating activities for the fiscal year increased by $198.4 million to $296.0 million, driven by the absence of the unfavorable tax impact from the Containerboard Business sale that occurred in the prior year.
  • Adjusted free cash flow for fiscal 2026 decreased by $101.0 million to $279.3 million, primarily due to elevated inventory balances and higher resin costs related to supply continuity amid Middle East disruptions.
  • Total debt decreased by $106.2 million to $1,096.3 million, resulting in a net debt reduction of $144.9 million to $800.9 million and a leverage ratio improvement to 1.2x from 1.7x.
  • The company announced a strategic exit from the Coated Recycled Board business with the closure of its Sweetwater paperboard mill in Austell, GA, to strengthen its remaining Fiber operations.
  • Greif achieved $105 million in cumulative run-rate cost optimizations by the end of fiscal 2026, exceeding its original three-year commitment one year early.
  • The company expanded its total cost optimization commitment to $150 million in cumulative run-rate savings by the end of fiscal 2027.
  • Fiscal 2027 low-end guidance estimates project Adjusted EBITDA of $645 million and Adjusted free cash flow of $290 million.
  • The Board declared quarterly cash dividends of $0.62 per Class A share and $0.93 per Class B share, totaling approximately $35.1 million.
  • The Containerboard Business was divested to Packaging Corporation of America for $1.8 billion on August 31, 2025, with results reported as discontinued operations starting in the third quarter of fiscal 2025.
  • Greif changed its fiscal year-end from October 31 to September 30 effective fiscal 2025, requiring prior-year comparative information to be recast.
  • Segment results showed net sales increases across Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions, and Innovative Closure Solutions, driven primarily by higher selling prices.
  • Sustainable Fiber Solutions reported an operating loss of $21.4 million for the quarter, impacted by higher raw material costs and impairment charges related to the Sweetwater mill closure.