Graphic Packaging Holding Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net Sales for Q3 2026 were $2,192 million, up 1% year-over-year from $2,190 million in Q3 2025, driven by a 1% volume/mix increase ($19 million) partially offset by a 1% price decrease ($15 million) and $2 million in unfavorable foreign exchange.
• Net Income was $22 million ($0.07 per diluted share) in Q3 2026, compared to $142 million ($0.48 per diluted share) in Q3 2025; Adjusted Net Income was $67 million ($0.23 per diluted share) versus $172 million ($0.58 per diluted share) in the prior year.
• EBITDA decreased 30% to $254 million in Q3 2026 from $361 million in Q3 2025; Adjusted EBITDA was $289 million, down from $383 million in the prior year.
• Adjusted EBITDA margin was 13.2% in Q3 2026, down from 17.5% in Q3 2025, though it expanded sequentially for the second consecutive quarter.
• Year-to-date September 2026 Net Cash Provided by Operating Activities was $295 million; Adjusted Cash Flow was $314 million, an increase of $646 million compared to the first nine months of 2025.
• Total Debt was $5,520 million in Q3 2026, down from $5,592 million in Q4 2025 and $5,688 million in Q2 2026; Net Debt was $5,183 million, a decline of $148 million from Q4 2025.
• Net Leverage Ratio was 4.8x in Q3 2026, compared to 3.8x in Q4 2025.
• Capital expenditures were $64 million in Q3 2026, down from $267 million in the same quarter last year; year-to-date capital spending was $287 million.

Guidance and Future Outlook:

• Full-year 2026 Net Sales guidance is approximately $8.6 billion; Adjusted EBITDA is approximately $1.05 billion; Adjusted EPS is approximately $0.65.
• Full-year 2026 Adjusted Cash Flow is reaffirmed in the range of $600 million to $700 million, an increase from $169 million in 2025.
• Full-year 2026 capital spending is expected to be below $450 million.
• Management anticipates capturing benefits from commercial excellence initiatives and price improvements in Q4 2026 and into 2027.
• Management expects continued margin improvement and a return to EBITDA growth in 2027.

Business Segments and Product Lines:

• Innovation Sales Growth was $42 million in the second quarter of 2026.
• The 1% decline in price was a key factor impacting Adjusted EBITDA, alongside $83 million in increased commodity input and operating cost inflation.
• Net Performance contributed a positive $2 million to Adjusted EBITDA in Q3 2026.

Market and Competitive Landscape:

• The company demonstrated resilience against elevated inflation through structural cost reduction and productivity initiatives.
• The business operates a global network of design and manufacturing facilities serving food, beverage, foodservice, household, and other consumer product brands.

Risks and Challenges:

• Risks include inflation and volatility in raw material and energy costs, pressure for lower-cost products, and currency movements.
• Challenges include the ability to implement business strategies, productivity initiatives, and cost reduction plans.
• Potential risks involve debt levels, regulatory and litigation matters, and the availability of U.S. federal income tax attributes.

Management Commentary and Tone:

• President and CEO Robbert Rietbroek stated the company demonstrated progress on near-term strategic priorities, driving revenue and volume growth.
• Management highlighted that decisive actions to enhance and optimize the business support continued margin improvement, strong cash flow generation, and a return to EBITDA growth next year.
• Leadership noted the strengthening of the leadership team and sharpened focus on commercial and operational excellence since the beginning of the year.

Other Key Points:

• The Company returned approximately $98 million to stockholders during the first nine months of 2026 through regular dividends.
• Net Income for the first nine months of 2026 was $3 million, compared to $373 million in the same period in 2025, impacted by $105 million in non-recurring and special items and amortization of purchased intangibles.
• The company retired $400 million of long-term debt in the first nine months of 2026.
• No share repurchases were made in the first nine months of 2026, compared to $150 million in the same period in 2025.
• A conference call to discuss results was scheduled for November 3, 2026, at 10:00 a.m. ET.