Greif — Fiscal 2026 Earnings Summary

Financial Performance

• Net loss for Q4 2026 decreased to $6.5 million ($0.11 per diluted Class A share) compared to a net loss of $24.3 million ($0.42 per diluted Class A share) in Q4 2025.
• Net income, excluding adjustments, for Q4 2026 increased 46.1% to $49.1 million ($0.87 per diluted Class A share) from $33.6 million ($0.58 per diluted Class A share) in Q4 2025.
• Adjusted EBITDA for Q4 2026 decreased 3.1% to $163.0 million from $168.2 million in Q4 2025; the decrease included an $18.2 million unfavorable timing impact from incentive accrual changes in the prior year.
• Net income for Fiscal 2026 increased to $261.5 million ($4.54 per diluted Class A share) from $31.6 million ($0.55 per diluted Class A share) in Fiscal 2025.
• Net income, excluding adjustments, for Fiscal 2026 increased 73.3% to $231.9 million ($4.04 per diluted Class A share) from $133.8 million ($2.31 per diluted Class A share) in Fiscal 2025.
• Adjusted EBITDA for Fiscal 2026 increased 11.7% to $625.7 million from $560.0 million in Fiscal 2025.
• Net cash provided by operating activities for Q4 2026 increased by $314.5 million to $126.0 million, compared to a source of $188.5 million in Q4 2025 (which included a $381.0 million unfavorable tax impact from the Containerboard Business sale).
• Adjusted free cash flow for Q4 2026 decreased by $89.4 million to $83.3 million; prior year results included contributions from the Containerboard Business.
• Net cash provided by operating activities for Fiscal 2026 increased by $198.4 million to $296.0 million, compared to $97.6 million in Fiscal 2025.
• Adjusted free cash flow for Fiscal 2026 decreased by $101.0 million to $279.3 million, below guidance, due to elevated inventory balances and higher resin costs.
• Total debt decreased by $106.2 million to $1,096.3 million, primarily due to debt repayment from the timberlands business sale.
• Net debt decreased by $144.9 million to $800.9 million.
• The leverage ratio decreased to 1.2x from 1.7x.
• Net sales for Q4 2026 were $1,143.6 million, up from $1,094.3 million in Q4 2025.
• Net sales for Fiscal 2026 were $4,376.8 million, up from $4,315.3 million in Fiscal 2025.

Guidance and Future Outlook

• Management provided low-end guidance for Fiscal 2027 due to a multi-year period of industrial contraction and no identified compelling demand inflection.
• Fiscal 2027 low-end guidance estimate for Adjusted EBITDA is $645 million.
• Fiscal 2027 low-end guidance estimate for Adjusted free cash flow is $290 million.
• Management stated they are well-positioned to grow earnings and cash flow even without a meaningful recovery in industrial demand.

Business Segments and Product Lines

• Customized Polymer Solutions: Net sales increased $39.2 million to $361.9 million; Adjusted EBITDA remained flat at $44.5 million.
• Durable Metal Solutions: Net sales increased $0.6 million to $392.5 million; Adjusted EBITDA decreased $0.8 million to $56.2 million.
• Sustainable Fiber Solutions: Net sales increased $4.9 million to $360.1 million; Operating profit decreased to a loss of $21.4 million due to impairment charges related to the Sweetwater mill closure and higher costs; Adjusted EBITDA decreased $9.5 million to $52.0 million.
• Innovative Closure Solutions: Net sales increased $4.6 million to $29.1 million; Adjusted EBITDA increased $5.1 million to $10.3 million.
• Announced strategic exit of the Coated Recycled Board business with the closure of the Sweetwater paperboard mill in Austell, GA.
• Segment reporting changes effective October 1, 2025: Integrated Solutions renamed to Innovative Closure Solutions; recycled fiber and adhesive activities moved to Sustainable Fiber Solutions; complementary packaging products for steel moved to Durable Metal Solutions.

Market and Competitive Landscape

• Markets have experienced a multi-year period of industrial contraction.
• No compelling demand inflection has been identified on the horizon.
• Management noted continued weakness in global industrial markets.

Risks and Challenges

• Elevated inventory balances and higher resin costs impacted adjusted free cash flow.
• Middle East supply disruptions influenced strategic decisions to ensure continuity of supply.
• Current quarter results included $36.5 million in non-cash asset impairment charges, primarily related to the Sweetwater mill closure.
• Tax rate for Q4 2026 was 118.6% (excluding adjustments: 42.2%); full-year tax rate was 28.0% (excluding adjustments: 28.1%).

Management Commentary and Tone

• CEO Ole Rosgaard stated the company delivered a strong fiscal 2026, growing adjusted EBITDA by nearly 12% despite market weakness.
• Management emphasized performance reflects business strength and profitability actions rather than market recovery.
• CEO highlighted the achievement of $105 million in annual run-rate cost savings, exceeding the original $100 million commitment one year ahead of schedule.
• Management expressed confidence to increase the cost optimization target to $150 million by the end of fiscal 2027.

Other Key Points

• Divestment of the Containerboard Business (including CorrChoice) to Packaging Corporation of America for $1.8 billion closed on August 31, 2025; results reported as discontinued operations.
• Fiscal year-end changed from October 31 to September 30 effective fiscal 2025; prior-year comparative information was recast.
• Announced expanded total cost optimization commitment to $150 million cumulative run-rate savings by the end of fiscal 2027.
• Board declared quarterly cash dividends of $0.62 per Class A share and $0.93 per Class B share on August 25, 2026, totaling approximately $35.1 million.
• Share repurchases of $75.1 million occurred in Q4 2026 and $225.2 million in Fiscal 2026.
• Conference call scheduled for November 4, 2026, at 8:00 a.m. ET.