Graphic Packaging Holding Company Reports First Quarter 2026 Results and Strategic Progress

Graphic Packaging Holding Company today announced its financial results for the first quarter of 2026, highlighting continued progress on strategic priorities, operational execution, and innovation-driven growth.

First Quarter 2026 Financial Highlights

Graphic Packaging reported first quarter net sales of $2.2 billion, representing a 2% year-over-year increase, driven by a 1% improvement in volume and favorable foreign exchange impacts.

Adjusted EBITDA for the quarter was $232 million, with an adjusted EBITDA margin of 10.8%, reflecting ongoing margin pressure from temporary pricing dislocation and inflationary costs.

The company reported a net loss of $43 million and adjusted earnings per share of $0.09, compared to $0.51 in the prior year period. Adjusted cash flow was a use of $183 million, consistent with seasonal trends but improved significantly year-over-year.

Strategic Actions and Operational Improvements

During the quarter, the company executed a series of decisive actions following its 90-day business review. These included:

• Agreement to divest non-core assets in Croatia

• Workforce optimization and commercial realignment

• Commitment to deliver $60 million in cost reductions in 2026

• Cancellation of low-return capital projects

• Deployment of AI to improve procurement and inventory management

• Expansion of renewable energy initiatives through a virtual power purchase agreement

These initiatives reinforce the company’s focus on improving operational efficiency, enhancing profitability, and strengthening its core business in North America and Europe.

Innovation and Customer Partnerships Driving Growth

Graphic Packaging continues to leverage innovation and strong customer relationships to drive organic growth. During the quarter, the company:

• Expanded private label packaging using 100% recycled paperboard

• Developed premium packaging solutions for global beverage brands

• Partnered with emerging brands to replace plastic with paperboard multipacks

The company estimates a $15 billion addressable market opportunity in paperboard packaging, with significant potential driven by sustainability trends and plastic replacement initiatives.

Operational Execution and Capacity Expansion

Operationally, the company made strong progress ramping up its Waco facility, with customer qualifications ahead of plan and improved geographic reach. Additionally, Graphic Packaging supported major customer promotions tied to global events, demonstrating agility in meeting time-sensitive demand.

2026 Outlook Reaffirmed

Graphic Packaging reaffirmed its full-year 2026 guidance, including:

• Net Sales: $8.4 billion to $8.6 billion

• Adjusted EBITDA: $1.05 billion to $1.25 billion

• Adjusted Cash Flow: $700 million to $800 million

• Adjusted EPS: $0.75 to $1.15

• Capital Spending: approximately $450 million

The company remains focused on generating strong cash flow, reducing debt, and returning capital to shareholders through a sustained dividend.

Management Commentary

“Our first quarter results reflect both near-term market challenges and the decisive actions we are taking to improve performance,” said Robbert Rietbroek, President and Chief Executive Officer. “We are confident in our strategy, the strength of our customer partnerships, and our ability to deliver long-term value through innovation, operational excellence, and disciplined capital allocation.”