Graphic Packaging Reports Third Quarter 2026 Results, Delivers Sequential Margin Expansion and Strong Cash Flow Generation

Graphic Packaging Holding Company (NYSE: GPK), a global leader in sustainable consumer packaging, today announced its financial results for the third quarter ended September 30, 2026, reporting stable year-over-year revenue, increased sales volumes and continued progress in its strategic initiatives to strengthen operating performance and profitability.

The company reported third-quarter net sales of $2.19 billion, compared with $2.19 billion in the prior-year period, supported by 1% volume growth. Net income was $22 million, or $0.07 per diluted share, while Adjusted EBITDA totaled $289 million.

The company achieved sequential expansion in Adjusted EBITDA margin for the second consecutive quarter, reflecting the benefits of structural cost reduction initiatives, productivity improvements and stronger operational execution.

Third Quarter 2026 Financial Highlights

• Net sales: $2,192 million, compared with $2,190 million in Q3 2025.

• Net income: $22 million, or $0.07 per diluted share.

• Adjusted net income: $67 million, or $0.23 per diluted share.

• Adjusted EBITDA: $289 million, compared with $383 million in the prior-year quarter.

• Adjusted EBITDA margin: 13.2%, compared with 17.5% in Q3 2025, with sequential improvement for the second consecutive quarter.

• Sales volumes: Increased 1% year over year.

• Net cash provided by operating activities: $295 million for the first nine months of 2026.

• Adjusted Cash Flow: $314 million for the first nine months of 2026, an improvement of $646 million compared with the prior-year period.

Financial and Operating Performance

Graphic Packaging reported third-quarter net sales of $2,192 million, representing a slight increase from $2,190 million in the corresponding quarter of 2025.

The increase was primarily driven by a 1% improvement in volume and mix, contributing $19 million, partially offset by a $15 million unfavorable impact from pricing and $2 million from foreign exchange and other factors.

EBITDA for the quarter was $254 million, compared with $361 million in the prior-year period. Adjusted EBITDA was $289 million, compared with $383 million in the third quarter of 2025.

The decline in Adjusted EBITDA primarily reflected $83 million of higher commodity input and operating cost inflation, $15 million of unfavorable pricing and $3 million of lower volume and mix. These impacts were partially offset by $2 million of positive net performance and $5 million of favorable foreign exchange.

Despite the year-over-year cost pressures, the company continued to improve its sequential operating performance, with Adjusted EBITDA margin expanding for the second consecutive quarter.

Strong Cash Flow Generation and Debt Reduction

Graphic Packaging delivered a significant improvement in cash flow generation during the first nine months of 2026.

Net cash provided by operating activities totaled $295 million, while Adjusted Cash Flow reached $314 million, representing a $646 million improvement compared with negative $332 million in the corresponding period of 2025.

The improved cash generation supported the company's debt reduction efforts.

At September 30, 2026, total debt stood at $5,520 million, compared with $5,592 million at the end of the fourth quarter of 2025.

Net debt declined to $5,183 million, representing a reduction of $148 million from year-end 2025 and $300 million compared with the second quarter of 2026.

The company also reported capital expenditures of $64 million during the third quarter, compared with $267 million in the prior-year quarter.

During the first nine months of 2026, Graphic Packaging returned approximately $98 million to shareholders through regular dividends.

Management Commentary

Robbert Rietbroek, President and Chief Executive Officer of Graphic Packaging, commented:

"In the third quarter, we demonstrated progress on our near-term strategic priorities. We drove year-over-year revenue and volume growth and for the second consecutive quarter, expanded Adjusted EBITDA margin sequentially. Our strong relative performance despite elevated inflation reflects the resilience of our business and the benefits of our structural cost reduction and productivity initiatives.

"Importantly, these actions have created positive operating leverage and better position us to capture benefits from our commercial excellence initiatives and price improvements in the fourth quarter and into 2027. Our decisive actions to enhance and optimize the business this year support continued margin improvement, strong cash flow generation, and a return to EBITDA growth next year."

He further added:

"Since the beginning of the year, we have strengthened our leadership team, sharpened our focus on commercial and operational excellence and delivered structural cost reductions and productivity improvements. I am proud of what our team has accomplished in a short period of time and the alignment we are creating between our strategy, investments and the most attractive market opportunities.

"We remain focused on delivering profitable growth, generating sustained cash flow and creating long-term value for shareholders."

Strategic Priorities and Operational Improvements

Graphic Packaging continues to execute its strategic priorities, emphasizing commercial excellence, operational efficiency and structural cost reductions.

The company has strengthened its leadership team and intensified its focus on improving productivity, optimizing manufacturing operations and aligning investments with attractive market opportunities.

These initiatives are intended to support improved operating leverage, strengthen margins and position the business to benefit from future pricing improvements and a recovery in market demand.

Management expects the benefits of these initiatives to contribute to continued margin improvement and a return to Adjusted EBITDA growth in 2027.

Full-Year 2026 Outlook Reaffirmed

Graphic Packaging reaffirmed its full-year 2026 financial expectations, reflecting continued focus on operating improvements, cash generation and disciplined capital allocation.

The company currently expects:

• Net sales: Approximately $8.6 billion.

• Adjusted EBITDA: Approximately $1.05 billion.

• Adjusted earnings per share: Approximately $0.65.

• Adjusted Cash Flow: $600 million to $700 million.

• Capital expenditures: Below $450 million.

The company remains focused on delivering its financial objectives through structural cost reductions, productivity improvements, commercial excellence and continued operational discipline.