Greif Delivers Strong Fiscal 2026 Performance, Achieves 11.7% Adjusted EBITDA Growth and Accelerates Cost Optimization

Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced its fourth-quarter and full-year fiscal 2026 financial results, reporting solid annual earnings growth, improved financial flexibility and significant progress on its strategic transformation initiatives.

For fiscal 2026, Greif delivered Adjusted EBITDA of $625.7 million, an increase of 11.7% compared with $560.0 million in fiscal 2025. Net income increased to $261.5 million, while adjusted net income rose 73.3% to $231.9 million.

The company's performance reflects the benefits of operational improvements, disciplined cost management, portfolio optimization and stronger contributions from key business segments, despite continued weakness in global industrial markets.

Fiscal 2026 Financial Highlights

• Net sales: $4.38 billion, compared with $4.32 billion in fiscal 2025.

• Adjusted EBITDA: $625.7 million, up 11.7% year over year.

• Net income: $261.5 million, compared with $31.6 million in the prior year.

• Adjusted net income: $231.9 million, an increase of 73.3%.

• Adjusted diluted earnings per Class A share: $4.04, compared with $2.31 in fiscal 2025.

• Net cash provided by operating activities: $296.0 million, compared with $97.6 million.

• Adjusted free cash flow: $279.3 million.

• Net debt: Reduced by $144.9 million to $800.9 million.

• Leverage ratio: Improved to 1.2x from 1.7x.

Fourth Quarter 2026 Performance

For the fourth quarter ended September 30, 2026, Greif reported net sales of $1.14 billion, compared with $1.09 billion in the corresponding prior-year period.

Adjusted EBITDA was $163.0 million, compared with $168.2 million in the fourth quarter of fiscal 2025, reflecting a 3.1% decrease. The current quarter's results were also impacted by an $18.2 million unfavorable comparison related to the timing of incentive accrual changes in the prior-year quarter.

Net loss attributable to Greif was $6.5 million, or $0.11 per diluted Class A share, compared with a net loss of $24.3 million, or $0.42 per diluted Class A share, in the prior-year quarter.

Excluding the impact of adjustments, net income increased 46.1% to $49.1 million, or $0.87 per diluted Class A share.

Net cash provided by operating activities reached $126.0 million during the quarter. Adjusted free cash flow was $83.3 million.

Segment Performance

Greif's four reportable business segments delivered varied results during the fourth quarter, reflecting pricing trends, product mix, cost pressures and operational performance.

Customized Polymer Solutions

Net sales increased 12.2% to $361.9 million, compared with $322.7 million in the prior-year quarter. Adjusted EBITDA remained stable at $44.5 million. Higher average selling prices, recent acquisitions and favorable foreign currency impacts supported revenue growth, partially offset by lower volumes.

Durable Metal Solutions

Net sales increased to $392.5 million from $391.9 million. Adjusted EBITDA was $56.2 million, compared with $57.0 million in the prior-year quarter. Higher average selling prices and favorable currency impacts supported performance, while lower volumes and higher selling, general and administrative expenses affected profitability.

Sustainable Fiber Solutions

Net sales increased to $360.1 million from $355.2 million. Adjusted EBITDA declined to $52.0 million from $61.5 million, primarily reflecting higher raw material and manufacturing costs and corporate expenses. Operating results also included impairment charges associated primarily with the closure of the Sweetwater paperboard mill.

Innovative Closure Solutions

Net sales increased 18.8% to $29.1 million, compared with $24.5 million in the prior-year quarter. Adjusted EBITDA nearly doubled to $10.3 million from $5.2 million, supported primarily by higher average selling prices.

Strategic Portfolio Optimization and Cost Savings

Greif continued to advance its strategic portfolio optimization program, focusing on businesses with leading market positions and attractive long-term growth opportunities.

During the year, the company announced its strategic exit from the Coated Recycled Board business through the closure of its Sweetwater paperboard mill in Austell, Georgia. The decision reflects Greif's focus on strengthening its remaining Fiber operations and improving overall business efficiency and profitability.

The company also achieved a significant milestone in its cost optimization program, delivering $105 million in cumulative annualized run-rate savings by the end of fiscal 2026, exceeding its original $100 million three-year commitment one year ahead of schedule.

Building on this progress, Greif has increased its cumulative cost optimization target to $150 million by the end of fiscal 2027, demonstrating its continued commitment to operational excellence and sustainable profitability.

Management Commentary

Ole Rosgaard, Chief Executive Officer of Greif, commented:

"We delivered a strong fiscal 2026, growing adjusted EBITDA by nearly 12% despite continued weakness in global industrial markets. Our performance reflects the strength of our businesses and the actions our teams are taking to improve profitability, rather than relying on a market recovery.

"We achieved $105 million in annual run-rate cost savings, exceeding our original commitment a year ahead of schedule. This success gives us the confidence to increase our original cost optimization target by 50% to $150 million by the end of fiscal 2027.

"Our sharpened portfolio is focused on core businesses where we hold leading market positions and see attractive opportunities for profitable growth. With a lower cost base, stronger balance sheet and further improvements ahead, we are well positioned to grow earnings, increase cash flow and deliver lasting value to our shareholders, even without a meaningful recovery in industrial demand."

Stronger Balance Sheet and Improved Financial Flexibility

Greif continued to strengthen its financial position during fiscal 2026 through debt reduction and disciplined capital allocation.

Total debt declined by $106.2 million to $1.10 billion, while net debt decreased by $144.9 million to $800.9 million, primarily reflecting debt repayment following the sale of the company's timberlands business.

The company's leverage ratio improved to 1.2x from 1.7x in the prior year.

These improvements provide Greif with enhanced financial flexibility to support its strategic priorities, invest in operational improvements and pursue long-term shareholder value creation.

Fiscal 2027 Outlook

Looking ahead, Greif expects continued challenging conditions across global industrial markets, following a prolonged period of industrial contraction.

While the company remains positioned to benefit from an eventual recovery in industrial demand, management is maintaining a disciplined approach to financial guidance based on current market conditions, pricing and cost factors.

For fiscal 2027, Greif is providing the following low-end guidance:

• Adjusted EBITDA: $645 million.

• Adjusted free cash flow: $290 million.

The company will continue prioritizing cost optimization, operational efficiency, portfolio discipline, cash generation and balance sheet strength.