Greif Reports Lower Net Income Despite EBITDA Growth in Fiscal Q2 2026

Greif Inc. reported a decline in net income for its fiscal second quarter of 2026, while adjusted earnings and cash flow improved amid continued weak industrial demand.

Net income attributable to the company fell 32.3% year-on-year to $12.6 million, or $0.22 per diluted Class A share, compared with $18.6 million a year earlier. However, net income excluding adjustments increased 57.5% to $62.7 million, or $1.10 per share.

Quarterly net sales edged down slightly to $1.07 billion from $1.08 billion in the prior-year period. Gross profit remained broadly stable at $247.0 million, compared with $248.5 million a year earlier, while operating profit declined to $35.4 million from $60.7 million.

Adjusted EBITDA rose 7.5% to $156.8 million, and adjusted free cash flow increased significantly to $179.3 million. Net cash from operating activities totaled $116.6 million during the quarter.

The company’s balance sheet strengthened following earlier divestments. Total debt stood at $1.01 billion, with net debt reduced to $719.8 million. Greif’s leverage ratio improved to 1.1x, down from 3.3x in the prior year.

By segment, Customized Polymer Solutions generated net sales of $344.8 million, while Durable Metal Solutions reported $380.4 million. Sustainable Fiber Solutions posted lower sales of $321.8 million due to reduced volumes and divestment impacts, and Innovative Closure Solutions recorded $25.8 million in sales.

Chief executive Ole Rosgaard said the company delivered resilient performance despite subdued demand and ongoing geopolitical uncertainty, including impacts from the Middle East.

Looking ahead, Greif maintained a cautious outlook, guiding toward fiscal 2026 adjusted EBITDA of approximately $610 million and adjusted free cash flow of about $315 million, reflecting continued weak market conditions.