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Graphic Packaging Holding Company (GPK) Q2 2026 Earnings Call August 4, 2026 10:00 AM EDT

Company Participants

Melanie Skijus - Vice President of Investor Relations
Robbert Rietbroek - President, CEO & Director
Charles Lischer - Senior VP, Chief Accounting Officer & Interim CFO

Conference Call Participants

Anthony Pettinari - Citigroup Inc., Research Division
Mark Weintraub - Seaport Research Partners
Detlef Winckelmann - JPMorgan Chase & Co, Research Division
Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division
Gabe Hajde - Wells Fargo Securities, LLC, Research Division
Hillary Cacanando - Deutsche Bank AG, Research Division
George Staphos - BofA Securities, Research Division
Philip Ng - Jefferies LLC, Research Division
Matthew Roberts - Raymond James & Associates, Inc., Research Division

Presentation

Operator

Greetings. Welcome to the Graphic Packaging Holding Company's Second Quarter 2026 Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Melanie Skijus, Vice President, Investor Relations. You may begin.

Melanie Skijus
Vice President of Investor Relations

Good morning. Thank you for joining Graphic Packaging's Second Quarter 2026 Earnings Results Conference Call. Today's presentation will include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to the factors identified in today's press release and in our SEC filings.

We have with us today Robbert Rietbroek, President and Chief Executive Officer; and Chuck Lischer, Senior Vice President and Interim Chief Financial Officer. During this call, we will reference our second quarter 2026 earnings presentation that can be found in the Investor Relations section of our website at www.graphicpkg.com and company-directed slides if you are participating today through the webcast.

Now let me

Net Sales were $2,188 million; Innovation Sales Growth added $40 million. Net Income of $24 million; Adjusted EBITDA of $247 million, strong execution despite elevated inflation. Structural cost actions expected to generate approximately $85 million of in-year savings, partially offsetting full-year 2026 expected inflation of $150 million. On track to achieve full-year 2026 Net Sales at the high end of guidance range, while Adjusted EBITDA is expected at the low end of guidance range due to the heightened inflationary environment; Adjusted EPS range lowered to reflect higher interest expense and Adjusted Cash Flow guidance updated to $600 million to $700 million. , /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported second quarter 2026 results.

Net Sales in second quarter 2026 were $2,188 million, versus $2,204 million in second quarter 2025. Net Income in second quarter 2026 was $24 million, or $0.08 per diluted share, versus Net Income of $104 million, or $0.34 per diluted share in second quarter 2025. Second quarter 2026 and 2025 Net Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $17 million and $24 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the second quarter of 2026 was $41 million, or $0.14 per diluted share, and $128 million, or $0.42 per diluted share in second quarter 2025.

"We continued to execute against our near-term strategic priorities and delivered solid second quarter performance, with Adjusted EBITDA at the top of our guidance range despite greater than anticipated inflation," said Robbert Rietbroek, President and Chief Executive Officer. "Our business demonstrated resilience, with both sales and volumes increasing in the first half of 2026 compared with the same period in 2025. We are beginning to realize the benefits of our productivity initiatives, disciplined cost management, and improving operational efficiencies, which helped mitigate higher than expected inflationary pressures in the quarter. As a result, we achieved 50 basis points of sequential Adjusted EBITDA margin expansion in the second quarter relative to the first quarter."

"In response to incremental inflation, we implemented additional productivity, cost reduction, and pricing initiatives. The combination of these recent actions and our disciplined execution against strategic priorities positions us to drive continued sequential profitability and margin improvement in the second half of 2026 and provides positive momentum into next year."

Financial and Operating Results

Net Sales

Second quarter 2026 Net Sales decreased 1% to $2,188 million, versus $2,204 million in the same quarter last year. The $16 million decline was driven by a 1% decrease, or $27 million, in price, flat, or $2 million decrease, in volume/mix, partially offset by a $13 million favorable foreign exchange/other impact. Innovation Sales Growth in the second quarter was $40 million.

EBITDA

Second quarter 2026 EBITDA decreased 26% to $240 million from $323 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $247 million versus $336 million in the same quarter last year. The $89 million decline in Adjusted EBITDA was driven by the impact of commodity input and operating cost inflation of $60 million, lower price of $27 million, lower volume/mix of $8 million, as well as an unfavorable foreign exchange impact of $3 million, partially offset by positive Net Performance of $9 million. Second quarter Adjusted EBITDA Margin was 11.3% in 2026, and 15.3% in 2025.

Other Results

Total Debt (Long-Term, Short-Term and Current Portion) was $5,688 million in second quarter 2026 compared to $5,592 million in fourth quarter 2025 and $5,772 million in the first quarter 2026. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,483 million in second quarter 2026 compared to $5,331 million in fourth quarter 2025 and $5,583 million in the first quarter 2026. The Company's second quarter 2026 Net Leverage Ratio was 4.7x compared to 3.8x in fourth quarter 2025.

Capital expenditures in second quarter 2026 were $83 million, versus $228 million in the same quarter last year.

The Company returned approximately $65 million to stockholders during the first six months of 2026 through regular dividends.

2026 Annual Guidance

The Company now expects 2026 Net Sales at the high-end of the range of $8.4 billion to $8.6 billion, Adjusted EBITDA at the low-end of the range of $1.05 billion to $1.25 billion, and Adjusted EPS in the range of $0.65 to $0.90.

The Company now expects 2026 Adjusted Cash Flow in the range of $600 million to $700 million, and 2026 capital spending below $450 million.

Optimizing Operations

Furthering our footprint optimization initiative, we completed the divestiture of our Croatia facility and announced plans to close our facility in Lebanon, Tennessee, to consolidate volumes across fewer facilities. Additionally, we notified employees of our intention to evaluate the potential closure of our site in Winsford, UK.

Innovation Sales Growth, Net Performance, and Non-GAAP Reconciliations

We define Innovation Sales Growth as incremental sales of a product that delivers a significant change in materials used, package functionality or design to a new or existing customer. We define Net Performance as the impact of cost and productivity initiatives, production efficiencies and/or disruptions and other operating impacts. A tabular reconciliation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Adjusted Net Cash Used in Operating Activities, Adjusted Cash Flow, Net Debt and Net Leverage is attached to this release.

Earnings Call

The Company will host a conference call at 10:00 a.m. ET today (August 4, 2026) to discuss the results of second quarter 2026. The conference call will be webcast and can be accessed from the Investors website at https://investors.graphicpkg.com. Participants may also listen via telephone by using the following dial-in numbers:

Toll-Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 266400

Investors: [email protected]
Media: [email protected] 

Forward Looking Statements

Any statements of the Company's expectations in this press release, including but not limited to savings resulting from structural cost actions in 2026, 2026 Net Sales, Adjusted EBITDA and Adjusted Earnings per Diluted Share, Adjusted Cash Flow guidance, and profitability and margin improvement in the second half of 2026 constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives, cost reduction plans, as well as the Company's debt level, currency movements and other risks of conducting business internationally, the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company's future U.S. federal income tax payments. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements, except as may be required by law. Additional information regarding these and other risks is contained in the Company's periodic filings with the Securities and Exchange Commission.

About Graphic Packaging Holding Company

Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com. 

Graphic Packaging Holding Company

Consolidated Statements of Operations

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

In millions, except per share amounts

2026

2025

2026

2025

Net Sales

$            2,188

$            2,204

$          4,344

$          4,324

Cost of Sales

1,896

1,784

3,746

3,459

Selling, General and Administrative

180

204

382

400

Other Expense, Net

11

10

25

26

Business Combinations, Exit Activities and Other Special Items, Net

6

13

77

25

Income from Operations

95

193

114

414

Nonoperating Pension and Postretirement Benefit Expense

(1)

(1)

(1)

(1)

Interest Expense, Net

(68)

(53)

(132)

(104)

Income (Loss) before Income Taxes

26

139

(19)

309

Income Tax Expense

(2)

(35)

—

(78)

Net Income (Loss)

$               24

$             104

$            (19)

$            231

Net Income (Loss) Per Share - Basic

$             0.08

$             0.35

$          (0.06)

$           0.77

Net Income (Loss) Per Share - Diluted

$             0.08

$             0.34

$          (0.06)

$           0.76

Weighted Average Number of Shares Outstanding - Basic

296.6

301.2

296.6

301.7

Weighted Average Number of Shares Outstanding - Diluted

296.7

301.6

296.6

302.4

Graphic Packaging Holding Company

Condensed Consolidated Balance Sheets

(Unaudited)

In millions, except share and per share amounts

June 30, 2026

December 31, 2025

Assets

Current Assets:

Cash and Cash Equivalents

$             205

$             261

Receivables, Net

888

760

Inventories, Net

1,691

1,766

Assets Held for Sale

8

10

Other Current Assets

220

126

Total Current Assets

3,012

2,923

Property, Plant and Equipment, Net

5,532

5,669

Goodwill

2,048

2,065

Intangible Assets, Net

626

670

Other Assets

442

448

Total Assets

$          11,660

$          11,775

Liabilities

Current Liabilities:

Short-Term Debt and Current Portion of Long-Term Debt

$             552

$             549

Accounts Payable

955

1,027

Liabilities Held for Sale

2

—

Other Accrued Liabilities

675

668

Total Current Liabilities

2,184

2,244

Long-Term Debt

5,115

5,022

Deferred Income Tax Liabilities

681

688

Other Noncurrent Liabilities

443

484

Shareholders' Equity

Preferred Stock, par value $0.01 per share; 100,000,000 shares authorized; no shares issued or
outstanding

—

—

Common Stock, par value $0.01 per share; 1,000,000,000 shares authorized; 296,054,676 and
295,128,049 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

3

3

Capital in Excess of Par Value

1,994

1,981

Retained Earnings

1,530

1,614

Accumulated Other Comprehensive Loss

(291)

(262)

Total Graphic Packaging Holding Company Shareholders' Equity

3,236

3,336

Noncontrolling Interest

1

1

Total Equity

3,237

3,337

Total Liabilities and Shareholders' Equity

$          11,660

$          11,775

Graphic Packaging Holding Company

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,

In millions

2026

2025

Cash Flows from Operating Activities:

Net (Loss) Income

$             (19)

$             231

Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities:

Depreciation and Amortization

284

261

Amortization of Deferred Debt Issuance Costs

3

3

Deferred Income Taxes

(7)

16

Amount of Postretirement Expense Less Than Funding

(1)

—

Share-Based Compensation Expense, Net

18

(1)

Asset Impairment Charges

53

—

Other, Net

(2)

(13)

Changes in Operating Assets and Liabilities

(284)

(404)

Net Cash Provided by Operating Activities

45

93

Cash Flows from Investing Activities:

Capital Spending

(223)

(541)

Acquisition of Businesses

—

(29)

Proceeds from the Sale of Business and Properties, Net of Cash and Cash Equivalents Sold

8

12

Beneficial Interest on Sold Receivables

240

110

Beneficial Interest Obtained in Exchange for Proceeds

(164)

(54)

Other, Net

6

(3)

Net Cash Used in Investing Activities

(133)

(505)

Cash Flows from Financing Activities:

Repurchase of Common Stock

—

(110)

Retirement of Long-Term Debt

(400)

—

Payments on Debt

(9)

(6)

Proceeds from Issuance of Debt

544

99

Borrowings under Revolving Credit Facilities

1,829

2,077

Payments on Revolving Credit Facilities

(1,847)

(1,599)

Repurchase of Common Stock related to Share-Based Payments

(4)

(32)

Debt Issuance Costs

(4)

(1)

Dividends Paid

(65)

(63)

Other, Net

(12)

(3)

Net Cash Provided by Financing Activities

32

362

Decrease in Cash and Cash Equivalents

(56)

(50)

Effect of Exchange Rate Changes on Cash

—

13

Net Decrease in Cash and Cash Equivalents

(56)

(37)

Cash and Cash Equivalents at Beginning of Period

261

157

Cash and Cash Equivalents at End of Period

$             205

$             120

Graphic Packaging Holding Company
Reconciliation of Non-GAAP Financial Measures

The tables below set forth the calculation of the Company's earnings before interest expense, income tax expense, depreciation and amortization, including pension amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, Net Leverage Ratio, and Total Net Debt. Adjusted EBITDA and Adjusted Net Income exclude charges associated with: the Company's business combinations, facility shutdowns, certain extended mill outages, sales of assets, non-recurring and other special items. The Company's management believes that the presentation of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio provides useful information to investors because these measures are regularly used by management in assessing the Company's performance. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), and are not measures of net income, operating income, operating performance, liquidity or net sales presented in accordance with GAAP. The Company's guidance for 2026 Adjusted EBITDA, Adjusted Earnings per Share, and Adjusted Cash Flow are non-GAAP financial measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures (Net Income, Net Income per Share, and Net Cash Provided by Operating Activities, respectively) because the information necessary to prepare such a reconciliation is not available without unreasonable efforts.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do.

Three Months Ended June 30,

Six Months Ended June 30,

In millions, except per share amounts

2026

2025

2026

2025

Net Income (Loss)

$             24

$            104

$      (19)

$      231

Add (Subtract):

Income Tax Expense

2

35

—

78

Interest Expense, Net

68

53

132

104

Depreciation and Amortization

146

131

286

263

EBITDA

240

323

399

676

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

6

13

77

25

Other Non-Recurring Items(a)

1

—

3

—

Adjusted EBITDA

$            247

$            336

$      479

$      701

Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales)

11.3 %

15.3 %

11.0 %

16.2 %

Net Income (Loss)

$             24

$            104

$      (19)

$      231

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

6

13

77

25

Other Non-Recurring Items(a)

1

—

3

—

Accelerated Depreciation Related to Exit Activities

—

4

—

8

Amortization Related to Purchased Intangible Assets

15

15

31

34

Tax Impact of Adjustments

(5)

(8)

(23)

(16)

Adjusted Net Income

$             41

$            128

$       69

$      282

Adjusted Earnings Per Share - Basic

$           0.14

$           0.42

$      0.23

$      0.93

Adjusted Earnings Per Share - Diluted

$           0.14

$           0.42

$      0.23

$      0.93

(a) Represents items management believes are not indicative of ongoing operating performance.

Graphic Packaging Holding Company

Reconciliation of Non-GAAP Financial Measures

(Continued)

Twelve Months Ended

In millions

June 30, 2026

June 30, 2025

December 31, 2025

Net Income

$             194

$             534

$             444

Add (Subtract):

Income Tax Expense

61

180

139

Equity Income of Unconsolidated Entity

(1)

(1)

(1)

Interest Expense, Net

248

215

220

Depreciation and Amortization

563

541

540

EBITDA

$            1,065

$            1,469

$            1,342

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

93

69

41

Other Non-Recurring Items(a)

15

—

12

Adjusted EBITDA

$            1,173

$            1,538

$            1,395

Calculation of Net Debt:

June 30, 2026

June 30, 2025

December 31, 2025

Short-Term Debt and Current Portion of Long-Term Debt

$             552

$             443

$             549

Long-Term Debt (b)

5,136

5,416

5,043

Less:

Cash and Cash Equivalents

(205)

(120)

(261)

Net Debt

$            5,483

$            5,739

$            5,331

Net Leverage Ratio (Net Debt/Adjusted EBITDA)

4.7

3.7

3.8

(a) Represents items management believes are not indicative of ongoing operating performance.

(b) Excludes unamortized deferred debt issue costs.

Six Months Ended June 30,

In millions

2026

2025

Net Cash Provided by Operating Activities

$              45

$              93

Net Cash Receipts from Receivables Sold included in Investing Activities

76

56

Cash Payments Associated with Business Combinations, Exit Activities and Other Special Items, Net
and Other Non-Recurring Items

57

33

Adjusted Net Cash Provided by Operating Activities

$             178

$             182

Capital Spending

(223)

(541)

Adjusted Cash Flow

$             (45)

$            (359)

SOURCE Graphic Packaging Holding Company

Graphic Packaging (GPK - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis packaging company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -73.8%.

Revenues are expected to be $2.19 billion, down 0.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 11.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Graphic Packaging?For Graphic Packaging, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.99%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Graphic Packaging will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Graphic Packaging would post earnings of $0.06 per share when it actually produced earnings of $0.09, delivering a surprise of +50.00%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Graphic Packaging doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Containers - Paper and Packaging industry, Avery Dennison (AVY - Free Report) , is soon expected to post earnings of $2.47 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +2.1%. This quarter's revenue is expected to be $2.29 billion, up 3.1% from the year-ago quarter.

The consensus EPS estimate for Avery Dennison has been revised 0.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.44%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Avery Dennison will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

NEW YORK, June 30, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Graphic Packaging Holding Company (“Graphic Packaging” or the “Company”) (NYSE: GPK) and certain of its former officers. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 26-cv-03790, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Graphic Packaging securities between February 4, 2025 and February 2, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its former top officials.

If you are an investor who purchased or otherwise acquired Graphic Packaging securities during the Class Period, you have until July 6, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Graphic Packaging, together with its subsidiaries, designs, produces, and sells consumer packaging products.  Its customers include businesses in the food, foodservice, beverage, household, and other consumer product industries in the Americas, Europe, and the Asia Pacific. The Company sells its products through sales offices, as well as through broker arrangements with third parties.

At all relevant times, Defendants touted the purported strength and stability of Graphic Packaging’s business model and operations, as well as its purported ability to deliver on its cost and inventory reduction, free cash flow (FCF”), and profitability goals, notwithstanding ongoing and persistent market headwinds challenging the Company’s and its customers’ businesses.

Indeed, in February 2025, despite its President and Chief Executive Officer (“CEO”), Defendant Michael P. Doss (“Doss”), acknowledging “unusual volume challenges for the industry and our customers” over the past several years, Graphic Packaging forecasted full year (“FY”) 2025 net sales, adjusted EBITDA, and adjusted earnings per share (“EPS”) of $8.7 billion to $8.9 billion, $1.68 billion to $1.78 billion, and $2.53 to $2.78, respectively, excluding foreign exchange impacts.  Defendant Doss attributed the Company’s ability to weather the aforementioned headwinds to its overall business model and operations, asserting that Defendants would continue to “build on” the Company’s “consisten[t]” and “profit[able]” and “strong and steady” results in 2025.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Graphic Packaging was experiencing, inter alia, significant inventory management issues, as well as significantly reduced demand and volumes and increased costs; (ii) Defendants downplayed the true scope and severity of the foregoing issues, which were likely to, and did, have a material negative impact on the Company’s business and financial results; (iii) Defendants likewise overstated the strength and sustainability of the Company’s business model and operations, as well as its ability to weather ongoing macroeconomic headwinds; (iv) accordingly, the Company’s previously issued FY 2025 financial guidance was unreliable and/or unrealistic; and (v) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on May 1, 2025, when Graphic Packaging issued a press release reporting its first quarter (“Q1”) 2025 financial results.  Among other results, the press release reported Q1 non-GAAP EPS of $0.51, missing consensus estimates by $0.07, and revenue of $2.12 billion, representing a 6.2% year-over-year decline, and missing consensus estimates by $10 million.  The press release further revealed that the Company had negatively revised its previously issued FY 2025 net sales outlook to a range of $8.2 billion to $8.5 billion, significantly down from its prior guidance of $8.7 billion to $8.9 billion; its adjusted EBITDA outlook to a range of $1.4 billion to $1.6 billion, significantly down from its prior guidance of $1.68 billion to $1.78 billion; and its adjusted EPS outlook to a range of $1.75 to $2.25, significantly down from its prior guidance of $2.53 to $2.78.  The Company blamed the negatively revised guidance on “an expectation of a 2% volume decline and $80 million of input cost inflation at the midpoint”, as well as “higher macroeconomic and consumer spending uncertainty.”

On this news, Graphic Packaging’s stock price fell $3.94 per share, or 15.57%, to close at $21.37 per share on May 1, 2025. 

On December 8, 2025, Graphic Packaging issued a press release announcing that it “plans to accelerate certain inventory reduction plans into the fourth quarter that were originally planned for 2026”, and that “[p]roduction curtailment is expected to impact fourth quarter operating results by $15 million, which is in addition to the $15 million relating to” certain earlier-announced curtailments. The Company further revealed that it had negatively revised its FY 2025 financial guidance again, now expecting its adjusted EBITDA “to be in the range of $1.38 billion to $1.43 billion”—significantly below its previously revised guidance of $1.4 billion to $1.45 billion—and adjusted EPS “to be in the range of $1.75 to $1.95”—significantly below its previously revised guidance of $1.80 to $2.00.

In a separate press release issued the same day, Graphic Packaging announced that Defendant Doss had “mutually agreed with [its] Board of Directors to step down from his role [as President and CEO] and as a director effective December 31, 2025.”

Following these disclosures, Graphic Packaging’s stock price fell $1.35 per share, or 8.66%, to close at $14.23 per share on December 9, 2025.

Then, on February 3, 2026, Graphic Packaging issued a press release reporting its fourth quarter (“Q4”) and FY 2025 financial results.  Among other results, Graphic Packaging reported Q4 non-GAAP EPS of $0.29, missing consensus estimates by $0.06.  The Company attributed its disappointing Q4 2025 earnings results to, inter alia, lower volumes, increased costs, and inventory reduction.  Further, Graphic Packaging projected a meaningful decline in adjusted EBITDA in 2026, citing “a $130 million negative impact from actions taken to reduce inventory and generate [FCF], an approximately $100 million accrual (non-cash in 2026) for a return to more normal incentive compensation, January weather and production impacts, and other largely offsetting operating items.”

In the same press release, Graphic Packaging’s new President and CEO, Robbert Rietbroek, announced that he had “initiated a comprehensive review of our organization structure, operations, and footprint,” among other aspects of the Company’s business, thereby confirming the weakness and unsustainability of its present business model and operations.

On this news, Graphic Packaging’s stock price fell $2.36 per share, or 15.97%, to close at $12.42 per share on February 3, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. 

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CONTACT: 
Danielle Peyton 
Pomerantz LLP 
[email protected]
646-581-9980 ext. 7980