Graphic Packaging Q2 beat estimates on better-than-expected volumes

Graphic Packaging Holding

29/07/2025 11:42

Overview

Graphic Packaging Q2 2025 sales beat analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, reflecting better-than-expected volumes

Co repurchased $111 mln in shares, reducing outstanding shares by 1.6%

Outlook

Graphic Packaging expects 2025 net sales of $8.4 bln to $8.6 bln

Company anticipates adjusted EBITDA of $1.45 bln to $1.55 bln in 2025

Graphic Packaging forecasts adjusted EPS of $1.90 to $2.20 for 2025

Company sees 2025 capital spending at approximately $850 mln

Result Drivers

PROMOTIONAL ACTIVITY - Modestly better than expected volumes driven by promotional activity, per CEO Michael Doss

DIVESTITURE IMPACT - $40 mln impact from divestiture of Augusta, GA facility and reduced open market sales participation

PRICE PRESSURE - Decline in Adjusted EBITDA driven by $23 mln decrease in price and inflation in labor and input costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$2.20 bln
$2.16 bln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.42
$0.4 (10 Analysts)
Q2 EPS
$0.34
Q2 Adjusted Net Income
$128 mln
Q2 Net Income
$104 mln
Q2 Operating Income
$193 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the paper packaging peer group is "buy"

Wall Street's median 12-month price target for Graphic Packaging Holding Co is $25.00, about 7.5% above its July 28 closing price of $23.13

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn8nGKqXa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)