Packaging products maker Greif's Q2 net income falls 32% on higher costs

Greif

28/04/2026 21:15

Overview

U.S. industrial packaging firm's fiscal Q2 revenue was flat yr/yr at $1.07 bln

Net income fell 32% yr/yr due to higher SG&A and restructuring costs

Company completed $150 mln share buyback, leverage ratio reduced to 1.1x

Outlook

Greif sees fiscal 2026 low-end Adjusted EBITDA guidance at $610 mln

Company expects fiscal 2026 low-end adjusted free cash flow of $315 mln

Greif says ongoing Middle East conflict weighs on industrial activity and outlook

Result Drivers

SOFT INDUSTRIAL DEMAND - Co said demand remained subdued across markets, impacting volumes, especially in Sustainable Fiber Solutions and Durable Metal Solutions

COST OPTIMIZATION - Co achieved $75 mln in run-rate cost optimization, contributing to margin expansion and lower compensation expenses

FOREIGN CURRENCY IMPACT - Positive foreign currency translation boosted net sales in Customized Polymer Solutions and Durable Metal Solutions

Company press release: ID:nGNXDDvzH

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$1.07 bln
Q1 Net Income
$16.30 mln
Q1 Gross Profit
$247 mln
Q1 Operating Profit
$35.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the non-paper containers & packaging peer group is "buy."

Wall Street's median 12-month price target for Greif Inc is $75.00, about 13% above its April 27 closing price of $66.37

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(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.)