Greif reported stronger fiscal third-quarter results as pricing gains and cost savings offset weak industrial demand.
Adjusted EBITDA from continuing operations increased 24.7% to $183.4 million, compared with $147.1 million a year earlier. Net income rose 156.7% to $78.8 million, or $1.37 per diluted Class A share, from $30.7 million, or $0.53 per share.
Excluding specified adjustments, net income increased 87% to $93.3 million. Net sales across Greif’s four reporting segments totaled approximately $1.17 billion.
President and CEO Ole Rosgaard said industrial demand remained subdued and that the company had not yet seen convincing evidence of a broad market recovery. Greif nevertheless expanded margins and strengthened its financial position during the quarter.
Cost savings support earnings
Greif reached $90 million in cumulative run-rate savings under its cost optimization program, achieving the upper end of its fiscal 2026 target. The company maintained its goal of delivering at least $120 million in cumulative run-rate savings by the end of fiscal 2027.
Operating cash flow decreased by $69.3 million to $77.8 million. Adjusted free cash flow fell by $86.7 million to $57.7 million, although Greif noted that the prior-year figure included contributions from its former Containerboard Business and is therefore not directly comparable.
The company also increased its quarterly dividend by 10.7% and announced plans to begin repurchasing shares under its existing authorizations.
Debt drops sharply after asset sales
Greif reduced total debt by nearly $1.69 billion to $1.03 billion, while net debt fell to $741.9 million from approximately $2.43 billion a year earlier.
The decline largely reflects proceeds from the $1.8 billion sale of Greif’s Containerboard Business and the divestiture of its timberlands assets. The company’s leverage ratio subsequently dropped to 1.1 times from 3.1 times.
The Containerboard Business, including the CorrChoice sheet feeder network, has been reported as a discontinued operation since the third quarter of fiscal 2025.
Polymer and metal packaging lead growth
Customized Polymer Solutions posted net sales of $383.8 million, an increase of $45.9 million. Higher selling prices, favorable currency movements and increased volumes lifted adjusted EBITDA to $64.3 million from $37.1 million.
Durable Metal Solutions generated sales of $405.6 million, up $13.3 million. Pricing and foreign exchange gains offset lower volumes, while adjusted EBITDA rose to $64 million from $53.6 million.
Innovative Closure Solutions also recorded growth, with sales increasing to $29.7 million and adjusted EBITDA reaching $12.6 million.
Sustainable Fiber Solutions remained under pressure. Sales declined by $24.2 million to $346.5 million because of lower selling prices, reduced volumes and the divestiture of the Soterra timberlands business. Adjusted EBITDA fell to $42.5 million from $48.8 million.
Envaplast expands Greif’s presence in Spain
During the quarter, Greif completed its acquisition of Envaplast, a producer of small polymer containers based near Valencia, Spain. The company primarily serves the agrochemical industry and will become part of Greif’s Customized Polymer Solutions business.
The acquisition expands Greif’s manufacturing presence in Spain and provides a platform for growth across Europe, the Middle East and Africa.
Greif outlines its fiscal 2026 outlook
For fiscal 2026, Greif expects adjusted EBITDA of $615 million to $635 million and adjusted free cash flow of $305 million to $325 million.
The outlook comes as the company continues to navigate subdued industrial demand, geopolitical uncertainty and volatility in raw material, transportation and energy costs.
Greif manufactures industrial packaging through operations in 35 countries. Its portfolio includes customized polymer packaging, fiber-based products, metal containers and closure solutions serving industrial and specialty markets.
