Graphic Packaging Holding Company has announced new initiatives to streamline its internal services and production operations.
After launching a company-wide spending review in the third quarter, the company now expects to achieve approximately $60 million in savings in 2026, primarily through workforce reductions and other operational efficiency measures. One-time costs associated with these actions—including severance and non-cash charges—are expected to total nearly $20 million.
At the same time, Graphic Packaging is initiating a new phase of inventory reduction in the fourth quarter, made possible by the early startup of its recycled paperboard mill in Waco, Texas. This adjustment will result in a $15 million negative impact on operating income, on top of the reduction already announced earlier this fall.
Financially, the company is maintaining its 2025 revenue outlook of $8.4 to $8.6 billion, while slightly lowering its targets for adjusted EBITDA ($1.38 to $1.43 billion) and adjusted EPS ($1.75 to $1.95). Graphic Packaging remains confident, however, in its ability to generate between $700 million and $800 million in free cash flow in 2026, a target it believes is achievable thanks to the optimization measures underway.
Graphic Packaging Holding designs and manufactures consumer packaging primarily made from renewable or recycled materials, maintaining leadership in sustainable fibre innovation.
Source: Graphic Packaging
