Graphic Packaging Holding Company Reports Fourth Quarter and Full-Year 2025 Results

Rhea-AI Summary

Graphic Packaging (NYSE: GPK) reported 2025 net sales of $8.62 billion and net income of $444 million (diluted EPS $1.48), down from $8.81 billion and $658 million in 2024. Fourth-quarter adjusted net income was $85 million (EPS $0.29).

EBITDA fell to $1.34 billion; company affirms 2026 adjusted free cash flow target of $700–$800 million and expects 2026 adjusted EBITDA of $1.05–$1.25 billion.

Positive

• 2025 Innovation Sales Growth of $213 million for the year
• Waco recycled paperboard facility substantially complete after $1.58 billion spent through 2025
• Returned approximately $281 million to shareholders in 2025 via dividends and repurchases
• Affirmed 2026 Adjusted Free Cash Flow target of $700–$800 million

Negative

• Full-year Adjusted EBITDA declined by $287 million versus 2024
• Net leverage increased to 3.8x from 3.0x in 2024
• 2025 Net Income fell ~33% year-over-year to $444 million
• 2026 guidance assumes a $130 million EBITDA hit from inventory-reduction actions

News Market Reaction

-15.97% 5.0x vol

98 alerts

-15.97% News Effect

+2.1% Peak Tracked

-13.7% Trough Tracked

-$829M Valuation Impact

$4.36B Market Cap

5.0x Rel. Volume

On the day this news was published, GPK declined 15.97%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.1% during that session. Argus tracked a trough of -13.7% from its starting point during tracking. Our momentum scanner triggered 98 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $829M from the company's valuation, bringing the market cap to $4.36B at that time. Trading volume was very high at 5.0x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 Net Sales: $8.617 billion 2025 Net Income: $444 million 2025 Adjusted EBITDA: $1,395 million +5 more

8 metrics

2025 Net Sales $8.617 billion Full-year 2025, down from $8.807 billion in 2024

2025 Net Income $444 million Full-year 2025, versus $658 million in 2024

2025 Adjusted EBITDA $1,395 million Full-year 2025, versus $1,682 million in 2024

2025 Net Debt $5,331 million Total debt less cash and cash equivalents, full-year 2025

2025 Capital Expenditures $935 million Full-year 2025 capital spending

2026 Adjusted FCF Target $700–$800 million Company’s 2026 Adjusted Free Cash Flow expectation

Waco Project Total Cost $1.67 billion Projected total cost including ~$80 million capitalized interest

Waco Spend to 2025 YE $1.58 billion Cumulative Waco project spending through year-end 2025

Market Reality Check

Price: $13.70 Vol: Volume 9,323,628 is eleva...

high vol

$13.70 Last Close

Volume Volume 9,323,628 is elevated at 1.84x the 20-day average 5,075,834, indicating strong pre-news positioning. high

Technical Shares at $14.78 are trading below the 200-day MA of $19.61 and far under the $28.19 52-week high.

Peers on Argus

GPK gained 0.89% with heavy volume while key peers showed modest, mixed moves (e...

GPK gained 0.89% with heavy volume while key peers showed modest, mixed moves (e.g., SLGN +0.54%, SON +0.84%, REYN -0.43%) and no momentum scanner signals, pointing to stock-specific focus on these results.

Historical Context

5 past events · Latest: Jan 05 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Earnings call notice	Neutral	+2.0%	Announced date and access details for Q4 and full-year 2025 call.
Dec 22	Activist letter	Negative	-1.4%	Eminence Capital criticized board communications in open letter to shareholders.
Dec 19	Strategy update	Positive	+0.0%	Company reiterated Vision 2030 and cost/optimization plan and confirmed new CEO.
Dec 19	CEO dispute	Negative	+0.0%	Eminence Capital sought immediate reinstatement of prior CEO in board letter.
Dec 08	Leadership transition	Negative	-2.6%	Announced CEO transition effective Jan 1, 2026 and updated guidance/free cash flow focus.

Pattern Detected

Recent moves have been driven by governance and leadership headlines, with the stock often aligning with the tone of activist or transition news, while strategic reassurance pieces have seen muted impact.

Recent Company History

Over the past two months, GPK’s news flow has centered on governance, leadership, and shareholder engagement. A Dec 8, 2025 leadership transition announcement and revised 2025 guidance coincided with a -2.56% move. Subsequent activist letters on Dec 19 and Dec 22 highlighted board and CEO disputes, with modest to flat reactions. An earnings-call scheduling release on Jan 5, 2026 saw a 1.98% gain. Today’s 2025 results and 2026 outlook follow this governance-heavy backdrop, adding concrete financial performance and guidance to earlier strategic messaging.

Market Pulse Summary

The stock dropped -16.0% in the session following this news. A negative reaction despite the reaffir...

Analysis

The stock dropped -16.0% in the session following this news. A negative reaction despite the reaffirmed 2026 free cash flow target would fit concerns around earnings compression and leverage. 2025 Net Sales fell to $8.617 billion and Adjusted EBITDA to $1,395 million, while Net Debt reached $5,331 million and the Net Leverage Ratio rose to 3.8x. Past news on leadership changes and activist pressure also coincided with downside, suggesting investors were sensitive to execution and balance sheet risk around large projects like Waco.

Key Terms

ebitda, adjusted ebitda, adjusted net income, adjusted free cash flow, +2 more

6 terms

ebitda financial

"Fourth quarter EBITDA decreased 19% to $305 million, versus $376 million..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

adjusted ebitda financial

"Excluding the impact of business combinations... Adjusted EBITDA was $311 million..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted net income financial

"Excluding non-recurring and special items... Adjusted Net Income for the fourth quarter..."

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

adjusted free cash flow financial

"Affirming 2026 Adjusted Free Cash Flow target of $700 million to $800 million"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

net leverage ratio financial

"The Company's 2025 Net Leverage Ratio was 3.8x compared to 3.0x for full-year 2024."

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

net debt financial

"Net Debt (Total Debt less Cash and Cash Equivalents) was $5,331 million..."

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

AI-generated analysis. Not financial advice.

2025 Net Sales $8.6 billion, versus $8.8 billion in 2024
2025 Net Income $444 million, versus $658 million in 2024
Waco substantially complete; total projected spend $1.67 billion, $1.58 billion through year-end 2025
Affirming 2026 Adjusted Free Cash Flow target of $700 million to $800 million
Initiated comprehensive review of operations and footprint, and selective review of portfolio

ATLANTA, Feb. 3, 2026 /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported fourth quarter and full-year 2025 results.

Net Income in fourth quarter 2025 was $71 million, or $0.24 per diluted share, versus $138 million, or $0.46 per diluted share in fourth quarter 2024. Fourth quarter 2025 and 2024 Net Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $14 million and $41 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the fourth quarter of 2025 was $85 million, or $0.29 per diluted share, and $179 million, or $0.59 per diluted share in fourth quarter 2024.

Net Income for full-year 2025 was $444 million, or $1.48 per diluted share, versus $658 million, or $2.16 per diluted share for full-year 2024. Full-year 2025 and 2024 Net Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $95 million and $101 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for full-year 2025 was $539 million, or $1.80 per diluted share, and $759 million, or $2.49 per diluted share for full-year 2024.

Robbert Rietbroek, the Company's President and CEO said, "Consumer affordability created a challenging market for our customers and competitive pressure remains a near-term headwind. As we move into 2026, our priorities are clear: drive operational excellence; deliver exceptional customer service; improve our cost structure; and drive substantial free cash flow to strengthen the balance sheet and return capital to shareholders. I have initiated a comprehensive review of our organization structure, operations, and footprint, and a selective review of our portfolio to ensure that our resources are focused where we can create the greatest value for our shareholders."

Operating Results

Net Sales

Fourth quarter 2025 Net Sales were basically flat at $2,103 million, versus $2,095 million in the same quarter last year. A $32 million decline in sales from packaging operations reflected an approximately 1% decline in price and volume, offset by a $40 million favorable impact from foreign exchange. Innovation Sales Growth in the fourth quarter was $56 million.

Full-year 2025 Net Sales decreased 2% to $8,617 million, versus $8,807 million in the prior year. The decline was driven by a $150 million negative impact from the 2024 divestiture of the Augusta, Georgia bleached paperboard manufacturing facility and related bleached paperboard price and volume declines, and a $97 million net decline in sales from packaging operations, where price declined approximately 1% and volume was flat. Foreign exchange had a $57 million favorable impact. Full-year Innovation Sales Growth was $213 million, or approximately 2.5% of Net Sales.

EBITDA

Fourth quarter EBITDA decreased 19% to $305 million, versus $376 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $311 million versus $404 million in the same quarter last year. The $93 million decline in Adjusted EBITDA was driven primarily by the impact of lower packaging price and volume, commodity and non-commodity costs, and negative Net Performance as a result of decisions taken to curtail production to reduce inventory, partially offset by an $8 million favorable foreign exchange impact. Fourth quarter Adjusted EBITDA Margin was 14.8% in 2025, and 19.3% in 2024.

Full-year EBITDA decreased 20% to $1,342 million, versus $1,677 million in the prior year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $1,395 million versus $1,682 million in the prior year. The $287 million decline in Adjusted EBITDA was driven primarily by the impact of lower packaging price and volume-related issues, commodity and non-commodity costs, and the 2024 divestiture of the Augusta, Georgia bleached paperboard manufacturing facility and related bleached paperboard price and volume declines ($30 million), partially offset by positive Net Performance and a $13 million favorable foreign exchange impact. Full-year Adjusted EBITDA Margin was 16.2% in 2025, and 19.1% in 2024.

Other Results

Total Debt (Long-Term, Short-Term and Current Portion) was $5,592 million for full-year 2025 compared to $5,209 million for full-year 2024. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,331 million for full-year 2025 compared to $5,052 million for full-year 2024. The Company's 2025 Net Leverage Ratio was 3.8x compared to 3.0x for full-year 2024.

Capital expenditures in fourth quarter 2025 were $127 million, versus $310 million in the same quarter last year. Capital expenditures for full-year 2025 were $935 million, versus $1,203 million in the prior year. The Waco, Texas greenfield recycled paperboard manufacturing facility is substantially complete. Total costs for the project are expected to be approximately $1.67 billion, including approximately $80 million of capitalized interest. Waco project spending through the end of 2025 totaled $1.58 billion.

The Company returned approximately $281 million to stockholders during the twelve months of 2025 through regular dividends and share repurchase activity. Year-to-date, the Company repurchased approximately 6.8 million shares of common stock for $150 million, and has reduced net shares outstanding by approximately 2.3%. Regular dividends declared were $33 million for the fourth quarter and $131 million for the full year 2025.

2026 Annual Guidance and Commentary

The Company currently expects 2026 Net Sales, Adjusted EBITDA, and Adjusted EPS of $8.4 billion to $8.6 billion, $1.05 billion to $1.25 billion, and $0.75 to $1.15, respectively. The decline in expected Adjusted EBITDA reflects a $130 million negative impact from actions taken to reduce inventory and generate free cash flow, 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.

The Company continues to expect 2026 Adjusted Free Cash Flow in the range of $700 million to $800 million, and 2026 capital spending of approximately $450 million.

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 Provided by 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 (February 3, 2026) to discuss the results of fourth quarter and full-year 2025. 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: 492614

Investors: Investor.Relations@graphicpkg.com

Media: Comms@graphicpkg.com

Forward Looking Statements

Any statements of the Company's expectations in this press release, including, but not limited to volume and cash generation increases, 2026 Net Sales, Adjusted EBITDA and Adjusted Earnings per Diluted Share guidance, impact of actions taken to reduce inventory and generate free cash flow, 2026 Adjusted Free Cash Flow and capital spending, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and its present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, changes in consumer buying habits and product preferences, competition with other paperboard manufacturers and product substitution, the Company's ability to implement its business strategies, including strategic acquisitions, productivity initiatives, cost reduction plans and integration activities, 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 December 31,		Twelve Months Ended December 31,
In millions, except per share amounts	2025	2024	2025	2024
Net Sales	$                2,103	$                2,095	$                8,617	$                8,807
Cost of Sales	1,800	1,642	7,015	6,845
Selling, General and Administrative	141	171	704	774
Other Expense, Net	12	15	53	64
Business Combinations, Exit Activities and Other Special Items,      Net	(6)	28	41	5
Income from Operations	156	239	804	1,119
Nonoperating Pension and Postretirement Benefit Expense	(1)	(1)	(2)	(3)
Interest Expense, Net	(63)	(53)	(220)	(230)
Income before Income Taxes and Equity Income of      Unconsolidated Entity	92	185	582	886
Income Tax Expense	(21)	(47)	(139)	(229)
Income before Equity Income of Unconsolidated Entity	71	138	443	657
Equity Income of Unconsolidated Entity	—	—	1	1
Net Income	$                     71	$                   138	$                   444	$                   658
Net Income Per Share - Basic	$                  0.24	$                  0.46	$                  1.48	$                  2.16
Net Income Per Share - Diluted	$                  0.24	$                  0.46	$                  1.48	$                  2.16
Weighted Average Number of Shares Outstanding - Basic	296.6	301.5	299.3	304.0
Weighted Average Number of Shares Outstanding - Diluted	296.9	302.7	299.8	305.1

 

Graphic Packaging Holding Company Condensed Consolidated Balance Sheets (Unaudited)
In millions, except share and per share amounts	December 31, 2025	December 31, 2024
Assets
Current Assets:
Cash and Cash Equivalents	$                     261	$                     157
Receivables, Net	760	759
Inventories, Net	1,753	1,754
Assets Held for Sale	10	15
Other Current Assets	126	99
Total Current Assets	2,910	2,784
Property, Plant and Equipment, Net	5,682	5,258
Goodwill	2,065	1,993
Intangible Assets, Net	670	667
Other Assets	448	442
Total Assets	$                11,775	$                11,144
Liabilities
Current Liabilities:
Short-Term Debt and Current Portion of Long-Term Debt	$                     549	$                       39
Accounts Payable	1,027	1,116
Other Accrued Liabilities	665	748
Total Current Liabilities	2,241	1,903
Long-Term Debt	5,022	5,145
Deferred Income Tax Liabilities	688	613
Other Noncurrent Liabilities	487	470
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; 295,128,049 and      300,163,372 shares issued and outstanding at December 31, 2025 and December 31, 2024,      respectively	3	3
Capital in Excess of Par Value	1,981	2,054
Retained Earnings	1,614	1,410
Accumulated Other Comprehensive Loss	(262)	(455)
Total Graphic Packaging Holding Company Shareholders' Equity	3,336	3,012
Noncontrolling Interest	1	1
Total Equity	3,337	3,013
Total Liabilities and Shareholders' Equity	$                11,775	$                11,144

 

Graphic Packaging Holding Company Condensed Consolidated Statements of Cash Flows (Unaudited)
	Twelve Months Ended December 31,
In millions	2025	2024
Cash Flows from Operating Activities:
Net Income	$                   444	$                   658
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization	536	557
Amortization of Deferred Debt Issuance Costs	6	6
Deferred Income Taxes	107	(119)
Amount of Postretirement Expense Less Than Funding	(5)	(3)
Gain on Disposal of Business	—	(75)
Share-Based Compensation Expense	2	62
Other, Net	(36)	23
Changes in Operating Assets and Liabilities	(200)	(269)
Net Cash Provided by Operating Activities	854	840
Cash Flows from Investing Activities:
Capital Spending	(935)	(1,203)
Acquisition of Businesses	(29)	—
Proceeds from the Sale of Business and Properties	45	711
Beneficial Interest on Sold Receivables	275	250
Beneficial Interest Obtained in Exchange for Proceeds	(104)	(98)
Other, Net	3	(2)
Net Cash Used in Investing Activities	(745)	(342)
Cash Flows from Financing Activities:
Repurchase of Common Stock	(150)	(200)
Payments on Debt	(14)	(23)
Proceeds from Issuance of Debt	99	750
Retirement of Long-Term debt	—	(700)
Borrowings under Revolving Credit Facilities	3,397	4,584
Payments on Revolving Credit Facilities	(3,171)	(4,747)
Debt Issuance Costs	(2)	(9)
Repurchase of Common Stock related to Share-Based Payments	(34)	(25)
Dividends Paid	(128)	(122)
Other, Net	(15)	3
Net Cash Used in Financing Activities	(18)	(489)
Increase in Cash and Cash Equivalents, including cash classified within assets held for sale	91	9
Less: Cash reclassified to Assets Held for Sale	—	1
Effect of Exchange Rate Changes on Cash	13	(15)
Net Increase (Decrease) in Cash and Cash Equivalents	104	(5)
Cash and Cash Equivalents at Beginning of Year	157	162
Cash and Cash Equivalents at End of Year	$                   261	$                   157

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, 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.

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 December 31,		Twelve Months Ended December 31,
In millions, except per share amounts	2025	2024	2025	2024
Net Income	$                 71	$               138	$               444	$               658
Add (Subtract):
Income Tax Expense	21	47	139	229
Equity Income of Unconsolidated Entity	—	—	(1)	(1)
Interest Expense, Net	63	53	220	230
Depreciation and Amortization	150	138	540	561
EBITDA	305	376	1,342	1,677
(Gains) Charges Associated with Business Combinations, Exit       Activities and Other Special Items, Net	(6)	28	41	5
Other Non-Recurring Items(a)	12	—	12	—
Adjusted EBITDA	$               311	$               404	$            1,395	$            1,682
Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales)	14.8 %	19.3 %	16.2 %	19.1 %
Net Income	$                 71	$               138	$               444	$               658
(Gains) Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net	(6)	28	41	5
Other Non-Recurring Items(a)	12	—	12	—
Accelerated Depreciation Related to Exit Activities	2	3	11	20
Amortization Related to Purchased Intangible Assets	16	21	66	82
Tax Impact of Adjustments	(10)	(11)	(35)	(6)
Adjusted Net Income	$                 85	$               179	$               539	$               759
Adjusted Earnings Per Share - Basic	$              0.29	$              0.59	$              1.80	$              2.50
Adjusted Earnings Per Share - Diluted	$              0.29	$              0.59	$              1.80	$              2.49

(a)	Represents items management believes are not indicative of ongoing operating performance, including CEO severance expense and one-time charges for software licenses related to reduction in usage tied to cost optimization initiatives and write-offs of implementation costs related to software that is no longer in use.

 

Graphic Packaging Holding Company Reconciliation of Non-GAAP Financial Measures (Continued)
	Twelve Months Ended
In millions	December 31, 2025	December 31, 2024	December 31, 2023
Net Income	$                     444	$                     658	$                     723
Add (Subtract):
Income Tax Expense	139	229	210
Equity Income of Unconsolidated Entity	(1)	(1)	(1)
Interest Expense, Net	220	230	239
Depreciation and Amortization	540	561	624
EBITDA	1,342	1,677	1,795
Charges Associated with Business Combinations, Exit Activities and Other      Special Items, Net	41	5	81
Other Non-Recurring Items (a)	12	—	—
Adjusted EBITDA	$                  1,395	$                  1,682	$                  1,876
Calculation of Net Debt:	2025	2024	2023
Short-Term Debt and Current Portion of Long-Term Debt	$                     549	$                       39	$                     764
Long-Term Debt (b)	5,043	5,170	4,632
Less:
Cash and Cash Equivalents	(261)	(157)	(162)
Net Debt	$                  5,331	$                  5,052	$                  5,234
Net Leverage Ratio (Total Net Debt/Adjusted EBITDA)	3.8	3.0	2.8

(a)	Represents items management believes are not indicative of ongoing operating performance, including CEO severance expense and one-time charges for software licenses related to reduction in usage tied to cost optimization initiatives and write-offs of implementation costs related to software that is no longer in use.
(b)	Excludes unamortized deferred debt issue costs.

 

	Twelve Months Ended December 31,
In millions	2025	2024
Net Cash Provided by Operating Activities	$                      854	$                      840
Net Cash Receipts from Receivables Sold included in Investing Activities	171	152
Cash Payments Associated with Business Combinations, Exit Activities and Other Special Items,      Net	79	184
Adjusted Net Cash Provided by Operating Activities	$                   1,104	$                   1,176
Capital Spending	(935)	(1,203)
Adjusted Cash Flow	$                      169	$                      (27)

 

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SOURCE Graphic Packaging Holding Company

FAQ

What were Graphic Packaging (GPK) full-year 2025 net sales and net income?

Graphic Packaging reported 2025 net sales of $8.617 billion and net income of $444 million. According to the company, diluted EPS was $1.48 for the year, down from $2.16 in 2024 due to lower packaging pricing and other impacts.

How did Graphic Packaging (GPK) describe its 2026 adjusted free cash flow outlook?

Graphic Packaging expects 2026 adjusted free cash flow of $700–$800 million. According to the company, this outlook factors in inventory reduction actions, targeted capital spending near $450 million, and operational improvement initiatives.

What caused the decline in Graphic Packaging (GPK) adjusted EBITDA in 2025?

Adjusted EBITDA fell due to lower packaging price and volume, higher commodity costs, and a 2024 divestiture impact. According to the company, the decline totaled $287 million, with foreign exchange partly offsetting the weakness.

What is the status and cost of Graphic Packaging's Waco facility as of year-end 2025?

The Waco recycled paperboard facility is substantially complete with total project costs expected of $1.67 billion. According to the company, spending through year-end 2025 was approximately $1.58 billion, including about $80 million of capitalized interest.

How much capital did Graphic Packaging (GPK) return to shareholders in 2025 and what buyback activity occurred?

Graphic Packaging returned approximately $281 million to shareholders in 2025 through dividends and repurchases. According to the company, it repurchased about 6.8 million shares for $150 million, reducing net shares outstanding by ~2.3%.