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DELAWARE, Ohio - Greif, Inc. (NYSE:GEF, GEF.B), a $2.96 billion market cap packaging solutions provider with "GOOD" financial health according to InvestingPro, announced Tuesday it has completed the previously announced sale of its containerboard business to Packaging Corporation of America.
The transaction is expected to provide immediate value to shareholders while allowing Greif to deliver more consistent earnings, enhance capital efficiency, and accelerate debt reduction, according to the company.
Following the divestment, Greif has adjusted its 2025 full-year guidance to exclude $168 million of year-to-date Adjusted EBITDA performance and an implied fourth quarter performance of $50 million related to the containerboard business.
The revised guidance for continuing operations for fiscal year 2025 is now $507 million to $517 million of Adjusted EBITDA. The company’s Adjusted Free Cash Flow guidance has been reduced by $15 million to a range of $290 million to $300 million to account for the lack of expected September cash contribution from the containerboard operations.
"This transaction unlocks immediate value for our shareholders and allows Greif to deliver stronger and more consistent earnings power, enhances our capital efficiency, and accelerates debt reduction," said Ole Rosgaard, President and CEO of Greif. The company boasts an impressive 53-year track record of maintaining dividend payments, with a current free cash flow yield of 11%.InvestingPro analysis reveals 8 additional key insights about Greif’s financial position and future prospects, available to subscribers.
Goldman Sachs served as exclusive financial advisor to Greif on the transaction, according to the press release statement.
Founded in 1877, Greif operates in 40 countries providing packaging solutions across multiple industries with its polymer, fiber, metal, and integrated solutions. The company generates annual revenue of $5.43 billion and maintains strong operational efficiency with an EBITDA of $715.3 million over the last twelve months.
In other recent news, Greif Bros Corporation reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.03, which was higher than the forecasted $0.9367. Greif Bros also reported revenue of $1.13 billion, exceeding the anticipated $998.44 million. These results highlight the company’s strong financial performance in the recent quarter. While the earnings call transcript did not mention any mergers or acquisitions, the financial outcomes indicate a positive trajectory for the company. There were no reports of analyst upgrades or downgrades following the earnings announcement. The results have been noted by various financial analysts, though specific future expectations from firms were not detailed in the recent reports. These developments provide key insights into Greif Bros’ current financial standing.
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