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ATLANTA - Graphic Packaging Holding Company (NYSE:GPK) reported third quarter earnings that exceeded analyst expectations.
The company’s shares were up 1.98% in pre-market trading following the announcement.
The sustainable packaging provider posted adjusted earnings of $0.58 per share for the third quarter, surpassing the analyst estimate of $0.56. Revenue came in at $2.19 billion, above the consensus forecast of $2.16 billion, despite being down 1% compared to $2.22 billion in the same quarter last year.
The company’s performance came amid challenging consumer conditions, with packaging volumes declining 2% YoY as food affordability issues continue to impact consumer spending. Despite these headwinds, Graphic Packaging maintained solid profitability with an Adjusted EBITDA margin of 17.5%, though down from 19.5% in the prior-year period.
"Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging," said Michael Doss, the Company’s President and CEO. "As food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent."
The company updated its full-year 2025 guidance, now expecting revenue between $8.4 billion and $8.6 billion, compared to analyst estimates of $8.55 billion. Adjusted earnings guidance was set at $1.80 to $2.00 per share, slightly below the consensus of $2.02.
Graphic Packaging also announced that its new Waco, Texas recycled paperboard manufacturing facility produced its first commercially saleable rolls in October, ahead of schedule. The company expects the facility to reach full production within 12 to 18 months.
During the quarter, Graphic Packaging repurchased approximately 1.8 million shares for $39 million, contributing to a year-to-date net share reduction of 2.3%.
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