Greif shares fall as Q4 earnings miss estimates

Published 26/02/2025, 23:16
Greif shares fall as Q4 earnings miss estimates

DELAWARE, Ohio - Greif, Inc. (NYSE:GEF), a global industrial packaging products and services provider, reported fiscal fourth quarter 2025 earnings that fell short of analyst expectations, sending shares down 3.9% in after-hours trading.

The company posted adjusted earnings per share of $0.22, missing the analyst consensus of $0.75 by a wide margin. Revenue came in at $1.26 billion, slightly below estimates of $1.27 billion and down from $1.27 billion in the same quarter last year.

Greif’s CEO Ole Rosgaard acknowledged the company is navigating a "historical period of industrial activity contraction" while simultaneously transforming internal processes and portfolio mix. He emphasized the resilience of Greif’s new business model amid multiple headwinds.

"This quarter highlights the resilience of our new business model amid multiple headwinds and demonstrates our willingness to invest in the long-term future of Greif while managing the present," Rosgaard stated.

The company’s Adjusted EBITDA increased 5.9% YoY to $145.1 million. However, net income excluding adjustments decreased 69.1% to $22.5 million or $0.39 per diluted Class A share.

Greif announced plans to divest approximately 176,000 acres of timberland in the Southeastern United States, with proceeds to be applied towards debt reduction. The company also revealed the closure of paper manufacturing facilities in Georgia and Massachusetts.

For fiscal 2025, Greif provided low-end guidance of $710 million for Adjusted EBITDA and $245 million for adjusted free cash flow, citing ongoing industrial contraction and lack of "compelling demand inflection on the horizon."

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