Greif B 2025 Q2 Earnings Modest Growth as Net Income Rises 4.8%

Greif B(GEF.B) reported its fiscal 2025 Q2 earnings on Jun 05th, 2025. The company's performance modestly exceeded expectations with a net income increase of 4.8% year-over-year, reaching $54.50 million. This improvement reflects operational discipline and strategic portfolio adjustments amid challenging industrial conditions. Guidance was adjusted upward, projecting a fiscal year low-end guidance for Adjusted EBITDA at $725 million and Adjusted free cash flow at $280 million, supported by continued cost optimization and anticipated timberland business sale proceeds.

Revenue
Greif B experienced a revenue increase of 1.1% to $1.39 billion in the second quarter of 2025, rising from $1.37 billion in the previous year. Customized Polymer Solutions generated $329.30 million, contributing significantly alongside Durable Metal Solutions, which accounted for $378.90 million. Sustainable Fiber Solutions added $599.10 million, while Integrated Solutions rounded out the revenue with $78.40 million.

Earnings/Net Income
Greif B's EPS climbed by 6.5% to $0.82 in 2025 Q2 from $0.77 in 2024 Q2, showcasing ongoing earnings growth. The company's profitability also improved, with net income reaching $54.50 million, marking a 4.8% increase from $52 million in the prior year. This EPS growth reflects positively on the company's financial performance.

Price Action
The stock price of Greif B has jumped 10.06% during the latest trading day, has jumped 10.22% during the most recent full trading week, and has surged 16.75% month-to-date.

Post-Earnings Price Action Review
Over the past three years, the strategy of buying Greif B shares following revenue increases on the earnings release date and holding for 30 days has not yielded returns. The strategy's return was 0.00%, significantly underperforming compared to a benchmark return of 38.41%. This resulted in an excess return of -38.41% and a CAGR of 0.00%. The strategy showed no risk or return generation, indicated by a maximum drawdown of 0.00% and a Sharpe ratio of 0.00%.

CEO Commentary
Ole Rosgaard, CEO of Greif, Inc., remarked on the company's solid fiscal second-quarter performance, highlighting a strong balance between immediate financial execution and long-term strategic progress. He noted that Greif's results reflect operational discipline and deliberate portfolio moves, positioning the company favorably for future success. Despite ongoing industrial contraction, Rosgaard expressed cautious optimism, stating, “We are well-positioned for success and value creation now and in the future,” while acknowledging that compelling demand inflection has not yet been identified.

Guidance
Greif has updated its fiscal 2025 low-end guidance, projecting Adjusted EBITDA to be $725 million and Adjusted free cash flow at $280 million. The company anticipates these targets will be supported by ongoing cost optimization efforts and the expected sale of its timberland business, which is anticipated to facilitate further debt reduction.

Additional News
Greif Inc. (NYSE: GEF, GEF.B) announced a quarterly cash dividend for its shareholders. The Board of Directors declared a dividend of $0.54 per share for Class A Common Stock and $0.81 per share for Class B Common Stock. This dividend is payable on July 1, 2025, to stockholders of record at the close of business on June 17, 2025. The company also continued to progress on the sale of its timberland business, expressing robust interest in the market. This strategic move aligns with Greif's efforts to reduce debt and optimize its business portfolio. Furthermore, the company achieved a high engagement score in its annual Gallup survey, receiving the Gallup Exceptional Workplace Award for the second consecutive year due to its exemplary workplace culture.