GPK sees FY adj. EBITDA low end of $1.05B to $1.25B

Graphic Packaging Holding Company (NYSE: GPK) has reaffirmed its 2026 financial guidance, with adjusted EBITDA expected to fall within the range of $1.05 billion to $1.25 billion. This guidance reflects the company's strategic focus on cost discipline, operational efficiency, and capital allocation optimization. The company has outlined a comprehensive business review and initiated actions to reduce structural costs and improve profitability.

In the first quarter of 2026, the company reported a 2% increase compared to the same period in 2025. Despite this growth, adjusted EBITDA for the quarter was $232 million, a significant decline from $365 million in the first quarter of 2025. The reduction in adjusted EBITDA was attributed to unfavorable net performance, lower pricing, and increased input costs.

The company has taken decisive steps to streamline operations, including a workforce reduction of over 500 roles and the cancellation of low-return projects, which is expected to result in over $200 million in capital avoidance. These measures are part of a broader initiative to enhance profitability and align with the company's long-term strategic goals.

Graphic Packaging Holding Company also emphasized its commitment to innovation and sustainability, filing 13 new patents during the quarter and receiving recognition for its sustainable packaging solutions. The company's efforts in innovation and operational efficiency are expected to support its financial performance in the coming year.

The company's net leverage ratio increased to 4.4x in the first quarter of 2026, compared to 3.8x in the fourth quarter of 2025. This increase is primarily due to higher total debt and a reduction in cash and cash equivalents. Despite this, the company remains focused on strengthening its balance sheet and delivering on its capital return commitments.

Graphic Packaging Holding Company's 2026 capital spending guidance is set at approximately $450 million, a significant reduction from $922 million in 2025. This reduction reflects the company's strategic shift towards optimizing capital allocation and enhancing free cash flow generation.

Overall, the company's strategic initiatives and operational improvements are expected to support its adjusted EBITDA guidance for 2026, with a focus on delivering long-term value to shareholders.