What were the key takeaways from Graphic Packaging’s earnings call?

Did Graphic Packaging beat or miss consensus estimates last quarter?

What is Graphic Packaging's gross profit margin?

What guidance did Graphic Packaging's management provide for the next earnings period?

What is Graphic Packaging's latest dividend and current dividend yield?

What is the market's earnings forecast for Graphic Packaging next quarter?

What factors drove the changes in Graphic Packaging's revenue and profit?

What does Graphic Packaging do and what are its main business segments?

- **Waco Facility Success**: Early production start and $80 million EBITDA contribution in 2026, with another $80 million in 2027. 
- **Margin Resilience**: Despite bleached paperboard pricing pressure, maintaining market share through lower-cost recycled paperboard. 
- **Innovation Growth**: $52 million in incremental sales from new products like paperboard punnets. 
- **Free Cash Flow Target**: $700-800 million in 2026, driven by reduced CapEx and inventory management. 
- **Debt Management**: Refinanced bonds to reduce costs, targeting 3.5-3.7x leverage. 


**【CEO Summary Section】**
- **Waco Facility Ramp-Up**: Launched production ahead of schedule, with full capacity expected in 12-18 months. The facility is projected to contribute $80 million in EBITDA in 2026 and another $80 million in 2027, driven by cost savings from closing older facilities (East Angus and Middletown). 
- **Competitive Pricing Pressure**: Unusual discounts on bleached paperboard are impacting margins, but management remains confident in maintaining market share through lower-cost recycled paperboard production. 
- **Innovation Growth**: New products like paperboard punnets are opening new markets, contributing $52 million in incremental sales in Q3. 
- **Free Cash Flow Outlook**: Targeting $700-800 million in 2026, enabled by reduced capital spending (5% of sales) and inventory reductions. 
- **Strategic Closures**: East Angus closure by year-end and Middletown closure in May 2025, reducing capacity by 475,000 tons but adding 550,000 tons at Waco, resulting in a net 75,000-ton increase. 

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Sales of $2.2 billion, adjusted EBITDA of $383 million, and adjusted EPS of $0.58. 
- **Debt Management**: Secured a $400 million term loan to refinance bonds, reducing interest costs. Year-end leverage target of 3.5-3.7x net debt/EBITDA. 
- **Cost Control**: $30 million in inventory reductions year-to-date, with an additional $20 million expected in Q4. 
- **Share Repurchases**: $150 million used to buy back shares, reducing outstanding shares by 2.3% year-to-date. 

**【Q&A Highlights】**
- **Waco Contribution**: CEO confident in $80 million EBITDA in 2026, with $65-75 million in one-time start-up costs split between 2025 and 2026. 
- **Competitive Behavior**: Bleached paperboard competitors offering discounts below cost, but Graphic Packaging maintains margin advantage through lower-cost recycled paperboard. 
- **Foodservice Trends**: Weakness in fast casual dining, but QSR and grocery store packaging show resilience. 
- **Cash Flow Drivers**: Reduced CapEx, inventory management, and SG&A cost reductions will drive 2026 free cash flow. 
- **Leverage Reduction**: Plans to deleverage alongside share buybacks as free cash flow inflects in 2026. 


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