Graphic Packaging CEO: Q1 results ‘short of our expectations’

Citing a “challenging economic and consumer environment,” Atlanta-based packaging company Graphic Packaging reported first quarter 2025 financial results that fell short of expectations.

The company’s net sales fell 6 percent year over year, coming in at $2.12 billion in the first quarter of 2025 compared with $2.26 billion in the first quarter of last year, while net income fell to $127 million compared with $165 million last year.

"First quarter results fell short of our expectations in a challenging economic and consumer environment,” Graphic Packaging President and CEO Michael Doss says. “Consumers are redoubling their efforts to find value as food prices continue to rise. Meanwhile, promotional activity is driving mix and brand switching, rather than incremental foot traffic and volume gains.

“Against that backdrop, we saw a small volume decline in the Americas business, but continued improvement in our International business. Leveraging our growing cost and quality advantage and the strength of our innovation portfolio, we continue to gain market position as we partner with customers in a rapidly changing market.”

Overall, Graphic Packaging’s volume is up 1 percent year over year. In its Americas business, volumes are down 1 percent, while its International business is up 3 percent.

Additionally, its first quarter 2025 adjusted earnings before interest, taxes, depreciation and amortization came in at $365 million, down 17 percent from the $443 million earned in the same period last year.

Graphic Packaging also provided an update on its $1 billion recycled paperboard mill currently under construction in Waco, Texas, noting that the project remains on track to start up in the fourth quarter of this year.

“We saw an uptick in input cost inflation during the quarter and responded with a price increase intended to bring margins back to a more normal range,” Doss says. “With our Waco, Texas, recycled paperboard investment nearing completion, our capital spending needs decline substantially, and our board of directors approved a new $1.5 billion share repurchase authorization, taking the total available authorization to $1.865 billion.”

“In February, we announced a ten percent increase in our quarterly dividend. We expect to return substantial cash to stockholders in the months and years ahead through a growing dividend and share repurchase."

Graphic Packaging’s full earnings presentation can be found here.