Greif touts ‘resilient business model’ despite economic volatility

The packaging company has reported increased Q2 net income and adjusted EBITDA, and CEO Ole Rosgaard says it is “staying ahead of potential disruption” regarding tariffs.

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Greif has reported increased Q2 net income and adjusted EBITDA, and CEO Ole Rosgaard says it is “staying ahead of potential disruption” regarding tariffs.
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Greif Inc. has delivered what CEO Ole Rosgaard says is another quarter, balancing near-term financial execution with long-term strategic progress under the Delaware, Ohio-based packaging company’s “Build to Last” strategy.

The company reports a 6.5 percent increase in net income for the second quarter of 2025, coming in at $47.3 million compared with $44.4 million in the same period last year. Greif’s net sales also increased, totaling $1.39 billion in this year’s second quarter compared with $1.37 billion last year.

“Despite ongoing macroeconomic volatility, our resilient business model and emphasis on controlling what we can control gives us confidence in the road ahead,” Rosgaard said during an earnings call Thursday.

“Our cost optimization efforts are progressing rapidly thanks to our team’s focus and willingness to embrace change. As of quarter end, we have achieved $10 million in run rate savings towards our full-year commitment of $15 million to $25 million and $100 million total commitment compared to our 2024 baseline.”

RELATED: Greif to close LA paperboard mill

Greif reports second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $213.9 million, up from $169.7 million in the second quarter last year.

The company reports earnings in four business segments: Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions and Integrated Solutions.

Customized Polymer Solutions segment net sales increased by $43.7 million year over year, with Greif attributing the boost to $38.8 million of contributions from recent acquisitions. The segment’s gross profit ($76.7 million), operating profit ($25.8 million) and adjusted EBITDA ($53.4 million) also increased.

Net sales in the Durable Metal Solutions segment were down $34.8 million in the second quarter primarily because of $18.6 million attributable to lower volumes and $12.3 million attributable to lower average selling prices, with gross profit, operating profit and adjusted EBITDA also posting losses.

Thanks to higher published containerboard and boxboard prices, net sales in the Sustainable Fiber Solutions segment were up $19 million, totaling $599.1 million for the quarter while being partially offset by lower volumes, while net sales in the Integrated Solutions segment were down $13.2 million because of a $15.2 million impact from the divestiture of Delta Petroleum Co. Inc. in the third quarter of 2024.

“Each day, our conviction grows in our ability to achieve or exceed both our 2025 and 2027 commitments,” Rosgaard said. “Across the board, our strategy is working. We are sharpening our competitive edge, optimizing operations and expanding in high-return markets that positions us well when demand accelerates.”

Rosgaard also emphasized Greif’s insulation from tariff impacts, noting the company’s network of more than 250 facilities allows it to do business mostly locally.

“We are staying ahead of potential disruption,” he said. “Year to date, we have not seen major demand shifts tied directly to tariffs, but we continue to monitor demand patterns and talk closely with customers to identify any potential impacts on our end markets.

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“Our global sourcing team continues to assess risks and we reaffirm that our maximum direct cost exposure is less than $10 million annually, although that figure at present is even lower due to mitigation actions and tariffs currently in effect versus worst-case scenario. Meanwhile, we are capturing more value through network flexibility and pricing. We are also benefiting from pass-through mechanisms in our metals business as steel producers respond to raw material inflation.”

Greif’s second quarter 2025 earnings presentation can be found on its website, as well as its second quarter 2025 financial report.

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