Q1 2025 Graphic Packaging Holding Co Earnings Call Transcript
Key Points
- Graphic Packaging Holding Co (GPK) reported first quarter sales of $2.1 billion, with adjusted EBITDA of $365 million and margins of 17.2%.
- The Waco recycled paperboard investment is on track for a fourth-quarter startup, with hiring and training effectively complete.
- A new $1.5 billion share repurchase authorization was approved, reflecting confidence in the company's future cash flow generation.
- Innovation sales growth was $44 million for the quarter, driven by new contributions in strength packaging, coffee, snacks, and cleaning products.
- The company expects to generate substantial excess cash over the next several years, with a focus on returning capital to stockholders and debt holders.
- First quarter results were significantly below expectations due to weaker volumes in the Americas and broad-based input cost inflation.
- Volumes across consumer staples remained uneven and below expectations, with a 1% decline in the Americas.
- Input cost inflation was significant, with increases in energy, chemicals, logistics, and transportation.
- The company lowered and widened its volume guidance range, now expecting a 4% volume decline at the low end.
- Consumer confidence has declined significantly in the US and other markets, impacting volumes and promotional activity effectiveness.
Good day everyone, and welcome to the Graphic Packaging first quarter 2025 earnings call (Operator Instructions) It is now my pleasure to turn the floor over to your host, Mark Connelly, senior Vice President, Investor Strategy and Development. Sir, the floor is yours.
Good morning and welcome to Graphic Packaging Holding Company's first quarter 2025 earnings call. We have with us today, Mike Doss, President and Chief Executive Officer; and Stephen Scherger, Executive Vice President and Chief Financial Officer. On this call, we will be referencing our first quarter 2025 earnings presentation, which is available through this webcast and on the investor section of our website at www.graphicpkg.com.
Today's press release and presentation include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1,995. These statements are subject to risks and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
