NEW YORK, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Graphic Packaging Holding Company (“Graphic Packaging” or the “Company”) (NYSE: GPK). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Graphic Packaging and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining ...

Core Insights - Atlantic Investment Management, Inc. has completely exited its position in Graphic Packaging, selling all 645,584 shares for an estimated $12.63 million [2][10] - The exit reflects a strategic shift away from Graphic Packaging, which had previously represented 7.3% of the fund's 13F reportable assets under management [8] Company Overview - Graphic Packaging is a leading provider of fiber-based packaging solutions, with a global customer base and a diverse product portfolio [6] - The company focuses on innovation and operational efficiency, leveraging integrated manufacturing capabilities and a broad distribution network [6] Financial Performance - As of February 17, 2026, Graphic Packaging's stock price was $12.37, down 53.2% over the past year, significantly underperforming the S&P 500's approximately 13% gain [8] - In 2025, net sales decreased by 2% to $8.6 billion, while net income fell to $444 million from $658 million the previous year, indicating compressed margins [11] - The company's net leverage increased to 3.8x from 3.0x, despite $935 million in capital expenditures primarily related to its $1.67 billion Waco project [11] Future Outlook - Management is targeting adjusted free cash flow of $700 million to $800 million in 2026, alongside guidance for lower adjusted EBITDA and EPS of $0.75 to $1.15, reflecting operational challenges [12] - The exit by Atlantic Investment Management may indicate a preference for reallocating capital towards businesses with stronger earnings momentum amid rising leverage and shrinking margins [12]

Group 1 - Graphic Packaging Holding Company will present at the Raymond James Institutional Investors Conference on March 4 at 9:50am ET [1] - The presentation will be available live and in replay via webcast, with access provided on the Graphic Packaging website [1] - Graphic Packaging is a leader in sustainable consumer packaging, focusing on reducing the environmental footprint of its products [1] Group 2 - The company designs and produces packaging primarily from renewable or recycled materials [1] - Graphic Packaging operates a global network of design and manufacturing facilities serving well-known brands in various sectors including food and beverage [1] - The company is headquartered in Atlanta, Georgia [1]

Core Viewpoint - Graphic Packaging Holding Company, a leader in sustainable consumer packaging, will present at the Raymond James Institutional Investors Conference on March 2, 2026, at 11:35 am ET [1] Company Overview - Graphic Packaging is headquartered in Atlanta, Georgia, and specializes in designing and producing consumer packaging primarily from renewable or recycled materials [1] - The company is recognized for its innovation and commitment to reducing the environmental footprint of consumer packaging [1] - Graphic Packaging operates a global network of design and manufacturing facilities, serving well-known brands in various sectors including food, beverage, foodservice, household, and other consumer products [1]

Core Insights - Graphic Packaging (NYSE:GPK) is recognized as one of the top eight paper and plastic packaging stocks favored by hedge funds [1] - Analysts have recently adjusted their price targets for GPK, reflecting concerns about near-term challenges and performance [2][3] Analyst Ratings and Price Targets - Ghansham Panjabi from Baird reduced the target price from $18 to $15, indicating a revised upside potential of over 13% while maintaining a Neutral rating due to near-term business challenges [1] - Michael Roxland from Truist Financial reaffirmed a Hold rating and lowered the price target from $18 to $14, citing weak volumes and pricing in the recently announced fourth-quarter results, which reported adjusted earnings per share (EPS) of $0.29 [2][3] Future Guidance - Management's guidance for 2026 includes an expected EBITDA range of $1.05 to $1.25 billion and an EPS range of $0.75 to $1.15 [4] Company Overview - Graphic Packaging is a vertically integrated manufacturer of fiber-based consumer packaging materials, serving various segments such as food & beverage, foodservice, and household products [5] - The company operates in three segments: Americas Paperboard Packaging, Europe Paperboard Packaging, and Paperboard Manufacturing, offering products like unbleached, bleached & recycled paperboard, cups, lids, food containers, and specialized packaging machines [5]

Core Insights - Graphic Packaging (NYSE:GPK) experienced a significant rebound, rising by 10.31% to close at $13.70, as investors sought bargains after the stock approached its 52-week low [1][8] Financial Performance - The company reported a 32% decline in net income, falling to $444 million from $658 million year-on-year, while net sales decreased by 2.3% to $8.6 billion from $8.8 billion [2] - In the fourth quarter, net income dropped by 48% to $71 million from $138 million, with net sales remaining flat at $2.1 billion [3] - Full-year net sales were negatively impacted by a $150 million loss from the disposal of the Augusta, Georgia, bleached paperboard, alongside lower paperboard prices and a $97 million decline in packaging sales [4] Market Challenges - The company faces challenges due to consumer affordability issues and competitive pressures, which are expected to persist in the near term [5] - The CEO has initiated a comprehensive review of the organization and operations to enhance shareholder value [6]

Core Insights - The company aims to enhance brand perception, enable sustainability goals, and deliver exceptional quality and reliability, which are seen as substantial opportunities for improving performance and creating shareholder value [1][5] - The company recognizes the critical role of packaging in consumer purchasing decisions and is aware of the challenges and opportunities faced by customers in the evolving market [2][10] - The CEO has initiated a comprehensive operational and business review to unlock the company's full potential and drive stronger performance for stakeholders [6][9] Company Overview - Graphic Packaging is positioned as a world-class company with strong relationships with respected consumer brands and retailers, supported by an industry-leading asset base [5][12] - The company operates approximately 100 packaging facilities, including the highest quality recycled paperboard manufacturing facilities in North America [5][18] - The company has a strong focus on innovation and technical capabilities to build deeper customer relationships [5][23] Operational Challenges and Strategies - The company acknowledges the need to address overcapacity in the commodity bleached paperboard markets and the impact of macroeconomic uncertainty on consumer purchasing patterns [10][11] - Immediate steps are being taken to right-size the cost structure and reduce inventory levels to enhance profitability and drive free cash generation [11][12] - A transformation office has been established to drive operational improvements and enhance productivity without disrupting customer service [8][16] Financial Performance and Projections - In Q4, net sales were $2.1 billion, essentially flat year-over-year, with adjusted EBITDA of $311 million, reflecting competitive pricing pressures and softer packaging volumes [28][29] - For the full year, net sales were $8.6 billion, down approximately 2%, with adjusted EBITDA around $1.4 billion [29][30] - The company expects adjusted free cash flow to be between $700 million and $800 million in 2026, driven by reduced capital spending and inventory optimization [21][33] Growth Strategy - The company is focused on disciplined organic growth, prioritizing markets with the best long-term opportunities while reducing exposure to less favorable markets [21][22] - Partnerships with key consumer packaged goods companies and quick service restaurants are being emphasized to drive volume growth and innovation [22][63] - The company aims to accelerate the speed of commercialization for innovative packaging solutions to meet evolving customer needs [24][23] Capital Allocation and Debt Management - The company’s capital allocation strategy prioritizes reducing leverage, returning capital to shareholders, and optimizing the portfolio over time [25][44] - The current net leverage stands at 3.8 times, with plans to pay down approximately $500 million of debt in 2026 [25][42] - The company remains committed to returning capital through dividends and opportunistic share repurchases as leverage declines [26][44]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $2.1 billion, essentially flat year-over-year, with volumes and pricing both down slightly less than 1%, offset by a $40 million foreign exchange benefit [27] - For the full year 2025, net sales were $8.6 billion, down approximately 2%, with the Augusta divestiture accounting for $150 million of the decrease [28] - Adjusted EBITDA for the full year was approximately $1.4 billion, impacted by competitive pricing and softer packaging volumes [29] Business Line Data and Key Metrics Changes - The company experienced a combined $174 million headwind from price and volume for the full year, with commodity input and operating cost inflation of approximately $150 million [29] - Adjusted EPS for the full year was $1.80, with a net leverage of 3.8x reflecting headwinds to EBITDA and share repurchases [30] Market Data and Key Metrics Changes - The external environment remains challenged, with overcapacity in commodity bleached paperboard markets putting pressure on finished packaging [11] - Demand trends for consumer staples remain uneven due to affordability and macroeconomic uncertainty, with expectations for improvement acknowledged [11] Company Strategy and Development Direction - The company aims to enhance profitability through cost actions and operational efficiencies, reduce inventory, and prioritize free cash flow generation [15][41] - A comprehensive operational and business review is underway to optimize the company's footprint and resources [10][11] - The growth strategy is customer-centric, focusing on disciplined organic growth and partnerships with key consumer packaged goods companies [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to right-size the cost structure for current macroeconomic realities and is taking immediate steps to enhance profitability [12] - The company expects to generate Adjusted Free Cash Flow between $700 million and $800 million in 2026, with a focus on reducing capital spending and inventory [15][20] Other Important Information - Total capital spend for 2025 was $935 million, higher than targets, with expectations to drop to approximately $450 million in 2026 [19][20] - The company is committed to reducing debt and returning capital to shareholders through dividends and share repurchases [25][41] Q&A Session Summary Question: What makes your approach different than what has come before at Graphic Packaging? - The new CEO emphasizes a focus on cost reduction, productivity, and operational excellence while maintaining strong customer relationships [45][46] Question: How are you able to balance inventory reduction while Waco continues to ramp? - The inventory reduction will focus on recycled, bleached, and cup stock, ensuring customer service is not disrupted [49][51] Question: How do you think the pricing dynamic situation in paperboard in the U.S. will play out? - The CEO notes that the bleached paperboard market is oversupplied, impacting margins, but believes the company can manage costs effectively [58][60] Question: What factors will determine core or non-core assets in your business? - The CEO highlights the importance of focusing on core operations with durable competitive advantages and synergies [80][81] Question: Will there be any changes to the dividend policy for 2026? - The immediate priority is debt paydown, with no commitment to a dividend change yet, but expectations for growing dividends over time [85]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $2.1 billion, flat year-over-year, with volumes and pricing down slightly less than 1%, offset by a $40 million foreign exchange benefit [26] - For the full year 2025, net sales were $8.6 billion, down approximately 2%, with adjusted EBITDA around $1.4 billion, reflecting pressures from competitive pricing and softer packaging volumes [27][28] - Adjusted EPS for the full year was $1.80, with a net leverage of 3.8x due to EBITDA headwinds and share repurchases [28] Business Line Data and Key Metrics Changes - The company is experiencing pressure on adjusted EBITDA due to competitive pricing and reduced packaging volumes, which together reduced adjusted EBITDA by approximately $40 million compared to the previous year [26] - The adjusted divestiture accounted for $150 million of the $190 million decrease in net sales for the full year [27] Market Data and Key Metrics Changes - The external environment remains challenged, with overcapacity in commodity bleached paperboard markets impacting finished packaging prices [10] - Demand trends for consumer staples are uneven due to affordability and macroeconomic uncertainty, with expectations of improvement in the future [10] Company Strategy and Development Direction - The company is focused on enhancing profitability through cost actions and operational efficiencies, reducing inventory, and prioritizing free cash flow generation [13][19] - A comprehensive operational and business review is underway to optimize the company's footprint and resources [10][12] - The growth strategy emphasizes disciplined organic growth, customer-centric approaches, and innovation to drive market share [20][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the current macroeconomic environment but emphasizes a focus on controllable factors to create lasting value [11] - The company expects to generate adjusted free cash flow between $700 million and $800 million in 2026, driven by reduced capital spending and inventory optimization [14][19] - Management is optimistic about restoring top-line growth and improving margins as market conditions normalize [15][50] Other Important Information - Total capital spend for 2025 was $935 million, higher than targeted, with expectations to drop to approximately $450 million in 2026 [18][19] - The company aims to achieve an investment-grade credit rating by 2030 as part of its Vision 2030 commitments [15][23] Q&A Session Summary Question: How will the new CEO's approach differ from previous strategies? - The new CEO emphasizes a focus on cost reduction, productivity, and operational excellence while maintaining strong customer relationships [41][42] Question: What are the plans for inventory reduction? - The company plans to reduce inventory from 20% to 15% of sales, focusing on recycled, bleached, and cup stock, while ensuring customer service remains unaffected [45][46] Question: How does the pricing dynamic in paperboard affect the industry? - The CEO notes that the bleached paperboard market is oversupplied, impacting pricing and returns, while recycled and unbleached markets are in better balance [48][49] Question: What factors will determine core versus non-core assets? - The company will focus on durable competitive advantages and synergies, particularly in its North America and Europe food and beverage business, while reviewing smaller businesses for potential divestiture [57][59] Question: What is the company's stance on dividends? - The immediate priority is debt paydown, with no commitment to change the dividend policy for 2026, but future growth in dividends is expected as leverage decreases [60]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $2.1 billion, flat year-over-year, with volumes and pricing down slightly less than 1%, offset by a $40 million foreign exchange benefit [23] - For the full year 2025, net sales were $8.6 billion, down approximately 2%, with adjusted EBITDA around $1.4 billion, reflecting pressures from competitive pricing and softer packaging volumes [24][25] - Adjusted EPS for the full year was $1.80, with a net leverage of 3.8x [25] Business Line Data and Key Metrics Changes - The company experienced a combined $174 million headwind from price and volume for the full year, with commodity input and operating cost inflation around $150 million [24] - Adjusted EBITDA for Q4 was $311 million, impacted by competitive pricing and production curtailments [23] Market Data and Key Metrics Changes - The external environment remains challenged, with overcapacity in commodity bleached paperboard markets affecting finished packaging [9] - Demand trends for consumer staples are uneven due to affordability and macroeconomic uncertainty, with expectations for improvement acknowledged [10] Company Strategy and Development Direction - The company aims to enhance profitability through cost actions and operational efficiencies, reduce inventory, and prioritize free cash flow generation [12] - A comprehensive operational and business review is underway to optimize the company's footprint and financial performance [9] - The growth strategy is customer-centric, focusing on disciplined organic growth and innovation to drive volume [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to right-size the cost structure and reduce inventory levels to enhance profitability [10] - The company expects to generate adjusted free cash flow between $700 million and $800 million in 2026, driven by reduced capital spending and inventory optimization [12][28] - There is confidence in restoring top-line growth and stronger margins as part of the value creation plan [13] Other Important Information - The Waco project is substantially complete, with total project spend estimated at $1.67 billion, and capital spending is expected to drop significantly in 2026 [15][16] - The company is focused on reducing leverage and returning capital to shareholders through dividends and share repurchases [20][21] Q&A Session Summary Question: What makes your approach different than what has come before at Graphic Packaging? - The new CEO emphasizes a focus on cost reduction, productivity, and operational excellence while maintaining strong customer relationships [37][38] Question: How are you able to balance inventory reduction while Waco continues to ramp? - The inventory reduction will focus on recycled, bleached, and cup stock, ensuring customer service is not disrupted [41][42] Question: How do you see the pricing dynamics in paperboard in the U.S. over the next couple of years? - The CEO notes that recycled and unbleached markets are balanced, while bleached paperboard faces oversupply and pricing pressure [44][45] Question: What are the factors determining core or non-core assets in the business? - The company will focus on durable competitive advantages and synergies, particularly in North America and Europe food and beverage businesses [54][56]