Greif (GEF) Q1 2026 earnings summary

Executive summary

• Entered 2026 with strong momentum, executing the Build to Last strategy, delivering solid Q1 results, and significant cost optimization and share repurchases.

• Net income for Q1 2026 surged to $182.9 million, primarily due to a $216.2 million gain from the Soterra/timberlands divestiture.

• Adjusted EBITDA grew 24% year-over-year to $122.5 million, with margin up 260 basis points.

• The Containerboard Business was divested in August 2025 for $1.8 billion; results now reflect only continuing operations.

Financial highlights

• Adjusted EBITDA rose to $122.5 million from $98.8 million year-over-year; margin improved from 9.7% to 12.3%.

• Adjusted Class A EPS increased 140% to $0.48, driven by higher EBITDA and lower interest expense.

• Adjusted free cash flow was a use of $41.0 million, impacted by the absence of divestment contributions.

• Leverage ratio improved to 1.2x from 3.6x year-over-year.

• Cash and cash equivalents at quarter-end were $243.5 million.

Outlook and guidance

• 2026 low-end guidance reaffirmed: Adjusted EBITDA of $630 million and Adjusted Free Cash Flow of $315 million.

• Management expects continued softness in the industrial economy, with no significant demand inflection anticipated for the year.

• Tax rate for 2026 expected between 26.0% and 30.0% (excluding adjustments: 28.0%–32.0%).

• Operating cash flows and credit facilities are expected to be sufficient to fund liquidity needs for at least 12 months.