Greif (GEF) Q3 2026 earnings summary

Executive summary

• Achieved strong Q3 2026 results with adjusted EBITDA up 24.7% to $183.4 million and margin expansion, driven by strategic execution, cost optimization, and disciplined capital allocation, despite geopolitical disruptions and uneven demand.

• Net income from continuing operations rose 156.7% year-over-year to $78.8 million, with adjusted net income up 87.0% to $93.3 million.

• Completed divestiture of Containerboard Business and Soterra land assets, and closed the acquisition of Envaplast, expanding presence in EMEA and Agrochemical markets.

• Quarterly dividend was raised by over 10%, and share repurchase programs were expanded.

• Achieved $90 million in cumulative run-rate cost optimization savings, targeting at least $120 million by fiscal 2027.

Financial highlights

• Net sales for Q3 2026 were $1,165.6 million, up 3.5% year-over-year, with gross profit at $272.6 million (23.4% margin) and adjusted EBITDA margin at 15.7%.

• Adjusted EPS increased nearly 90% year-over-year to $1.61; diluted EPS from continuing operations was $1.37.

• Adjusted free cash flow for Q3 was $57.7 million, reflecting higher inventory and the absence of Containerboard contributions.

• SG&A expenses decreased to $149.5 million (12.8% of sales) due to cost optimization.

• Total debt dropped to $1,030.4 million, with net debt at $741.9 million and leverage ratio improved to 1.1x.

Outlook and guidance

• Fiscal 2026 adjusted EBITDA guidance is $615–$635 million, representing 10–13% year-over-year growth.

• Adjusted free cash flow for the year expected at $305–$325 million, with ~50% conversion.

• Guidance reflects higher working capital and restructuring costs, partially offset by better cash taxes.

• Expected tax rate for fiscal 2026 is 24.0–28.0%, with an adjusted tax rate of 25.0–29.0%.

• Management expects subdued industrial demand and ongoing inflationary pressures.