Graphic Packaging Holding Company (NYSE:GPK) reported better-than-expected third-quarter results, sending its shares up 1.98% in pre-market trading on Tuesday.
The sustainable packaging firm posted adjusted earnings of $0.58 per share, beating analyst estimates of $0.56. Revenue reached $2.19 billion, above the consensus forecast of $2.16 billion, though down 1% from the $2.22 billion reported in the same quarter last year.
Despite a challenging consumer environment marked by a 2% decline in packaging volumes due to ongoing food affordability pressures, Graphic Packaging maintained solid profitability, reporting an adjusted EBITDA margin of 17.5%, compared to 19.5% a year earlier.
“Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging,” said Michael Doss, the company’s President and Chief Executive Officer. “As food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent.”
The company also updated its full-year 2025 guidance, forecasting revenue between $8.4 billion and $8.6 billion, versus analyst expectations of $8.55 billion. Adjusted EPS is now projected to range between $1.80 and $2.00, slightly below the $2.02 consensus estimate.
Graphic Packaging highlighted progress at its new recycled paperboard facility in Waco, Texas, which produced its first commercial rolls in October, ahead of schedule. The company expects the plant to achieve full production within 12 to 18 months.
During the quarter, the company repurchased 1.8 million shares for $39 million, contributing to a year-to-date net share reduction of 2.3%.