Graphic Packaging Holding Company (NYSE:GPK) reported fourth-quarter results that fell short on earnings, overshadowing a modest revenue beat and sending the stock lower in early trading.
Shares of the sustainable packaging group dropped about 2.6% in pre-market dealings following the announcement.
The company posted adjusted earnings of $0.29 per share for the quarter, missing analysts’ expectations of $0.36. Revenue totaled $2.1 billion, slightly ahead of the $2.03 billion consensus forecast but broadly unchanged from the $2.095 billion recorded in the same quarter a year earlier.
Profitability came under pressure, with adjusted EBITDA declining 23% year on year to $311 million from $404 million. Adjusted EBITDA margin also narrowed sharply, falling to 14.8% from 19.3% a year ago.
“Consumer affordability created a challenging market for our customers and competitive pressure remains a near-term headwind,” said Robbert Rietbroek, the Company’s President and CEO. “As we move into 2026, our priorities are clear: drive operational excellence; deliver exceptional customer service; improve our cost structure; and drive substantial free cash flow to strengthen the balance sheet.”
Looking ahead, Graphic Packaging Holding Company issued full-year 2026 guidance that came in well below market expectations. The company forecast adjusted earnings per share of $0.75 to $1.15, compared with a consensus estimate of $1.77, and expects revenue in a range of $8.4 billion to $8.6 billion.
Management pointed to several headwinds affecting the outlook, including a $130 million negative impact from inventory reduction initiatives, around $100 million related to incentive compensation accruals, and weather- and production-related disruptions in January.
Despite the near-term challenges, Graphic Packaging reaffirmed its target for 2026 adjusted free cash flow of $700 million to $800 million and guided for capital expenditures of approximately $450 million.