Graphic Packaging implements cost and production optimization initiatives
Graphic Packaging Holding Company, a global provider of sustainable consumer packaging solutions, released further information regarding its ongoing support function review and production optimization initiatives. As previously noted during the Company’s third quarter 2025 earnings conference call, Graphic Packaging carried out an extensive assessment of support functions and corporate cost structures.
As a result, the Company now anticipated achieving approximately USD 60 million in savings during 2026 through staffing adjustments and other cost-reduction measures. Graphic Packaging indicated that it was working closely with the employees affected by these changes, providing placement assistance and transition support. Severance expenses, along with other one-time costs and non-cash charges tied to these actions, were expected to total around USD 20 million.
The Company also outlined additional steps aimed at lowering inventory levels in the fourth quarter. With the startup of its recycled paperboard manufacturing facility in Waco, Texas progressing ahead of schedule, Graphic Packaging planned to accelerate certain inventory reduction measures originally slated for 2026. According to the Company, production curtailments were expected to weigh on fourth-quarter operating results by approximately USD 15 million, in addition to the USD 15 million impact related to curtailments announced during the third quarter earnings call.
For the full year, Net Sales were projected to be in the range of USD 8.4 billion to USD 8.6 billion, unchanged from the guidance issued on November 4, 2025. Adjusted EBITDA was expected to reach between USD 1.38 billion and USD 1.43 billion, compared with the earlier range of USD 1.40 billion to USD 1.45 billion. Adjusted EPS was now forecast at USD 1.75 to USD 1.95, revised from the previous USD 1.80 to USD 2.00. The Company reaffirmed its confidence in achieving its free cash flow target of USD 700 million to USD 800 million for 2026.
