Graphic Packaging Q1 Sales Up 2% to $2.156B, Cuts Capex Guidance to $450M
GPK•Graphic Packaging’s Q1 2026 net sales rose 2% year-over-year to $2.156 billion while net loss widened to $43 million, with adjusted net income totaling $28 million. The company cut inventory by $48 million, executed $60 million in cost reductions, reduced capex guidance to $450 million and reaffirmed $700–800 million in adjusted cash flow.
1. Financial Results
Graphic Packaging’s net sales grew 2% to $2.156 billion while net loss widened to $43 million, or $0.14 per share, compared with Q1 2025’s $127 million profit. Adjusted net income fell to $28 million and EBITDA declined 55% to $159 million, with adjusted EBITDA at $232 million.
2. Cost Reduction and Operational Efficiency
The company completed a 90-day business review, cutting inventory by $48 million, delivering $60 million in cost reductions and eliminating over 500 salaried roles. It cancelled low-return projects, avoiding $200 million in future capital expenditure, streamlined its portfolio with a pending divestiture in Croatia and filed 13 new patents.
3. Guidance and Capital Management
Graphic Packaging reiterated 2026 guidance with adjusted cash flow of $700–800 million, net sales of $8.4–8.6 billion and adjusted EBITDA of $1.05–1.25 billion. It lowered capital spending guidance to $450 million, reported a net leverage ratio of 4.4x and returned $32 million in dividends.
