Greif Raises Adjusted EBITDA 7.5% to $156.8M, Leverage Cut to 1.1x
Greif’s fiscal Q2 net income declined 32.3% to $12.6M while adjusted net income jumped 57.5% to $62.7M and adjusted EBITDA grew 7.5% to $156.8M. The company reduced debt by $1.77B to $1.006B, lowered leverage to 1.1x, generated $179.3M adjusted free cash flow and completed a $150M share repurchase.
1. Financial Results
Greif reported Q2 net income of $12.6M, a 32.3% decline, and adjusted net income of $62.7M, up 57.5%. Adjusted EBITDA increased 7.5% to $156.8M, operating cash flow was $116.6M, and adjusted free cash flow reached $179.3M.
2. Debt Reduction and Leverage
Total debt fell by $1.77B to $1,005.9M following business divestitures, with net debt at $719.8M. The leverage ratio improved to 1.1x from 3.3x, supported by a $500M term loan and $800M revolver financing at a 3.14% weighted-average rate.
3. Share Repurchase and Cost Optimization
The company completed its $150M share repurchase program, repurchasing 1.8M Class A and 0.4M Class B shares. It also achieved $75M of run-rate cost savings by quarter end, up from $65M in Q1.
4. Outlook and Strategy
Management cited resilient performance in a soft industrial market, emphasizing cost control, cash generation and disciplined execution. The company plans targeted tuck-in M&A and maintains a conservative outlook while leveraging its strengthened balance sheet.