Greif Earnings Beat Estimates in Q3 on Pricing & Cost Optimization

Greif's Sales & Profitability Improve

GEF’s sales increased 3.5% year over year to $1.17 billion. The top line surpassed the Zacks Consensus Estimate of $1.12 billion.

The cost of sales rose 2.7% year over year to $893 million. Gross profit amounted to $273 million, up 6.5% from the prior-year quarter. The gross margin came in at 23.4%, up from the prior-year quarter’s 22.7%.

Selling, general and administrative expenses were $149.5 million compared with the prior-year quarter’s $168 million. 

Adjusted EBITDA rose 24.7% year over year to $183.4 million in the fiscal third quarter. The adjusted EBITDA margin came in at 15.7% compared with the prior-year quarter’s 13.1%.

GEF’s Segment Performance in Q3

Revenues in the Customized Polymer Solutions segment increased 13.6% year over year to $384 million, primarily driven by higher average selling prices, favorable foreign currency translation and higher volumes. Our model projected revenues of $331 million for the quarter. The segment’s adjusted EBITDA rose to $64.3 million from $37.1 million in the year-ago quarter. The reported figure beat our estimate of $33 million.

The Durable Metal Solutions segment’s revenues increased 3.4% year over year to $406 million in the fiscal third quarter, aided by positive foreign currency translation and higher average selling prices, partly offset by lower volumes. The figure beat our estimated revenues of $387 million. The segment’s adjusted EBITDA improved to $64 million from $53.6 million in the prior-year quarter. We projected the segment’s adjusted EBITDA to be $52 million.

The Sustainable Fiber Solutions segment’s revenues declined 6.5% year over year to $346.5 million, reflecting lower average selling prices, impacts from the Soterra divestiture and lower volumes. The figure beat our estimated revenues of 260 million. The segment’s adjusted EBITDA was $42.5 million, down from $48.8 million in the year-ago quarter. We projected the segment’s adjusted EBITDA to be $71 million.

The Innovative Closure Solutions segment’s revenues rose 18.8% year over year to $30 million, supported by higher average selling prices, higher volumes and favorable foreign currency translation. We projected the segment's revenues to be $148 million in the quarter. Adjusted EBITDA increased to $12.6 million from $7.6 million a year earlier. Our forecast for the quarter’s adjusted EBITDA was $7 million.

Greif’s Cash Position & Balance Sheet at Q3-End

Greif reported cash and cash equivalents of $288.5 million as of June 30, 2026, compared with $256.7 million at the end of fiscal 2025. The cash flow from operating activities totaled $77.8 million in the quarter under review, down from $147.1 million in the prior-year quarter.

Long-term debt amounted to $687.4 million as of June 30, 2026, compared with $914.8 million as of Sept. 30, 2025. Total debt was $1.03 billion, while net debt declined to $741.9 million from $2.43 billion as of July 31, 2025.

On June 2, Greif’s board declared a quarterly cash dividend of 62 cents per share of Class A Common Stock and 93 cents per share of Class B Common Stock. The dividend represented a 10.7% increase and was paid out on July 1, 2026, to shareholders of record at the close of business on June 17, 2026.

The company also announced plans to execute share repurchases under existing authorizations. It achieved $90 million in cumulative run-rate cost savings and maintained its target of at least $120 million by the end of fiscal 2027. Greif also completed the $57-million Envaplast acquisition, adding an agrochemical-focused small-container producer in Spain.

GEF Maintains FY26 Guidance

GEF expects fiscal 2026 adjusted EBITDA of $615-$635 million, implying year-over-year growth of 9.8-13.4%. The outlook reflects improved fiscal third-quarter demand and continued execution, even as industrial conditions remain subdued and the company has not seen evidence of a broad recovery.

The adjusted free cash flow is projected between $305 million and $325 million, with conversion of about 50%. Current assumptions call for flat Customized Polymer Solutions volumes, mid-single-digit declines in Durable Metal Solutions, and low-single-digit declines in both Sustainable Fiber Solutions and Innovative Closure Solutions.

Greif’s Stock Price Performance

The company’s shares have gained 32.4% in a year compared with the industry’s 2.2% growth.

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GEF’s Zacks Rank

Greif currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs. 

Packaging Corp’s sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. 

Crown Holdings, Inc. CCK posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%. 

Crown Holdings sales increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America. 

Sonoco Products Company SON reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset softer volume/mix during the quarter. 

Sonoco’s sales of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025.  

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