DELAWARE, Ohio, June 04, 2025 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced fiscal second quarter 2025 results.
Fiscal Second Quarter 2025 Financial Highlights:
(all results compared to the second quarter of 2024 unless otherwise noted)
-- Net income increased 6.5% to $47.3 million or $0.82 per diluted Class A
share compared to net income of $44.4 million or $0.77 per diluted Class
A share. Net income, excluding the impact of adjustments(1), increased
42.8% to $68.7 million or $1.19 per diluted Class A share compared to net
income, excluding the impact of adjustments, of $48.1 million or $0.83
per diluted Class A share.
-- Adjusted EBITDA(2) increased 26.0% to $213.9 million compared to Adjusted
EBITDA of $169.7 million.
-- Net cash provided by operating activities increased by $48.9 million to a
source of $136.4 million. Adjusted free cash flow(3) increased by
$50.6 million to a source of $109.6 million.
-- Total debt of $2,775.2 million decreased by $140.9 million. Net debt(4)
decreased by $197.6 million to $2,522.5 million. Our leverage ratio(5)
decreased to 3.3x from 3.4x in the prior year quarter.
Strategic Actions and Announcements
-- Continuing to progress on sale of our timberland business with robust,
quality interest. We anticipate using proceeds of the sale to fund
further debt reduction.
-- Accelerated progress on cost optimization program, ending the quarter
with $10.0 million run-rate savings achieved and confirming expectation
to achieve $15.0 million to $25.0 million on a run-rate basis exiting
fiscal year 2025.
-- Completed annual Gallup survey, achieving an engagement score of 86,
which is again within the top quartile of all manufacturing
organizations. Additionally, for the second year in a row due to our
exemplary workplace culture we were honored to receive the Gallup
Exceptional Workplace Award.
Commentary from CEO Ole Rosgaard
"Greif delivered another strong quarter, balancing near-term financial execution with long-term strategic progress under our Build to Last strategy. We accelerated structural cost reductions and are on track to meet our 2025 targets. The resilience of our results, supported by deliberate portfolio moves and operational discipline, demonstrates that Greif is well-positioned for success and value creation now and in the future."
(1) Adjustments that are excluded from net income before
adjustments and from earnings per diluted Class A
share before adjustments are acquisition and integration
related costs, restructuring and other charges, non-cash
asset impairment charges, (gain) loss on disposal
of properties, plants and equipment, net, (gain) loss
on disposal of businesses, net, and other costs.
(2) Adjusted EBITDA is defined as net income, plus interest
expense, net, plus other (income) expense, net, plus
income tax (benefit) expense, plus depreciation, depletion
and amortization expense, plus acquisition and integration
related costs, plus restructuring and other charges,
plus non-cash asset impairment charges, plus (gain)
loss on disposal of properties, plants and equipment,
net, plus (gain) loss on disposal of businesses, net,
plus other costs.
(3) Adjusted free cash flow is defined as net cash provided
by operating activities, less cash paid for purchases
of properties, plants and equipment, plus cash paid
for acquisition and integration related costs, plus
cash paid for integration related Enterprise Resource
Planning (ERP) systems and equipment, plus cash paid
for fiscal year-end change costs.
(4) Net debt is defined as total debt less cash and cash
equivalents.
(5) Leverage ratio for the periods indicated is defined
as adjusted net debt divided by trailing twelve month
Adjusted EBITDA, each as calculated under the terms
of the Company's Second Amended and Restated Credit
Agreement dated as of March 1, 2022, filed as Exhibit
10.1 to the Company's Quarterly Report on Form 10-Q
for the fiscal quarter ended January 31, 2022 (the
"2022 Credit Agreement"). As calculated under the
2022 Credit Agreement, adjusted net debt was $2,472.4
million and $2,623.1 million as of April 30, 2025
and April 30, 2024, respectively, and trailing twelve
month Credit Agreement Adjusted EBITDA was $750.2
million and $777.7 million as of April 30, 2025 and
April 30, 2024, respectively.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this release with the most directly comparable GAAP financial measures is included in the financial schedules that are a part of this release. These non-GAAP financial measures are intended to supplement, and should be read together with, our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of this financial information should not place undue reliance on these non-GAAP financial measures.
Fiscal Second Quarter 2025 Segment Results:
(all results compared to the second quarter of 2024 unless otherwise noted)
Net sales are impacted mainly by the volume of products sold, selling prices and product mix, and the impact of changes in foreign currencies against the U.S. Dollar. The table below shows the percentage impact of each of these items on net sales for our primary products for the fiscal second quarter of 2025 as compared to the prior year quarter for the business segments indicated. Net sales of products from the completed acquisition of Ipackchem Group SAS ("Ipackchem") will be included in Customized Polymer Solutions segment starting in the fiscal third quarter 2025.
Customized Durable Sustainable
Net Sales Polymer Metal Fiber Integrated
Impact Solutions Solutions Solutions Solutions
------------ ------------- ------------ ------------- ------------
Currency
Translation (0.2)% (1.0)% (0.1)% (0.8)%
Volume 1.5% (4.5)% (1.6)% 7.3%
Selling
Prices and
Product Mix 0.6% (3.0)% 5.0% (4.1)%
----- ----- ------ ------ ---- -------
Total Impact 1.9% (8.5)% 3.3% 2.4%
----- ----- ------ ------ ---- -------
Customized Polymer Solutions
Net sales increased by $43.7 million to $329.3 million primarily due to $38.8 million of contributions from recent acquisitions.
Gross profit increased by $21.2 million to $76.7 million. The increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material costs and higher manufacturing costs.
Operating profit increased by $19.5 million to $25.8 million primarily due to the same factors that impacted gross profit.
Adjusted EBITDA increased by $18.5 million to $53.4 million primarily due to the same factors that impacted gross profit.
Durable Metal Solutions
Net sales decreased by $34.8 million to $378.9 million primarily due to $18.6 million attributable to lower volumes and $12.3 million attributable to lower average selling prices.
Gross profit decreased by $6.4 million to $82.9 million. The decrease in gross profit was primarily due to the same factors that impacted net sales, partially offset by lower raw material costs.
Operating profit decreased by $2.4 million to $54.1 million primarily due to the same factors that impacted gross profit and higher restructuring and other charges, partially offset by lower SG&A expenses related to lower incentive expenses due to performance.
Adjusted EBITDA decreased by $0.8 million to $63.7 million primarily due to the same factors that impacted gross profit, partially offset by lower SG&A expenses related to lower incentive expenses due to performance.
Sustainable Fiber Solutions
Net sales increased by $19.0 million to $599.1 million primarily due to $29.0 million from higher published containerboard and boxboard prices, partially offset by $9.1 million attributable to lower volumes.
Gross profit increased by $39.0 million to $132.7 million. The increase in gross profit was primarily due to the same factors that impacted net sales, along with lower raw material costs and lower manufacturing costs.
Operating profit increased by $7.0 million to $25.9 million primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses related to higher compensation expenses and costs incurred for strategic investments, higher restructuring and other charges, and higher impairment charges related to plant closures.
Adjusted EBITDA increased by $30.0 million to $79.5 million primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses related to higher compensation expenses and costs incurred for strategic investments.
Integrated Solutions
Net sales decreased by $13.2 million to $78.4 million primarily due to a $15.2 million impact from the divestiture of Delta Petroleum Company, Inc. (the "Delta Divestiture") during the third quarter of 2024.
Gross profit decreased by $4.4 million to $27.2 million. The decrease in gross profit was primarily due to the Delta Divestiture.
Operating profit decreased by $3.6 million to $12.8 million primarily due to the same factors that impacted gross profit.
Adjusted EBITDA decreased by $3.5 million to $17.3 million primarily due to the same factors that impacted gross profit.
Tax Summary
During the second quarter, we recorded an income tax rate of 35.5 percent and a tax rate excluding the impact of adjustments of 32.8 percent. Note that the application of FIN 18 frequently causes fluctuations in our quarterly effective tax rates. For fiscal 2025, we expect our tax rate and our tax rate excluding adjustments to range between 27.0 to 32.0 percent.
Dividend Summary
On June 2, 2025, the Board of Directors declared quarterly cash dividends of $0.54 per share of Class A Common Stock and $0.81 per share of Class B Common Stock. Dividends are payable on July 1, 2025, to stockholders of record at the close of business on June 17, 2025.
Company Outlook
Our markets have now experienced a multi-year period of industrial contraction, and we have not identified any compelling demand inflection on the horizon, despite slightly improved year-over-year volumes. While we believe we are well positioned for an eventual recovery of the industrial economy, at this time we believe it is appropriate to provide only low-end guidance based on the continuation of demand trends reflected in the past year, current price/cost factors in Sustainable Fiber Solutions, and other identifiable discrete items. We are raising our fiscal year low-end guidance based upon our second quarter performance and improved price/cost outlook relative to our previous guidance.
Fiscal 2025 Low-End
Guidance Estimate
(in millions) Reported at Q2
Adjusted EBITDA $725
Adjusted free cash flow $280
Note: Fiscal 2025 net income guidance, the most directly comparable GAAP financial measure to Adjusted EBITDA, is not provided in this release due to the potential for one or more of the following, the timing and magnitude of which we are unable to reliably forecast: gains or losses on the disposal of businesses or properties, plants and equipment, net; non-cash asset impairment charges due to unanticipated changes in the business; business transformation and restructuring related activities; acquisition and integration related costs; and ongoing initiatives under our Build to Last strategy. No reconciliation of the 2025 low-end guidance estimate of Adjusted EBITDA, a non-GAAP financial measure which excludes restructuring and other charges, acquisition and integration related costs, non-cash asset impairment charges, (gain) loss on the disposal of properties, plants, equipment and businesses, net, and other costs, is included in this release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required to be included in net income, the most directly comparable GAAP financial measure, without unreasonable efforts. A reconciliation of the 2025 low-end guidance estimate of Adjusted free cash flow to fiscal 2025 forecasted net cash provided by operating activities, the most directly comparable GAAP financial measure, is included in this release.
Conference Call
The Company will host a conference call to discuss second quarter 2025 results on June 5, 2025, at 8:30 a.m. Eastern Time $(ET)$. Participants may access the call using the following online registration link: https://register-conf.media-server.com/register/BIa5ca8b8b4cc0402891830955f0a6c51e. Registrants will receive a confirmation email containing dial in details and a unique conference call code for entry. Phone lines will open at 8:00 a.m. ET on June 5, 2025. A digital replay of the conference call will be available two hours following the call on the Company's web site at http://investor.greif.com.
Investor Relations contact information
Bill D'Onofrio, Vice President, Corporate Development & Investor Relations, 614-499-7233. Bill.Donofrio@greif.com
About Greif
Greif is a global leader in industrial packaging products and services and is pursuing its vision: to be the best customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company is strategically positioned in over 35 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "may," "will," "expect," "intend," "estimate," "anticipate," "aspiration," "objective," "project," "believe," "continue," "on track" or "target" or the negative thereof and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to management. Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis, the Company can give no assurance that these expectations will prove to be correct. Such forward-looking statements are subject to certain risks and uncertainties that could cause the Company's actual results to differ materially from those forecasted, projected or anticipated, whether expressed or implied.
Such risks and uncertainties that might cause a difference include, but are not limited to, the following: (i) historically, our business has been sensitive to changes in general economic or business conditions, (ii) our global operations subject us to political risks, instability and currency exchange that could adversely affect our results of operations, (iii) the current and future challenging global economy and disruption and volatility of the financial and credit markets may adversely affect our business, (iv) the continuing consolidation of our customer base and suppliers may intensify pricing pressure, (v) we operate in highly competitive industries, (vi) our business is sensitive to changes in industry demands and customer preferences, (vii) raw material shortages, price fluctuations, global supply chain disruptions and increased inflation may adversely impact our results of operations, (viii) energy and transportation price fluctuations and shortages may adversely impact our manufacturing operations and costs, (ix) we may encounter difficulties or liabilities arising from acquisitions or divestitures, (x) we may incur additional rationalization costs and there is no guarantee that our efforts to reduce costs will be successful, (xi) several operations are conducted by joint ventures that we cannot operate solely for our benefit, (xii) certain of the agreements that govern our joint ventures provide our partners with put or call options, (xiii) our ability to attract, develop and retain talented and qualified employees, managers and executives is critical to our success, (xiv) our business may be adversely impacted by work stoppages and other labor relations matters, (xv) we may be subject to losses that might not be covered in whole or in part by existing insurance reserves or insurance coverage and general insurance premium and deductible increases, (xvi) our business depends on the uninterrupted operations of our facilities, systems and business functions, including our information technology and other business systems, (xvii) a cyber-attack, security breach of customer, employee, supplier or Company information and data privacy risks and costs of compliance with new regulations may have a material adverse effect on our business, financial condition, results of operations and cash flows, (xviii) we could be subject to changes in our tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, (xix) we have a significant amount of goodwill and long-lived assets which, if impaired in the future, would adversely impact our results of operations, (xx) changing climate, global climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance, (xxi) we may be unable to achieve our greenhouse gas emission reduction target by 2030, (xxii) legislation/regulation related to environmental and health and safety matters could negatively impact our operations and financial performance, (xxiii) product liability claims and other legal proceedings could adversely affect our operations and financial performance, and (xxiv) we may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate, or are alleged to have violated, anti-bribery, competition or other laws.
The risks described above are not all-inclusive, and given these and other possible risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. For a detailed discussion of the most significant risks and uncertainties that could cause our actual results to differ materially from those forecasted, projected or anticipated, see "Risk Factors" in Part I, Item 1A of our most recently filed Form 10-K and our other filings with the Securities and Exchange Commission.
All forward-looking statements made in this news release are expressly qualified in their entirety by reference to such risk factors. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
Three months ended Six months ended April
April 30, 30,
----------------------- ----------------------
(in millions, except
per share amounts) 2025 2024 2025 2024
--------------------- ------------ --------- --------- -----------
Net sales $1,385.7 $1,371.0 $2,651.5 $2,576.8
Cost of products sold 1,066.2 1,100.9 2,086.5 2,085.1
------- ------- ------- -------
Gross profit 319.5 270.1 565.0 491.7
Selling, general and
administrative
expenses 172.6 167.2 340.3 313.0
Acquisition and
integration related
costs 2.0 11.5 4.2 14.1
Restructuring and
other charges 14.6 (6.8) 17.3 (1.1)
Non-cash asset
impairment charges 10.7 0.4 24.4 1.7
(Gain) loss on
disposal of
properties, plants
and equipment, net 0.5 (0.3) (1.1) (3.0)
(Gain) loss on
disposal of
businesses, net 0.5 -- 1.4 --
------- ------- ------- -------
Operating
profit 118.6 98.1 178.5 167.0
Interest expense, net 34.9 30.2 72.6 54.4
Other (income)
expense, net (0.2) (0.4) 0.2 8.7
------- ------- ------- -------
Income before
income tax
(benefit)
expense and
equity
earnings of
unconsolidated
affiliates,
net 83.9 68.3 105.7 103.9
Income tax (benefit)
expense 29.8 17.0 37.6 (21.2)
Equity earnings of
unconsolidated
affiliates, net of
tax (0.4) (0.7) (0.8) (1.2)
------- ------- ------- -------
Net income 54.5 52.0 68.9 126.3
Net income
attributable to
noncontrolling
interests (7.2) (7.6) (13.0) (14.7)
------- ------- ------- -------
Net income
attributable
to Greif,
Inc. $ 47.3 $ 44.4 $ 55.9 $ 111.6
======= ======= ======= =======
Basic earnings per
share attributable to
Greif, Inc. common
shareholders:
Class A common stock $ 0.82 $ 0.77 $ 0.97 $ 1.94
Class B common stock $ 1.22 $ 1.15 $ 1.44 $ 2.90
Diluted earnings per
share attributable to
Greif, Inc. common
shareholders:
Class A common stock $ 0.82 $ 0.77 $ 0.97 $ 1.94
Class B common stock $ 1.22 $ 1.15 $ 1.44 $ 2.90
Shares used to
calculate basic
earnings per share
attributable to
Greif, Inc. common
shareholders:
Class A common stock 26.1 25.8 26.0 25.7
Class B common stock 21.3 21.3 21.3 21.3
Shares used to
calculate diluted
earnings per share
attributable to
Greif, Inc. common
shareholders:
Class A common stock 26.2 25.9 26.1 25.8
Class B common stock 21.3 21.3 21.3 21.3
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in millions) April 30, 2025 October 31, 2024
---------------------------------- ---------------- --------------------
ASSETS
Current assets
Cash and cash equivalents $ 252.7 $ 197.7
Trade accounts receivable 803.7 746.9
Inventories 430.7 399.5
Other current assets 267.3 205.3
------------ --------------
1,754.4 1,549.4
Long-term assets
Goodwill 1,987.4 1,953.7
Intangible assets 881.7 937.1
Operating lease right-of-use
assets 260.0 284.5
Other long-term assets 241.4 270.8
------------ --------------
3,370.5 3,446.1
------------ --------------
Properties, plants and equipment 1,629.5 1,652.1
------------ --------------
$ 6,754.4 $ 6,647.6
============ ==============
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 531.6 $ 521.9
Short-term borrowings 388.5 18.6
Current portion of long-term
debt 95.8 95.8
Current portion of operating
lease liabilities 54.2 56.5
Other current liabilities 315.7 321.6
------------ --------------
1,385.8 1,014.4
Long-term liabilities
Long-term debt 2,290.9 2,626.2
Operating lease liabilities 207.5 230.2
Other long-term liabilities 564.0 529.4
------------ --------------
3,062.4 3,385.8
Redeemable noncontrolling
interests 131.2 129.9
Equity
---------------- --------------------
Total Greif, Inc. equity 2,134.1 2,082.4
------------ --------------
Noncontrolling interests 40.9 35.1
------------ --------------
Total equity 2,175.0 2,117.5
------------ --------------
$ 6,754.4 $ 6,647.6
============ ==============
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
Three months ended Six months ended April
April 30, 30,
--------------------- ----------------------
(in millions) 2025 2024 2025 2024
----------------- ----------- -------- ---------- ----------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income $ 54.5 $ 52.0 $ 68.9 $ 126.3
Depreciation,
depletion and
amortization 66.4 65.9 133.0 126.3
Asset impairments 10.7 0.4 24.4 1.7
Deferred income
tax expense
(benefit) (2.6) (4.2) (3.2) (53.4)
Other non-cash
adjustments to
net income 36.0 23.1 38.0 40.7
Operating working
capital changes (39.9) (26.7) (63.0) (54.3)
Increase
(decrease) in
cash from
changes in other
assets and
liabilities 11.3 (23.0) (92.5) (95.3)
------ ------ ----- ------
Net cash
provided
by (used
in)
operating
activities 136.4 87.5 105.6 92.0
------ ------ ----- ------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Acquisitions of
companies, net
of cash
acquired -- (567.6) (4.6) (567.6)
Purchases of
properties,
plants and
equipment (30.0) (41.0) (65.7) (96.6)
Proceeds from the
sale of
properties,
plant and
equipment and
businesses, net
of impacts from
the purchase of
acquisitions 18.0 0.9 19.6 5.9
Payments for
deferred
purchase price
of acquisitions -- -- (1.2) (1.2)
Proceeds from
hedging
derivatives -- -- 22.5 --
Other (0.7) (1.3) (2.3) (3.1)
------ ------ ----- ------
Net cash
provided
by (used
in)
investing
activities (12.7) (609.0) (31.7) (662.6)
------ ------ ----- ------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Proceeds
(payments) on
long-term debt,
net (78.4) 596.2 25.4 670.3
Dividends paid to
Greif, Inc.
shareholders (31.4) (30.0) (62.4) (59.7)
Tax withholding
payments for
stock-based
awards (1.0) (3.8) (7.4) (10.6)
Other (5.4) (13.6) (9.3) (15.1)
------ ------ ----- ------
Net cash
provided
by (used
in)
financing
activities (116.2) 548.8 (53.7) 584.9
Effects of
exchange rates
on cash 44.1 (10.6) 34.8 0.8
------ ------ ----- ------
Net increase
(decrease) in
cash and cash
equivalents 51.6 16.7 55.0 15.1
Cash and cash
equivalents,
beginning of
period 201.1 179.3 197.7 180.9
------ ------ ----- ------
Cash and cash
equivalents, end
of period $ 252.7 $ 196.0 $252.7 $ 196.0
====== ====== ===== ======
GREIF, INC. AND SUBSIDIARY COMPANIES
FINANCIAL HIGHLIGHTS BY SEGMENT
UNAUDITED
Three months ended Six months ended
April 30, April 30,
------------------ --------------------
(in millions) 2025 2024 2025 2024
---------------- -------- -------- -------- ----------
Net sales:
Customized
Polymer
Solutions $ 329.3 $ 285.6 $ 624.4 $ 513.6
Durable Metal
Solutions 378.9 413.7 721.1 784.2
Sustainable
Fiber
Solutions 599.1 580.1 1,160.5 1,108.9
Integrated
Solutions 78.4 91.6 145.5 170.1
------- ------- ------- -------
Total net
sales $1,385.7 $1,371.0 $2,651.5 $2,576.8
======= ======= ======= =======
Gross profit:
Customized
Polymer
Solutions $ 76.7 $ 55.5 $ 137.3 $ 99.7
Durable Metal
Solutions 82.9 89.3 146.0 155.1
Sustainable
Fiber
Solutions 132.7 93.7 236.1 182.0
Integrated
Solutions 27.2 31.6 45.6 54.9
------- ------- ------- -------
Total
gross
profit $ 319.5 $ 270.1 $ 565.0 $ 491.7
======= ======= ======= =======
Operating
profit:
Customized
Polymer
Solutions $ 25.8 $ 6.3 $ 39.6 $ 18.0
Durable Metal
Solutions 54.1 56.5 91.7 93.4
Sustainable
Fiber
Solutions 25.9 18.9 29.5 27.1
Integrated
Solutions 12.8 16.4 17.7 28.5
------- ------- ------- -------
Total
operating
profit $ 118.6 $ 98.1 $ 178.5 $ 167.0
======= ======= ======= =======
Adjusted
EBITDA(6) :
Customized
Polymer
Solutions $ 53.4 $ 34.9 $ 92.9 $ 60.7
Durable Metal
Solutions 63.7 64.5 108.9 109.2
Sustainable
Fiber
Solutions 79.5 49.5 131.0 102.5
Integrated
Solutions 17.3 20.8 26.2 34.3
------- ------- ------- -------
Total
Adjusted
EBITDA $ 213.9 $ 169.7 $ 359.0 $ 306.7
======= ======= ======= =======
(6) Adjusted EBITDA is defined as net income, plus interest
expense, net, plus other (income) expense, net, plus
income tax (benefit) expense, plus depreciation, depletion
and amortization expense, plus acquisition and integration
related costs, plus restructuring and other charges,
plus non-cash asset impairment charges, plus (gain)
loss on disposal of properties, plants and equipment,
net, plus (gain) loss on disposal of businesses, net,
plus other costs.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED ADJUSTED EBITDA
UNAUDITED
Three months ended Six months ended
April 30, April 30,
------------------- ---------------------
(in millions) 2025 2024 2025 2024
--------------------- ---------- ------- ---------- ---------
Net income $ 54.5 $ 52.0 $ 68.9 $126.3
Plus: Interest
expense, net 34.9 30.2 72.6 54.4
Plus: Other
(income)
expense, net (0.2) (0.4) 0.2 8.7
Plus: Income
tax (benefit)
expense 29.8 17.0 37.6 (21.2)
Plus: Equity
earnings of
unconsolidated
affiliates,
net of tax (0.4) (0.7) (0.8) (1.2)
----- ----- ----- -----
Operating profit $118.6 $ 98.1 $178.5 $167.0
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax (0.4) (0.7) (0.8) (1.2)
Plus:
Depreciation,
depletion and
amortization
expense 66.4 65.9 133.0 126.3
Plus:
Acquisition
and
integration
related costs 2.0 11.5 4.2 14.1
Plus:
Restructuring
and other
charges 14.6 (6.8) 17.3 (1.1)
Plus: Non-cash
asset
impairment
charges 10.7 0.4 24.4 1.7
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net 0.5 (0.3) (1.1) (3.0)
Plus: (Gain)
loss on
disposal of
businesses,
net 0.5 -- 1.4 --
Plus: Other
costs* 0.2 0.2 0.5 0.5
----- ----- ----- -----
Adjusted EBITDA $213.9 $169.7 $359.0 $306.7
===== ===== ===== =====
*includes fiscal year-end change costs and share-based
compensation impact of disposals of businesses
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT ADJUSTED EBITDA(7)
UNAUDITED
Three months ended April 30, 2025
----------------------------------------------------------------------------
Customized Durable Sustainable
Polymer Metal Fiber Integrated
(in millions) Solutions Solutions Solutions Solutions Consolidated
--------------------- -------------- ----------- --------------- -------------- --------------
Operating profit 25.8 54.1 25.9 12.8 118.6
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax -- -- -- (0.4) (0.4)
Plus:
Depreciation
and
amortization
expense 23.1 7.1 33.7 2.5 66.4
Plus:
Acquisition
and
integration
related costs 2.0 -- -- -- 2.0
Plus:
Restructuring
and other
charges 1.7 1.7 10.5 0.7 14.6
Plus: Non-cash
asset
impairment
charges 0.7 0.7 8.9 0.4 10.7
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net -- -- 0.5 -- 0.5
Plus: (Gain)
loss on
disposal of
businesses,
net -- -- -- 0.5 0.5
Plus: Other
costs* 0.1 0.1 -- -- 0.2
----- --- --- ------ ----- ---- ----- --- ------- -----
Adjusted EBITDA $ 53.4 $ 63.7 $ 79.5 $ 17.3 213.9
===== === === ====== ===== ==== ===== === ======= =====
Three months ended April 30, 2024
----------------------------------------------------------------------------
Customized Durable Sustainable
Polymer Metal Fiber Integrated
(in millions) Solutions Solutions Solutions Solutions Consolidated
--------------------- -------------- ----------- --------------- -------------- --------------
Operating profit 6.3 56.5 18.9 16.4 98.1
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax -- -- -- (0.7) (0.7)
Plus:
Depreciation
and
amortization
expense 17.5 7.2 37.9 3.3 65.9
Plus:
Acquisition
and
integration
related costs 11.2 -- 0.3 -- 11.5
Plus:
Restructuring
and other
charges 0.2 0.3 (7.6) 0.3 (6.8)
Plus: Non-cash
asset
impairment
charges -- 0.4 -- -- 0.4
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net (0.3) 0.1 (0.2) 0.1 (0.3)
Plus: Other
costs* -- -- 0.2 -- 0.2
----- --- --- ------ ----- ---- ----- --- ------- -----
Adjusted EBITDA $ 34.9 $ 64.5 $ 49.5 $ 20.8 169.7
===== === === ====== ===== ==== ===== === ======= =====
*includes fiscal year-end change costs and share-based
compensation impact of disposals of businesses
Six months ended April 30, 2025
------------------------------------------------------------------------------
Customized Durable Sustainable
Polymer Metal Fiber Integrated
(in millions) Solutions Solutions Solutions Solutions Consolidated
--------------------- -------------- ----------- --------------- -------------- ----------------
Operating profit 39.6 91.7 29.5 17.7 178.5
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax -- -- -- (0.8) (0.8)
Plus:
Depreciation
and
amortization
expense 46.0 13.9 68.0 5.1 133.0
Plus:
Acquisition
and
integration
related costs 4.2 -- -- -- 4.2
Plus:
Restructuring
and other
charges 2.2 2.2 12.1 0.8 17.3
Plus: Non-cash
asset
impairment
charges 0.7 2.2 21.1 0.4 24.4
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net -- (1.2) 0.1 -- (1.1)
Plus: (Gain)
loss on
disposal of
businesses,
net -- -- -- 1.4 1.4
Plus: Other
costs* 0.2 0.1 0.2 -- 0.5
----- --- ------ ------ --- ----- --- ------ ----
Adjusted EBITDA $ 92.9 $ 108.9 $ 131.0 $ 26.2 359.0
===== === ====== ====== === ===== === ====== ====
Six months ended April 30, 2024
------------------------------------------------------------------------------
Customized Durable Sustainable
Polymer Metal Fiber Integrated
(in millions) Solutions Solutions Solutions Solutions Consolidated
--------------------- -------------- ----------- --------------- -------------- ----------------
Operating profit 18.0 93.4 27.1 28.5 167.0
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax -- -- -- (1.2) (1.2)
Plus:
Depreciation
and
amortization
expense 29.5 14.5 75.9 6.4 126.3
Plus:
Acquisition
and
integration
related costs 13.0 -- 1.1 -- 14.1
Plus:
Restructuring
and other
charges 0.4 0.7 (3.0) 0.8 (1.1)
Plus: Non-cash
asset
impairment
charges -- 0.4 1.3 -- 1.7
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net (0.3) 0.1 (0.2) (2.6) (3.0)
Plus: Other
costs* 0.1 0.1 0.3 -- 0.5
----- --- ------ ------ --- ----- --- ------ ----
Adjusted EBITDA $ 60.7 $ 109.2 $ 102.5 $ 34.3 $ 306.7
===== === ====== ====== === ===== === ====== ====
*includes fiscal year-end change costs and share-based
compensation impact of disposals of businesses
(7) Adjusted EBITDA is defined as net income, plus interest
expense, net, plus other (income) expense, net, plus
income tax (benefit) expense, plus depreciation, depletion
and amortization expense, plus acquisition and integration
related costs, plus restructuring and other charges,
plus non-cash asset impairment charges, plus (gain)
loss on disposal of properties, plants and equipment,
net, plus (gain) loss on disposal of businesses, net,
plus other costs. However, because the Company does
not calculate net income by segment, this table calculates
Adjusted EBITDA by segment with reference to operating
profit by segment, which, as demonstrated in the table
of consolidated Adjusted EBITDA, is another method
to achieve the same result.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
ADJUSTED FREE CASH FLOW(8)
UNAUDITED
Three months ended Six months ended
April 30, April 30,
---------------------
(in millions) 2025 2024 2025 2024
------------------- ---------- ------- ---------- ---------
Net cash provided
by (used in)
operating
activities $136.4 $ 87.5 $105.6 $ 92.0
Cash paid for
purchases of
properties,
plants and
equipment (30.0) (41.0) (65.7) (96.6)
----- ----- ----- -----
Free cash flow $106.4 $ 46.5 $ 39.9 $ (4.6)
Cash paid for
acquisition
and
integration
related
costs 2.0 11.5 4.2 14.1
Cash paid for
integration
related ERP
systems and
equipment(9) 1.0 0.6 3.3 0.9
Cash paid for
fiscal
year-end
change
costs 0.2 0.4 0.3 0.4
----- ----- ----- -----
Adjusted free cash
flow $109.6 $ 59.0 $ 47.7 $ 10.8
===== ===== ===== =====
(8) Adjusted free cash flow is defined as net cash provided
by operating activities, less cash paid for purchases
of properties, plants and equipment, plus cash paid
for acquisition and integration related costs, plus
cash paid for integration related ERP systems and
equipment, plus cash paid for fiscal year-end change
costs.
(9) Cash paid for integration related ERP systems and
equipment is defined as cash paid for ERP systems
and equipment required to bring the acquired facilities
to Greif's standards.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET INCOME, CLASS A EARNINGS PER SHARE AND TAX RATE
BEFORE ADJUSTMENTS
UNAUDITED
Income before
Income Tax
(Benefit) Expense Net
and Equity Income Income Diluted
(in millions, Earnings of Tax Non- (Loss) Class A
except for per Unconsolidated (Benefit) Equity Controlling Attributable to Earnings
share amounts) Affiliates, net Expense Earnings Interest Greif, Inc. Per Share Tax Rate
----------------- ------------------ ----------- ---------- ------------- ---------------- ---------- ---------
Three months
ended April 30,
2025 $ 83.9 $ 29.8 $ (0.4) $ 7.2 $ 47.3 $ 0.82 35.5%
Acquisition
and
integration
related
costs 2.0 0.5 -- -- 1.5 0.02
Restructuring
and other
charges 14.6 3.7 -- -- 10.9 0.18
Non-cash asset
impairment
charges 10.7 2.6 -- -- 8.1 0.15
(Gain) loss on
disposal of
properties,
plants and
equipment,
net 0.5 0.1 -- -- 0.4 0.01
(Gain) loss on
disposal of
businesses,
net 0.5 0.1 -- -- 0.4 0.01
Other costs* 0.2 0.1 -- -- 0.1 --
---- -------- ------ ----- ---- ------- --- ------- -----
Excluding
adjustments $ 112.4 $ 36.9 $ (0.4) $ 7.2 $ 68.7 $ 1.19 32.8%
==== ======== ====== ===== ==== ======= === ======= ===== =====
Three months
ended April 30,
2024 $ 68.3 $ 17.0 $ (0.7) $ 7.6 $ 44.4 $ 0.77 24.9%
Acquisition
and
integration
related
costs 11.5 2.9 -- -- 8.6 0.14
Restructuring
and other
charges (6.8) (1.7) -- -- (5.1) (0.09)
Non-cash asset
impairment
charges 0.4 0.1 -- -- 0.3 --
(Gain) loss on
disposal of
properties,
plants and
equipment,
net (0.3) -- -- -- (0.3) --
Other costs* 0.2 -- -- -- 0.2 0.01
---- -------- ------ ----- ---- ------- --- ------- -----
Excluding
adjustments $ 73.3 $ 18.3 $ (0.7) $ 7.6 $ 48.1 $ 0.83 25.0%
==== ======== ====== ===== ==== ======= === ======= ===== =====
Six months ended
April 30, 2025 $ 105.7 $ 37.6 $ (0.8) $ 13.0 $ 55.9 $ 0.97 35.6%
Acquisition
and
integration
related
costs 4.2 1.0 -- -- 3.2 0.05
Restructuring
and other
charges 17.3 4.3 -- -- 13.0 0.22
Non-cash asset
impairment
charges 24.4 5.9 -- -- 18.5 0.33
(Gain) loss on
disposal of
properties,
plants and
equipment,
net (1.1) (0.3) -- -- (0.8) (0.01)
(Gain) loss on
disposal of
businesses,
net 1.4 0.3 -- -- 1.1 0.02
Other costs* 0.5 0.2 -- -- 0.3 --
---- -------- ------ ----- ---- ------- --- ------- -----
Excluding
adjustments $ 152.4 $ 49.0 $ (0.8) $ 13.0 $ 91.2 $ 1.58 32.2%
==== ======== ====== ===== ==== ======= === ======= ===== =====
Six months ended
April 30, 2024 $ 103.9 $ (21.2) $ (1.2) $ 14.7 $ 111.6 $ 1.94 (20.4)%
Acquisition
and
integration
related
costs 14.1 3.5 -- -- 10.6 0.17
Restructuring
and other
charges (1.1) (0.3) -- -- (0.8) (0.01)
Non-cash asset
impairment
charges 1.7 0.4 -- -- 1.3 0.02
(Gain) loss on
disposal of
properties,
plants and
equipment,
net (3.0) (0.7) -- -- (2.3) (0.04)
Other costs* 0.5 0.1 -- -- 0.4 0.02
---- -------- ------ ----- ---- ------- --- ------- -----
Excluding
adjustments $ 116.1 $ (18.2) $ (1.2) $ 14.7 $ 120.8 $ 2.10 (15.7)%
==== ======== ====== ===== ==== ======= === ======= ===== =====
*includes fiscal year-end change costs and share-based
compensation impact of disposals of businesses
The impact of income tax (benefit) expense and non-controlling interest on each adjustment is calculated based on tax rates and ownership percentages specific to each applicable entity.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET DEBT
UNAUDITED
(in millions) April 30, 2025 April 30, 2024
-------------------------- ---------------- ------------------
Total debt $ 2,775.2 $ 2,916.1
Cash and cash equivalents (252.7) (196.0)
----------- -----------
Net debt $ 2,522.5 $ 2,720.1
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
LEVERAGE RATIO
UNAUDITED
Trailing twelve month
Credit Agreement Trailing Twelve Months Trailing Twelve Months
EBITDA (in millions) Ended 4/30/2025 Ended 4/30/2024
--------------------- ------------------------- --------------------------
Net income $ 238.1 $ 296.3
Plus: Interest
expense, net 153.1 104.5
Plus: Non-cash
pension
settlement
charge -- 3.5
Plus: Other
(income)
expense 1.6 13.5
Plus: Income
tax (benefit)
expense 86.0 19.8
Plus: Equity
earnings of
unconsolidated
affiliates,
net of tax (2.7) (2.6)
--- ---------------- --- -----------------
Operating profit $ 476.1 $ 435.0
Less: Equity
earnings of
unconsolidated
affiliates,
net of tax (2.7) (2.6)
Plus:
Depreciation,
depletion and
amortization
expense 268.0 245.2
Plus:
Acquisition
and
integration
related costs 8.6 21.0
Plus:
Restructuring
and other
charges 23.8 12.8
Plus: Non-cash
asset
impairment
charges 25.3 20.2
Plus: (Gain)
loss on
disposal of
properties,
plants and
equipment,
net (6.9) (0.5)
Plus: (Gain)
loss on
disposal of
businesses,
net (44.6) 0.4
Plus: Other
costs* 3.7 2.8
--- ---------------- --- -----------------
Adjusted EBITDA $ 756.7 $ 739.5
Credit
Agreement
adjustments to
EBITDA(10) (6.5) 38.2
--- ---------------- --- -----------------
Credit Agreement
EBITDA $ 750.2 $ 777.7
Adjusted net debt For the Period Ended For the Period Ended
(in millions) 4/30/2025 4/30/2024
--------------------- ------------------------- --------------------------
Total debt $ 2,775.2 $ 2,916.1
Cash and cash
equivalents (252.7) (196.0)
--- ---------------- --- -----------------
Net debt $ 2,522.5 $ 2,720.1
Credit
Agreement
adjustments to
debt(11) (50.1) (97.0)
--- ---------------- --- -----------------
Adjusted net debt $ 2,472.4 $ 2,623.1
Leverage ratio(12) 3.3x 3.4x
*includes fiscal year-end change costs and share-based
compensation impact of disposals of businesses
(10) Adjustments to EBITDA are specified by the 2022 Credit
Agreement and include equity earnings of unconsolidated
affiliates, net of tax, certain acquisition savings,
deferred financing costs, capitalized interest, income
and expense in connection with asset dispositions,
and other items.
(11) Adjustments to net debt are specified by the 2022
Credit Agreement and include the European accounts
receivable program, letters of credit, balances for
swap contracts, and other items.
(12) Leverage ratio is defined as Credit Agreement adjusted
net debt divided by Credit Agreement adjusted EBITDA.
GREIF, INC. AND SUBSIDIARY COMPANIES
PROJECTED 2025 GUIDANCE RECONCILIATION
ADJUSTED FREE CASH FLOW
UNAUDITED
Fiscal 2025 Low-End
Guidance Estimate
-----------------------
(in millions)
----------------------------------------------------- -----------------------
Net cash provided by operating activities $ 431.0
Cash paid for purchases of properties, plants
and equipment (171.0)
--- --------------
Free cash flow $ 260.0
Cash paid for acquisition and integration
related costs 12.0
Cash paid for integration related ERP systems
and equipment 6.0
Cash paid for fiscal year-end change costs 2.0
Adjusted free cash flow $ 280.0
=== ==============
(END) Dow Jones Newswires
June 04, 2025 16:03 ET (20:03 GMT)