Graphic Packaging (NYSE:GPK) Releases Earnings Results, Beats Estimates By $0.02 EPS

Graphic Packaging (NYSE:GPK) released its quarterly earnings results on Tuesday. The industrial products company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02, Zacks reports. Graphic Packaging had a return on equity of 9.95% and a net margin of 2.25%.The business had revenue of $2.19 billion for the quarter, compared to analyst estimates of $2.18 billion. During the same period in the prior year, the company earned $0.42 EPS. Graphic Packaging’s revenue for the quarter was down .7% on a year-over-year basis. Graphic Packaging updated its FY 2026 guidance to 0.650-0.900 EPS.

Here are the key takeaways from Graphic Packaging’s conference call:

• Cost savings and pricing actions gained momentum. The company expects approximately $85 million in 2026 cost savings and about $60 million of pricing benefit to sales and EBITDA, with further increases potentially supporting a roughly $145 million annualized run rate.
• Higher and prolonged inflation is weighing on profitability. Full-year input-cost inflation is now estimated at approximately $150 million, and adjusted EBITDA is expected at the low end of the $1.05 billion–$1.25 billion guidance range; third-quarter EBITDA is projected at $280 million–$300 million.
• Cash generation and capital discipline improved significantly. First-half inventory declined by about $75 million, capital expenditures are now expected below $450 million, and the company targets $600 million–$700 million of 2026 adjusted cash flow and $400 million–$500 million of debt repayment.
• The company lowered its adjusted cash flow outlook and revised adjusted EPS guidance to $0.65–$0.90. Some inventory reductions were pushed into 2027 because of unbleached paperboard production issues and maintenance timing, while net debt remained high at $5.5 billion and leverage at 4.7 times.
• Graphic Packaging sees growth opportunities in sustainable packaging and recycled paperboard. Its Waco mill has begun small-volume URB orders with potential for more than 100,000 tons over time, while demand remained strongest in food, health and beauty, ready-made meals, and pet food.

Graphic Packaging Stock Up 0.5%

Shares of NYSE GPK traded up $0.05 during mid-day trading on Thursday, reaching $11.95. 499,402 shares of the company’s stock traded hands, compared to its average volume of 6,735,838. Graphic Packaging has a 1-year low of $8.78 and a 1-year high of $23.47. The stock has a market cap of $3.54 billion, a P/E ratio of 18.01 and a beta of 0.66. The business has a 50-day simple moving average of $10.82 and a 200 day simple moving average of $11.04. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.38 and a quick ratio of 0.59.

Graphic Packaging Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Shareholders of record on Tuesday, September 15th will be paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Graphic Packaging’s dividend payout ratio (DPR) is 47.83%.

Institutional Trading of Graphic Packaging

A number of large investors have recently bought and sold shares of GPK. NewEdge Advisors LLC grew its position in Graphic Packaging by 3.0% in the second quarter. NewEdge Advisors LLC now owns 18,379 shares of the industrial products company’s stock worth $387,000 after acquiring an additional 539 shares in the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of Graphic Packaging by 0.9% in the 2nd quarter. Thrivent Financial for Lutherans now owns 71,049 shares of the industrial products company’s stock valued at $1,497,000 after purchasing an additional 660 shares during the last quarter. Hsbc Holdings PLC increased its position in shares of Graphic Packaging by 5.4% during the 2nd quarter. Hsbc Holdings PLC now owns 15,485 shares of the industrial products company’s stock valued at $326,000 after purchasing an additional 791 shares during the last quarter. one8zero8 LLC raised its holdings in Graphic Packaging by 8.7% during the 4th quarter. one8zero8 LLC now owns 12,500 shares of the industrial products company’s stock valued at $188,000 after buying an additional 1,000 shares during the period. Finally, Curi Capital LLC lifted its position in Graphic Packaging by 1.0% in the second quarter. Curi Capital LLC now owns 109,661 shares of the industrial products company’s stock worth $2,311,000 after buying an additional 1,045 shares during the last quarter. 99.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Raymond James Financial lowered Graphic Packaging from a “market perform” rating to an “underperform” rating in a research note on Tuesday, April 21st. Citigroup raised their price objective on Graphic Packaging from $10.00 to $11.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Wells Fargo & Company lifted their price target on shares of Graphic Packaging from $9.00 to $10.00 and gave the company an “underweight” rating in a research note on Wednesday. Zacks Research upgraded Graphic Packaging from a “strong sell” rating to a “hold” rating in a report on Monday, June 1st. Finally, Bank of America began coverage on Graphic Packaging in a report on Tuesday, July 14th. They issued a “neutral” rating and a $12.00 price objective for the company. Nine investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $11.14.

About Graphic Packaging

Graphic Packaging Holding Company is a leading provider of sustainable paperboard packaging solutions, offering a broad portfolio of products designed for food, beverage and other consumer goods markets. The company specializes in the manufacture of containerboard, folding cartons and engineered fill materials, as well as beverage packaging systems including paperboard cups, carriers and related components.

Through a network of manufacturing facilities across North America, Europe and Latin America, Graphic Packaging serves a diverse customer base that includes major consumer packaged goods companies, quick-service restaurants and retail chains.