ATLANTA (From news reports) -- Graphic Packaging Holding Company reported a stronger-than-expected first quarter, sending its shares up as much as 13% on Tuesday. The rally comes after a difficult stretch, with the stock still down 53% over the past 12 months through Monday's close.

The producer of sustainable paper-based consumer packaging topped Wall Street expectations for both revenue and earnings. The company supplies packaging for food, beverage and household products, serving major global brands with items such as folding cartons, beverage carriers and foodservice packaging.

Revenue rose to about $2.16 billion, exceeding the $2.15 billion consensus estimate, while adjusted earnings of $0.09 a share beat expectations of $0.06.

Earnings affected by one-time charges

Despite the adjusted earnings beat, Graphic Packaging posted a net loss for the quarter, reflecting special items and restructuring-related costs.

Net income fell to a loss of $43 million, or -$0.14 a share, from net income of $127 million, or $0.42 a share, a year earlier.

Excluding non-recurring items, profitability remained positive, with management pointing to steady volumes and disciplined cost control.

Chief Executive Robbert Rietbroek highlighted execution in a challenging environment, saying the company delivered "strong" results relative to expectations and showed resilience despite external disruptions.

Margins pressured but efficiency efforts underway

Graphic Packaging reported earnings before interest, taxes, depreciation and amortization of $159 million, down sharply from $353 million a year earlier. Adjusted figures showed a similar trend, as ebitda declined due to pricing pressure, cost inflation and mix.

The company said it is actively addressing these headwinds through cost-cutting initiatives, including workforce reductions, portfolio simplification and tighter capital discipline. Management is targeting $60 million in cost reductions and has already taken steps to streamline operations.

Guidance reaffirmed

Graphic Packaging reiterated its full-year 2026 outlook, calling for net sales of $8.4 billion to $8.6 billion, in line with the $8.45 billion consensus estimate.

The company also maintained its adjusted earnings outlook of $0.75 to $1.15 a share, compared with the $0.85 consensus, and projected earnings before interest, taxes, depreciation and amortization of $1.05 billion to $1.25 billion for the year.

Management said it expects improved margins, stronger cash flow and continued operational discipline as the year progresses.

Focus on innovation and sustainability

Graphic Packaging continues to position itself as a leader in sustainable packaging, emphasizing recyclable and renewable materials as alternatives to plastic. The company serves a wide range of industries, including packaged food, beverages and foodservice, and counts many well-known consumer brands among its customers.

With a large patent portfolio and ongoing innovation efforts, Graphic Packaging is aiming to strengthen its competitive position while navigating a more challenging pricing environment.