ATLANTA (News release) -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, reported third quarter 2025 results.
Net Income in third quarter 2025 was $142 million, or $0.48 per diluted share, versus $165 million, or $0.55 per diluted share in third quarter 2024. Third quarter 2025 and 2024 Net Income were impacted by a net charge from special items and amortization of purchased intangibles of $30 million and $29 million, respectively. Excluding special items and amortization of purchased intangibles, Adjusted Net Income for the third quarter of 2025 was $172 million, or $0.58 per diluted share, and $194 million, or $0.64 per diluted share in third quarter 2024.
I am pleased to announce that our Waco, Texas recycled paperboard manufacturing facility produced its first commercially saleable rolls in October, well ahead of plan. I congratulate our team and our contractors for their exceptional work. I also want to thank the Waco community, Governor Abbott, and the state of Texas for their steadfast support. We expect to reach full production in 12 to 18 months. Waco will be the world's most efficient producer of recycled paperboard, with the highest quality available anywhere outside of our own Kalamazoo, Michigan facility. This marks the completion of our Vision 2025 transformation, and we now turn our full attention to our Vision 2030 priorities: innovation, execution, reaching investment grade, and returning cash to stockholders."
Operating Results
Net Sales
Third quarter 2025 Net Sales decreased 1% to $2,190 million, versus $2,216 million in the same quarter last year. The $26 million decline was driven by lower volumes and prices in the Americas, partially offset by modestly positive volumes in International, and a $24 million favorable foreign exchange impact.
EBITDA
Third quarter 2025 EBITDA decreased 13% to $361 million. Excluding the impact of business combinations and other special items, Adjusted EBITDA was $383 million versus $433 million in the same quarter last year. The decline in Adjusted EBITDA was driven by the impact of lower price and volume, as well as input and other cost inflation, partially offset by Net Performance. Foreign exchange was flat in the quarter. Third quarter Adjusted EBITDA Margin was 17.5% in 2025, and 19.5% in 2024.
Other Results
Total Debt (Long-Term, Short-Term and Current Portion) was $5,941 million in third quarter 2025 compared to $5,209 million in fourth quarter 2024. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,821 million in third quarter 2025 compared to $5,052 million in fourth quarter 2024. The Company's third quarter 2025 Net Leverage Ratio was 3.9x compared to 3.0x in fourth quarter 2024.
The Company returned approximately $248 million to stockholders during the first nine months of 2025 through regular dividends and share repurchase activity. During the third quarter, the Company repurchased approximately 1.8 million shares of its common stock for $39 million. Year to date, the company has repurchased approximately 6.8 million shares of common stock for $150 million, and has reduced net shares outstanding by approximately 2.3%. Regular dividends declared were $33 million for the first and second quarter and $32 million for the third quarter.
2025 Annual Guidance and Commentary
The Company currently expects full-year 2025 Net Sales, Adjusted EBITDA, and Adjusted EPS, including foreign exchange impact, of $8.4 billion to $8.6 billion, $1.40 billion to $1.45 billion, and $1.80 to $2.00, respectively. Revisions from prior guidance reflect year-to-date performance, further action to match production to orders (~$15 million), and a wider than normal range of potential fourth quarter outcomes. Volume and market uncertainty remain unusually high given a stretched consumer and weakened consumer confidence.
