DELAWARE, Ohio (News release) -- Greif, Inc., a global leader in industrial packaging products and services, announced fiscal second quarter 2025 results.
Fiscal Second Quarter 2025 Financial Highlights:
(all results compared to the second quarter of 2024 unless otherwise noted)
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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.
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Adjusted EBITDA(2) increased 26.0% to $213.9 million compared to Adjusted EBITDA of $169.7 million.
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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.
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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
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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.
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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.
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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.
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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."
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(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. |
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(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. |
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(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. |
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(4) |
Net debt is defined as total debt less cash and cash equivalents. |
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(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. |
