GREIF, INC
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
GEF$72.51-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001628280-26-028403
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050547
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 156 previous paragraphs and 156 current paragraphs.
86 unchanged; 51 reworded; 18 added; 18 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Third Quarter Results
Current report
Operating profit was $32.8 million for the third quarter of 2026 compared with $8.4 million for the third quarter of 2025. The $24.4 million increase was primarily due to the same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization. Adjusted EBITDA was $64.3 million for the third quarter of 2026 compared with $37.1 million for the third quarter of 2025. The $27.2 million increase was primarily due to the same factors that impacted operating profit.
Current report
Net sales were $405.6 million for the third quarter of 2026 compared with $392.3 million for the third quarter of 2025. The $13.3 million increase was primarily due to $14.0 million positive foreign currency translation impacts and $11.4 million higher average selling prices, partially offset by $12.0 million attributable to lower volumes.
Current report
Operating profit was $52.7 million for the third quarter of 2026 compared with $45.8 million for the third quarter of 2025. The $6.9 million increase was primarily due to the same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization, partially offset by higher loss on disposal of properties, plants and equipment, net. Adjusted EBITDA was $64.0 million for the third quarter of 2026 compared with $53.6 million for the third quarter of 2025. The $10.4 million increase was primarily due to the same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization.
Current report
Net sales were $346.5 million for the third quarter of 2026 compared with $370.7 million for the third quarter of 2025. The $24.2 million decrease was primarily due to $15.3 million attributable to lower average selling prices, $5.3 million impacts from the Soterra Divestiture and lower volumes.
Current report
Gross profit was $73.1 million for the third quarter of 2026 compared with $85.1 million for the third quarter of 2025. The $12.0 million decrease was primarily due to the same factors that impacted net sales, partially offset by lower raw material and manufacturing costs related to lower volumes. Gross profit margin was 21.1 percent and 23.0 percent for the third quarter of 2026 and 2025, respectively.
Current report
Operating profit was $13.9 million for the third quarter of 2026 compared with $5.0 million for the third quarter of 2025. The $8.9 million increase was primarily due to lower restructuring and other charges, lower non-cash asset impairment charges and lower SG&A compensation expenses related to cost optimization, partially offset by the same factors that impacted gross profit. Adjusted EBITDA was $42.5 million for the third quarter of 2026 compared with $48.8 million for the third quarter of 2025. The $6.3 million decrease was primarily due to the same factors that impacted gross profit, partially offset by lower SG&A compensation expenses related to cost optimization.
Current report
Net sales were $29.7 million for the third quarter of 2026 compared with $25.0 million for the third quarter of 2025. The $4.7 million increase was primarily due to higher average selling prices, higher volumes and positive foreign currency translation impact.
Current report
Operating profit was $8.5 million for the third quarter of 2026 compared with $4.5 million for the third quarter of 2025. The $4.0 million increase was primarily due to the same factors that impacted gross profit. Adjusted EBITDA was $12.6 million for the third quarter of 2026 compared with $7.6 million for the third quarter of 2025. The $5.0 million increase was primarily due to the same factors that impacted gross profit.
Current report
Net sales were $1,033.7 million for the first nine months of 2026 compared with $954.8 million for the first nine months of 2025. The $78.9 million increase was primarily due to $37.4 million positive foreign currency translation impacts, $36.9 million higher average selling prices and higher volumes.
Current report
Gross profit was $223.0 million for the first nine months of 2026 compared with $206.3 million for the first nine months of 2025. The $16.7 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation and manufacturing costs. Gross profit margin was 21.6 percent and 21.6 percent for the first nine months of 2026 and 2025, respectively.
Current report
Operating profit was $37.8 million for the first nine months of 2026 compared with $27.3 million for the first nine months of 2025. The $10.5 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses. Adjusted EBITDA was $145.6 million for the first nine months of 2026 compared with $109.0 million for the first nine months of 2025. The $36.6 million increase was primarily due to the same factors that impacted gross profit and lower compensation expenses related to cost optimization.
Current report
Net sales were $1,140.8 million for the first nine months of 2026 compared with $1,121.1 million for the first nine months of 2025. The $19.7 million increase was primarily due to $59.8 million positive foreign currency translation impacts and $12.5 million higher average selling prices, partially offset by $52.7 million attributable to lower volumes.
Current report
Gross profit was $250.9 million for the first nine months of 2026 compared with $240.9 million for the first nine months of 2025. The $10.0 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material and transportation costs. Gross profit margin was 22.0 percent and 21.5 percent for the first nine months of 2026 and 2025, respectively.
Current report
Operating profit was $124.6 million for the first nine months of 2026 compared with $117.4 million for the first nine months of 2025. The $7.2 million increase was primarily due to the same factors that impacted gross profit. Adjusted EBITDA was $171.4 million for the first nine months of 2026 compared with $140.4 million for the first nine months of 2025. The $31.0 million increase was primarily due to the same factors that impacted gross profit and lower compensation expenses related to cost optimization.
Current report
Net sales were $980.2 million for the first nine months of 2026 compared with $1,075.4 million for the first nine months of 2025. The $95.2 million decrease was primarily due to $64.6 million attributable to lower volumes, $14.7 million impacts from the Soterra Divestiture and lower average selling prices.
Current report
Gross profit was $209.6 million for the first nine months of 2026 compared with $227.5 million for the first nine months of 2025. The $17.9 million decrease was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs related to lower volumes. Gross profit margin was 21.4 percent and 21.2 percent for the first nine months of 2026 and 2025, respectively.
Current report
On July 28, 2026, we announced intention to repurchase up to $150.0 million of our Class A Common Stock and/or Class B Common Stock pursuant to our existing share repurchase authorization framework. Repurchases may be made from time to time in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements and other factors. Our existing share repurchase authorization framework does not obligate us to acquire any particular amount of our common stock and may be suspended, modified or discontinued at any time.
Removed paragraphs (18)
Previous report
Second Quarter Results
Previous report
Gross profit was $74.1 million for the second quarter of 2026 compared with $76.8 million for the second quarter of 2025. The $2.7 million decrease was primarily due to higher raw material costs and higher manufacturing costs, partially offset by the same factors that impacted net sales. Gross profit margin was 21.5 percent and 23.8 percent for the second quarter of 2026 and 2025, respectively.
Previous report
Net sales were $380.4 million for the second quarter of 2026 compared with $372.9 million for the second quarter of 2025. The $7.5 million increase was primarily due to $29.0 million positive foreign currency translation impacts, partially offset by $22.0 million attributable to lower volumes.
Previous report
Operating profit was $39.0 million for the second quarter of 2026 compared with $41.1 million for the second quarter of 2025. The $2.1 million decrease was primarily due to higher SG&A expenses, partially offset by the same factors that impacted gross profit and lower compensation expenses related to cost optimizations. Adjusted EBITDA was $61.6 million for the second quarter of 2026 compared with $50.0 million for the second quarter of 2025. The $11.6 million increase was primarily due to the same factors that impacted gross profit and lower compensation expenses related to cost optimizations.
Previous report
Net sales were $321.8 million for the second quarter of 2026 compared with $360.7 million for the second quarter of 2025. The $38.9 million decrease was primarily due to $35.2 million attributable to lower volumes and impacts from the Soterra Divestiture.
Previous report
Gross profit was $71.3 million for the second quarter of 2026 compared with $78.1 million for the second quarter of 2025. The $6.8 million decrease was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs. Gross profit margin was 22.2 percent and 21.7 percent for the second quarter of 2026 and 2025, respectively.
Previous report
Operating loss was $10.2 million for the second quarter of 2026 compared with operating loss of $2.2 million for the second quarter of 2025. The $8.0 million increase in operating loss was primarily due to higher SG&A expenses and the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations. Adjusted EBITDA was $40.8 million for the second quarter of 2026 compared with $46.3 million for the second quarter of 2025. The $5.5 million decrease was primarily due to the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations.
Previous report
Operating profit was $4.1 million for the second quarter of 2026 compared with $4.0 million for the second quarter of 2025. The $0.1 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses. Adjusted EBITDA was $8.6 million for the second quarter of 2026 compared with $6.2 million for the second quarter of 2025. The $2.4 million increase was primarily due to the same factors that impacted gross profit.
Previous report
Net sales were $649.9 million for the first six months of 2026 compared with $616.9 million for the first six months of 2025. The $33.0 million increase was primarily due to $29.8 million positive foreign currency translation impacts and higher volumes.
Previous report
Gross profit was $131.9 million for the first six months of 2026 compared with $135.4 million for the first six months of 2025. The $3.5 million decrease was primarily due to higher transportation and manufacturing costs, partially offset by the same factors that impacted net sales. Gross profit margin was 20.3 percent and 21.9 percent for the first six months of 2026 and 2025, respectively.
Previous report
Operating profit was $5.0 million for the first six months of 2026 compared with $18.9 million for the first six months of 2025. The $13.9 million decrease was primarily due to the same factors that impacted gross profit and higher SG&A expenses. Adjusted EBITDA was $81.3 million for the first six months of 2026 compared with $71.9 million for the first six months of 2025. The $9.4 million increase was primarily due to the same factors that lower compensation expenses related to cost optimizations, partially offset by the same factors that impacted gross profit.
Previous report
Net sales were $735.2 million for the first six months of 2026 compared with $728.8 million for the first six months of 2025. The $6.4 million increase was primarily due to $47.9 million positive foreign currency translation impacts, partially offset by $40.6 million attributable to lower volumes.
Previous report
Operating profit was $71.9 million for the first six months of 2026 compared with $71.6 million for the first six months of 2025. The $0.3 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher restructuring and other charges. Adjusted EBITDA was $107.4 million for the first six months of 2026 compared with $86.8 million for the first six months of 2025. The $20.6 million increase was primarily due to the same factors that impacted gross profit and lower compensation expenses related to cost optimizations.
Previous report
Net sales were $633.7 million for the first six months of 2026 compared with $704.7 million for the first six months of 2025. The $71.0 million decrease was primarily due to $60.2 million attributable to lower volumes and impacts from the Soterra Divestiture.
Previous report
Gross profit was $136.5 million for the first six months of 2026 compared with $142.4 million for the first six months of 2025. The $5.9 million decrease was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs. Gross profit margin was 21.5 percent and 20.2 percent for the first six months of 2026 and 2025, respectively.
Previous report
Net sales were $48.8 million for the first six months of 2026 compared with $44.7 million for the first six months of 2025. The $4.1 million increase was primarily due to higher average selling prices.
Previous report
Operating profit was $6.8 million for the first six months of 2026 compared with $5.4 million for the first six months of 2025. The $1.4 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses. Adjusted EBITDA was $13.2 million for the first six months of 2026 compared with $10.2 million for the first six months of 2025. The $3.0 million increase was primarily due to the same factors that impacted gross profit.
Previous report
Subsequent to the quarter, during April 2026, the Company purchased $2.8 million of shares of Class B Common Stock, or 31,720 shares, which completed the two open market repurchase agreements.
Reworded paragraphs (51)
Previous wording
The discussion and analysis presented below relates to the material changes in financial condition and results of operations for the interim condensed consolidated balance sheet as of March 31, 2026 and the condensed consolidated balance sheet as of September 30, 2025, and for the interim condensed consolidated statements of income for the three and six months ended March 31, 2026 and 2025. This discussion and analysis should be read in conjunction with the interim condensed consolidated financial statements that appear elsewhere in this Form 10-Q and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Transition Report on Form 10-KT for the fiscal year ended September 30, 2025 (the “2025 Form 10-KT”). Readers are encouraged to review the entire 2025 Form 10-KT, as it includes information regarding Greif not discussed in this Form 10-Q. This information will assist in your understanding of the discussion of our current period financial results.
Current wording
The discussion and analysis presented below relates to the material changes in financial condition and results of operations for the interim condensed consolidated balance sheet as of June 30, 2026 and the condensed consolidated balance sheet as of September 30, 2025, and for the interim condensed consolidated statements of income for the three and nine months ended June 30, 2026 and 2025. This discussion and analysis should be read in conjunction with the interim condensed consolidated financial statements that appear elsewhere in this Form 10-Q and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Transition Report on Form 10-KT for the fiscal year ended September 30, 2025 (the “2025 Form 10-KT”). Readers are encouraged to review the entire 2025 Form 10-KT, as it includes information regarding Greif not discussed in this Form 10-Q. This information will assist in your understanding of the discussion of our current period financial results.
Previous wording
On June 30, 2025, we entered into a definitive agreement to sell our containerboard business, including our CorrChoice sheet feeder system (the “Containerboard Business”), and the equity interests in our subsidiaries that directly owned the Containerboard Business on the date of closing, for a purchase price of $1804.7 million. The transaction was completed effective as of August 31, 2025 (the “Containerboard Divestiture”). The Containerboard Business was previously reported under the Sustainable Fiber Solutions segment. The Containerboard Divestiture qualifies as discontinued operations because it represents a strategic shift that will have a major impact on our operations and financial results. As a result, the Containerboard Business was presented as discontinued operations beginning in the third quarter of 2025. Our allocation of corporate expenses was updated to reflect how management measures performance and allocates resources with the Containerboard Business being excluded from continuing operations. We have recast data from prior periods to reflect this change to conform to the current year presentation. Unless otherwise noted, the discussion below relates only to our continuing operations.
Current wording
On June 30, 2025, we entered into a definitive agreement to sell our containerboard business, including our CorrChoice sheet feeder system (the “Containerboard Business”), and the equity interests in our subsidiaries that directly owned the Containerboard Business on the date of closing, for a purchase price of $1,804.7 million. The transaction was completed effective as of August 31, 2025 (the “Containerboard Divestiture”). The Containerboard Business was previously reported under the Sustainable Fiber Solutions segment. The Containerboard Divestiture qualifies as discontinued operations because it represents a strategic shift that will have a major impact on our operations and financial results. As a result, the Containerboard Business was presented as discontinued operations beginning in the third quarter of 2025. Our allocation of corporate expenses was updated to reflect how management measures performance and allocates resources with the Containerboard Business being excluded from continuing operations. We have recast data from prior periods to reflect this change to conform to the current year presentation. Unless otherwise noted, the discussion below relates only to our continuing operations.
Previous wording
On August 5, 2025, we entered into a definitive agreement to sell our Soterra land management assets, consisting primarily of approximately 173,000 acres of timberland (the “Soterra Assets”), for a purchase price of $462.0 million. The transaction was completed as of October 1, 2025 (the “Soterra Divestiture”). The Soterra Assets was reported under the Sustainable Fiber Solutions segment. The Soterra Divestiture does not qualify as discontinued operations.
Current wording
On August 5, 2025, we entered into a definitive agreement to sell our Soterra land management assets, consisting primarily of approximately 173,000 acres of timberland (the “Soterra Assets”), for a purchase price of $462.0 million. The transaction was completed as of October 1, 2025 (the “Soterra Divestiture”). The Soterra Assets were reported under the Sustainable Fiber Solutions segment. The Soterra Divestiture does not qualify as discontinued operations.
Previous wording
The discussion and analysis of our financial condition and results of operations are based upon our interim condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these interim condensed consolidated financial statements, in accordance with these principles, requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities as of the date of our interim condensed consolidated financial statements.
Current wording
The discussion and analysis of our financial condition and results of operations are based upon our interim condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these interim condensed consolidated financial statements, in accordance with these principles, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities as of the date of our interim condensed consolidated financial statements.
Previous wording
The following comparative information is presented for the three and six months ended March 31, 2026 and 2025. Historical revenues and earnings may or may not be representative of future operating results as a result of various economic and other factors.
Current wording
The following comparative information is presented for the three and nine months ended June 30, 2026 and 2025. Historical revenues and earnings may or may not be representative of future operating results as a result of various economic and other factors.
Previous wording
Net sales were $1,072.8 million for the second quarter of 2026 compared with $1,078.4 million for the second quarter of 2025. The $5.6 million decrease was primarily due to $52.8 million attributable to lower volumes and impacts from the Soterra Divestiture, partially offset by $49.8 million positive foreign currency translation impacts. See “Segment Review” below for additional information on net sales by segment.
Current wording
Net sales were $1,165.6 million for the third quarter of 2026 compared with $1,125.9 million for the third quarter of 2025. The $39.7 million increase was primarily due to $28.5 million attributable to higher average selling prices and $23.7 million positive foreign currency translation impacts, partially offset by lower volumes and impacts from the Soterra Divestiture. See “Segment Review” below for additional information on net sales by segment.
Previous wording
Gross profit was $247.0 million for the second quarter of 2026 compared with $248.5 million for the second quarter of 2025. The $1.5 million decrease was primarily due to the same factors that impacted net sales, partially offset by lower raw material costs. See “Segment Review” below for additional information on gross profit by segment. Gross profit margin was 23.0 percent and 23.0 percent for the second quarter of 2026 and 2025, respectively.
Current wording
Gross profit was $272.6 million for the third quarter of 2026 compared with $256.0 million for the third quarter of 2025. The $16.6 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material costs and higher transportation costs. See “Segment Review” below for additional information on gross profit by segment. Gross profit margin was 23.4 percent and 22.7 percent for the third quarter of 2026 and 2025, respectively.
Previous wording
Selling, general and administrative (“SG&A”) expenses were $191.7 million for the second quarter of 2026 compared with $159.9 million for the second quarter of 2025. SG&A expenses for the second quarter of 2026 included a special charitable contribution that was allocated among the reporting segments and resulted in higher SG&A expenses for each of the reporting segments. The $31.8 million increase was primarily due to this special charitable contribution, partially offset by lower compensation expenses related to cost optimizations. SG&A expenses were 17.9 percent and 14.8 percent of net sales for the second quarter of 2026 and 2025, respectively.
Current wording
Selling, general and administrative (“SG&A”) expenses were $149.5 million for the third quarter of 2026 compared with $168.3 million for the third quarter of 2025. The $18.8 million decrease was primarily due to lower compensation expenses related to cost optimization. SG&A expenses were 12.8 percent and 14.9 percent of net sales for the third quarter of 2026 and 2025, respectively.
Previous wording
Operating profit was $35.4 million for the second quarter of 2026 compared with $60.7 million for the second quarter of 2025. Net income was $16.3 million for the second quarter of 2026 compared with $25.1 million for the second quarter of 2025. The decrease of net income was primarily due to higher SG&A expenses, partially offset by lower interest expense and lower tax expense. Adjusted EBITDA was $156.8 million for the second quarter of 2026 compared with $145.9 million for the second quarter of 2025. The reasons for the changes in operating profit and Adjusted EBITDA for each segment are described below in “Segment Review.”
Current wording
Operating profit was $107.9 million for the third quarter of 2026 compared with $63.7 million for the third quarter of 2025. Net income was $82.6 million for the third quarter of 2026 compared with $36.9 million for the third quarter of 2025. The increase of net income was primarily due to the same factors that impacted operating profit. Adjusted EBITDA was $183.4 million for the third quarter of 2026 compared with $147.1 million for the third quarter of 2025. The reasons for the changes in operating profit and Adjusted EBITDA for each segment are described below in “Segment Review.”
Previous wording
We continue to operate in a subdued industrial demand environment, with end market activity remaining at low levels and no observable near-term demand inflection. Recent geopolitical developments, including conflicts in the Middle East, have contributed to increased volatility in customer demand, which we anticipate will persist through the remainder of the fiscal year. Consistent with these conditions, we anticipate lower volumes across our metals, fiber and closures product categories with polymer volumes expected to remain flat. We also anticipate inflationary pressures on input costs, particularly for raw materials, energy and transportation, to continue in the near term due in part to supply chain disruptions related to geopolitical factors.
Current wording
Although we are encouraged by demand patterns over the past few months, we continue to operate in a subdued industrial demand environment, with marginal demand improvement building from a low base. Recent geopolitical developments, including conflicts in the Middle East, resulted in increased volatility in customer demand and supply chain disruptions. We do not anticipate a significant inflection in overall demand patterns. The supply chain disruptions contributed to inflationary pressures on input costs, particularly for raw materials, energy and transportation, which we anticipate will persist through the remainder of the fiscal year. To date, we have been able to largely offset these inflationary cost pressures through strategic pricing actions and our enterprise-wide cost optimization.
Previous wording
Net sales were $344.8 million for the second quarter of 2026 compared with $322.5 million for the second quarter of 2025. The $22.3 million increase was primarily due to $18.3 million positive foreign currency translation impacts and higher volumes.
Current wording
Net sales were $383.8 million for the third quarter of 2026 compared with $337.9 million for the third quarter of 2025. The $45.9 million increase was primarily due to $29.9 million higher average selling prices, $8.5 million positive foreign currency translation impacts and higher volumes.
Previous wording
Gross profit was $160.0 million for the first six months of 2026 compared with $152.8 million for the first six months of 2025. The $7.2 million increase was primarily due to the same factors that impacted net sales. Gross profit margin was 21.8 percent and 21.0 percent for the first six months of 2026 and 2025, respectively.
Current wording
Gross profit was $91.1 million for the third quarter of 2026 compared with $70.9 million for the third quarter of 2025. The $20.2 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation and manufacturing costs. Gross profit margin was 23.7 percent and 21.0 percent for the third quarter of 2026 and 2025, respectively.
Previous wording
Gross profit was $89.3 million for the second quarter of 2026 compared with $83.8 million for the second quarter of 2025. The $5.5 million increase was primarily due to the same factors that impacted net sales. Gross profit margin was 23.5 percent and 22.5 percent for the second quarter of 2026 and 2025, respectively.
Current wording
Gross profit was $90.9 million for the third quarter of 2026 compared with $88.1 million for the third quarter of 2025. The $2.8 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material costs and higher transportation costs. Gross profit margin was 22.4 percent and 22.5 percent for the third quarter of 2026 and 2025, respectively.
Previous wording
Gross profit was $12.3 million for the second quarter of 2026 compared with $9.8 million for the second quarter of 2025. The $2.5 million increase was primarily due to the same factors that impacted net sales. The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $45.4 million and $38.6 million for the second quarter of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 27.1 percent and 25.4 percent for the second quarter of 2026 and 2025, respectively.
Current wording
Gross profit was $17.5 million for the third quarter of 2026 compared with $11.9 million for the third quarter of 2025. The $5.6 million increase was primarily due to the same factors that impacted net sales. The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $51.4 million and $43.2 million for the third quarter of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 34.0 percent and 27.5 percent for the third quarter of 2026 and 2025, respectively.
Previous wording
Income tax expense for the second quarter of 2026 was $5.9 million compared with $20.0 million for the second quarter of 2025. The $14.1 million decrease was primarily due to lower pre-tax earnings, as described in discussions above, and the release of uncertain tax positions resulting from the completion of a tax audit and the expirations of applicable statutes of limitations in certain jurisdictions.
Current wording
Income tax expense for the third quarter of 2026 was $17.9 million compared with $10.0 million for the third quarter of 2025. The $7.9 million increase was primarily due to higher pre-tax earnings. This increase was partially offset by non-recurring discrete tax benefits recognized during the third quarter of 2026, including benefits associated with changes in tax estimates related to prior periods, internal restructuring activities and the expirations of applicable statutes of limitations in certain jurisdictions.
Previous wording
On July 4, 2025, H.R. 1, commonly known as the One Big Beautiful Bill Act (“OBBBA”), was enacted into law. The OBBBA permanently extends several major provisions of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing, enhanced business interest deductibility, and modifications to the international tax framework. We have evaluated the impact of the OBBBA as part of our fiscal year 2026 forecast, and the effects of the legislation are reflected in our income tax provision for the second quarter of 2026. We will continue to assess the application of the OBBBA and any related regulatory guidance as it becomes available.
Current wording
On July 4, 2025, H.R. 1, commonly known as the One Big Beautiful Bill Act (“OBBBA”), was enacted into law. The OBBBA permanently extends several major provisions of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing, enhanced business interest deductibility, and modifications to the international tax framework. We have evaluated the impact of the OBBBA as part of our fiscal year 2026 forecast, and the effects of the legislation are reflected in our income tax provision for the third quarter of 2026. We will continue to assess the application of the OBBBA and any related regulatory guidance as it becomes available.
Previous wording
The following table sets forth the net sales, operating profit and Adjusted EBITDA for each of our business segments for the six months ended March 31, 2026 and 2025:
Current wording
The following table sets forth the net sales, operating profit and Adjusted EBITDA for each of our business segments for the nine months ended June 30, 2026 and 2025:
Previous wording
The following table sets forth Adjusted EBITDA, reconciled to net income and operating profit, for our consolidated results for the six months ended March 31, 2026 and 2025:
Current wording
The following table sets forth Adjusted EBITDA, reconciled to net income and operating profit, for our consolidated results for the nine months ended June 30, 2026 and 2025:
Previous wording
The following table sets forth Adjusted EBITDA for our business segments, reconciled to the operating profit for each segment, for the six months ended March 31, 2026 and 2025:
Current wording
The following table sets forth Adjusted EBITDA for our business segments, reconciled to the operating profit for each segment, for the nine months ended June 30, 2026 and 2025:
Previous wording
Net sales were $2,067.6 million for the first six months of 2026 compared with $2,095.1 million for the first six months of 2025. The $27.5 million decrease was primarily due to $101.1 million attributable to lower volumes and impacts from the Soterra Divestiture, partially offset by $81.3 million of positive foreign currency translation impacts. See “Segment Review” below for additional information on net sales by segment.
Current wording
Net sales were $3,233.2 million for the first nine months of 2026 compared with $3,221.0 million for the first nine months of 2025. The $12.2 million increase was primarily due to $101.9 million of positive foreign currency translation impacts and $52.3 million from higher average selling prices, partially offset by $116.3 million attributable to lower volumes and $14.7 million impacts from the Soterra Divestiture. See “Segment Review” below for additional information on net sales by segment.
Previous wording
Gross profit was $449.6 million for the first six months of 2026 compared with $447.9 million for the first six months of 2025. The $1.7 million increase was primarily due to lower raw material costs, partially offset by the same factors that impacted net sales. See “Segment Review” below for additional information on gross profit by segment. Gross profit margin was 21.7 percent and 21.4 percent for first six months of 2026 and 2025, respectively.
Current wording
Gross profit was $722.2 million for the first nine months of 2026 compared with $703.9 million for the first nine months of 2025. The $18.3 million increase was primarily due to the same factors that impacted net sales and lower raw material costs from lower volumes. See “Segment Review” below for additional information on gross profit by segment. Gross profit margin was 22.3 percent and 21.9 percent for the first nine months of 2026 and 2025, respectively.
Previous wording
SG&A expenses were $337.8 million for the first six months of 2026 compared with $320.1 million for the first six months of 2025. SG&A expenses for the fist six months of 2026 included a special charitable contribution that was allocated among the reporting segments and resulted in higher SG&A expenses for each of the reporting segments. The $17.7 million increase was primarily related to this charitable contribution, partially offset by lower compensation expenses related to cost optimizations. SG&A expenses were 16.3 percent and 15.3 percent of net sales for first six months of 2026 and 2025, respectively.
Current wording
SG&A expenses were $487.3 million for the first nine months of 2026 compared with $488.4 million for the first nine months of 2025. The $1.1 million decrease was primarily due to lower compensation expenses related to cost optimization, partially offset by a special charitable contribution that was allocated among the reporting segments. SG&A expenses were 15.1 percent and 15.2 percent of net sales for the first nine months of 2026 and 2025, respectively.
Previous wording
Operating profit was $292.0 million for the first six months of 2026 compared with $94.8 million for the first six months of 2025. Net income was $199.2 million for the first six months of 2026 compared with $36.4 million for the first six months of 2025. The increase of net income was primarily due to the Soterra Divestiture during the first quarter of 2026. Adjusted EBITDA was $279.3 million for the first six months of 2026 compared with $244.7 million for the first six months of 2025. The reasons for the changes in operating profit and Adjusted EBITDA for each segment are described below in “Segment Review.”
Current wording
Operating profit was $399.9 million for the first nine months of 2026 compared with $158.5 million for the first nine months of 2025. Net income was $281.8 million for the first nine months of 2026 compared with $73.3 million for the first nine months of 2025. The increase of net income was primarily due to the Soterra Divestiture during the first quarter of 2026. Adjusted EBITDA was $462.7 million for the first nine months of 2026 compared with $391.8 million for the first nine months of 2025. The reasons for the changes in operating profit and Adjusted EBITDA for each segment are described below in “Segment Review.”
Previous wording
Operating profit was $208.3 million for the first six months of 2026 compared with operating loss of $1.1 million for the first six months of 2025. The $209.4 million increase was primarily due to a $216.2 million gain from the Soterra Divestiture during the first quarter of 2026, partially offset by the same factors that impacted gross profit. Adjusted EBITDA was $77.4 million for the first six months of 2026 compared with $75.8 million for the first six months of 2025. The $1.6 million increase was primarily due to lower compensation expenses related to cost optimizations, partially offset by the same factors that impacted gross profit, excluding impacts from depreciation and amortization.
Current wording
Operating profit was $222.2 million for the first nine months of 2026 compared with $3.9 million for the first nine months of 2025. The $218.3 million increase was primarily due to a $216.2 million gain from the Soterra Divestiture during the first quarter of 2026. Adjusted EBITDA was $119.9 million for the first nine months of 2026 compared with $124.6 million for the first nine months of 2025. The $4.7 million decrease was primarily due to the same factors that impacted gross profit, excluding impacts from depreciation and amortization, partially offset by lower compensation expenses related to cost optimization.
Previous wording
Net sales were $25.8 million for the second quarter of 2026 compared with $22.3 million for the second quarter of 2025. The $3.5 million increase was primarily due to higher average selling prices and positive foreign currency translation impact, partially offset by lower volumes.
Current wording
Net sales were $78.5 million for the first nine months of 2026 compared with $69.7 million for the first nine months of 2025. The $8.8 million increase was primarily due to higher average selling prices and positive foreign currency translation impacts, partially offset by lower volumes.
Previous wording
Gross profit was $21.2 million for the first six months of 2026 compared with $17.3 million for the first six months of 2025. The $3.9 million increase was primarily due to the same factors that impacted net sales. The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $84.8 million and $78.5 million for the first six months of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 25.0 percent and 22.0 percent for the first six months of 2026 and 2025, respectively.
Current wording
Gross profit was $38.7 million for the first nine months of 2026 compared with $29.2 million for the first nine months of 2025. The $9.5 million increase was primarily due to the same factors that impacted net sales. The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $136.2 million and $121.7 million for the first nine months of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 28.4 percent and 24.0 percent for the first nine months of 2026 and 2025, respectively.
Previous wording
Operating profit was $2.5 million for the second quarter of 2026 compared with $17.8 million for the second quarter of 2025. The $15.3 million decrease was primarily due to higher SG&A expenses and the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations. Adjusted EBITDA was $45.8 million for the second quarter of 2026 compared with $43.4 million for the second quarter of 2025. The $2.4 million increase was primarily due to the same factors that impacted net sales and lower compensation expenses related to cost optimizations.
Current wording
Operating profit was $15.3 million for the first nine months of 2026 compared with $9.9 million for the first nine months of 2025. The $5.4 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses. Adjusted EBITDA was $25.8 million for the first nine months of 2026 compared with $17.8 million for the first nine months of 2025. The $8.0 million increase was primarily due to the same factors that impacted gross profit.
Previous wording
Income tax expense for the first six months of 2026 was $64.8 million compared with $26.8 million for the first six months of 2025, respectively. The $38.0 million increase was primarily attributable to a one-time discrete tax expense of $49.3 million recognized in the current fiscal year related to the Soterra Divestiture. This increase was partially offset by lower pre-tax earnings, as described in discussions above, as well as changes in the geographic mix of earnings and releases of uncertain tax positions resulting from the completion of a tax audit and the expiration of applicable statutes of limitations in certain jurisdictions.
Current wording
Income tax expense for the first nine months of 2026 was $82.7 million compared with $36.8 million for the first nine months of 2025, respectively. The $45.9 million increase was primarily attributable to a one-time discrete tax expense of $49.3 million recognized in the current fiscal year related to the Soterra Divestiture and higher pre-tax earnings. This increase was partially offset by non-recurring discrete tax benefits recognized during the third quarter of fiscal year 2026, primarily related to changes in tax estimates associated with prior periods and tax benefits from internal restructuring activities, as well as releases of uncertain tax positions resulting from the completion of a tax audit and the expiration of applicable statutes of limitations in certain jurisdictions.
Previous wording
Our primary sources of liquidity are operating cash flows and borrowings under our senior secured credit facilities and proceeds from our trade accounts receivable credit facilities. We use these sources to fund our working capital needs, capital expenditures, cash dividends, debt repayment, and acquisitions. We anticipate continuing to fund these items in a like manner. We currently expect that operating cash flows, borrowings under our senior secured credit facilities, and proceeds from our trade accounts receivable credit facilities will be sufficient to fund our anticipated working capital, capital expenditures, cash dividends, debt repayment, potential acquisitions of businesses, and other liquidity needs for at least 12 months.
Current wording
Our primary sources of liquidity are operating cash flows and borrowings under our senior secured credit facilities and proceeds from our trade accounts receivable credit facilities. We use these sources to fund our working capital needs, capital expenditures, cash dividends, share repurchases, debt repayment, and acquisitions. We anticipate continuing to fund these items in a like manner. We currently expect that operating cash flows, borrowings under our senior secured credit facilities, and proceeds from our trade accounts receivable credit facilities will be sufficient to fund our anticipated working capital, capital expenditures, cash dividends, share repurchases, debt repayment, potential acquisitions of businesses, and other liquidity needs for at least 12 months.
Previous wording
The cash flows related to the Containerboard Business have not been segregated and are included in our Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2026 and 2025. The absence of the cash flows from the Containerboard business in future periods is not expected to materially impact our liquidity or capital resources.
Current wording
The cash flows related to the Containerboard Business have not been segregated and are included in our Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2026 and 2025. The absence of the cash flows from the Containerboard Business in future periods is not expected to materially impact our liquidity or capital resources.
Previous wording
During the first six months of 2026 and 2025, cash (used in) provided by change in accounts receivable was $(52.7) million and $(14.6) million, respectively. The unfavorable change in accounts receivable levels was primarily due to timing of collections.
Current wording
During the first nine months of 2026 and 2025, cash (used in) provided by change in accounts receivable was $(83.3) million and $(7.0) million, respectively. The unfavorable change in accounts receivable levels was primarily due to increased net sales and timing of collections.
Previous wording
During the first six months of 2026 and 2025, cash (used in) provided by change in inventories was $(2.6) million and $(7.5) million, respectively. The favorable change in inventories was primarily due to decrease in net sales.
Current wording
During the first nine months of 2026 and 2025, cash (used in) provided by change in inventories was $(38.3) million and $3.9 million, respectively. The unfavorable change in inventories was primarily due to an increase in raw material costs and increased stock levels.
Previous wording
During the first six months of 2026 and 2025, cash (used in) provided by change in accounts payable was $89.0 million and $(1.3) million, respectively. The favorable change in accounts payable levels was primarily due to timing of payments.
Current wording
During the first nine months of 2026 and 2025, cash (used in) provided by change in accounts payable was $67.8 million and $(28.7) million, respectively. The favorable change in accounts payable levels was primarily due to timing of payments.
Previous wording
During the first six months of 2026 and 2025, we invested $89.8 million and $81.3 million (of which $11.4 million related to the Containerboard Business), respectively, of cash in capital expenditures.
Current wording
During the first nine months of 2026 and 2025, we invested $118.5 million and $92.9 million (of which $17.5 million related to the Containerboard Business), respectively, of cash in capital expenditures.
Previous wording
During the first six months of 2026, we received $463.4 million of cash from sale of properties, plants and equipment and other assets, primarily from the Soterra Divestiture.
Current wording
During the first nine months of 2026, we received $464.0 million of cash from sale of properties, plants and equipment and other assets, primarily from the Soterra Divestiture.
Previous wording
During the first six months of 2026 and 2025, we paid cash dividends to our stockholders in the amount of $64.3 million and $62.4 million, respectively.
Current wording
During the first nine months of 2026 and 2025, we paid cash dividends to our stockholders in the amount of $97.0 million and $93.8 million, respectively.
Previous wording
During the first six months of 2026 and 2025, we (paid down) borrowed $(195.6) million and $33.1 million of debt, net of issuances and payments, respectively. The 2026 repayment was primarily from proceeds from the Soterra Divestiture.
Current wording
During the first nine months of 2026 and 2025, we paid down $169.2 million and $31.0 million of debt, net of issuances and payments, respectively. The 2026 repayment was primarily from proceeds from the Soterra Divestiture.
Previous wording
During the first six months of 2026, we paid $2.8 million of debt extinguishment charges and debt issuance costs related to our debt refinancing.
Current wording
During the first nine months of 2026, we paid $2.8 million of debt extinguishment charges and debt issuance costs related to our debt refinancing.
Previous wording
During the first six months of 2026, we paid $147.2 million for share repurchases.
Current wording
During the first nine months of 2026, we paid $150.1 million for share repurchases.
Previous wording
In the first quarter of 2026, we entered into two agreements for open market repurchases. One agreement provides for the repurchase of shares of Class A Common Stock up to an aggregate amount not to exceed $120.0 million in total repurchases, and the other agreement provides for the repurchase of shares of Class B Common Stock up to an aggregate amount not to exceed $30.0 million in total repurchases.
Current wording
In the first quarter of 2026, we entered into two agreements for open market repurchases. One agreement provided for the repurchase of shares of Class A Common Stock up to an aggregate amount not to exceed $120.0 million in total repurchases, and the other agreement provided for the repurchase of shares of Class B Common Stock up to an aggregate amount not to exceed $30.0 million in total repurchases.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(as defined in the 2026 Credit Agreements) increase adjustment of 0.50 upon the consummation of, and the following three fiscal quarters after, certain specified acquisitions and (ii) a collateral release decrease adjustment of 0.25x during any collateral release period (as defined in the 2026 Credit Agreements). The interest coverage ratio generally requires that at the end of any fiscal quarter we will not permit the ratio of (a) our consolidated EBITDA, to (b) our consolidated interest expense to the extent paid or payable, to be less than 3.00 to 1.00, during the applicable preceding twelve-month period. As of March 31, 2026, we were in compliance with the covenants and other agreements in the 2026 Credit Agreements.