Graphic Packaging Implements Cost and Production Optimization Initiatives

ATLANTA, Dec. 8, 2025 /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today announced additional details on its support function and production optimization plans. 

As disclosed on the Company's third quarter 2025 earnings conference call, Graphic Packaging has undertaken a review of support functions and corporate expenses and now expects savings of approximately $60 million in staffing and other cost reductions in 2026. Graphic Packaging is working closely with employees affected by these actions to provide employment placement assistance and support. Severance and other one-time costs and non-cash charges associated with these initiatives are expected to be in the range of $20 million.

The Company also announced additional actions to reduce inventory in the fourth quarter. With the Waco, Texas recycled paperboard manufacturing facility startup ahead of schedule, the Company plans to accelerate certain inventory reduction plans into the fourth quarter that were originally planned for 2026. Production curtailment is expected to impact fourth quarter operating results by $15 million, which is in addition to the $15 million relating to curtailments announced during the third quarter earnings call.

Full year Net Sales are expected to be in the $8.4 billion to $8.6 billion range (unchanged from November 4, 2025 guidance). Adjusted EBITDA is now expected to be in the range of $1.38 billion to $1.43 billion (from $1.40 billion to $1.45 billion). Adjusted EPS is expected to be in the range of $1.75 to $1.95 (from $1.80 to $2.00). The company remains confident in its $700 million to $800 million free cash flow target for 2026.

Contact Information
Investors: [email protected]
Media: [email protected]

Forward Looking Statements

Any statements of the Company's expectations in this press release, including but not limited to the size and timing of expected savings and charges related to staff and cost optimization programs and production curtailments, as well as full year 2025 Net Sales, Adjusted EBITDA, Adjusted EPS and 2026 free cash flow, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, volatility of the global economy, inflation of raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives and cost reduction plans, as well as the Company's debt level, currency movements and other risks of conducting business internationally, the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company's future U.S. federal income tax payments. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements, except as required by law. Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.

About Graphic Packaging Holding Company

Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/graphic-packaging-implements-cost-and-production-optimization-initiatives-302635725.html

SOURCE Graphic Packaging Holding Company