Graphic Packaging has reported a net income of $24m in the second quarter (Q2) of 2026, a drop of 77% from $104m in the same quarter a year earlier.
Both quarters were affected by special items and the amortisation of purchased intangibles. These non-recurring charges and net costs amounted to $17m for Q2 2026, compared to $24m in the prior-year period.
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On an adjusted basis, excluding those items and amortisation, Q2 net income came to $41m, down from $128m in the same period of 2025.
For the first six months of the year, the packaging group swung to a net loss of $19m, against a net income of $231m in the first half of 2025.
Q2 net sales edged down 1% to $2.18bn from $2.2bn a year earlier, reflecting a $27m hit from a 1% drop in pricing and a $2m decline from mostly unchanged volume and mix.
A $13m benefit from favourable foreign exchange and other factors partially cushioned the impact.
Adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation], excluding the effect of business combinations and other non-recurring and special items, fell to $247m from $336m in the comparable quarter last year.
The $89m decrease in adjusted EBITDA was attributed to $60m of commodity input and operating cost inflation, a $27m impact from lower pricing, an $8m effect from lower volume / mix, and a $3m unfavourable foreign exchange movement, partly offset by positive net performance of $9m.
Total debt stood at $5.6bn in the second quarter of 2026, compared with $5.5bn at the end of 2025.
The company distributed about $65m to shareholders in the first six months of 2026 through regular dividends.
Graphic Packaging said it now expects 2026 net sales at the top end of its $8.4bn to $8.6bn range, adjusted EBITDA at the bottom end of its $1.05bn to $1.25bn range, and adjusted EPS between $0.65 and $0.90.
Separately, the company completed the sale of its Croatia facility and plans to shut its site in Lebanon, Tennessee, as it shifts volumes across a smaller number of facilities.
It also told employees it would assess the possible closure of its Winsford site in the UK.
Graphic Packaging president and CEO Robbert Rietbroek, who took over the role earlier this year, said: “We continued to execute against our near-term strategic priorities and delivered solid second quarter performance, with adjusted EBITDA at the top of our guidance range despite greater than anticipated inflation. Our business demonstrated resilience, with both sales and volumes increasing in the first half of 2026 compared with the same period in 2025.
“In response to incremental inflation, we implemented additional productivity, cost reduction, and pricing initiatives. The combination of these recent actions and our disciplined execution against strategic priorities positions us to drive continued sequential profitability and margin improvement in the second half of 2026 and provides positive momentum into next year.”
