Greif Maintains Outlook Amid Industrial Sector Weakness

Greif US3976241071

The industrial packaging firm Greif has reported first-quarter results for 2026 that underscore a challenging market, yet the company's disciplined cost management is providing stability. While revenue and earnings per share fell short of analyst expectations, efficiency gains have bolstered profitability. With a rapid demand recovery not yet visible, the company's strategy is increasingly pivoting toward returning capital to its shareholders.

• Earnings per share (EPS) came in at $0.48, missing consensus estimates.
• Quarterly revenue declined to $994.80 million.
• Full-year 2026 targets for EBITDA and free cash flow were reaffirmed at the lower end of the guidance range.
• A new $300 million share repurchase program has been authorized.

Alongside its operational measures, Greif is accelerating its capital return program. The company repurchased $130 million of its own shares in the first quarter, nearly completing its existing $150 million buyback initiative.

To continue this path, the board of directors has approved an additional $300 million repurchase authorization. Management intends to buy back approximately two percent of outstanding shares annually going forward. This disciplined and consistent strategy is designed to enhance shareholder value despite the stagnant market conditions.

Investors are now looking ahead to the annual general meeting scheduled for February 23. The next detailed business figures, for the second quarter, are expected to be released on June 9.

Efficiency Gains Counteract Revenue Pressure

The market environment for industrial packaging remains difficult. Greif noted a continued contraction in the industrial sector, with a near-term turnaround in demand not currently anticipated. Consequently, both top-line revenue and bottom-line EPS failed to meet analyst forecasts.

Nevertheless, the company managed to increase its adjusted EBITDA year-over-year. This improvement was driven by extensive cost-reduction initiatives, which led to margin expansion across its entire portfolio. For the full 2026 fiscal year, management has maintained its outlook, targeting an adjusted EBITDA of $630 million and an adjusted free cash flow of $315 million.

@ boerse-global.de | US3976241071 GREIF