Graphic Packaging Extends Sequential Ebitda Margin Expansion

The Tip Desk · November 10, 2026 · 3 min read

Adjusted EBITDA reached $289 million in the third quarter as the margin expanded for a second straight quarter.

Graphic Packaging Holding Company (GPK) reported third-quarter 2026 net sales of $2,192 million, a slight increase from $2,190 million a year earlier, as volumes rose 1% and the Adjusted EBITDA margin expanded sequentially for a second consecutive quarter.

The Atlanta-based sustainable consumer packaging company said the $2 million sales increase came from a 1% rise, or $19 million, in volume/mix, partly offset by a 1% decline, or $15 million, in price and $2 million of unfavorable foreign exchange and other items.

Net income was $22 million, or $0.07 a share, versus $142 million, or $0.48 a share, in the third quarter of 2025. Both periods included net charges from non-recurring and special items and amortization of purchased intangibles of $45 million and $30 million, respectively. Adjusted net income was $67 million, or $0.23 a share, compared with $172 million, or $0.58 a share, a year earlier.

Adjusted EBITDA was $289 million, down from $383 million in the year-ago quarter. The company attributed the $94 million decline to $83 million of increased commodity input and operating cost inflation, $15 million of unfavorable price and $3 million of lower volume/mix, partly offset by $2 million of Net Performance and $5 million of favorable foreign exchange. Adjusted EBITDA margin was 13.2%.

That margin had been 11.3% in the second quarter, when Adjusted EBITDA was $247 million. Sequential expansion in the third quarter followed a 50-basis-point sequential gain in the second quarter, which the company had described as evidence of productivity and cost actions against inflation.

President and CEO Robbert Rietbroek said the company drove year-over-year revenue and volume growth and expanded Adjusted EBITDA margin sequentially for the second consecutive quarter. He said those actions created positive operating leverage and better position the company to capture benefits from commercial excellence initiatives and price improvements in the fourth quarter and into 2027, and that this year’s actions support continued margin improvement, strong cash flow and a return to EBITDA growth next year.

Net cash provided by operating activities in the nine months ended September 2026 was $295 million. Adjusted cash flow was $314 million, an increase of $646 million from the first nine months of 2025, with a significant contribution in the third quarter that enabled debt reduction from year-end 2025. Capital expenditures in the third quarter were $64 million, versus $267 million a year earlier.

Total debt was $5,520 million at September 30, 2026, down from $5,688 million in the second quarter. Net debt was $5,183 million, a $300 million sequential decline from $5,483 million. The net leverage ratio was 4.8 times, compared with 3.8 times at year-end 2025. The company returned about $98 million to stockholders through regular dividends in the first nine months of 2026.

The company reaffirmed full-year 2026 expectations of approximately $8.6 billion of net sales, $1.05 billion of Adjusted EBITDA and $0.65 of Adjusted EPS. It continues to expect 2026 Adjusted Cash Flow of $600 million to $700 million, an increase from $169 million in 2025, and capital spending below $450 million.