Graphic Packaging (NYSE:GPK) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Graphic Packaging (NYSE:GPK) issued its earnings results on Tuesday. The industrial products company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.03, Zacks reports. The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.05 billion. Graphic Packaging had a net margin of 5.15% and a return on equity of 16.58%. Graphic Packaging’s revenue was up 1.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.51 earnings per share. Graphic Packaging updated its FY 2026 guidance to 0.750-1.150 EPS.

Here are the key takeaways from Graphic Packaging’s conference call:

• Graphic Packaging reaffirmed 2026 guidance of $1.05B–$1.25B adjusted EBITDA and $700M–$800M adjusted free cash flow, and plans to pay down about $500M of debt while maintaining the dividend.
• Following a 90‑day review the company has cut over 500 salaried roles, canceled non-core projects (including a ~ $40M write-off) to avoid roughly $200M of future capex, and expects to realize the previously announced $60M of cost savings supported by AI and stricter capital discipline.
• Q1 faced pricing pressure (prices down ~2%) and higher commodity inflation (~$37M, ~$10M above expectations), with management forecasting an incremental ~$30M inflation hit in H1 and ~$60–$65M for the full year despite a $60/ton cup‑stock price increase that may be delayed by index pass‑throughs.
• Q1 results were mixed: sales rose 2% to $2.2B and volumes +1%, adjusted EBITDA was $232M (10.8% margin) and adjusted cash flow improved to -$183M from -$442M a year ago.
• The Waco recycled paperboard mill is ramping ahead of plan (with cogeneration nearing completion), and the company highlighted sustainability and innovation momentum — a 250 MW virtual PPA, new patents and awards — to pursue plastic‑to‑paper conversion opportunities.

Graphic Packaging Stock Up 9.5%

Shares of GPK traded up $0.91 during trading hours on Tuesday, reaching $10.47. 8,446,585 shares of the stock traded hands, compared to its average volume of 6,971,388. The company has a current ratio of 1.30, a quick ratio of 0.52 and a debt-to-equity ratio of 1.50. The stock has a fifty day simple moving average of $10.11 and a 200 day simple moving average of $13.52. Graphic Packaging has a 52 week low of $8.78 and a 52 week high of $23.76. The company has a market cap of $3.10 billion, a price-to-earnings ratio of 7.07 and a beta of 0.61.

Graphic Packaging Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 8th. Investors of record on Sunday, March 15th were given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Friday, March 13th. Graphic Packaging’s dividend payout ratio (DPR) is presently 29.73%.

Analysts Set New Price Targets

GPK has been the topic of several research analyst reports. Royal Bank Of Canada cut their target price on shares of Graphic Packaging from $13.00 to $10.00 and set a “sector perform” rating on the stock in a research note on Friday, March 20th. Truist Financial dropped their price objective on shares of Graphic Packaging from $14.00 to $11.00 and set a “hold” rating on the stock in a research note on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft began coverage on shares of Graphic Packaging in a research note on Wednesday, April 1st. They issued a “hold” rating and a $9.60 price objective on the stock. Wells Fargo & Company dropped their price objective on shares of Graphic Packaging from $9.00 to $8.00 and set an “underweight” rating on the stock in a research note on Tuesday, April 14th. Finally, Robert W. Baird set a $15.00 price objective on shares of Graphic Packaging in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $12.20.

Insider Buying and Selling at Graphic Packaging

In other news, CEO Robbert Rietbroek purchased 44,278 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The shares were bought at an average cost of $11.32 per share, with a total value of $501,226.96. Following the completion of the transaction, the chief executive officer directly owned 44,278 shares of the company’s stock, valued at approximately $501,226.96. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its position in shares of Graphic Packaging by 18.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,728,031 shares of the industrial products company’s stock valued at $176,626,000 after purchasing an additional 1,824,110 shares in the last quarter. State Street Corp lifted its position in shares of Graphic Packaging by 0.8% during the fourth quarter. State Street Corp now owns 9,877,303 shares of the industrial products company’s stock valued at $149,808,000 after purchasing an additional 81,300 shares in the last quarter. AQR Capital Management LLC increased its holdings in Graphic Packaging by 503.6% during the fourth quarter. AQR Capital Management LLC now owns 8,693,765 shares of the industrial products company’s stock worth $130,928,000 after buying an additional 7,253,473 shares during the last quarter. Shapiro Capital Management LLC increased its holdings in Graphic Packaging by 22.2% during the third quarter. Shapiro Capital Management LLC now owns 5,333,922 shares of the industrial products company’s stock worth $104,385,000 after buying an additional 968,777 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Graphic Packaging by 6.4% during the third quarter. Alliancebernstein L.P. now owns 5,265,518 shares of the industrial products company’s stock worth $103,046,000 after buying an additional 318,360 shares during the last quarter. 99.67% of the stock is owned by institutional investors.

About Graphic Packaging

Graphic Packaging Holding Company is a leading provider of sustainable paperboard packaging solutions, offering a broad portfolio of products designed for food, beverage and other consumer goods markets. The company specializes in the manufacture of containerboard, folding cartons and engineered fill materials, as well as beverage packaging systems including paperboard cups, carriers and related components.

Through a network of manufacturing facilities across North America, Europe and Latin America, Graphic Packaging serves a diverse customer base that includes major consumer packaged goods companies, quick-service restaurants and retail chains.