Graphic Packaging shares rise 3.10% premarket after revenue tops estimates
Key Facts
Graphic Packaging Holding shares rose 3.10% in premarket trading on Nov. 3 after the company reported third-quarter results, according to Investing.com. The company posted revenue of $2.19 billion, above analysts’ estimate of $2.17 billion. Adjusted earnings per share were $0.23, matching analysts’ consensus, the website said. The report linked the stock’s rise to revenue topping expectations, with adjusted earnings in line with consensus. The company said in its results that pressure on operating profit remained significant compared with the previous year.
Adjusted earnings before interest, taxes, depreciation and amortization were $289 million in the third quarter of 2026, compared with $383 million in the same period a year earlier, according to the company’s statement published via PR Newswire. The associated margin fell to 13.2% from 17.5%. The company said the $94 million decline in adjusted earnings came alongside an $83 million increase in inflation across commodity and operating input costs, as well as a negative pricing impact of $15 million. The figures show that revenue exceeding analysts’ estimates did not offset the effect of higher costs and pricing pressure on operating performance. Net income also fell to $22 million, or $0.07 per diluted share, from $142 million, or $0.48 per share, in the third quarter of 2025.
On sales, the company said net sales increased by $2 million, driven by a 1% increase in volume and product mix, which added $19 million. This was offset by a negative pricing impact of $15 million and a negative impact of $2 million from currency and other factors. The breakdown shows that higher volume and product mix supported revenue, while lower prices and other factors limited the gains. Revenue therefore came in above market estimates, but its modest improvement coincided with declines in earnings and margin. Chief Executive Robert Rietbroek said the margin improved sequentially for the second consecutive quarter, despite falling from its level a year earlier.
The company kept its 2026 guidance unchanged, forecasting sales of about $8.6 billion, adjusted earnings before interest, taxes, depreciation and amortization of $1.05 billion, and adjusted earnings per share of $0.65, according to its statement. It also reaffirmed its forecast for adjusted cash flow of between $600 million and $700 million for the year, compared with $169 million in 2025. Rietbroek said the company expects pricing to improve in the fourth quarter and continue improving into 2027. He added that the company expects adjusted earnings before interest, taxes, depreciation and amortization to return to growth next year. The outlook is based on improved pricing and commercial excellence initiatives that the chief executive said would help the company benefit from the expected improvement.