Greif-B | 8-K: FY2026 Q3 Revenue Beats Estimate at USD 1.166 B

Revenue: As of FY2026 Q3, the actual value is USD 1.166 B, beating the estimate of USD 1.116 B.

EPS: As of FY2026 Q3, the actual value is USD 1.35.

EBIT: As of FY2026 Q3, the actual value is USD 107.6 M.

Fiscal Third Quarter 2026 Financial Highlights

Net Income

• Net income increased by 156.7% to $78.8 million in the third quarter of fiscal 2026, compared to $30.7 million in the prior year period.
• Net income, excluding the impact of adjustments, increased by 87.0% to $93.3 million, compared to $49.9 million in the prior year period.

Adjusted EBITDA

• Adjusted EBITDA increased by 24.7% to $183.4 million in the third quarter of fiscal 2026, compared to $147.1 million in the prior year period.
• Adjusted EBITDA grew by approximately 25%.
• Adjusted EBITDA margins were up over 260 basis points year-over-year and up 110 basis points sequentially from Q2 2026.

Cash Flow

• Net cash provided by operating activities decreased by $69.3 million to $77.8 million in the third quarter.
• Adjusted free cash flow decreased by $86.7 million to $57.7 million in the third quarter.
• For the nine months ended June 30, 2026, net cash provided by operating activities was $170.0 million, down from $286.1 million in the prior year period.
• Free cash flow for the nine months ended June 30, 2026, was $51.5 million, compared to $193.2 million in the prior year period.
• Adjusted free cash flow for the nine months ended June 30, 2026, was $196.0 million, compared to $207.6 million in the prior year period.
• Greif, Inc. expects free cash flow conversion of around 50% for the current year.

Debt and Leverage

• Total debt was $1,030.4 million, reflecting a decrease of $1,686.6 million.
• Net debt decreased by $1,689.9 million to $741.9 million.
• The leverage ratio decreased to 1.1x from 3.1x.
• Greif, Inc. intends for leverage to remain below 2.0x, with an expectation of below 1.5x in the near term.

Operational Metrics

• Greif, Inc. achieved $90 million in cumulative run-rate savings from its cost optimization program, reaching the high-end of its commitment for the fiscal year.
• The company completed the growth-enabling strategic, bolt-on acquisition of Envaplast on June 2, 2026.
• Envaplast primarily serves the Agrochemical end markets and has EBITDA margins well above 18% and free cash flow conversions exceeding 50%.
• Greif, Inc. increased its quarterly dividend by 10.7%.
• The company announced its intention to begin executing on share repurchases under a new plan, with an additional $150 million stock repurchase plan approved.
• Greif, Inc. remains committed to delivering $120 million of annualized cost optimization on a run rate basis by the end of the next fiscal year.

Fiscal Third Quarter 2026 Segment Results

Customized Polymer Solutions

• Net sales increased by $45.9 million to $383.8 million, driven by $29.9 million higher average selling prices, $8.5 million of positive foreign currency translation impacts, and higher volumes.
• Gross profit increased by $20.2 million to $91.1 million.
• Operating profit increased by $24.4 million to $32.8 million.
• Adjusted EBITDA increased by $27.2 million to $64.3 million.
• Volumes increased by 1.5%, led by strength in IBCs and large polymer containers.

Durable Metal Solutions

• Net sales increased by $13.3 million to $405.6 million, primarily due to $14.0 million of positive foreign currency translation impacts and $11.4 million of higher average selling prices, partially offset by $12.0 million attributable to lower volumes.
• Gross profit increased by $2.8 million to $90.9 million.
• Operating profit increased by $6.9 million to $52.7 million.
• Adjusted EBITDA increased by $10.4 million to $64.0 million.

Sustainable Fiber Solutions

• Net sales decreased by $24.2 million to $346.5 million, primarily due to $15.3 million attributable to lower average selling prices, $5.3 million of impacts from the Soterra Divestiture, and lower volumes.
• Gross profit decreased by $12.0 million to $73.1 million.
• Operating profit increased by $8.9 million to $13.9 million.
• Adjusted EBITDA decreased by $6.3 million to $42.5 million.
• Net sales were lower year-over-year due to a mill closure, and margins were lower year-over-year.
• Underlying converting demand was close to flat.

Innovative Closure Solutions

• Net sales increased by $4.7 million to $29.7 million, primarily due to higher average selling prices, higher volumes, and positive foreign currency translation impact.
• Gross profit increased by $5.6 million to $17.5 million.
• Operating profit increased by $4.0 million to $8.5 million.
• Adjusted EBITDA increased by $5.0 million to $12.6 million.
• Third-party demand increased mid-single digits, and total volumes increased high single digits.

Outlook / Guidance

Greif, Inc. updated its Adjusted EBITDA guidance for fiscal year 2026 to a range of $615 million to $635 million, representing approximately 10% to 13% EBITDA growth year-over-year. The company projects adjusted free cash flow to range from $305 million to $325 million for fiscal year 2026, with an expected conversion of approximately 50%. Greif, Inc. also reaffirmed its expectation to achieve at least $120 million of cumulative run-rate savings by the end of fiscal year 2027.