Asked about the strong polymer price mix and cost performance in Q3, whether it was due to timing mismatch or better mix, and the outlook for Q4.

Management attributed the strong performance to dramatic resin price increases in Q3, which their teams successfully stayed ahead of by increasing prices day-to-day. They do not expect continued dramatic increases or decreases in Q4, believing they are in a good position. “Yes. I mean, we have seen dramatic price increases in resin through Q3. And our teams have done an outstanding job of really executing and staying ahead of that inflationary price jump and virtually increasing prices day-to-day and working hand-in-hand with customers to face the reality of what the Middle East crisis is driving in that pricing element.”

Sought additional color on regional demand, sequential volume improvement (month-to-month), and expectations for Q4, given the volatile operating environment.

Ole Rosgaard acknowledged the prolonged volatile environment but expressed encouragement by recent demand patterns, though he hesitated to call it an inflection point as it's from a low base. He highlighted success in winning new logos and focusing on flavor, fragrance, and pharma end segments, while chemical and housing markets remain pressured. The company focuses on self-help strategies rather than relying on market recovery. “While demand has improved globally, it's from a very low base, I would say. I would also highlight that our strategy has been to win new logos, which our commercial team have been very successful in.”

Followed up on the commercial shift from 'farmers' to 'hunters', asking about progress, current stage, and alignment with expectations.

Ole Rosgaard expressed satisfaction with the progress, noting it's still early days. He detailed changes in commercial structure, remuneration, focus on end markets, and solution selling. New tools like 'Greif+' are enabling sales teams to focus on new logo acquisition. He emphasized the multitude of successful activities and satisfaction with the commercial organization's evolution. “Yes, we are very, very pleased with what's happened so far. I mean, I'll still say it's early days. We changed our commercial structure, and that's gone really well. We've changed the way we remunerate for results. We're training. We changed the way we focus on end markets.”

GEF

Greif (GEF) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q3 FY26)· Consumer Discretionary· Jul 29, 2026

Source: earnings call transcript

Executive summary

Greif Q3 FY26 — Strong Adjusted EBITDA Growth and Cost Optimization

Greif delivered robust Q3 FY26 results, showcasing significant adjusted EBITDA growth and margin expansion driven by disciplined execution and structural improvements. Despite an uneven demand environment and geopolitical headwinds, the company achieved key cost optimization milestones and reduced leverage. Management is focused on strategic capital allocation, including increased shareholder returns and disciplined bolt-on acquisitions to penetrate new markets.

Highlights

Delivered approximately 25% adjusted EBITDA growth year-over-year.
Expanded adjusted EBITDA margins by more than 260 basis points year-over-year.
Achieved $90 million run rate cost optimization milestone early.
Reduced leverage to just 1.1x.
Adjusted EPS improved by nearly 90% year-over-year.

Concerns

Continued geopolitical disruption and an uneven demand environment impacting results.
Approximately $20 million of Middle East-related impacts expected for the full year.
Higher working capital and restructuring costs partially offset better cash taxes in updated guidance.
Fiber Solutions margins were lower year-over-year due to cost inflation.

Guidance & targets

Category	Target	Timeline	Confidence
Adjusted EBITDA	$615 million to $635 million high materiality	FY26	High
Adjusted free cash flow conversion	approximately 50% medium materiality	FY26	High
Adjusted free cash flow	$305 million to $325 million high materiality	FY26	High
Leverage	below 2.0x high materiality	long-term	High
Leverage	below 1.5x high materiality	near term	High
Annualized cost optimization	$120 million high materiality	end of next fiscal year · FY27	High
Share repurchases	approximately 2% of shares outstanding annually medium materiality	annual	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Polymer Solutions Gross profit dollars and percent were both up due to positive volume, price/cost, and structural cost optimization. Volume growth was led by IBCs and large polymer containers, despite small polymer volumes being below last year's strong comparison. Volumes: increased 1.5%Gross profit dollars: upGross profit percent: up	—	—	—	up
Metal Solutions Gross profit dollars improved year-over-year, driven by continued cost optimization and variable cost management, despite broader industrial markets remaining soft and reflecting geopolitical uncertainty. Gross profit dollars: improved year-over-year	—	—	—	improved
Fiber Solutions Net sales were lower year-over-year due to the L.A. mill closure. Margins were lower year-over-year primarily due to cost inflation, but are expected to improve heading into Q4 as April's $60/ton URB price increase flows into the P&L, and an additional $60/ton increase in June has been implemented with non-RISI customers. Net sales: lower year-over-yearConverting volumes: solid	lower	—	—	lower
Closures Volumes, price mix, and cost optimization all contributed to increases in gross profit dollars and percent year-over-year. The segment continues to drive profitability through technologically advanced products, new logo growth, and strategic investment. Third-party demand: increased mid-single digitsTotal volumes: increased high single digitsGross profit dollars: increased year-over-yearGross profit percent: increased year-over-year	—	high single digits	—	increased

Deals & partnerships

Envaplast Acquisition of a leading small polymer container producer in Spain.

Envaplast is a leading small polymer container producer in Spain, a market where Greif previously had limited small polymer presence. This acquisition provides a strong foothold to accelerate our organic growth strategy across EMEA while expanding our position in the agrochemical market, which represents the majority of Envaplast's business.

Risks & headwinds

Geopolitical disruption and uneven demand environment Q3 FY26 and ongoing

Continued impact on demand

Mitigation:Disciplined execution, structural cost reduction, commercial execution, network optimization, investment in growth opportunities.

Middle East-related impacts FY26

approximately $20 million

Mitigation:Acted decisively across the business to offset at least a portion of that headwind.

Cost inflation in Fiber Solutions Q3 FY26

Margins were lower year-over-year

Mitigation:Implementation of April's $60/ton URB price increase and an additional $60/ton price increase in June, expected to improve fiber margins heading into Q4.

Higher working capital and restructuring costs FY26

Primary changes in assumptions from previous guidance

Mitigation:Expect both inventory levels and dollar cost of inventory to be lower sequentially in Q4.

Muted housing markets Q3 FY26 and ongoing

Historic low

Mitigation:Focus on new logo growth and high ROIC organic CapEx in target end markets.

Pressurized chemical market Q3 FY26 and ongoing

Continued pressure

Mitigation:Focus on new logo growth and high ROIC organic CapEx in target end markets.

What to watch in Q4 FY26

Fiber Solutions margin trajectory

Q4 FY26

Current Lower year-over-year due to cost inflation

Target Improvement heading into Q4

Why it matters

Indicates the effectiveness of URB price increases in offsetting cost inflation and improving segment profitability.

Margins were lower year-over-year due primarily to the impact of cost inflation with the offsetting impact of April's $60 a ton URB price increase now beginning to flow into the P&L, which we expect will improve fiber margins heading into Q4.

Find out whether GEF delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about URB trends in July, given recent trade commentary, and how backlogs influence index recognition, especially since RISI has not recognized recent price increases.

Management stated that mill operating rates remain strong at 96%, indicating robust demand. They believe underlying fundamentals support the price increases, despite RISI not reflecting them, and have not faced strong resistance from non-RISI customers. No slowdown has been observed, and the company is operating at high levels.

“Our operating rates have continued strong. I mean, we're -- our mill operating rates are 96%. And so the demand in the marketplace is strong. Like I said in my comments, we don't think the underlying fundamentals support RISI not recognizing the price.”

asked by Matthew Roberts · answered by Lawrence Hilsheimer

2 min read 5 chapters

Detailed narrative

Strategic Transformation and Execution

Greif's Q3 FY26 results underscore its ongoing transformation into a fundamentally stronger company. Management emphasized that improvements are structural, not cyclical, driven by disciplined execution in simplifying the organization, lowering the cost base, improving commercial execution, optimizing the manufacturing network, and investing in growth. These actions are designed to enhance earnings power, cash generation, and resilience regardless of economic cycles.

Demand Environment and Segment Performance

Despite continued geopolitical disruption and an uneven demand environment, the company observed encouraging sequential improvement across all four business segments. Polymer Solutions volumes increased 1.5%, led by IBCs and large polymer containers. Metal Solutions improved sequentially, while Fiber Solutions saw solid converting volumes despite lower net sales due to a prior mill closure.

Closures delivered strong performance with mid-single-digit third-party demand growth and high-single-digit total volume growth, driven by new business wins.

Cost Optimization and Margin Expansion

Greif achieved its $90 million run rate cost optimization milestone early and remains committed to delivering $120 million of annualized cost optimization on a run rate basis by the end of next fiscal year. These efforts, combined with better price/cost dynamics, contributed to a 25% adjusted EBITDA growth and an expansion of adjusted EBITDA margins by over 260 basis points year-over-year and 110 basis points sequentially from Q2 FY26.

Capital Allocation and Shareholder Returns

The company's strong cash generation, with an expected free cash flow conversion of approximately 50% for the full year, supports its capital allocation strategy. Greif increased its recurring dividend by 10.7% and approved an additional $150 million share repurchase plan, following a $150 million plan completed earlier in the year.

The long-term goal is to repurchase approximately 2% of shares outstanding annually while maintaining a strong balance sheet with leverage expected below 1.5x in the near term.

M&A and Commercial Strategy

Greif is actively pursuing organic growth-enabling bolt-on acquisitions, exemplified by the recent acquisition of Envaplast, a small polymer container producer in Spain. This acquisition provides a strong foothold in EMEA and expands presence in the agrochemical market, aligning with criteria for high EBITDA margins (above 18%) and FCF conversion (exceeding 50%).

The commercial strategy focuses on new logo growth, solution selling, and targeting attractive end markets like flavor, fragrance, and pharma, shifting the sales force from 'farmers' to 'hunters'.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.