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    GEF
    Earnings call· Jun 2026(Q3 FY26)

    GREIF Q3 FY26 earnings call GEF

    Jul 29, 2026 Source

    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

    5

    • 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

    4

    • 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

    7
    CategoryTargetConfidence
    Adjusted EBITDA
    $615 million to $635 million
    high materiality
    High
    Adjusted free cash flow conversion
    approximately 50%
    medium materiality
    High
    Adjusted free cash flow
    $305 million to $325 million
    high materiality
    High
    Leverage
    below 2.0x
    high materiality
    High
    Leverage
    below 1.5x
    high materiality
    High
    Annualized cost optimization
    $120 million
    high materiality
    High
    Share repurchases
    approximately 2% of shares outstanding annually
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    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

    Operational metrics

    10
    Adjusted EBITDA margin
    up over 260 basis pointsyear-over-year
    Q3 FY26

    Expanded margins by more than 260 basis points year-over-year and up 110 basis points sequentially from Q2 '26.

    Adjusted EPS improvement
    nearly 90%year-over-year
    Q3 FY26

    Adjusted EPS improvement of nearly 90% year-over-year.

    Free cash flow conversion
    approximately 50%expected for the full year
    FY26

    We expect free cash flow conversion around 50% this year.

    Fiber Solutions mill operating rates
    96%
    Q3 FY26

    Our mill operating rates are 96%.

    Resin price increases
    dramatic price increases
    Q3 FY26

    We have seen dramatic price increases in resin through Q3.

    URB price increase (April)
    $60
    April

    Offsetting impact of April's $60 a ton URB price increase now beginning to flow into the P&L.

    URB price increase (June)
    $60
    June

    Announced an additional $60 per ton price increase in June and have fully implemented that price increase with our non-RISI customer base.

    Envaplast EBITDA margin
    well above 18%
    current

    EBITDA margins well above 18% for Envaplast.

    Envaplast FCF conversion
    exceeding 50%
    current

    Free cash flow conversions exceeding 50% for Envaplast.

    Cost optimization run rate
    $90 millionachieved early
    Q3 FY26

    Achieved our $90 million run rate cost optimization milestone early. Committed to delivering $120 million of annualized cost optimization on a run rate basis by the end of next fiscal year.

    Industry KPIs

    6
    MetricValueDetails
    Dividends10.7%%
    Share buyback$150 million (completed); $150 million (additional authorization)USD
    Net debt leverage1.1xx
    Volume production growthPolymer Solutions volumes increased 1.5%; Closures third-party demand increased mid-single digits; Closures total volumes increased high single digits; Fiber Solutions underlying converting demand close to flat%
    End market demand driversAgrochemical market (Envaplast majority); Flavor and fragrance, pharma (focused end segments); Chemical market (pressurized); Housing markets (muted, historic low)
    Adjusted underlying EBITDAapproximately 25% growth (Q3 FY26); $615 million to $635 million (FY26 guidance)% / USD

    Deals & partnerships

    1
    EnvaplastAcquisition 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

    6
    Geopolitical disruption and uneven demand environmentQ3 FY26 and ongoing

    Continued impact on demand

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

    Middle East-related impactsFY26

    approximately $20 million

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

    Cost inflation in Fiber SolutionsQ3 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 costsFY26

    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 marketsQ3 FY26 and ongoing

    Historic low

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

    Pressurized chemical marketQ3 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

    5

    Fiber Solutions margin trajectory

    Q4 FY26
    CurrentLower year-over-year due to cost inflation
    TargetImprovement 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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'.

    AI-generated summary of the company’s earnings call. Not investment advice.