Greif Q1 net income surges on cost optimizations

Overview

• Industrial packaging firm reported fiscal Q1 net income up significantly due to cost optimizations

• Adjusted EBITDA for fiscal Q1 rose 24%, driven by cost reductions

• Company completed $130 mln share repurchases, authorized additional $300 mln buyback

Outlook

• Greif reaffirms low-end guidance of $630 mln Adjusted EBITDA for fiscal 2026

• Company expects $315 mln Adjusted Free Cash Flow for fiscal 2026

Result Drivers

• COST OPTIMIZATION - Greif attributed a 146.3% increase in net income, excluding adjustments, to substantial cost management in manufacturing and SG&A reductions

• DEMAND ENVIRONMENT - Despite muted demand, Greif improved financial metrics through strategic cost efficiency and capital allocation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy."

• Wall Street's median 12-month price target for Greif Inc is $74.00, about 2.5% above its January 26 closing price of $72.20

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX8fQDpx

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