Saturday, October 3, 2026
Industry NewsGraphic Packaging announces cost savings and production optimization measures

Graphic Packaging announces cost savings and production optimization measures

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Graphic Packaging announces cost savings and production optimization measures

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Graphic Packaging, a global leader in sustainable consumer packaging, has announced additional details on its support function and production optimization plans.

As disclosed on the company’s third-quarter 2025 earnings conference call, Graphic Packaging has undertaken a review of support functions and corporate expenses and now expects savings of approximately USD 60 million in staffing and other cost reductions in 2026. Graphic Packaging is working closely with employees affected by these actions to provide employment placement assistance and support. Severance and other one-time costs and non-cash charges associated with these initiatives are expected to be in the range of USD 20 million.

The company also announced additional actions to reduce inventory in the fourth quarter. With the Waco, Texas recycled paperboard manufacturing facility startup ahead of schedule, the company plans to accelerate certain inventory reduction plans into the fourth quarter that were originally planned for 2026. Production curtailment is expected to impact fourth-quarter operating results by USD 15 million, which is in addition to the USD 15 million relating to curtailments announced during the third-quarter earnings call.

Full-year net sales are expected to be in the USD 8.4 billion to USD 8.6 billion range (unchanged from 4 November 2025 guidance). Adjusted EBITDA is now expected to be in the range of USD 1.38 billion to USD 1.43 billion (from USD 1.40 billion to USD 1.45 billion). Adjusted EPS is expected to be in the range of USD 1.75 to USD 1.95 (from USD 1.80 to USD 2.00). The company says it is confident in its USD 700 million to USD 800 million free cash flow target for 2026.

NewsDesk
NewsDesk
The editorial team of The Packman who handle all the press releases with Sunil Jain working as the desk editor.

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