Graphic Packaging Holding Company reported its financial results for the second quarter and first half of 2026, revealing a decline in both revenue and profitability compared to the same periods in 2025. For the three months ended June 30, 2026, the company generated net sales of $2,188 million, a decrease of 1% from $2,204 million in the prior year. The income from operations fell significantly by 51% to $95 million, down from $193 million in the same quarter of 2025. The net income for the quarter was $24 million, compared to $104 million in the previous year, resulting in a diluted earnings per share of $0.08, down from $0.34.
In the first half of 2026, Graphic Packaging's net sales increased slightly to $4,344 million from $4,324 million in 2025, driven by higher volumes and favorable foreign currency exchange. However, the income from operations plummeted by 72% to $114 million, down from $414 million in the first half of 2025. The company reported a net loss of $19 million for the six-month period, compared to a net income of $231 million in the prior year. The decline in profitability was attributed to lower pricing, increased production costs, and charges related to operational optimization initiatives.
Strategically, Graphic Packaging completed the sale of its Croatia business for $6 million in June 2026, which resulted in a $13 million charge within the International Paperboard Packaging segment. The company also closed its Middletown, Ohio facility in May 2025 and completed its sale in the second quarter of 2026. The operational changes are part of a broader strategy to optimize capital deployment and reduce costs. The company has also focused on innovation, with sales growth driven by sustainable packaging solutions, although overall packaging sales in certain markets, such as foodservice and household, have declined.
Operationally, Graphic Packaging's total assets as of June 30, 2026, stood at $11.66 billion, a slight decrease from $11.78 billion at the end of 2025. The company reported a total debt of $5.68 billion, with a leverage ratio of 4.37 to 1.00, compliant with its debt covenants. The company has also implemented cost and production optimization initiatives, incurring $23 million in charges primarily for severance. Looking ahead, Graphic Packaging anticipates that its liquidity, driven by cash flows from operations and available credit facilities, will be sufficient to meet its obligations and support ongoing capital expenditures. However, the company remains cautious about potential impacts from market conditions, including inflation and geopolitical factors.
About GRAPHIC PACKAGING HOLDING CO
Graphic Packaging Holding Company is a leading provider of sustainable consumer packaging made from renewable and recycled materials. It designs and manufactures cartons, trays, cups, and containers for food, beverage, household, and health products. Serving global markets through over 100 locations, the company emphasizes innovation, environmental responsibility, and long-term customer relationships in the paperboard packaging industry.
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