Greif, Inc. Reports Decline in Net Sales and Profitability for Third Quarter and Nine Months Ended July 31, 2025

Greif, Inc. reported its financial results for the third quarter and nine months ended July 31, 2025, revealing a decline in net sales and profitability compared to the same period in the previous year. For the third quarter, net sales totaled $1,134.7 million, down from $1,164.9 million in the prior year, primarily due to lower volumes. The company’s gross profit increased to $257.3 million from $244.9 million, attributed to reduced raw material costs. However, operating profit fell to $73.1 million from $136.7 million, and net income decreased to $44.7 million from $84.5 million year-over-year.

In the nine-month period, Greif's net sales were $3,231.8 million, slightly down from $3,247.9 million in the same period last year. The decrease was driven by a $57.1 million decline in volumes and a $40.8 million impact from the divestiture of Delta Petroleum Company. Gross profit for the nine months rose to $711.9 million from $671.2 million, while operating profit dropped significantly to $162.6 million from $260.5 million. Net income for the nine months was $76.8 million, down from $207.7 million in the previous year.

Strategically, Greif is undergoing significant changes, including the planned divestiture of its containerboard business for $1.8 billion, expected to close on August 31, 2025. This business will be classified as discontinued operations in future financial statements. Additionally, the company announced the sale of its Soterra land management business for approximately $462 million, set to close on October 1, 2025. These divestitures are part of Greif's strategy to streamline operations and focus on core business segments.

Operationally, Greif's restructuring efforts have led to increased charges, with $42.5 million recorded in the nine months ended July 31, 2025, compared to $1.6 million in the prior year. The company has also restructured its reporting segments into four categories: Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions, and Integrated Solutions, to better align with its operational focus. As of July 31, 2025, Greif had 26,169,944 shares of Class A common stock and 21,331,127 shares of Class B common stock outstanding.

Looking ahead, Greif anticipates continued challenges in customer demand and pricing stability, particularly in the context of ongoing economic conditions. The company expects to leverage the proceeds from its divestitures to reduce debt and enhance its financial position. Greif's management remains focused on optimizing operations and aligning its portfolio for long-term growth, despite the current market pressures.