Greif, Inc. Reports Decline in Net Sales and Profitability for Q2 and First Half of Fiscal 2026

Greif, Inc. reported its financial results for the second quarter and first half of fiscal 2026, revealing a decline in net sales and profitability compared to the previous year. For the three months ended March 31, 2026, the company generated net sales of $1,072.8 million, a decrease of 0.5% from $1,078.4 million in the same period of 2025. The decline was attributed to lower sales volumes and the impact of the Soterra Divestiture, partially offset by favorable foreign currency translation effects. Gross profit for the quarter was $247.0 million, down from $248.5 million, while operating profit fell to $35.4 million from $60.7 million. Net income decreased to $16.3 million from $25.1 million year-over-year.

In the first half of fiscal 2026, Greif's net sales totaled $2,067.6 million, down from $2,095.1 million in the prior year. The decrease of $27.5 million was primarily due to lower volumes and the Soterra Divestiture, although this was partially offset by positive foreign currency translation impacts. The company reported a significant increase in net income for the first half, reaching $199.2 million compared to $36.4 million in the same period last year, largely due to a $216.2 million gain from the Soterra Divestiture.

Operationally, Greif has undergone significant changes, including the divestiture of its containerboard business, which was completed on August 31, 2025, for $1.8 billion. This strategic move is expected to enhance the company's focus on its core packaging solutions. Additionally, the company has restructured its reportable segments, renaming the Integrated Solutions segment to Innovative Closure Solutions and reallocating certain products to align with their respective segments. This restructuring aims to optimize operations and improve financial performance.

The company also reported an increase in selling, general, and administrative (SG&A) expenses, which rose to $191.7 million in the second quarter of 2026 from $159.9 million in the prior year, primarily due to a special charitable contribution. Despite the increase in SG&A expenses, Greif's Adjusted EBITDA improved to $156.8 million for the second quarter, up from $145.9 million in the same period last year, reflecting operational efficiencies and cost optimizations.

Looking ahead, Greif anticipates continued challenges in the industrial demand environment, with geopolitical factors contributing to volatility in customer demand. The company expects lower volumes across its product categories, particularly in metals, fiber, and closures, while polymer volumes are projected to remain flat. Inflationary pressures on input costs are also expected to persist, impacting overall profitability. The company remains focused on leveraging its operational strengths and strategic initiatives to navigate these challenges effectively.