Graphic Packaging Holding Company · NYSE:GPK
Graphic Packaging — Q2 2025 Earnings Presentation
19 slides from Graphic Packaging's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings July 29, 2025 © 2025 Graphic Packaging Holding Company
Slide 2: Forward-Looking Statements
Forward-Looking Statements CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Any statements of the Company’s expectations in these slides, including, but not limited to, statements regarding the timing of the completion and startup of the Waco, Texas facility, full-year 2025 capital expendit
Slide 3: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights Strategic Updates Waco, Texas recycled paperboard investment on track for Q4 2025 startup Waco final design and completion costs higher; no net impact on expected 2025 free cash flow Middletown, Ohio recycled paperboard facility closed May 27, 2025 Recycled Mat
Slide 4: Graphic Packaging's products are in the hands of tens of millions of consumers multiple times a day
Graphic Packaging’s products are in the hands of tens of millions of consumers multiple times a day Food Beverage Foodservice Household Health & Beauty 38% 25% 21% 12% 4% 4 Note: Percentages represent 2024 Sales Mix
Slide 5: Consumer Packaging Sales by Market
Consumer Packaging Sales by Market Q2: Consumer search for value keeping volumes relatively flat 2023 FY 2024 FY 2025 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Food Beverage Foodservice Household Health & Beauty Total 5 Note: YoY unadjusted; excludes sales from Russian subsidiary divested in 2023.
Slide 6: Customer Focus on Innovation Remains High
Customer Focus on Innovation Remains High Addressable Market Opportunity $15 Billion $5.0B $4.0B $1.5B $2.5B $2.0B Trays & Bowls Cups & Containers Multipacks Paperboard Canisters Strength Packaging 6
Slide 7: Innovation: The new coffee pod packaging gold standard
Innovation: The new coffee pod packaging gold standard OLD PACKAGE GPI INNOVATION ADDRESSABLE OPPORTUNITY ✚ $2.0B global strength packaging market opportunity ✚ Replacing plastic, bleached paperboard, and corrugated VALUE PROPOSITION More Circular ✔ Nesting eliminates wasted space: ~21% smaller cart
Slide 8: Global Leader in Sustainable Consumer Packaging
Global Leader in Sustainable Consumer Packaging Innovation Culture Planet Results Build the leading Enable a safe, engaged, Steadily and measurably Consistently execute for sustainability-focused customer-focused improve the environmental customers, shareholders consumer packaging culture footprint
Slide 9: Second Quarter 2025 Financials
Second Quarter 2025 Financials Sales Packaging sales: -$13M, or ~flat ($M excl EPS) Q2’25 Q2’24 ∆ YoY Volume: +1% Net Sales $2,204 $2,237 -1% Price: -1% Impact of Augusta divestiture and bleached Net Income $104 $190 -$86 paperboard sales: -$40M, or -$2% F/X1: +$20M, or +1% Adj. EBITDA2 $3
Slide 10: Consistent results across a wide range of market conditions
Consistent results across a wide range of market conditions Consumer affordability and cost inflation remain challenging Volume1 Adj EBITDA Margin Customer Consumer Customer Consumer 7% Destocking Affordability 21% Destocking Affordability 5% 3% 19% * * 1% * -1% -3% -5% -7% Q1'23 Q2'23 Q3'23 Q4'23 Q
Slide 11: Return of Capital to Stockholders
Return of Capital to Stockholders Every use of capital is compared against share repurchase $ in millions except per share data Q2 ’25 Cash Dividends $33 + Share Repurchase $111 = Capital Returned to Stockholders $144 Share Repurchase Results: # of Shares Repurchased ~5.0M Average Price per Share $2
Slide 12: 2025 Guidance and Commentary
2025 Guidance and Commentary Previous Current Net Sales $8.2B to $8.5B $8.4B to $8.6B Assumed Volume -4% to Flat +/- Flat Adjusted EBITDA $1.4B to $1.6B $1.45B to $1.55B Adjusted EPS $1.75 to $2.25 $1.90 to $2.20 Capital Spending ~$700M ~$850M Innovation Sales Growth ≥2% of sales ≥2% of sales 12
Slide 13: Vision 2030 Base Financial Model and Capital Allocation Priorities
Vision 2030 Base Financial Model and Capital Allocation Priorities Base Model: Annual Sales Annual Adj Annual Adj Normalized Capex Growth EBITDA Growth EPS Growth (% of sales) Low-Single Digits Mid-Single Digits High-Single Digits ~5% After 2025 Capital Priorities: Reinvest to Expand Capabilities1
Slide 14: Significant Free Cash Flow to Deploy for Value Creation
Significant Free Cash Flow to Deploy for Value Creation ~$5B Free Cash Flow (~$16/share) 2024-2030 Vision ~$2.0B Free Cash Flow 2030 (~$7/share) 2024-2027 2029 2028 ~$1B Free ~$1B Free 2027 Cash Flow Cash Flow 2nd incremental 2026 $80M Waco Incremental EBITDA 2025 $80M Waco ~$900M to ~$1B EBITDA Fre
Slide 15: Appendix
Appendix 15 © 2024 Graphic Packaging International, LLC.
Slide 16: Supplemental Guidance Information
Supplemental Guidance Information in millions except tax rate 2025 Capital Spending ~$850 Interest Expense $210-$230 Cash Taxes, Working Capital, Pension1 $150-$200 Effective Tax Rate ~25% Depreciation & Amortization2 $435-$455 Waco Startup Costs $65-$75 Net Leverage, Year-End 20253 <3.5x Ending Q2
Slide 17: Seasonality, Experience, and Expectations
Seasonality, Experience, and Expectations Typical Patterns Seasonality Q1 Q2 Q3 Q4 Food 3 2 4 3 Beverage 2 5 4 2 Foodservice 1 3 3 5 Household 3 3 3 3 Health & Beauty 5 3 2 3 Total 2 3 4 3 Total Company: Relatively weaker Q1, relatively stronger Q3 Stronger Months: March, August, October Weake
Slide 18: Graphic Packaging has repurchased ~24% of the Company since 2018
Graphic Packaging has repurchased ~24% of the Company since 2018 while doubling sales and EBITDA, investing in advantaged assets, and keeping leverage modest 400 390 GPK Shares Outstanding 380 IP Stake 360 GPK Share Repurchase millions of shares 340 IP Stake Repurchase 320 310 297 300 280 260 2017 2
Slide 19: Graphic Packaging Holding Company
Graphic Packaging Holding Company
Graphic Packaging Holding Company — Q2 2025 Earnings Presentation on 6ix