Graphic Packaging Holding Company (GPK) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

to four major cities. Our team also developed an internal fiber sourcing plan which allows us to bring scrap paper board from our packaging facilities to Waco. This is exceptionally clean and very low cost fiber. True circularity isn't just about the environment. It's done right. It's also about sound business economics. By closing the loop between our own manufacturing system scrap and Waco's recovered fiber sourcing, we dramatically reduce overall system waste while simultaneously improving our production economics. And with the inclusion of paper cups in the Recycled Materials Association's recently updated guidelines, a key strategic investment we made at Waco looks even better. We designed Waco to have the capability to process up to 15 million paper cups a day. And as cup collection ramps up, graphic packaging will play a key role in assuring this high-value fiber source is put to good use, rather than ending up as landfill. As previously announced, the ramp-up to full production at Waco is expected to take 12 to 18 months. The startup of Waco marks the end of our Vision 2025 transformation program. We now have everything we need. Strong positions across a wide range of markets to drive top-line consistency, the packaging industry's best innovation team to open new markets for paperboard, and an integrated packaging platform with durable, substantial long-term competitive advantage. On October 30th, We formally announced that our East Angus recycled paperboard manufacturing facility will cease production December 23rd. Taken together with our earlier Middletown closure and the recent closures by others, Waco will add just a couple of percent to total capacity, only about 75,000 tons more than the industry had at the start of 2025. As was the case in Kalamazoo, ...