Graphic Packaging cuts costs, lowers 2025 guidance

Graphic Packaging Holding Company (NYSE: GPK) announced cost reduction initiatives expected to generate approximately $60 million in savings during 2026 through staffing cuts and other expense reductions, according to a company press release.

The Atlanta-based sustainable packaging company said severance and other one-time costs associated with these initiatives are expected to reach $20 million. The company stated it is providing employment placement assistance to affected employees.

Graphic Packaging also disclosed plans to accelerate inventory reduction activities into the fourth quarter that were originally scheduled for 2026. The company cited the ahead-of-schedule startup of its Waco, Texas recycled paperboard manufacturing facility as enabling this acceleration.

Production curtailments are expected to impact fourth quarter operating results by $15 million, adding to the $15 million impact from curtailments announced during the third quarter earnings call.

The company maintained its full-year net sales guidance of $8.4 billion to $8.6 billion but lowered other financial projections. Adjusted EBITDA is now expected to range from $1.38 billion to $1.43 billion, down from the previous range of $1.40 billion to $1.45 billion. Adjusted earnings per share guidance was reduced to $1.75 to $1.95 from $1.80 to $2.00.

Graphic Packaging reaffirmed its 2026 free cash flow target of $700 million to $800 million. The company operates manufacturing facilities globally and serves consumer product brands in food, beverage, and household categories.

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