Greif reported a 24% increase in adjusted EBITDA and a 260 basis point expansion in adjusted EBITDA margin, driven by cost optimization. The company reaffirmed its fiscal 2026 guidance, prioritizing shareholder returns and balance-sheet strength, with a leverage of about 1.2x and plans for share repurchases up to 2% annually.

Despite soft industrial demand, Greif’s profitability improved notably, with volumes tracking as expected. CEO Ole Rosgaard highlighted margin improvement due to structural cost actions. CFO Larry Hilsheimer noted adjusted free cash flow was lower year-over-year due to divested businesses, but core operations improved, supported by EBITDA growth and reduced maintenance capital.

Management reaffirmed the low end of fiscal 2026 guidance, emphasizing a 50% free cash flow conversion and the seasonally weak first quarter. They discussed end-market trends, with volume declines in some segments offset by pricing and mix resilience. Cost optimization gains and margin expansion were key drivers of profitability improvements.

Greif’s run-rate cost optimization reached $65 million, with a fiscal year-end target of $80-90 million. Management addressed demand environment challenges, focusing on commercial transformation and volume growth strategies. They also discussed segment performance, margin trends, and expectations for capital allocation and growth investments.

Greif has a long-standing history in industrial packaging, offering a wide range of products and services. The company’s core business includes the design, manufacture, and sale of various packaging solutions for different end markets. With a focus on profitability and strategic initiatives, Greif continues to navigate challenges in the industrial landscape.

Read more at Yahoo Finance: Greif Q1 Earnings Call Highlights