Greif, Inc. Q3 FY2025 earnings call

• Recognized Gary Martz's retirement and Dennis Hoffman's succession as Deputy General Counsel. - Accelerated portfolio transformation and cost optimization: Containerboard divestment closing end of month, timberland divestment in October; achieved $20M in run rate savings towards fiscal 2025 commitments. - Operating efficiency gain at Welcome, NC tube and core plant improved line efficiency by over 40%. - Market performance: Customized polymers resilient in mixed macro environment; durable metals soft; sustainable fiber down; integrated solutions up.

Polymers: Sales improved on volume, price, and mix. Customized polymer volumes up 2.2%, with low double-digit growth in small containers but mid-single-digit declines in IBCs and large drums. Durable Metals: Volumes declined 5.8% due to softness in North America and EMEA; strategy is value over volume and cash generation. Sustainable Fiber: Volumes declined 7.6%; URB Mills operated above 90% capacity, but converting was mixed. Integrated Solutions: Volumes grew 2.6%, led by strong volumes in recycled fiber.

• Revised 11-month EBITDA guidance midpoint raised to $730M, up $5M from previous low end. - Free cash flow midpoint raised to $310M, up $30M, driven by EBITDA increase and lower CapEx spend. - Containerboard divestment impact not included in full year guidance.

• Macro environment uncertainties affecting volumes. - Tariffs impact below $10M, not material. - Softness in certain end markets like housing and petrochemicals.

Q: How much of the guidance raise was related to containerboard?

A: No containerboard impact; raise related to SG&A cost reductions.

Q: Price cost trends in metals?

A: Steel costs flat, no significant index changes expected.

Q: IBC weakness in polymers?

A: Growth in target markets continues, metal index stable.

Q: Cash flow post-divestitures and capital allocation?

A: Cash flow generation expected to be good, allocation priorities: dividends, debt paydown, organic growth.

Q: Strategic focus on defensive end markets and acquisitions?

A: Focus on end markets growing faster than GDP, like Food & Bev, Agrochemicals.

Q: EBITDA guidance for 2026 and fiber business?

A: $730M midpoint, fiber business has market leader positions.

Q: Margin variance in Integrated Solutions and closures investment?

A: OCC pricing drove margin squeeze; caps and closures are high margin.