Graphic Packaging Holding Company (NYSE: GPK) reported fourth-quarter 2025 net income of $71 million, a 48.6% decrease from the $138 million posted in the same period of the previous year. Consolidated revenue for the quarter was $2,103 million, representing a slight 0.4% increase from $2,095 million in Q4 2024. Despite stable volumes and favorable foreign exchange (FX) impacts, the company faced a drop in profitability.

For the full year of 2025, the company posted consolidated revenue of $8,617 million, reflecting a 2.2% decline from $8,807 million in 2024. Full-year net income reached $444 million, a significant 32.5% decrease from the previous year's $658 million. The decline in net income was largely driven by a reduction in sales within the packaging segment, lower pricing, and a divestiture of the bleached paperboard manufacturing facility in Augusta, Georgia, which had a $150 million negative impact on sales.

Packaging operations recorded a $32 million sales decline in Q4, primarily due to a 1% reduction in pricing and volume. However, the company benefited from a $40 million favorable impact from foreign exchange. Innovation sales growth contributed $56 million to Q4 and $213 million for the full year, representing 2.5% of total net sales.

Regarding operations, the company’s new manufacturing facility in Waco, Texas, is nearing completion, with commercial production ramping up after its October 2025 startup. The total project cost is estimated at $1.67 billion, with $1.58 billion spent by the end of 2025. Additionally, Graphic Packaging has begun a comprehensive review of its organization structure, which includes the closure of facilities in Middletown and East Angus. These operational changes are part of the company’s broader transformation efforts to manage productivity and cost-reduction initiatives.

In 2025, Graphic Packaging repurchased 6.8 million shares of common stock for $150 million, reducing its net shares outstanding by 2.3%. The company returned $281 million to stockholders through dividends and share repurchases. As of the end of 2025, total debt stood at $5,592 million, with net debt at $5,331 million.

For fiscal year 2026, the company issued net sales guidance of between $8.4 billion and $8.6 billion. Adjusted EBITDA is expected to be in the range of $1.05 billion to $1.25 billion, including a $130 million negative impact from temporary production curtailments to reduce inventory levels. Capital spending for 2026 is forecast at $450 million, while adjusted free cash flow is projected to be between $700 million and $800 million.

Graphic Packaging continues to focus on improving operational efficiencies and managing its asset portfolio while delivering shareholder returns through dividends and share repurchases.