Thu, May 1, 8:39 PM (17 days ago)
**Graphic Packaging Holding Company (GPK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,120 million (down 6% YoY from $2,259 million). - **Net Income:** $127 million (down 23% YoY from $165 million). - **Earnings per Share (EPS):** $0.42 (down 22% YoY from $0.54). - **Operating Income:** $221 million (down 21% YoY from $278 million). - **Gross Margin:** 21.1% (down from 23.6% YoY). - **Operating Margin:** 10.4% (down from 12.3% YoY). **Profit Margins:** - **Gross Margin:** 21.1% (down from 23.6% YoY). - **Operating Margin:** 10.4% (down from 12.3% YoY). **Cash Flow:** - **Operating Cash Flow:** -$174 million (down from $3 million YoY). - **Capital Expenditures:** $313 million (up from $331 million YoY). - **Free Cash Flow:** -$487 million (down from -$328 million YoY). **Earnings Changes:** - **Net Income:** Down 23% YoY. - **EPS:** Down 22% YoY. **Quarterly Performance Discussion:** - **Revenue Decline:** Due to Augusta divestiture, reduced paperboard volumes, and unfavorable foreign exchange rates. - **Operating Income Decline:** Due to divestiture, lower pricing, commodity inflation, and foreign exchange impacts. - **Cash Flow:** Negative due to increased working capital needs and lower operating income. **Trends & Uncertainties:** - **Positive Trends:** Innovation sales growth, cost savings from continuous improvement programs. - **Uncertainties:** Raw material and energy cost volatility, geopolitical risks, and potential economic downturns. **Future Operations Impact:** - **Capital Spending:** Elevated due to new recycled paperboard manufacturing facility in Waco, Texas. - **Dividends & Share Repurchases:** $30 million in dividends paid, no share repurchases in Q1 2025. - **Debt & Liquidity:** Compliance with debt covenants, sufficient liquidity for near-term obligations. **Segment Performance:** - **Americas Paperboard Packaging:** Revenue down 3.6%, operating income down 19%. - **International Paperboard Packaging:** Revenue down 0.4%, operating income up 18%. **Forward-Looking Statements:** - **Facility Closures:** Expects to close multiple packaging facilities by end of 2025. - **Capital Expenditures:** Plans to invest in new facilities and productivity improvements. - **Debt & Liquidity:** Expects to meet debt service obligations and maintain sufficient liquidity. **Ticker:** GPK