Greif Earnings Beat Estimates in Q3, Revenues Decrease 3% Y/Y

Greif, Inc. GEF reported adjusted earnings per share (EPS) of $1.03 in third-quarter fiscal 2025 (ended July 31, 2025), beating the Zacks Consensus Estimate of 81 cents. The bottom line improved 12% year over year, excluding discontinued operations.

Including one-time items, EPS was $1.10 in the quarter compared with $1.50 in the prior-year quarter.

Greif’s Sales Dip, Margins Inch Up in Q3

GEF’s sales moved down 2.6% year over year  to $1.13 billion. The top line missed the Zacks Consensus Estimate of $1.47 billion.

The cost of sales fell 4.6% year over year to $877 million. Gross profit amounted to $257 million, up 5.1% from the prior-year quarter. The gross margin came in at 22.7%, up from the prior-year quarter’s 21%.

Selling, general and administrative (SG&A) expenses were $157 million compared with the prior-year quarter’s $153 million. Adjusted EBITDA rose 10.8% year over year to $221 million in the fiscal third quarter. The adjusted EBITDA margin came in at 19.5% compared with the prior-year quarter’s 17.1%.

GEF’s Segment Performance in Q3

The company completed its previously announced business model optimization. Starting the first quarter of fiscal 2025, it is reporting results under four new segments.

Revenues in the Customized Polymer Solutions segment were $340 million, higher than the prior-year quarter’s $315 million on higher volumes from higher average selling prices. Our model projected revenues of $356 million for the quarter. The segment’s adjusted EBITDA amounted to $39.4 million compared with the year-ago quarter’s $40.5 million. The reported figure missed our estimate of $47 million.

The Durable Metal Solutions segment’s revenues fell 5.7% year over year to $400 million in the fiscal third quarter due to lower volumes. The figure beat our estimated revenues of $393 million. The segment’s adjusted EBITDA was $48 million, higher than the prior-year quarter’s $46 million. We projected the segment’s adjusted EBITDA to be $43 million.

The Sustainable Fiber Solutions segment’s revenues fell 5.4% year over year to $308 million in the fiscal third quarter due to lower volumes. The figure missed our estimated revenues of 645 million. The segment’s adjusted EBITDA rose to $65.5 million from the prior-year quarter’s $57 million. We projected the segment’s adjusted EBITDA to be $85.8 million.

The Integrated Solutions segment’s revenues totaled $87 million in the reported quarter compared with $100.5 million in the year-ago quarter. We projected the segment's revenues to be $75 million in the quarter. Adjusted EBITDA was $8.1 million compared with the year-earlier quarter’s $13.8 million. Our forecast for the quarter’s adjusted EBITDA was $38.2 million.

Greif’s Cash Position & Balance Sheet at Q3 End

Greif reported cash and cash equivalents of $285 million at the end of third-quarter fiscal 2025 compared with $198 million at the end of fiscal 2024. The cash flow from operating activities totaled $200 million in the quarter under review, a substantial increase from $77 million in the prior-year quarter.

The long-term debt amounted to $2.22 billion as of July 31, 2025, compared with $2.63 billion as of Oct. 31, 2024.
On Aug. 27, Greif’s board announced a quarterly cash dividend of 56 cents per share of Class A Common Stock and 84 cents per share of Class B Common Stock. This marks an increase of 2 cents in its quarterly dividend per share for Class A shares and 3 cents for Class B shares. The hike in the quarterly dividend is in sync with the company’s broader capital allocation strategy. The dividends will be paid out on Oct. 1 to shareholders of record at the close of business as of Sept. 16, 2025.

The company’s previously announced deal to divest its containerboard business to Packaging Corporation of America PKG is expected to close on Aug. 31, 2025. Packaging Corp will pay $1.8 billion to GEF, which will help the company boost its cash position.

GEF’s FY25 Outlook

Greif expects fiscal 2025 adjusted EBITDA between $725 million and $735 million. The adjusted free cash flow is anticipated between $305 million and $315 million.

Greif’s Stock Price Performance

The company’s shares have gained 7% in a year against the industry’s 10.9% decline.

GEF’s Zacks Rank

Greif currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

Sealed Air Corporation SEE registered second-quarter 2025 adjusted earnings per share of 89 cents, which surpassed the Zacks Consensus Estimate of 72 cents. The bottom line marked a 7% year-over-year improvement, attributed to improved operating leverage and continued business optimization.

Sealed Air’s total sales were $1.335 billion in the reported quarter, which beat the Zacks Consensus Estimate of $1.318 billion. Sales edged down 0.7% year over year. Pricing had a favorable impact of 0.5% and volumes were down 1.8% year over year. Currency had a positive effect of 0.5%. Our model predicted pricing to impact sales favorably by 0.1% and a volume decline of 1.7%.

Avery Dennison Corporation AVY delivered adjusted earnings of $2.42 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.38. The bottom line was flat year over year.

Avery Dennison’s total revenues dipped 0.7% year over year to $2.22 billion, marginally missing the Zacks Consensus Estimate of $2.23 billion.

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