Greif, Inc. GEF announced that it closed the sale of its containerboard business to Packaging Corporation of America PKG. This move will help Greif's debt-reduction efforts and boost its capital efficiency.
Details on GEF-PKG Deal
Greif inked a definitive agreement with Packaging Corp on July 1, 2025.
GEF’s containerboard business includes two containerboard mills. These have a production capacity of 800,000 tons. The business also includes eight sheet feeder and corrugated plants located across the United States.
Greif generated revenues of $1.2 billion and EBITDA of $212 million from its containerboard business in the fiscal year ended on April 30, 2025.
This sale aligns with Greif’s Build to Last strategy, creating immediate value for shareholders. It marks a significant step toward portfolio optimization, capital efficiency and accelerated growth. Improved capital efficiency will help the company reduce the need for recurring capital expenditure, allowing it to pay down debt and unlock value-creation opportunities.
GEF Updates FY25 Guidance
Greif is updating its fiscal 2025 adjusted EBITDA guidance to reflect the divestment. The updated guidance excludes $168 million in adjusted EBITDA year to date and $50 million in anticipated fourth-quarter performance from the containerboard business. It expects adjusted EBITDA of $507-$517 million, which only includes continuing operations.
The company updated its adjusted free cash flow guidance to $290-$300 million from the prior mentioned $305-$315 million.
Greif’s Stock Price Performance
The company’s shares have gained 7.2% in a year against the industry’s 9.9% decline.
Image Source: Zacks Investment Research
GEF’s Zacks Rank & Stocks to Consider
Greif currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Flowserve Corporation FLS and Life360, Inc. LIF. FLS sports a Zacks Rank #1 (Strong Buy), and LIF has a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flowserve’s 2025 earnings is pegged at $3.34 per share, indicating a year-over-year increase of 27%. Flowserve’s shares have gained 14.5% in a year.
Life360 delivered an average trailing four-quarter earnings surprise of 487%. The Zacks Consensus Estimate for LIF’s 2025 earnings is pinned at 29 cents per share, which indicates a year-over-year upsurge of 583%. Life360’s shares have skyrocketed 137.8% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Flowserve Corporation (FLS): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report Life360, Inc. (LIF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research