Graphic Packaging Holding Co. reported first-quarter 2026 net sales of $2.156 billion, up from $2.120 billion a year earlier, an increase of $36 million, or 2%. Volume contributed $18 million to the gain, foreign exchange added $50 million, and price reduced sales by $32 million. Innovation sales increased $42 million.
The company posted a net loss of $43 million, or 14 cents per diluted share, compared with net income of $127 million, or 42 cents per diluted share, in the prior-year quarter. On an adjusted basis, net income fell to $28 million, or 9 cents per share, from $154 million, or 51 cents per share.
Adjusted EBITDA declined to $232 million from $365 million, a drop of $133 million. EBITDA fell to $159 million from $353 million. Adjusted EBITDA margin narrowed to 10.8% from 17.2%.
Inventory fell by $48 million during the quarter. Capital spending dropped to $140 million from $313 million a year earlier. The company returned about $32 million to stockholders through dividends.
Debt increased. Total debt rose to $5.772 billion from $5.592 billion at the end of the fourth quarter, while net debt climbed to $5.583 billion from $5.331 billion. Net leverage increased to 4.4x from 3.8x.
Management said it cut over 500 roles, mostly salaried positions, and delivered on a $60 million cost-reduction commitment. It also cancelled low-return projects, avoiding more than $200 million in capital spending over the next few years, and reaffirmed 2026 capital spending guidance of about $450 million, down from $922 million in 2025.
For 2026, the company reaffirmed guidance for net sales of $8.4 billion to $8.6 billion, adjusted EBITDA of $1.05 billion to $1.25 billion, adjusted EPS of 75 cents to $1.15, and adjusted cash flow of $700 million to $800 million. Following these announcements, the company's shares moved 7.06%, and are now trading at a price of $10.235. For more information, read the company's full 8-K submission here.
