Graphic Packaging Holding Company has recently released its 10-Q report, providing detailed insights into its financial performance and operations. The company, headquartered in Atlanta, Georgia, specializes in designing, producing, and selling consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products in the Americas, Europe, and the Asia Pacific. It operates through three segments: Americas Paperboard Packaging, Europe Paperboard Packaging, and Paperboard Manufacturing. The company offers a wide range of packaging solutions, including cartons, trays, carriers, paperboard canisters, cups, and bowls made primarily from renewable or recycled materials.
In the second quarter of 2025, Graphic Packaging reported a decrease in net sales by $33 million, or 1%, to $2,204 million from $2,237 million in the same period in 2024. The decrease was primarily attributed to the Augusta divestiture in 2024 and reduced open market paperboard volumes and pricing of bleached paperboard, partially offset by favorable foreign currency exchange. The company's income from operations for the same period decreased by $131 million, or 40%, to $193 million from $324 million in the second quarter of 2024. This decrease was primarily due to the Augusta divestiture in 2024, reduced open market paperboard volumes and pricing of bleached paperboard, lower packaging price, and other inflation and commodity inflation. Graphic Packaging recognized an income tax expense of $35 million on income before income taxes of $139 million during the three months ended June 30, 2025.
For the first six months of 2025, the company reported a 4% decrease in net sales to $4,324 million from $4,496 million in the first six months of 2024. The decrease was mainly due to the Augusta divestiture in 2024 and reduced open market paperboard volumes and pricing of bleached paperboard, and unfavorable foreign currency exchange. Graphic Packaging's income from operations for the same period decreased by $188 million, or 31%, to $414 million from $602 million in the first six months of 2024. The decrease was primarily attributed to the Augusta divestiture in 2024, reduced open market paperboard volumes and pricing of bleached paperboard, lower packaging price, and commodity inflation.
In addition, the company closed its Middletown, Ohio, recycled paperboard manufacturing facility in May 2025, completed the sale of its Augusta, Georgia bleached paperboard manufacturing facility in May 2024, and decided to close multiple packaging facilities by the end of 2024 and early 2025, with production from these facilities being consolidated into other existing packaging facilities. The company's recent developments also include evaluating the impact of the "One Big Beautiful Bill Act" signed into law on July 4, 2025, and the realignment of its financial reporting structure under two reportable segments, Americas Paperboard Packaging and International Paperboard Packaging. The market has reacted to these announcements by moving the company's shares -4.17% to a price of $22.165. For more information, read the company's full 10-Q submission here.
