Greif, Inc. (NYSE: GEF, GEF.B) has reported its fiscal first quarter 2026 results, showcasing a significant increase in net income, excluding the impact of adjustments, which rose by 146.3% to $26.6 million or $0.48 per diluted class A share, compared to $10.8 million or $0.20 per diluted class A share in the first quarter of 2025.
The adjusted EBITDA increased by 24.0% to $122.5 million compared to $98.8 million in the first quarter of 2025.
However, net cash provided by operating activities decreased by $41.0 million to a use of $24.4 million. Adjusted free cash flow also decreased by $17.7 million to a use of $41.0 million. The decrease in adjusted free cash flow is attributed to the prior year results including contributions from the containerboard business, which are not comparable to the current year results.
Greif, Inc. has successfully decreased its total debt to $944.0 million, primarily due to the repayment of debt from the sales of the containerboard business and the timberlands business. Net debt has also decreased by $1,938.6 million to $700.5 million, resulting in a reduced leverage ratio to 1.2x from 3.6x in the prior year quarter.
The company achieved $65.0 million of run-rate cost optimization by the end of the first quarter of fiscal 2026, which was an increase from the $50.0 million reported at the end of the fourth quarter of fiscal 2025.
In the first quarter of fiscal 2026, Greif completed approximately $130.0 million of share repurchases under its existing $150.0 million share repurchase plan, and obtained board of directors authorization for an additional $300.0 million of future share repurchases.
In terms of segment results, net sales for the primary products of the company's business segments were impacted by various factors, including changes in foreign currencies against the U.S. dollar, volume, and selling prices and product mix. Notably, the Sustainable Fiber Solutions segment reported a significant increase in operating profit of $217.4 million, primarily due to a $216.2 million gain from the sale of the timberlands business during the first quarter of 2026.
CEO Ole Rosgaard expressed confidence in the company's performance, emphasizing the 24.0% year-over-year increase in adjusted EBITDA, expanded margins, and meaningful cost reductions achieved in a muted demand environment. The company reaffirmed its low-end guidance for fiscal 2026, reflecting strong first quarter execution and confidence in its previously communicated assumptions, with adjusted EBITDA and adjusted free cash flow estimated at $630 million and $315 million, respectively. Today the company's shares have moved -0.15% to a price of $71.90. Check out the company's full 8-K submission here.
