Overview

* Greif ( GEF ) fiscal Q3 revenue missed analyst expectations, per LSEG data

* Adjusted EBITDA for fiscal Q3 increased 11% yr/yr

* Co divesting containerboard business for $1.8 bln, sale closes Aug 31

Outlook

* Greif ( GEF ) expects fiscal 2025 Combined Adjusted EBITDA $725 - $735 mln

* Company anticipates adjusted free cash flow of $305 - $315 mln for fiscal 2025

* Company continues cost optimization, achieving $20 mln savings by Q3 2025

Result Drivers

* COST OPTIMIZATION - Greif achieved $20 mln in run-rate savings by end of Q3 2025, reaching midpoint of targeted $15-25 mln range

* SEGMENT PERFORMANCE - Customized Polymer Solutions saw increased sales due to higher volumes and prices, while Durable Metal and Sustainable Fiber Solutions faced volume declines

* DIVESTITURE IMPACT - Net income decrease attributed to prior year's gain from Delta Petroleum divestiture, with current focus on containerboard business sale

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.13 $1.29

Revenue bln bln (6

Analysts

)

Q3 EPS $0.67

Q3 Net $69.40

Income mln

Q3 Gross $257.30

Profit mln

Q3 $73.10

Operatin mln

g Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

* Wall Street's median 12-month price target for Greif Inc ( GEF ) is $76.00, about 12.7% above its August 26 closing price of $66.33

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)