Greif, Inc.

What they do

Greif produces and sells rigid industrial packaging (steel, fibre, and plastic drums, rigid intermediate bulk containers, jerrycans, and small plastics), closure systems, transit protection, and remanufactured containers. It also provides container life cycle management, logistics, and warehousing services. The company operates in over 35 countries and sells to customers in chemicals, food and beverage, agriculture, pharmaceutical, and other industries. In fiscal 2024, it had three reportable segments; starting in fiscal 2025, it reorganized into four: Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions, and Innovative Closure Solutions.

Revenue drivers

• Customized Polymer Solutions — Produces and sells polymer-based packaging (plastic drums, rigid IBCs, small plastics) globally; Q3 2026 net sales were $383.8 million, with Adjusted EBITDA of $64.3 million.
• Durable Metal Solutions — Produces and sells metal-based packaging; Q3 2026 net sales were $405.6 million, with Adjusted EBITDA of $64.0 million.
• Sustainable Fiber Solutions — Produces and sells containerboard, corrugated products, recycled paperboard, tubes and cores, and partitions; Q3 2026 net sales were $346.5 million, with Adjusted EBITDA of $42.5 million. The containerboard business was divested, but this segment continues with other fiber-based products.
• Innovative Closure Solutions — Smallest segment, producing closure systems for industrial packaging; Q3 2026 net sales were $29.7 million, with Adjusted EBITDA of $12.6 million.

Recent performance

For the fiscal third quarter ended June 30, 2026, Greif reported total net sales of $1,165.6 million, up from $1,125.9 million in the prior year. Net income from continuing operations rose 156.7% to $78.8 million, or $1.37 per diluted Class A share. Adjusted EBITDA increased 24.7% to $183.4 million. The company reduced total debt by $1,686.6 million to $1,030.4 million, and net debt by $1,689.9 million to $741.9 million, with leverage down to 1.1x. Operating profit for the quarter was $107.9 million, up from $63.7 million a year ago.

Strategy

Greif is transforming from a packaging producer to a material solutions provider, restructuring into four segments to improve cross-selling and margin expansion. The company is divesting lower-margin cyclical businesses (containerboard, timberlands) and using proceeds to pay down debt and return capital to shareholders. Management is executing a cost optimization program targeting at least $120 million in cumulative run-rate savings by fiscal year 2027. They are also pursuing bolt-on acquisitions, such as Envaplast, to strengthen higher-margin, growth-oriented product lines. Capital allocation priorities include increasing the dividend (raised 10.7%) and initiating share repurchases.

Risks

• Continued industrial demand weakness — Management notes subdued industrial demand and geopolitical volatility, which could pressure volumes and margins.
• Integration and restructuring execution — The new segment structure and ongoing cost program entail integration and restructuring risks that could distract from operations.
• Divestiture-related financial statement impact — The containerboard business is classified as discontinued operations, which could cause results to be volatile or not directly comparable.
• Estimation uncertainty in acquisitions and goodwill — Acquisition fair value estimates and goodwill impairment testing involve significant assumptions that could lead to charges if actual results differ.

Outlook

Management remains cautious about the near-term industrial cycle, stating there is no compelling evidence of a broad recovery. However, they are confident in their ability to grow earnings power through operational improvements and cost savings. They reaffirmed achieving at least $120 million in cumulative run-rate savings by fiscal 2027. The company also plans to continue disciplined capital allocation, including share repurchases and further bolt-on acquisitions.