Yahoo Finance

• Full Year 2024 Revenue: $8.8 billion

• Fourth Quarter 2024 Revenue: $2.1 billion

• Full Year 2024 Adjusted EBITDA: $1.7 billion

• Fourth Quarter 2024 Adjusted EBITDA: $404 million

• Full Year 2024 Margins: 19.1%

• Fourth Quarter 2024 Margins: 19.3%

• Full Year 2024 Adjusted EPS: $2.49

• Fourth Quarter 2024 Adjusted EPS: $0.59

• Full Year 2024 Volume Change: Down 1%

• Fourth Quarter 2024 Volume Change: Up 1%

• Full Year 2024 Dividends Paid: $122 million

• Quarterly Dividend Increase: 10% to $0.11 per share

• Net Debt at Year-End 2024: $5 million

• Net Leverage: 3 times

• 2024 Capital Expenditures: Approximately $1.2 billion

• 2025 Expected Capital Expenditures: $700 million

• Warning! GuruFocus has detected 6 Warning Sign with GPK.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Graphic Packaging Holding Co (NYSE:GPK) reported strong financial performance with full-year 2024 sales of $8.8 billion and adjusted EBITDA of $1.7 billion, maintaining a robust margin of 19.1%.

• The company successfully divested its Augusta, Georgia facility, focusing 95% of its sales on high-value consumer packaging, which aligns with its strategic goals.

• GPK made significant strides in sustainability by increasing renewable energy use in its European operations and reducing its environmental footprint.

• The company demonstrated strong innovation capabilities, achieving $205 million in innovation sales growth in 2024, with plans to continue this trend in 2025.

• GPK's Vision 2030 plan is on track, transitioning from major investments to focusing on innovation and execution, which is expected to drive future growth and profitability.

Negative Points

• Full-year volumes were down approximately 1%, indicating challenges in market demand despite a positive turn in the second half of the year.

• Price declines of about 2% were consistent throughout the year, impacting revenue growth.

• The divestiture of the Augusta facility and lower open market bleached paperboard sales reduced reported sales by $389 million for the year.

• Foreign exchange movements posed a $24 million sales headwind for the full year, with potential continued impact in 2025.

• The company faces ongoing challenges in certain market segments, such as frozen and refrigerated prepared foods, and health and beauty, which remain mixed.

Q & A Highlights

Q: How is Graphic Packaging addressing potential impacts from tariffs mentioned by President Trump, and what are the possible second-order effects? A: Michael Doss, President and CEO, explained that the company manufactures products largely for customers in Canada and Mexico, with minimal exposure to China. The cross-border trade in North America is relatively small, about 3% of total sales. The tariffs are currently on hold for 30 days, and the company is prepared to shift production if necessary to minimize impacts.