Capital expenditures for 2025 are estimated at $850 million, up from prior guidance, mainly due to higher labor and permitting costs on the Waco recycled paperboard project.
Inflation and inventory management decisions negatively impacted margins, with a $64 million EBITDA reduction from lower prices, input cost inflation, labor and benefits inflation, and the Augusta divestiture.
Inflation moderated in Q2 with lower resin, recovered fiber, and logistics costs compared to Q1. Foreign exchange provided an $11 million tailwind.
In Q2 2025, Graphic Packaging reported sales of $2.2 billion and adjusted EBITDA of $336 million with a margin of 15.3%. Adjusted EPS was $0.42.
Inventory reduction efforts removed 50,000 tons (12%) of inventory, though FX effects offset balance sheet inventory declines.
Share repurchases totaled 1.6% of outstanding shares at an average price of $22.26, with $1.75 billion available under repurchase authorizations.
Volumes in the Americas were modestly better than expected, driven by beverage promotions and targeted food and foodservice promotions.
Dafinchi
