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.
Adjusted EBITDA was $313 million, down $542 million sequentially due to lower alumina and aluminum prices and increased U.S. Section 232 tariff costs.
Alumina segment adjusted EBITDA decreased $525 million primarily due to lower prices and higher production, energy, and raw material costs.
Aluminum segment adjusted EBITDA decreased $37 million, impacted by $95 million in tariff costs despite price/mix improvements and higher volumes.
Cash from operations was $488 million with a working capital release of $251 million, ending the quarter with $1.5 billion in cash.
Net income attributable to Alcoa was $164 million, down from $548 million in the prior quarter, with adjusted net income at $103 million or $0.39 per share.
Second quarter 2025 revenue was $3 billion, down 10% sequentially, driven by a 28% decrease in Alumina segment revenue and a 3% increase in Aluminum segment revenue.
Second quarter dividend payments totaled $27 million.
Year-to-date return on equity was 22.5%, days working capital remained flat at 47 days, and free cash flow was positive at $357 million.
Adjusted earnings per share were $0.69, $0.10 higher than prior year, mainly due to EBITDA growth and lower interest expense.
Adjusted EBITDA was $207 million, 2% higher than prior year, driven by lower costs and restructuring actions.
EMEA showed strongest growth driven by herbicides and branded Cyazypyr.
Free cash flow was $40 million, down $241 million from prior year, mainly due to absence of significant inventory reduction seen previously.
Latin America revenues increased slightly, North America sales declined 5% due to destocking in Canada, and Asia was down due to lower pricing and volumes, especially in India.
Price was down 3% due to pricing adjustments to diamide partners and FX was a mild 1% headwind.
Second quarter sales were 1% higher than prior year, driven by volume growth of 6%.
Adjusted operating profit was $489 million, up 28% year-over-year, with an adjusted operating margin of 18.5%, down 110 basis points primarily due to tariffs.
Free cash flow for Q2 was $277 million, lower year-over-year, but adjusted free cash flow for the first half was $542 million, up 24%.
Net leverage ratio stood at 0.6x at quarter-end, reflecting strong balance sheet management.
Organic sales grew 34% year-on-year, with Americas up mid-40s, APAC mid-30s, and EMEA high single digits.
Q2 orders surpassed $3 billion, up 15% from Q2 2024 and 11% sequentially from Q1 2025, with a trailing 12-month organic orders growth of 11%.
Segment results showed Americas with 43% organic sales growth and 24% adjusted operating margin; APAC with 37% growth and 10.6% margin; EMEA with 7% growth but facing operational challenges and investments.
Vertiv reported adjusted diluted earnings per share of $0.95 in Q2 2025, a 42% increase year-over-year, driven by higher adjusted operating profit.
Dafinchi
