Greif, Inc.

Greif said sales were approximately in line with the prior year, while adjusted EBITDA improved by approximately 25% year over year. Adjusted EBITDA margins were up over 260 basis points year over year and up 110 basis points sequentially from Q2 2026. Adjusted EPS improved nearly 90% year over year, and adjusted free cash flow for the quarter was $58 million. For the full year, Greif raised adjusted EBITDA guidance from a prior low-end assumption of $610 million to a range of $615 million to $635 million, implying about 10% to 13% EBITDA growth year over year. Full-year adjusted free cash flow conversion is expected to be approximately 50%, with guidance for adjusted free cash flow of $305 million to $325 million.

Ole Rosgaard framed the quarter as evidence that Greif is becoming structurally stronger, not just benefiting from a cyclical upswing. He highlighted actions taken over several years to simplify the organization, lower the cost base, improve commercial execution, optimize manufacturing and invest in growth opportunities. His tone was confident but measured: demand is improving, but he repeatedly stressed that the company is not relying on a broad market recovery and is focused on controllable self-help levers.

Larry Hilsheimer emphasized that adjusted EBITDA rose roughly 25% on better price/cost and structural cost optimization, while adjusted EBITDA margins expanded by over 260 basis points year over year and 110 basis points sequentially. He cited $58 million of adjusted free cash flow in the quarter, expected Q4 normalization of inventory levels and costs, and a full-year free cash flow conversion target around 50%. He also noted leverage should remain below 2.0 and said below 1.5x is more realistic near term, while the company continues share repurchases, a 10.7% dividend increase, and an additional $150 million repurchase plan request.

Analysts focused on July URB demand, fiber volume trends, and whether Greif was seeing any slowdown, and management said operating rates remained strong at 96% and that demand fundamentals support the pricing action, even though RISI had not yet recognized the increase. Questions also centered on polymer price/cost and whether Q3 reflected timing mismatch; management said resin price inflation moved sharply through the quarter and the company stayed ahead of it with rapid customer pass-through. On strategy, Ole said the commercial overhaul is still early but is working, with better new-logo focus, solution selling, and tools like Greif+; he also said the M&A pipeline is healthy and the company expects a number of similar tuck-in deals per year, not transformative acquisitions.