Greif Q4 net loss narrowed on higher selling prices

Overview

• Industrial packaging firm's Q4 revenue rose and beat analyst expectations

• Company's Q4 net loss narrowed from prior year

• Company achieved $105 mln in annual run-rate cost savings, exceeding original target

Outlook

• Greif forecasts fiscal 2027 adjusted EBITDA of $645 mln

• Company expects fiscal 2027 adjusted free cash flow of $290 mln

• Company provides only low-end guidance due to ongoing weak industrial demand trends

Result Drivers

• HIGHER SELLING PRICES - Co said increased average selling prices contributed to net sales growth in Customized Polymer Solutions, Durable Metal Solutions, Sustainable Fiber Solutions and Innovative Closure Solutions segments

• COST OPTIMIZATION - Co attributed improved profitability to cost optimization efforts, achieving $105 mln in annual run-rate savings

• SUPPLY CONTINUITY - Co said elevated inventory and higher resin costs were due to strategic actions to ensure supply continuity amid Middle East disruptions

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy."

• Wall Street's median 12-month price target for Greif Inc is $89.00, about 7.5% above its November 2 closing price of $82.82

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)