GEF earnings analysis
What we found in GEF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Greif delivered a strong Q3 2026 recovery, with sales up 3.5% year over year to $1.1656 billion, gross margin up 70 basis points to 23.4%, and operating profit up 69.4% to $107.9 million. Diluted EPS of $1.61 beat the $1.06 consensus estimate and improved from $0.20 in Q2 2026. Performance was led by Customized Polymer Solutions, but Sustainable Fiber Solutions remained under pressure, with sales down $24.2 million and Adjusted EBITDA down $6.3 million. Liquidity remains ample following the Soterra sale, although lower operating cash flow and working-capital outflows warrant monitoring.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue returned to growth
- Third-quarter net sales increased $39.7 million year over year to $1.1656 billion, driven by $28.5 million of higher pricing and $23.7 million of favorable foreign exchange. Revenue also rose from $1.07 billion in Q2 2026.
- Margins and operating profit improved
- Gross margin expanded 70 basis points year over year to 23.4%, while operating profit increased $44.2 million to $107.9 million. Operating margin was 9.3%, versus 5.7% in Q2 2026 and 5.7% year over year.
- Strong earnings acceleration
- Net income rose to $82.6 million from $36.9 million, and diluted EPS of $1.61 exceeded the $1.06 consensus estimate. EPS also improved from $0.20 in Q2 2026 and $1.24 in Q3 2025.
- Polymer segment drove the upside
- Customized Polymer Solutions delivered the largest segment sales increase, up $45.9 million to $383.8 million, while operating profit rose $24.4 million to $32.8 million. Its gross margin increased to 23.7% from 21.0%.
- Metal and closures posted gains
- Durable Metal Solutions sales rose $13.3 million to $405.6 million and operating profit increased $6.9 million to $52.7 million. Innovative Closure Solutions sales grew $4.7 million to $29.7 million, with operating profit up $4.0 million to $8.5 million.
- Asset-sale proceeds supported deleveraging
- Balance-sheet deleveraging continued: long-term debt, net declined to $687.4 million at June 30, 2026 from $914.8 million at September 30, 2025. The company paid down $169.2 million of debt year to date and held $288.5 million of cash.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Fiber demand and pricing remain weak
- Sustainable Fiber Solutions net sales declined $24.2 million year over year to $346.5 million, including $15.3 million from lower selling prices and $5.3 million from the Soterra divestiture. Segment Adjusted EBITDA fell $6.3 million to $42.5 million.
- Subdued demand and cost inflation
- Management characterized industrial demand as subdued and does not anticipate a significant inflection. It expects raw-material, energy and transportation inflation to persist through the fiscal year, after third-quarter gross margin reached 23.4%.
- Working capital pressured cash flow
- Working-capital consumption reduced cash conversion: operating cash flow was $170.0 million for the first nine months, down from $286.1 million, as receivables used $83.3 million and inventories used $38.3 million. Capital expenditures were $118.5 million, implying approximately $51.5 million of calculated free cash flow year to date.
- Receivables financing increased
- Short-term receivables-financing debt increased to $313.8 million at June 30, 2026 from $275.0 million at September 30, 2025, including a fully drawn $200.0 million U.S. facility. This partly offsets the reduction in long-term debt.
- YTD profit includes large asset-sale gain
- Nine-month operating profit of $399.9 million included a $216.2 million gain on the Soterra divestiture. Sustainable Fiber Solutions' nine-month Adjusted EBITDA instead decreased $4.7 million to $119.9 million, indicating reported year-to-date profit is not fully recurring.
- No formal risk-factor update; macro exposure persists
- The filing states there were no material changes in risk factors versus the 2025 Form 10-KT. However, management cites Middle East conflict-related demand volatility and supply-chain disruption, while $23.7 million of quarterly sales growth came from favorable foreign-currency translation.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.61
- Gross margin
- 23.4%
- Operating margin
- 9.3%
- Segment
- Customized Polymer Solutions: $383.8 million net sales, up $45.9 million year over year
- Segment
- Durable Metal Solutions: $405.6 million net sales, up $13.3 million year over year
- Segment
- Sustainable Fiber Solutions: $346.5 million net sales, down $24.2 million year over year
- Segment
- Innovative Closure Solutions: $29.7 million net sales, up $4.7 million year over year
What they said about what is next.
The 10-Q contains no numeric revenue or EPS guidance. Management said it does not anticipate a significant inflection in overall demand and expects input-cost inflation to persist through the remainder of fiscal 2026; it expects operating cash flow, credit facilities and receivables-facility proceeds to cover liquidity needs for at least 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · April 29, 2026
- Greif, Inc. reported a revenue decrease of approximately 0.5% year-over-year for Q2 2026, totaling $1.072 billion compared to $1.078 billion in Q2 2025. Gross margin remained steady at 23.0%, but operating profit fell…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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