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…
Earnings analysis · 10-Q
GEF earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
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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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $1.61
What stood out
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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.
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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.
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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.
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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%.
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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.
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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.
What to watch
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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.
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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%.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.