GEF-B · Greif, Inc.

0001628280-26-028403

Summary

Q2 faced sharp revenue and profitability declines from weak volumes and lower sales activity, partially offset by cost optimizations including lower compensation expenses and positive foreign currency translation impacts.

Key takeaways

Revenue was $1.1B, down 22.6% YoY from $1.4B due to lower volumes partially offset by positive FX translation.
Gross profit was $247.0M (-22.7% YoY), maintaining a stable 23.0% gross margin amid sales decline pressures.
Operating income was $35.4M (-70.2% YoY), with 3.3% operating margin reflecting compression from factors impacting gross profit.
Net income was $12.6M, down 73.4% YoY from $47.3M as profitability challenges persisted.
Net cash from operations was $92.2M, down from $105.6M YoY, supported by favorable inventory changes due to lower sales.

Full analysis

Net income declined 73.4% to $12.6 million, reflecting the broader profitability squeeze. Cash generation remained solid, with net cash provided by operating activities at $92.2 million, down modestly from $105.6 million YoY. This performance was supported by a favorable change in inventories, primarily due to the decrease in net sales, which helped preserve liquidity despite lower earnings.