Introduction This management's discussion and analysis of financial conditions and results of operations is intended to assist you in understanding the Company's past performance, financial condition and prospects. This discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 along with the Condensed Consolidated Financial Statements and related notes included in and referred to within this report. Overview of Business Graphic Packaging is a leading global provider of consumer goods packaging made from renewable or recycled materials. The Company designs and manufactures sustainable packaging solutions including cartons, multipack cartons, trays, carriers and paperboard canisters, as well as cups and bowls, made primarily from recycled paperboard, unbleached paperboard and bleached paperboard. Paperboard used in its packaging solutions comes from wood fiber, a renewable resource, and from recovered (reused) fiber. Graphic Packaging's consumer packaging is designed to be recycled, and the Company works across the value chain to make it easier for people to recycle. With this focus, the Company plays an active role in support of the move to a more circular economy and a sustainable future for generations to come. Graphic Packaging's commitment to reducing the environmental impact of everyday consumer packaging is fundamental to the Company's strategy, goals and business purpose. The Company serves a wide variety of consumer markets, from food and beverage, to foodservice, household products, beauty and health care. Graphic Packaging produces packaging solutions at approximately 100 locations in approximately 20 countries around the world, serving customers and brands ranging from local to multinational consumer products companies and retailers. The Company offers one of the most comprehensive ranges of packaging design, manufacturing and execution capabilities available. Graphic Packaging manufactures a significant amount of the paperboard that it uses to produce packaging solutions, primarily where it believes that self-manufacture provides it with a competitive advantage and allows the Company to deliver better, more consistent results for customers. The Company currently manufactures most of the paperboard it consumes in the Americas and purchases the majority of the paperboard it consumes in its International Paperboard Packaging operations from third parties. Graphic Packaging works closely with its customers to understand their specifications and goals and to create new and innovative designs customized to their specific needs. The Company's approach serves to build and strengthen long-term relationships with purchasing, brand management, marketing and other key customer functions. The Company is organized to bring the full resources of its global and local innovation, design, and manufacturing capabilities to all of its customers with the goal of delivering packaging solutions that are more circular, more functional and more convenient. The Company competes with a wide range of packaging companies whose primary raw materials are paperboard, plastic, multi-layer laminates, shrink film, paper, corrugated board, bio-based materials and other packaging materials. While circularity and sustainability are increasingly important to customers' purchase decisions, the Company also competes on the basis of product innovation, price and execution capabilities. Many of the Company's multi-year supply contracts include terms which provide for the pass through of certain costs, including raw materials, energy, labor and other manufacturing costs, with the intention of reducing exposure to the volatility of these costs, many of which are outside of the Company's control. The Company is implementing strategies to (i) develop and market innovative packaging products and applications that benefit from consumer-led sustainability trends; (ii) expand market share in its current markets and to identify and penetrate new markets; (iii) capitalize on the Company's customer relationships, business competencies and manufacturing facilities; and (iv) continue to reduce costs and drive productivity through operational improvements. The Company's ability to fully implement its strategies and achieve its objectives may be influenced by a variety of factors, many of which are beyond its control. Graphic Packaging cannot predict with any certainty the impact that rising interest rates, a global or regional recession or higher inflation may have on its customers or suppliers. Additionally, it is unable to predict the potential effects that any future pandemic or other global health emergency, widespread military and geopolitical conflicts, or other social and political unrest or change, including in Eastern Europe, Africa and the Middle East and related sanctions or market disruptions, may have on its business. Acquisitions and Dispositions •In June 2026, the Company completed the sale of its Croatia business to a third party for total consideration of $6 million. A $13 million charge was recognized in connection with the sale within the International Paperboard Packaging reportable segment during the six months ended June 30, 2026. •In May 2025, the Company closed its Middletown, Ohio, recycled paperboard manufacturing facility (the "Middletown facility"). The Company completed the sale of the Middletown facility in the second quarter of 2026. •In December 2025, the Company closed its East Angus, Québec, recycled paperboard manufacturing facility. Current Assets and Current Liabilities on the Condensed Consolidated Balance Sheets include $8 million and $2 million, respectively, primarily related to multiple paperboard manufacturing and packaging facilities that met the held for sale criteria as of June 30, 2026. Current Assets on the Condensed Consolidated Balance Sheets include $10 million primarily related to multiple paperboard manufacturing and packaging facilities that met the held for sale criteria as of December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized a gain of $1 million and $5 million, respectively, on the sales of exited properties. 26 Table of Contents Results of Operations Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 Net Sales $ 2,188 $ 2,204 $ 4,344 $ 4,324 Income from Operations 95 193 114 414 Nonoperating Pension and Postretirement Benefit Expense (1) (1) (1) (1) Interest Expense, Net (68) (53) (132) (104) Income (Loss) before Income Taxes 26 139 (19) 309 Income Tax Expense (2) (35) — (78) Net Income (Loss) $ 24 $ 104 $ (19) $ 231 Second Quarter 2026 Compared to Second Quarter 2025 Net Sales The components of the change in Net Sales are as follows: Three Months Ended June 30, Variances In millions 2025 Price Volume/ Mix Exchange/ Other 2026 Decrease Percent Change Consolidated $ 2,204 $ (27) $ (2) $ 13 $ 2,188 $ (16) (1) % The Company's Net Sales for the three months ended June 30, 2026 decreased by $16 million, or 1%, to $2,188 million from $2,204 million for the three months ended June 30, 2025 due to lower pricing of $27 million, the Croatia divestiture and other items, partially offset by a favorable foreign currency exchange of $20 million, while packaging volumes were relatively flat. Innovation sales growth was $40 million, driven by sales of the Company's sustainable consumer packaging solutions. Higher packaging sales in the food and health and beauty markets were partially offset by lower packaging sales in the foodservice and household markets, while packaging sales in the beverage market were relatively flat. Income from Operations Income from Operations for the three months ended June 30, 2026 decreased $98 million, or 51%, to $95 million from $193 million for the three months ended June 30, 2025, due to lower pricing, production curtailment impacts, other inflation (primarily labor and benefits) of $24 million, commodity inflation (including logistics, chemicals, secondary fiber and purchased materials, partially offset by wood) of $36 million and unfavorable foreign currency exchange, partially offset by positive Net Performance of $9 million. Income from Operations was also unfavorably impacted by an additional $5 million of charges related to cost and production optimization initiatives, primarily for severance following the review of support functions and other expenses. Income from Operations was favorably impacted by a reduction in accelerated depreciation related to the closures of several paperboard facilities of $4 million and by the start-up charges related to Waco of $10 million in 2025 that did not recur in 2026. Interest Expense, Net Interest Expense, Net was $68 million and $53 million for the three months ended June 30, 2026 and 2025, respectively. Interest Expense, Net increased primarily due to lower capitalized interest as a result of completion of the Waco project. The Company capitalized interest of $1 million and $15 million for the three months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, approximately 34% of the Company's total debt was subject to floating interest rates. Income Tax Expense During the three months ended June 30, 2026, the Company recognized Income Tax Expense of $2 million on Income before Income Taxes of $26 million. The effective tax rate for the three months ended June 30, 2026 is different from the statutory rate primarily due to discrete tax adjustments including a $6 million tax benefit from the release of reserves for uncertain tax positions following the expiration of applicable statutes of limitations, as well as the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. During the three months ended June 30, 2025, the Company recognized Income Tax Expense of $35 million on Income before Income Taxes of $139 million. The effective tax rate for the three months ended June 30, 2025 is different from the statutory rate primarily due to the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. 27 Table of Contents First Six Months of 2026 Compared to First Six Months of 2025 Net Sales The components of the change in Net Sales are as follows: Six Months Ended June 30, Variances In millions 2025 Price Volume/ Mix Exchange/ Other 2026 Increase Percent Change Consolidated $ 4,324 $ (59) $ 16 $ 63 $ 4,344 $ 20 — % The Company's Net Sales for the six months ended June 30, 2026 increased by $20 million to $4,344 million from $4,324 million for the six months ended June 30, 2025, driven by higher volumes and a favorable foreign currency exchange of $77 million, partially offset by lower pricing of $59 million, the Croatia divestiture and other items. Innovation sales growth was $82 million, driven by conversions to the Company's sustainable consumer packaging solutions. Lower packaging sales in the foodservice and household markets were partially offset by higher packaging sales in the food and health and beauty markets, while packaging sales in the beverage market were relatively flat. Income from Operations Income from Operations for the six months ended June 30, 2026 decreased $300 million, or 72%, to $114 million from $414 million for the six months ended June 30, 2025, due to lower pricing, weather, higher maintenance spend and production curtailment impacts, other inflation (primarily labor and benefits) of $45 million, and commodity inflation (including logistics, chemicals, energy, secondary fiber and purchased materials, partially offset by wood) of $52 million. The impact of foreign currency exchange was relatively flat. Income from Operations was also unfavorably impacted by $40 million of charges related to the Company's decision to discontinue its project to build automated roll warehouses at its Kalamazoo, Michigan and Texarkana, Texas paperboard manufacturing facilities. The Company also incurred $23 million of charges related to cost and production optimization initiatives, primarily for severance following the review of support functions and other expenses, and recognized $13 million of impairment charges related to the sale of our Croatia business. Income from Operations was favorably impacted by a reduction in accelerated depreciation related to the closures of several paperboard facilities of $8 million and by the start-up charges related to Waco of $17 million in 2025 that did not recur in 2026. Interest Expense, Net Interest Expense, Net was $132 million and $104 million for the six months ended June 30, 2026 and 2025, respectively. Interest Expense, Net increased primarily due to lower capitalized interest as a result of completion of the Waco project. The Company capitalized interest of $3 million and $29 million for the six months ended June 30, 2026 and 2025, respectively. Income Tax Expense During the six months ended June 30, 2026, the Company recognized an immaterial amount of Income Tax Expense on a Loss before Income Taxes of $19 million. The effective tax rate for the six months ended June 30, 2026 is different from the statutory rate primarily due to the discrete tax impact of the charges associated with the sale of our Croatia business that resulted in no corresponding tax benefit. The Company also recorded additional discrete items including a $6 million tax benefit from the release of reserves for uncertain tax positions following the expiration of applicable statutes of limitations, $2 million tax expense related to a shortfall for RSUs that vested during the period and $2 million tax expense for the establishment of a valuation allowance against certain net deferred tax assets in the Netherlands. Additionally, the Company's effective tax rate is impacted by the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. During the six months ended June 30, 2025, the Company recognized Income Tax Expense of $78 million on Income before Income Taxes of $309 million. The effective tax rate for the six months ended June 30, 2025 is different from the statutory rate primarily due to discrete tax adjustments including a tax benefit of $2 million related to excess tax benefits on RSUs that vested during the period in addition to the mix of earnings between foreign and domestic jurisdictions, including those with and without valuation allowances. Segment Reporting The Company's reportable segments are described as follows: Americas Paperboard Packaging includes paperboard packaging sold primarily to consumer packaged goods ("CPG") companies serving the food, beverage and consumer product markets and cups, lids and food containers sold primarily to foodservice companies and quick-service restaurants in the Americas. International Paperboard Packaging includes paperboard packaging sold primarily to CPG companies serving the food, foodservice, beverage and consumer product markets, including healthcare and beauty, primarily in Europe. 28 Table of Contents The Company allocates internally sourced paperboard margin and corporate costs to the reportable segments to appropriately represent the economics of these segments. The Corporate and Other caption, which does not meet the criteria of a reportable segment, includes the unallocated corporate costs and the Paperboard Manufacturing operating segment. The effect of intercompany transfers to the paperboard packaging segments has been eliminated from the Corporate and Other caption to reflect the economics of the integration of these segments. The Company's Chief Operating Decision Maker evaluates each segment based primarily on Income from Operations. The accounting policies of the reportable segments are the same as those described in Note 1. General Information in the Notes to Condensed Consolidated Financial Statements. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 Net Sales: Americas Paperboard Packaging $ 1,487 $ 1,511 $ 2,951 $ 2,987 International Paperboard Packaging 579 560 1,142 1,083 Corporate/Other/Eliminations(a) 122 133 251 254 Total $ 2,188 $ 2,204 $ 4,344 $ 4,324 Income (Loss) from Operations: Americas Paperboard Packaging(b)(c) $ 110 $ 187 $ 240 $ 415 International Paperboard Packaging(c) 7 29 5 69 Corporate and Other(b)(c) (22) (23) (131) (70) Total $ 95 $ 193 $ 114 $ 414 (a) Includes revenue from the sale of paperboard to third parties. (b) Includes accelerated depreciation related to exit activities in 2025. See Note 12. Exit Activities in the Notes to Condensed Consolidated Financial Statements for further information. (c) Includes expenses related to business combinations, exit activities and other special items. See Note 1. General Information in the Notes to Condensed Consolidated Financial Statements for further information. 2026 Compared to 2025 Second Quarter 2026 Compared to Second Quarter 2025 Americas Paperboard Packaging Net Sales decreased due to lower pricing, partially offset by innovation sales growth driven by conversions to the Company's sustainable consumer packaging solutions and favorable foreign currency exchange. Lower packaging sales in the foodservice, beverage and household markets were partially offset by higher packaging sales in the food market. Income from Operations decreased due to lower pricing, higher commodity cost and other inflation (primarily labor and benefits) and production curtailment impacts offset by lower maintenance spend, cost savings from continuous improvement and other programs and productivity improvements. International Paperboard Packaging Net Sales increased due to favorable foreign currency exchange, increased sales from volumes including innovation sales growth driven by conversions to the Company's sustainable consumer packaging solutions and mix, partially offset by lower pricing. Higher packaging sales in the beverage, health and beauty and foodservice markets were partially offset by lower packaging sales in the household market, while packaging sales in the food market were relatively flat. Income from Operations decreased due to lower pricing, higher commodity cost and other inflation (primarily labor and benefits), partially offset by favorable foreign currency exchange and cost savings from continuous improvement and other programs, including benefits from capital projects and productivity improvements. First Six Months of 2026 Compared to First Six Months of 2025 Americas Paperboard Packaging Net Sales decreased due to lower pricing, partially offset by innovation sales growth driven by conversions to the Company's sustainable consumer packaging solutions and favorable foreign currency exchange. Lower packaging sales in the foodservice, beverage and household markets were partially offset by higher packaging sales in the food market. 29 Table of Contents Income from Operations decreased due to lower pricing, higher commodity cost and other inflation (primarily labor and benefits), mix, weather, higher maintenance spend, and production curtailment impacts offset by cost savings from continuous improvement and other programs and productivity improvements. International Paperboard Packaging Net Sales increased due to favorable foreign currency exchange and innovation sales growth driven by conversions to the Company's sustainable consumer packaging solutions and mix, partially offset by lower pricing. Higher packaging sales were in the beverage, food, health and beauty and foodservice markets, while the household market was relatively flat. Income from Operations decreased due to lower pricing, higher commodity cost and other inflation (primarily labor and benefits), partially offset by favorable foreign currency exchange and cost savings from continuous improvement and other programs, including benefits from capital projects and productivity improvements. Income from Operations was also unfavorably impacted by $13 million of impairment charges related to sale of our Croatia business. Financial Condition, Liquidity and Capital Resources The Company broadly defines liquidity as its ability to generate sufficient funds from both internal and external sources to meet its obligations and commitments. In addition, liquidity includes the ability to obtain appropriate debt and equity financing and to convert those assets that are no longer required to meet existing strategic and financial objectives into cash. Therefore, liquidity cannot be considered separately from capital resources that consist of current or potentially available funds for use in achieving long-range business objectives and meeting debt service commitments. Cash Flows Six Months Ended June 30, In millions 2026 2025 Net Cash Provided by Operating Activities $ 45 $ 93 Net Cash Used in Investing Activities (133) (505) Net Cash Provided by Financing Activities 32 362 Net cash provided by operating activities for the six months ended June 30, 2026 totaled $45 million compared to $93 million provided by operating activities for the same period in 2025. The decrease was mainly due to lower income from operations in the current year. Pension contributions for the six months ended June 30, 2026 and 2025 were $3 million. Net cash used in investing activities for the six months ended June 30, 2026 totaled $133 million compared to $505 million for the same period in 2025. The Company had capital spending of $223 million ($183 million was capitalized, of which $145 million was for adding capacity and improving process capabilities, $29 million for capital spares and $9 million for manufacturing packaging machinery) and $541 million ($484 million was capitalized) in 2026 and 2025, respectively. Capital spending decreased compared to prior year due to the completion of a significant portion of the Waco, Texas recycled paperboard facility in the fourth quarter of 2025, which drove elevated capital spending in the prior period. Net cash receipts related to the accounts receivable securitization and sale programs were $76 million and $56 million in 2026 and 2025, respectively. Net cash provided by financing activities for the six months ended June 30, 2026 totaled $32 million compared to $362 million for the same period in 2025. On April 14, 2026, the Company drew $400 million from the Incremental Term Facility provided for in the Amendment to the Fifth Amended and Restated Credit Agreement, dated June 3, 2024, which provided for a Delayed Draw Incremental Term Facility (the "Delayed Draw Incremental Term Loan"). The Company used the proceeds to repay in full its $400 million 1.512% Senior Secured Notes, which matured April 15, 2026. For more information on debt repayment, see Note 3. Debt in the Notes to Condensed Consolidated Financial Statements. On June 2, 2026, the Company completed a $145 million tax-exempt green bond transaction through Mission Economic Development Corporation's Private Activity Bond Program. The net proceeds of $144 million were used to reimburse a portion of the spend on construction of the new recycled paperboard manufacturing facility located in Waco, Texas. For more information on the construction of the new recycled paperboard manufacturing facility in Waco, Texas, and continued investments made as part of the integration of acquisitions, see Note 12. Exit Activities in the Notes to Condensed Consolidated Financial Statements. Current year activities also include borrowings under revolving credit facilities, primarily for capital spending, and payments on debt of $9 million. The Company also paid dividends of $65 million and withheld $4 million of RSUs to satisfy tax withholding obligations related to the payout of RSUs. In the prior year, the Company completed a $100 million tax-exempt green bond transaction through Mission Economic Development Corporation's Private Activity Bond Program. The net proceeds of $99 million were used to fund a portion of the construction of the Company's new recycled paperboard manufacturing facility in Waco, Texas. Additional prior year financing activities included borrowings made under revolving credit facilities, primarily for capital spending, repurchase of common stock of $110 million and payments on debt of $6 million. The Company also paid dividends and distributions of $63 million and withheld $32 million of RSUs to satisfy tax withholding payments related to the payout of RSUs. 30 Table of Contents Supplemental Guarantor Financial Information As discussed in Note 3. Debt in the Notes to Condensed Consolidated Financial Statements, the Senior Notes issued by Graphic Packaging International, LLC, the primary operating subsidiary of the Company ("GPIL") are guaranteed by Graphic Packaging International Partners, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company ("GPIP") and certain domestic subsidiaries (the "Subsidiary Guarantors"), which consist of all material 100% owned subsidiaries of GPIL other than its foreign subsidiaries and foreign subsidiary holding companies. GPIL's remaining subsidiaries (the "Nonguarantor Subsidiaries") include all of GPIL's foreign subsidiaries, foreign subsidiary holding companies and immaterial domestic subsidiaries. The Subsidiary Guarantors are jointly and severally, fully and unconditionally liable under the guarantees. Because Graphic Packaging Holding Company ("GPHC") and GPIP have no independent assets or operations other than ownership of GPIL, the results of operations, assets and liabilities for GPHC and GPIL are substantially the same. The summarized financial information below is presented on a combined basis, consisting of the Issuer (GPIL) and Subsidiary Guarantors, and is presented after the elimination of: (i) intercompany transactions and balances among the Issuer and Subsidiary Guarantors, and (ii) equity in earnings from and investments in the Nonguarantor Subsidiaries. In millions Six Months Ended June 30, 2026 Summarized Statements of Operations Net Sales(a) $ 3,292 Cost of Sales 2,843 Income from Operations 110 Net Income (18) (a) Includes Net Sales to Nonguarantor Subsidiaries of $342 million. In millions June 30, 2026 December 31, 2025 Summarized Balance Sheets Current Assets (excluding intercompany receivable from Nonguarantor Subsidiaries) $ 1,535 $ 1,569 Noncurrent Assets 6,886 6,967 Intercompany receivables from Nonguarantor Subsidiaries 322 222 Current Liabilities 1,685 1,739 Noncurrent Liabilities 5,961 5,885 Liquidity and Capital Resources The Company expects its material cash requirements for the next six months will be for: capital spending, periodic required income tax payments, periodic interest and debt service payments on associated debt, as discussed in Note 5. Debt of the Notes to Consolidated Financial Statements of the Company's 2025 Annual Report on Form 10-K, lease agreements which have fixed lease payment obligations, as discussed in Note 6. Leases of the Notes to Consolidated Financial Statements of the Company's 2025 Annual Report on Form 10-K, and minimum purchase commitments as discussed in Note 13. Commitments of the Notes to Consolidated Financial Statements of the Company's 2025 Annual Report on Form 10-K, along with ongoing operating costs, working capital, share repurchases and dividend payments. The Company expects its primary sources of liquidity to be cash flows from sales and operating activities in the normal course of operations and availability from its revolving credit facilities, as needed. The Company expects that these sources will be sufficient to fund ongoing cash requirements for the foreseeable future, including at least the next twelve months. Principal and interest payments under the term loan facilities and the revolving credit facilities, together with principal and interest payments on the Company's 4.00% 2021 Green Bonds due 2026, 5.00% 2025 Green Bonds due 2030, 5.00% 2026 Green Bonds due 2030, 4.75% Senior Notes due 2027, 3.50% Senior Notes due 2028, 3.50% Senior Notes due 2029, 2.625% Senior Notes due 2029, 3.75% Senior Notes due 2030 and 6.375% Senior Notes due 2032 (the "Notes"), represent liquidity requirements for the Company. Based upon current levels of operations, anticipated cost savings and expectations as to future growth, the Company believes that cash generated from operations, together with amounts available under its revolving credit facilities and other available financing sources, will be adequate to permit the Company to meet its debt service obligations, necessary capital spending program requirements and ongoing operating costs and working capital needs, although no assurance can be given in this regard. The Company's future financial and operating performance, ability to service or refinance its debt and ability to comply with the covenants and restrictions contained in its debt agreements (see Covenant Restrictions below) will be subject to future economic conditions, including conditions in the credit markets, and to financial, business and other factors, many of which are beyond the Company's control, and will be substantially dependent on the selling prices and demand for the Company's products, raw material and energy costs and the Company's ability to successfully implement its overall business and profitability strategies. Accounts receivable are stated at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, returns and allowances, and cash discounts. The allowance for doubtful accounts is estimated based on historical experience, current economic conditions, reasonable and supportable forecasts of future economic conditions, and the creditworthiness of customers. Receivables are charged to the allowance when determined to be no longer collectible. 31 Table of Contents The Company engages with third-party financial institutions to sell certain trade accounts receivable from customers. Transfers under these agreements meet the requirements to be accounted for as sales of receivables in accordance with the Transfers and Servicing topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification"). The receivables sold are reflected as a reduction of accounts receivable on the Condensed Consolidated Balance Sheets at the time of sale. The corresponding proceeds are reflected in Cash Flows from Operating Activities within the Condensed Consolidated Statements of Cash Flows. Receivables related to the Company's European program are sold in exchange for cash and a Beneficial Interest, therefore, a portion of the proceeds are reflected as "Beneficial Interest on Sold Receivables" and "Beneficial Interest Obtained in Exchange for Proceeds" in Cash Flows from Investing Activities within the Condensed Consolidated Statements of Cash Flows. The loss on sale for all programs is included in Other Expense, Net in the Condensed Consolidated Statements of Operations. The following table summarizes the activity under these programs for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, In millions 2026 2025 Receivables Sold and Derecognized $ 1,881 $ 1,816 Proceeds Collected on Behalf of Financial Institutions 1,816 1,756 Net Proceeds Paid to Financial Institutions (13) (7) Deferred Purchase Price at June 30(a) 63 34 Pledged Receivables at June 30 171 140 (a) Included in Other Current Assets on the Condensed Consolidated Balance Sheets and represents a beneficial interest in the receivables sold to the financial institutions, which is a Level 3 fair value measure. Receivables sold under all programs subject to continuing involvement, which consists principally of collection services, were $877 million and $814 million as of June 30, 2026 and December 31, 2025, respectively. The Company also participates in supply chain financing arrangements offered by certain customers that qualify for sale accounting in accordance with the Transfers and Servicing topic of the FASB Codification. For the six months ended June 30, 2026 and 2025, the Company sold receivables of $564 million and $548 million, respectively, related to these arrangements. The fees associated with the sale of receivables for all programs were $13 million and $26 million for the three and six months ended June 30, 2026, respectively, $15 million and $29 million for the three and six months ended June 30, 2025, respectively, and are included in Other Expense, Net in the Condensed Consolidated Statements of Operations. The Company has arranged a supplier finance program ("SFP") with a financial intermediary, which provides certain suppliers the option to be paid by the financial intermediary earlier than the due date on the applicable invoice. The transactions are at the sole discretion of both the suppliers and financial institution, and the Company is not a party to the agreements and has no economic interest in the supplier's decision to sell a receivable. The range of payment terms negotiated by the Company with its suppliers is consistent, irrespective of whether a supplier participates in the program. The agreement with the financial intermediary does not require the Company to provide assets pledged as security or other forms of guarantees for the SFP. Amounts due to suppliers that elected to participate in the SFP are included in Accounts Payable on the Company's Condensed Consolidated Balance Sheets, and payments made under the SFP are reflected in Cash Flows from Operating Activities in the Company's Condensed Consolidated Statements of Cash Flows. Accounts Payable included $30 million and $27 million payable to suppliers who elected to participate in the SFP as of June 30, 2026 and December 31, 2025, respectively. Covenant Restrictions Covenants contained in the Company's Fifth Amended and Restated Credit Agreement, dated June 3, 2024 (as amended by Amendment No. 1 on February 26, 2026, the "Credit Agreement") and the Indentures may, among other things, limit the Company's ability to incur additional indebtedness, dispose of assets, incur guarantee obligations, prepay other indebtedness, repurchase shares, pay dividends and make other restricted payments, create liens, make equity or debt investments, make acquisitions, modify terms of the Indentures under which the Notes are issued, engage in mergers or consolidations, change the business conducted by the Company and its subsidiaries and engage in certain transactions with affiliates. Such restrictions, as well as disruptions in the credit markets, could limit the Company's ability to respond to changing market conditions, fund its capital spending program, provide for unexpected capital investments or take advantage of business opportunities. Under the terms of the Credit Agreement, the Company must comply with a maximum Consolidated Total Leverage Ratio covenant and a minimum Consolidated Interest Expense Ratio covenant. On February 26, 2026, the Company, GPIP, GPIL, and certain subsidiaries of GPIL entered into Amendment No. 1 (the "Amendment") to the Credit Agreement to increase the maximum Consolidated Total Leverage Ratio from March 31, 2026 to December 31, 2026 to 5.00 to 1.00 and from March 31, 2027 to June 30, 2027 to 4.75 to 1.00. The Amendment also incorporates an additional pricing tier when the Consolidated Total Leverage Ratio is greater than or equal to 4.75 to 1.00; limits share repurchases to $65 million on an annual basis; and places additional restrictions on acquisitions and investments in nonguarantor subsidiaries during the period commencing on February 26, 2026 and ending on September 30, 2027. At June 30, 2026, the Company was in compliance with such covenant and the ratio was 4.37 to 1.00. 32 Table of Contents The Company must also comply with a minimum Consolidated Interest Expense Ratio of 3.00 to 1.00. At June 30, 2026, the Company was in compliance with such covenant and the ratio was 4.86 to 1.00. As of June 30, 2026, the Company's credit was rated BB by Standard & Poor's and Ba1 by Moody's Investor Services. Standard & Poor's and Moody's Investor Services' ratings on the Company included a stable outlook. Environmental Matters Some of the Company's current and former facilities are the subject of environmental investigations and remediations resulting from historical operations and the release of hazardous substances or other constituents. Some current and former facilities have a history of industrial usage for which investigation and remediation obligations may be imposed in the future or for which indemnification claims may be asserted against the Company. Also, closures or sales of facilities may necessitate further investigation and may result in remediation at those facilities. The Company has established reserves for those facilities or issues where a liability is probable and the costs are reasonably estimable. The Company believes that the amounts accrued for its loss contingencies, and the reasonably possible loss beyond the amounts accrued, are not material to the Company's consolidated financial position, results of operations or cash flows. For further discussion of the Company's environmental matters, see Note 8. Environmental and Legal Matters in the Notes to Condensed Consolidated Financial Statements. Critical Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates, and changes in these estimates are recorded when known. The critical accounting policies used by management in the preparation of the Company's Condensed Consolidated Financial Statements are those that are important both to the presentation of the Company's financial condition and results of operations and require significant judgments by management with regard to estimates used. The Company's most critical accounting policies, which require significant judgment or involve complex estimations, are described in the Company's 2025 Annual Report on Form 10-K for the year ended December 31, 2025. The Company performed its annual goodwill impairment tests as of October 1, 2025. The Company concluded that all reporting units with goodwill have a fair value that exceeds their carrying value, and thus goodwill was not impaired. Excess fair value over carrying value was approximately 2% for the International reporting unit and 18% for the Foodservice reporting unit. No other reporting units had excess fair value over carrying value below 20%. The International reporting unit and the Foodservice reporting unit had goodwill totaling $520 million and $84 million at June 30, 2026, respectively. The variability of the assumptions that management uses to perform the goodwill impairment test depends on a number of conditions, including uncertainty about future events and cash flows. Accordingly, the Company's accounting estimates may materially change from period to period due to changing market factors. If the Company had used other assumptions and estimates or if different conditions occur in future periods, future operating results and cash flows could be materially impacted, and judgments and conclusions about the recoverability of goodwill could change. The assumptions used in the goodwill impairment testing process could also be adversely impacted by certain of the risks disclosed in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and thus could result in future goodwill impairment charges. The Company continuously monitors events which could trigger an interim impairment analysis, such as changing business conditions, our financial performance and our market capitalization. The Company determined there were no triggering events requiring an interim impairment analysis during the three months ended June 30, 2026. New Accounting Standards For a discussion of recent accounting pronouncements impacting the Company, see Note 1. General Information in the Notes to Condensed Consolidated Financial Statements.