GPK Filings — Graphic Packaging Holding Co - FilingSpy
GPK
Graphic Packaging Holding Co
A maker of paperboard packaging that turns recycled and renewable fiber into the cartons, cups, and drink-can carriers found in grocery stores and restaurants worldwide, serving food, beverage, and household brands. Its roots stretch to a Louisiana timber mill opened in 1924, and the modern company took shape through a series of mergers, including one that gave it its name in 1988. It's known for KeelClip, a paperboard replacement for plastic rings that holds beverage cans together and has won multiple industry design awards.
Q2 2026 operating income fell 51% to $95M on lower pricing and inflation
fell 51% from a year ago to $95M. dipped 0.7% to $2,188M and narrowed 5.7 points to 13.3% as lower pricing, commodity and labor inflation, and a Croatia sale charge cut results. The company is through the Waco build but margin pressure persists with at 4.37x.
Key takeaways
dropped $98M to $95M, driven by $27M in lower pricing, $36M in , $24M in other inflation, and production curtailments.
Consolidated decreased 1% to $2,188M, with the Croatia divestiture and lower pricing partly offset by $20M in favorable foreign exchange.
fell 5.7 points to 13.3% and was $0.08 versus $0.34 a year earlier, as declined 76.9% to $24M.
Section summaries
Management's Discussion and Analysis
Q2 2026 income from operations fell 51% to $95M on lower pricing, commodity and labor inflation, and optimization charges.
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Consolidated decreased 1% to $2,188M, driven by $27M in lower pricing and the Croatia divestiture, partially offset by $20M in favorable FX.
Americas Paperboard Packaging fell to $110M from $187M on lower pricing and higher commodity and labor costs.
International Paperboard Packaging fell to $7M from $29M, hit by a $13M Croatia sale charge and cost inflation.
declined to $45M from $93M a year earlier, while dropped to $223M from $541M after the Waco facility was completed.
The credit agreement was amended to relax the to 5.00x through end-2026; the ratio stood at 4.37x as of June 30, 2026.
What changed
Q2 2026 did not rebound after Q1's $71M of one-off charges rolled off; instead it fell further to $95M from $193M a year earlier as pricing and inflation took over as drivers.
stood at 4.37x against the relaxed 5.00x , up from 3.55x at Q2 2025 and 3.76x at Q3 2025, moving toward the temporary cap.
dropped to $223M from $541M a year earlier, confirming the Waco build is largely done after the $922M 2025 peak and $140M Q1 2026 spend.
The International reporting unit's risk carried from FY2025 (fair value exceeded carrying value by 2%) was not resolved here; International income fell to $7M including a $13M Croatia sale charge.
The FY2025 material weakness in capital expenditure controls was not addressed in this filing's updates.
rose 1.5% from Q1 2026's $2,156M to $2,188M, while recovered from $19M to $95M quarter over quarter.
What to watch
Q3 2026 to see if margin stabilizes now that Waco spending is done and pricing pressure continues.
Full-year 2026 against the 5.00x as share repurchases stay capped at $65M annually.
International Paperboard Packaging for any trigger after the 's $7M income and Croatia sale charge.
Resolution of the FY2025 material weakness in capital expenditure controls in the next filing.
dropped $98M to $95M due to lower pricing, $36M in commodity inflation, $24M in other inflation, and production curtailments.
Americas Paperboard Packaging fell to $110M from $187M on lower pricing and higher commodity and labor costs.
International Paperboard Packaging fell to $7M from $29M, impacted by lower pricing, cost inflation, and a $13M Croatia sale charge.
declined to $45M from $93M, while dropped to $223M from $541M following the completion of the Waco facility.
The company amended its credit agreement to relax the maximum to 5.00x through year-end 2026; the ratio stood at 4.37x as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of certain market risks related to the Company, see Part II, Item 7A, Quantitative and Qualitative Disclosure about Market Risk, in the Company's 2025 Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant developments wi…
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For a discussion of certain market risks related to the Company, see Part II, Item 7A, Quantitative and Qualitative Disclosure about Market Risk, in the Company's 2025 Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant developments with respect to derivatives or exposure to market risk during the six months ended June 30, 2026. For a discussion of the Company's Financial Instruments, Derivatives and Hedging Activities, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition, Liquidity and Capital Resources."
The Company is a party to a number of lawsuits arising in the ordinary conduct of its business as well as the Securities Class Action and Derivative Action referenced in Note 8. Environmental and Legal Matters in the Notes to Condensed Consolidated Financial Statements. Although…
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The Company is a party to a number of lawsuits arising in the ordinary conduct of its business as well as the Securities Class Action and Derivative Action referenced in Note 8. Environmental and Legal Matters in the Notes to Condensed Consolidated Financial Statements. Although the timing and outcome of the lawsuits arising in the ordinary conduct of business cannot be predicted with certainty, the Company does not believe that disposition of these lawsuits will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.
There have been no material changes from the risk factors previously disclosed in the Company's 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes from the risk factors previously disclosed in the Company's 2025 Annual Report on Form 10-K for the year ended December 31, 2025.