The adjusted EPS beat of 48% on a GAAP loss is a classic 'earnings quality' red flag — the beat is entirely from add-backs for restructuring charges. With net leverage at 4.4x and Adjusted EBITDA margins collapsing, the stock is likely to sell off on the deteriorating underlying profitability despite the headline beat. Watch for execution on the $60M cost savings program and the Croatia divestiture as catalysts for deleveraging.
Price Chart
Executive Summary
Graphic Packaging reported Q1 2026 GAAP net loss of $43M (-$0.14/diluted share) vs net income of $127M ($0.42/share) a year ago, driven by $71M in restructuring and special charges. Revenue grew 2% to $2,156M on 1% volume growth and FX tailwinds, but Adjusted EBITDA plunged 36% to $232M (10.8% margin vs 17.2%). The company reaffirmed full-year 2026 guidance of $8.4B-$8.6B revenue, $1.05B-$1.25B Adjusted EBITDA, and $0.75-$1.15 Adjusted EPS, and announced a restructuring plan including 500+ job cuts and $60M in cost savings.
Key Financial Metrics
Key Facts
- GAAP net loss of $43M (-$0.14/diluted share) vs net income of $127M ($0.42) in Q1 2025
- Adjusted EPS (Street convention) of $0.09 beat consensus estimate of $0.06 by 48.1%
- Revenue of $2,156M (+2% YoY) beat consensus estimate of $2,050M
- Adjusted EBITDA fell 36% to $232M from $365M; margin compressed to 10.8% from 17.2%
- Net leverage ratio increased to 4.4x from 3.8x in Q4 2025 and 3.5x in Q1 2025
- Full-year 2026 guidance reaffirmed: revenue $8.4B-$8.6B, Adj. EBITDA $1.05B-$1.25B, Adj. EPS $0.75-$1.15
- Restructuring plan: 500+ job cuts, $60M cost savings target, $200M+ capital avoidance
- Pending divestiture of non-core assets in Croatia
- Workforce reduction and restructuring charges of $71M in the quarter
Financial Impact
GAAP net loss of $43M vs prior-year profit of $127M; Adjusted EBITDA down $133M YoY; restructuring charges of $71M
Risk Factors
- Net leverage at 4.4x limits financial flexibility and increases refinancing risk
- Restructuring execution risk — 500+ job cuts may disrupt operations
- Continued input cost inflation and competitive pricing pressure
- Pending divestiture may not close at expected terms
- Full-year guidance implies H2 ramp that may not materialize if demand weakens
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001408075-26-000016 |
| Document: gpk-20260505.htm | 0001408075-26-000016 |
| Document: 0001408075-26-000016-index-headers.html | 0001408075-26-000016 |
| Document: 0001408075-26-000016-index.html | 0001408075-26-000016 |
| Document: 0001408075-26-000016.txt | 0001408075-26-000016 |
| 8-K Data (Synthetic) | 0001408075-26-000016 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 17, 2026 6w ago | 8-K | $10.97 $9.87 | ▼ −10.07% | ▼ −9.08% | $8.90 (−18.92%) |
Aug 6, 2026 8w ago | 144 | $11.87 $10.70 | ▼ −9.86% | ▼ −10.46% | $8.90 (−25.06%) |
Jul 29, 2026 9w ago | Press Release | $10.96 $11.33 | ▲ +3.38% | ▼ −0.59% | $8.90 (−18.84%) |
May 26, 2026 18w ago | 8-K | $10.29 $10.65 | ▲ +3.45% | ▲ +5.40% | $8.90 (−13.56%) |
May 5, 2026 21w ago | 8-K | $10.73 $10.76 | ▼ −0.28% | ▲ +4.67% | $8.90 (+17.10%) |
Mar 11, 2026 29w ago | 8-K | $9.71 $9.67 | ▼ −0.41% | ▼ −2.39% | $8.90 (−8.39%) |
Mar 4, 2026 30w ago | Insider Cluster | $11.06 $9.59 | ▼ −13.33% | ▼ −8.91% | $8.90 (−19.61%) |
Feb 27, 2026 31w ago | 8-K | $12.09 $9.23 | ▼ −23.67% | ▼ −16.12% | $8.90 (−26.45%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access