Greif Q4 Loss Narrows to $6.5M as EBITDA Slips 3.1%

Greif, Inc. reported a fiscal fourth-quarter net loss of $6.5 million, or $0.11 per diluted Class A share, on November 3, 2026, narrowing from a prior-year loss of $24.3 million, while adjusted EBITDA slipped 3.1% to $163.0 million from $168.2 million. Net sales for the quarter rose to $1,143.6 million from $1,094.3 million a year earlier, the industrial packaging maker said. The results cover continuing operations only, after the Containerboard Business was reclassified as discontinued following its $1.8 billion sale to Packaging Corporation of America.

Context — why Greif's Q4 print matters now

Greif's quarter lands against a multi-year industrial contraction the company itself describes as ongoing. Management said it has not identified any compelling demand inflection on the horizon, and chose to guide fiscal 2027 only at the low end of its range. That stance frames the print less as a recovery story and more as a cost-execution story.

The structural backdrop is the Containerboard divestiture. Greif agreed on June 30, 2025 to sell the business, including its CorrChoice sheet feeder system, for $1.8 billion in cash, with the deal closing August 31, 2025. The prior-year quarter therefore carried roughly $381.0 million of unfavorable tax impact tied to that sale, which distorts almost every year-over-year comparison in the release.

The company also changed its fiscal year end from October 31 to September 30 effective fiscal 2025, recasting prior-year comparatives to a twelve-month period ended September 30, 2025. Segment names shifted too: Integrated Solutions became Innovative Closure Solutions, with recycled fiber trading and paperboard adhesives moved into Sustainable Fiber Solutions and steel-related packaging services moved into Durable Metal Solutions.

Greif announced the strategic exit of its Coated Recycled Board business through the closure of the Sweetwater paperboard mill in Austell, Georgia. The company said the decision reflects a focus on businesses where it holds leading market positions.

CEO Ole Rosgaard framed fiscal 2026 as strong execution rather than a demand-led recovery. He said the company grew adjusted EBITDA by nearly 12% despite continued weakness in global industrial markets.

Data — what the numbers show

For the full fiscal year, net income attributable to Greif rose to $258.5 million from $864.9 million, though the prior year included a large gain from discontinued operations. Net income from continuing operations reached $278.6 million versus $55.7 million. Full-year net sales were $4,376.8 million against $4,315.3 million.

Metric	FY2026	FY2025	Change
Adjusted EBITDA	$625.7M	$560.0M	+11.7%
Net income (continuing ops)	$278.6M	$55.7M	+400%
Net sales	$4,376.8M	$4,315.3M	+1.4%
Total debt	$1,096.3M	$1,202.5M	-$106.2M
Net debt	$800.9M	$945.8M	-$144.9M
Leverage ratio	1.2x	1.7x	-0.5x

Adjusted free cash flow fell $101.0 million to $279.3 million, below the company's most recent guidance range. Greif attributed the shortfall primarily to elevated inventory balances and higher resin costs, tied to a strategic decision to ensure supply continuity for customers during Middle East supply disruptions.

By segment, Customized Polymer Solutions posted net sales up $39.2 million to $361.9 million with Adjusted EBITDA flat at $44.5 million. Durable Metal Solutions saw sales rise $0.6 million to $392.5 million while Adjusted EBITDA dipped $0.8 million to $56.2 million. Sustainable Fiber Solutions net sales rose $4.9 million to $360.1 million but Adjusted EBITDA fell $9.5 million to $52.0 million. Innovative Closure Solutions grew Adjusted EBITDA $5.1 million to $10.3 million.

Analysis — what it means for markets and sectors

Greif sits in industrial packaging, a cyclical corner of the materials complex whose volumes track manufacturing activity, freight demand and chemical output. The company's own commentary that it grew earnings without a market recovery places it in the cost-cutting cohort of industrial names rather than the volume-recovery cohort. That distinction matters for anyone screening packaging and containerboard peers on margin expansion.

The balance sheet is the clearest bright spot. Total debt fell $106.2 million to $1,096.3 million, net debt dropped $144.9 million to $800.9 million, and the leverage ratio improved to 1.2x from 1.7x. Under the company's 2026 Credit Agreement, adjusted net debt was $731.7 million with trailing twelve-month credit agreement EBITDA of $617.4 million.

The acknowledged limitation is cash conversion. Adjusted free cash flow missed guidance, and management pinned the gap on inventory build and resin costs rather than structural weakness. If inventory unwinds in fiscal 2027, the cash figure could recover; if resin stays elevated or demand weakens further, the working capital drag persists. The report does not quantify how much of the shortfall is inventory versus resin.

On cost optimization, Greif announced $105 million in cumulative run-rate savings achieved by the end of fiscal 2026, beating its original $100 million three-year commitment by a year. It then expanded the total target to $150 million by the end of fiscal 2027, a 50% increase. Rosgaard said the success gave the company confidence to raise the goal.

Positioning-wise, the story splits holders: income investors anchor on the dividend, which the board declared at $0.62 per Class A share and $0.93 per Class B share on August 25, 2026, for a total payment of roughly $35.1 million. Growth investors will focus on whether the cost program converts into earnings before any demand turn.

Outlook — what to watch next

Greif issued fiscal 2027 low-end guidance of $645 million Adjusted EBITDA and $290 million adjusted free cash flow. The company said it is providing only low-end guidance given continuing demand trends, current price/cost factors and identifiable discrete items. Both figures are forward-looking non-GAAP measures presented without reconciliations to forecasted net income or operating cash flow.

Management will host a conference call on November 4, 2026 at 8:00 a.m. Eastern Time to discuss results, with a digital replay available two hours after the call on the company's investor site. That call is the next scheduled venue for detail on the Sweetwater mill closure costs and the pace of the expanded cost program.

The tax line is the other swing factor to monitor. Greif recorded a fourth-quarter effective tax rate of 118.6%, versus 42.2% excluding adjustments, and a full-year rate of 28.0% against 28.1% excluding adjustments. Management noted that income tax accounting often causes quarterly rate fluctuations, so the quarterly print is not a reliable run-rate.

Frequently Asked Questions

Why did Greif's net loss narrow in the fourth quarter?

The improvement came from several lines. Net sales rose to $1,143.6 million from $1,094.3 million, lifting gross profit to $254.6 million from $249.2 million. Selling, general and administrative expenses fell to $153.6 million from $166.9 million, helped by lower compensation tied to cost optimization. Net income excluding adjustments rose 46.1% to $49.1 million. The prior-year quarter also carried a larger loss base, making the comparison look steeper.

What does the Containerboard sale mean for Greif's reported results?

The $1.8 billion sale to Packaging Corporation of America closed August 31, 2025, and the business has been reported as discontinued operations since the third quarter of fiscal 2025. All headline results now reflect continuing operations. The prior-year operating cash flow included roughly $381.0 million of unfavorable tax impact from that sale, which is why net cash provided by operating activities swung from an outflow to a $296.0 million source this year.