Divestiture Gains and Margin Expansion Drive Greif's Q3 Earnings Surge; $150M Buyback Announced
GEF sits 55% above its 52-week low of $55.75.
Summary
Greif posted Q3 net income from continuing operations of $82.6M, up from $36.9M a year ago, aided by a $216.2M gain on the Soterra land sale. A new $150M share buyback program was also announced.
Key Events · Earnings and Guidance · GEF
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Earnings Surge on Divestiture Gain
Q3 net income from continuing operations reached $82.6M, compared with $36.9M in Q3 2025. The nine-month result includes a $216.2M gain from the Soterra land sale, which closed on October 1, 2025.
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Adjusted EBITDA Up 25%
Driven by higher selling prices, cost optimization, and lower SG&A expenses, adjusted EBITDA rose to $183.4M in Q3 from $147.1M a year ago.
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New $150M Share Buyback Announced
On July 28, 2026, the company announced plans to repurchase up to $150M of its Class A and/or Class B common stock under its existing authorization framework.
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Balance Sheet Strengthened
Long-term debt net of cash fell to $687.4M from $914.8M at September 30, 2025, following debt repayment with divestiture proceeds. Liquidity remains strong, with $288.5M in cash and $593.1M available under the revolving credit facility.
Analysis · GEF · Manufacturing
A sharp earnings recovery marks Greif's third quarter, fueled by the Soterra land sale and operational improvements. Net income from continuing operations more than doubled to $82.6 million, while adjusted EBITDA climbed 25% to $183.4 million. Proceeds from the divestiture were channeled into debt reduction and share repurchases, and the company separately unveiled a new $150 million buyback authorization. With net debt lower and liquidity ample, the balance sheet is on firmer footing. These results validate the strategic pivot away from containerboard, even as the industrial demand environment remains subdued.
At the time of this filing, GEF was trading at $86.24 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $55.75 to $86.98. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.