Graphic Packaging's Q2 profit falls on cost inflation as Tennessee plant slated to close

Graphic Packaging reported second-quarter 2026 net sales of $2.19 billion, down 1% from a year earlier, as lower pricing outweighed currency gains and volume/mix held roughly flat. Adjusted EBITDA declined to $247 million from $336 million, with commodity and operating cost inflation accounting for $60 million of the pressure.

Net income came in at $24 million, or $0.08 per diluted share, versus $104 million a year earlier. CEO Robbert Rietbroek pointed to early benefits from productivity initiatives and a 50-basis-point sequential improvement in adjusted EBITDA margin from the first quarter.

The company announced plans to close its Lebanon, Tennessee, facility, completed the sale of its Croatia site and is evaluating a possible closure in Winsford, UK. It now expects 2026 sales at the high end of its $8.4 billion to $8.6 billion range and adjusted EBITDA at the low end of $1.05 billion to $1.25 billion.