GPK NYSE Russell 1000 Earnings call
Graphic Packaging (GPK) · Q2 2026 results and valuation
Share price: $11.07 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 5 May 2026
Net income turned to a profit from a loss last quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2026
Outlook given
Net income 24.0M vs -43.0M
Revenue +1.5%
2 · How management spoke
Upbeat
More upbeat than 66% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Guidance
GPK expects cost savings and operational improvements to deliver more benefit in the second half of the year.
Valuation
Is Graphic Packaging undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −3.0% growth a year (3-year revenue growth), the model's fair value is $7.76 a share — the stock trades 43% above it. Today's price assumes 0.0% growth a year.
Current price
$11.07
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+0.0% for 10 yrs
Fair value / share
$7.76
Buy below
$5.82
Price vs fair value
Overvalued 43%
Price vs buy-below price
Overvalued 90%
Read between the lines
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Guidance
The company expects positive pricing momentum to increase 2026 full year sales and EBITDA by approximately $60 million, with the fourth quarter benefiting more than the third quarter.
Source quote
“Altogether, we expect positive pricing momentum to favorably impact 2026 full year sales and EBITDA by approximately $60 million with fourth quarter benefiting more than third quarter.”
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Figure
Net sales were $2.2 billion for the quarter.
Source quote
“For the quarter, net sales were $2.2 billion.”
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Fading
Cost savings and other improvements will mainly benefit the second half.
Source quote
“Our beverage business remains stable, while food service and household reflect ongoing consumer affordability trends. ...primarily an international business for us, delivered strong growth consistent with the trends we saw in the second half of 2025 as consumers continue to prioritize small indulgences like skin care and perfume. Now I will provide an update on the results of our 90-day review of the business.”
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Fading
Health & Beauty grew as consumers prioritized products like skin care and perfume, while the food business saw growth from more protein products entering the market.
Source quote
“Health & Beauty, which is primarily an international business for us, delivered strong growth consistent with the trends we saw... ...better due to more protein products entering the market to satisfy consumers' desire for higher protein diets. Our beverage business remains stable, while food service and household reflect ongoing consumer affordability trends.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Importantly, we are refining and enhancing our approach to capture sustained growth in the marketplace, directing our focus towards opportunities where Graphic Packaging is best suited to win long term,...”
“We are both confident in and excited by the growth opportunities in front of us as regulatory tailwinds and ongoing enhancements in recycling and collection infrastructure strengthen our competitive position...”
“Innovation sales growth added $40 million in the quarter, reflecting our strong customer partnerships and their continued interest in innovative, sustainable paperboard packaging.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.19B | 2.16B | +1.5% | 2.20B | −0.7% |
| Gross profit | 292.0M | 306.0M | −4.6% | 420.0M | −30.5% |
| Operating income | 95.0M | 19.0M | +400.0% | 193.0M | −50.8% |
| Net income | 24.0M | -43.0M | Turned profit | 104.0M | −76.9% |
| EPS | 0.08 | -0.14 | Turned profit | 0.34 | −76.5% |
| P/E today 13.0 | 16.0 | 10.8 | +5.2 | 11.9 | +4.1 |
Topics
Most discussed now
- During this call, Graphic Packaging will reference its second quarter 2026 earnings presentation that can be found in the Investor…
- Adjusted cash flow showed strong improvement from the prior year period, increasing $55 million.
- Adjusted EBITDA landed at the top of Graphic Packaging's guidance range with margins expanding sequentially to 11.3%, a direct reflection...
- These actions are generating meaningful savings that help us navigate the current inflationary environment with confidence.
- Innovation sales spanned multiple packaging formats and new innovations with customers were evenly distributed across Americas and…
Faded since Q1 2026
- Fading I talked about the cup stock price increase, and then Graphic Packaging is further evaluating some packaging price increases.
- Fading Graphic Packaging's integrated high-quality asset base and production footprint, enhance its service capabilities, expand innovation…
- Fading In the first quarter, Graphic Packaging delivered strong performance at the high end of its expectations.
- Fading Adjusted EBITDA margin was 10.8% and adjusted EPS was $0.09.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- New financial obligation · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Change to shareholder rights; Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Director or officer change · SEC 8-K
- New financial obligation · SEC 8-K