Graphic Packaging Holding Company's net Income in Q2 2025 was $104 million, or $0.34 per diluted share, versus $190 million, or $0.62 per diluted share in Q2 2024. Q2 2025 and 2024 net income was impacted by special items and amortization of purchased intangibles of $24 million net charge and $7 million net gain, respectively. Excluding special items and amortization of purchased intangibles, Adjusted net income for the Q2 2025 was $128 million, or $0.42 per diluted share, and $183 million, or $0.60 per diluted share in Q2 2024.
Q2 2025 net sales decreased 1% to $2,204 million, versus $2,237 million in the same quarter last year. The $33 million decline was driven by a $40 million impact from the divestiture of the Augusta, Georgia bleached paperboard manufacturing facility and reduced open market sales participation, partially offset by a $20 million favorable foreign exchange impact, while modest price pressure was partially offset by a modest volume increase.
Q2 2025 EBITDA decreased 29% to $323 million. Excluding the impact of business combinations and other special items, Adjusted EBITDA was $336 million versus $402 million in the same quarter last year.
The decline in Adjusted EBITDA was driven by a $23 million decrease in price; $26 million of labor and benefits inflation; $10 million of input cost inflation; and a $5 million decrease relating to the divestiture of the Augusta, Georgia bleached paperboard manufacturing facility and reduced open market sales participation.
Net Performance was negative, as actions taken to reduce inventory and related production inefficiencies more than offset the positive impact from modestly better packaging volumes (together a net negative $13 million). Foreign exchange had a favorable impact of $11 million. Q2 Adjusted EBITDA Margin was 15.3% in 2025, and 18.0% in 2024.
Michael Doss, the Company's President and CEO said, "Promotional activity drove modestly better than expected volumes in the second quarter. Conversations with our customers suggest potential for increased emphasis on volume growth and protecting share in the year ahead. As these customers refine their strategies, we are working closely with them to support their plans. With our Waco, Texas recycled paperboard investment nearing completion, our capital spending will decline sharply in 2026, and we expect to generate cash well in excess of our internal needs for years to come. We expect to return substantial cash to stockholders through dividends and share repurchase, and reach investment grade over time. Investments like Waco and Kalamazoo, and our world-class innovation platform have positioned Graphic Packaging as the supplier of choice for many of the world's largest consumer staples companies, quick service restaurants, and retailers."
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials.
