Greif exits coated recycled board, closes Sweetwater mill as EBITDA rises 11.7%
Greif is exiting coated recycled board by closing its Sweetwater paperboard mill in Austell, Georgia, as part of its cost-optimisation programme; fourth-quarter impairment charges in Sustainable Fiber Solutions related mainly to the mill. On continuing operations after the sale of its Containerboard Business, the industrial packaging group reported fiscal 2026 adjusted EBITDA of USD 625.7m, up 11.7% from USD 560.0m, while fourth-quarter adjusted EBITDA fell 3.1% to USD 163.0m. Run-rate cost savings reached USD 105m a year ahead of schedule, and the target has been raised to USD 150m by the end of fiscal 2027.
Why this mattersGreif's exit takes one US producer out of coated recycled board, and its earnings growth now comes from cost cuts rather than a demand recovery.
- Greif announced its exit from coated recycled board through the closure of the Sweetwater paperboard mill in Austell, Georgia.
- Sustainable Fiber Solutions' Q4 operating loss widened by USD 15.8m to USD 21.4m, including impairment charges mainly related to Sweetwater.
- Fiscal 2026 adjusted EBITDA was USD 625.7m, up 11.7% from USD 560.0m; Q4 adjusted EBITDA fell 3.1% to USD 163.0m.
- Run-rate cost savings reached USD 105m at fiscal year-end, beating the USD 100m three-year target a year early; the target is now USD 150m by end-fiscal 2027.
- Fiscal 2026 adjusted free cash flow was USD 279.3m, below the latest guidance range, as inventories and resin costs rose amid Middle East disruptions.
- Net debt fell by USD 144.9m to USD 800.9m, and leverage eased to 1.2 times from 1.7 times.