Greif, Inc. GEF announced a price increase of $60 per short ton for all grades of uncoated recycled paperboard (URB) products, effective July 6, 2026. The price hike for URB products was driven by rising input and transportation costs, along with growing demand.
Greif will implement a minimum 6.5% price hike on all tube and core, as well as protective packaging products, effective July 13, 2026. The price increase is due to rising costs of the primary raw materials contained in those products. Higher transportation costs and increased demand across end markets have also aided the price hike for Greif.
GEF’s peer Sonoco Products Company SON also implemented a $60-per-ton price increase for all grades of URB in the United States and Canada, effective July 8, 2026. The company also hiked prices for all converted paperboard products 7%. The price hike was driven by solid demand across Sonoco’s markets, strong utilization of its paper mill network and elevated inflationary pressures.
GEF’s Focus on Portfolio Optimization
Greif is optimizing and shaping its product portfolio to reduce the impacts of cyclical trends and focus on higher-margin offerings. The company’s four new reportable segments are now focused on specific material solutions.
GEF has set a target of delivering adjusted EBITDA of $1 billion by fiscal 2027. The company expects the low end of adjusted EBITDA to be $610 million for fiscal 2026, indicating an increase of 19% from the $511 million reported in fiscal 2025.
The company’s optimization Initiatives over the next three years are expected to eliminate $100 million in structural costs from the business through a combination of SG&A rationalization, network optimization and operating efficiency gains. The company has also set the goal of $500 million of free cash flow by fiscal 2027.
Greif’s Q2 Performance
Greif posted adjusted earnings of $1.10 per Class A share in the second quarter of fiscal 2026, up 61.8% from a year ago. The figure missed the Zacks Consensus Estimate of $1.16 by 5.2%. Net sales were $1.07 billion, down 0.5% year over year but beating the consensus mark of $1.07 billion by 0.4%.
GEF Stock’s Price Performance
Greif shares have gained 3.5% in the past year against the industry's 9.4% decline.
Greif’s Zacks Rank & Stock to Consider
The company currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Tennant Company TNC and Helios Technologies Inc. HLIO. TNC and HLIO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tennant has an average trailing four-quarter earnings surprise of 40.8%. The Zacks Consensus Estimate for TNC’s 2026 earnings is pinned at $5.15 per share. The company’s shares have gained 15.4% in a year.
Helios Technologies has an average trailing four-quarter earnings surprise of 15.8%. The Zacks Consensus Estimate for HLIO’s 2026 earnings is pinned at $2.89 per share. The company’s shares have skyrocketed 141.3% in a year.
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Sonoco Products Company (SON): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).