Graphic Packaging (GPK) Soars 10.3% on Bargain-Hunting

We recently published 10 Stocks With Monster Gains. Graphic Packaging (NYSE:GPK) was one of the top performers on Wednesday.

Graphic Packaging bounced back by 10.31 percent on Wednesday to close at $13.70 apiece as investors appeared to have hunted for bargains after falling to a level that left the stock just 6 percent shy of its 52-week low a day earlier.

This followed the company’s disappointing earnings performance on Tuesday, with both profits and sales declining after navigating a challenging market environment last year.

During the period, net income fell by 32 percent to $444 million from $658 million in 2024, as net sales dipped by 2.3 percent to $8.6 billion from $8.8 billion year-on-year.

Copyright: bialasiewicz / 123RF Stock Photo

In the fourth quarter alone, net income slid by 48 percent to $71 million from $138 million. Net sales, on the other hand, were flat at $2.1 billion.

Net profits for both periods were said to be dented by net charges from non-recurring and special items, as well as amortization.

Meanwhile, lower net sales in the full-year period were dampened by a $150 million negative impact from its disposal of the Augusta, Georgia, bleached paperboard, coupled with lower paperboard price and volume declines, and a $97 million decline in packaging sales.

For the fourth quarter, net sales were dragged by a $32 million decline in sales from packaging operations.

“Consumer affordability created a challenging market for our customers and competitive pressure remains a near-term headwind. As we move into 2026, our priorities are clear: drive operational excellence; deliver exceptional customer service; improve our cost structure; and drive substantial free cash flow to strengthen the balance sheet and return capital to shareholders,” said Graphic Packaging Holding Company (NYSE:GPK) President and CEO Robbert Rietbroek.

“I have initiated a comprehensive review of our organization structure, operations, and footprint, and a selective review of our portfolio to ensure that our resources are focused where we can create the greatest value for our shareholders,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.