Greif, Inc.

Good day, and thank you for standing by. Welcome to the Greif Fourth Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Bill D'Onofrio, Vice President of Investor Relations and Corporate Development. Please go ahead.

Good morning, everyone, and thank you for joining Grice Fiscal Fourth Quarter 2025 Earnings Conference Call. Today, our CEO, Oli Rosgaard, will provide a strategy and market update, followed by our CFO, Larry Hilshimer, with a review of our financial results and 2026 guidance. Please turn to slide two. In accordance with regulation fair disclosure, please ask questions regarding topics you consider important because we are prohibited from discussing material nonpublic information with you on an individual basis. During today's call, we will make forward-looking statements involving plans, expectations, and beliefs related to future events. Actual results could differ materially from those discussed. we will be referencing certain non-GAAP financial measures and the reconciliation to the most directly comparable GAAP metrics that can be found in the appendix of today's presentation. Two important reporting clarifications for this quarter. First, our container board business was sold on August 31st. As such, that business is presented as discontinued operations for its one month contribution to the quarter. Unless otherwise noted, all financial results and commentary discussed today will relate to continuing operations only. Second, due to our fiscal year end change, Q4 reflects a two-month reporting period, August and September. For consistency, all prior year comparatives in today's presentation are also shown on a two-month basis for August and September. I'll now hand the call over to Olli on slide three.

Thanks, Bill. And thank you all for listening in today and for your interest in GRIF. With the short 2025 fiscal year, Due to our fiscal year change, the two-month fourth quarter, the sale of our container board business this quarter, and the ongoing cost optimization program, we know there's significant amount of change and noise for this quarter. This shows up in our tax results, which Larry will be discussing in a moment. Thank you for bearing with us. We are excited for the long-term earnings growth and value creation our strategy is unlocking. We closed fiscal 25 as a more focused, more agile, and more strategically aligned company than at any time in our history. Our transformation is accelerating and the results are beginning to show. On October 1st, we finalized the sale of our land management business, generating 462 millions in proceeds. Those funds were used immediately to reduce debt and our performer leverage ratio is now under one times. We have entered fiscal 2026 with a meaningfully stronger balance sheet with enhanced capital efficiency built for resilience. Together with the divestiture of our container board business in the fourth quarter, we have reshaped Rive's portfolio to concentrate our efforts where we have the greatest opportunity to grow EBITDA, expand margins, generate cash, reduce cyclability, and deliver durable returns for our shareholders. We are pleased to report our latest Net Promoter Score Survey result of 72, an improvement of three points from last year, and further extending our world-class customer service performance. That improvement is a direct reflection of the trust our customers place in us and our ability to deliver for them. The best companies build stronger relationships when things are difficult, and our NPS reflects our conviction that we will capture significant value when demand returns. As Larry will touch on in a moment, our full year 26 guidance, despite being low-end, reflects continued earnings growth and a free cash flow conversion rate of 50%, demonstrating our progress towards the long-term objectives laid out at Investor Day in December. We are proud of how we ended fiscal 2025, but even more energized by what lies ahead. Our Build to Last strategy is firmly embedded in our organization. We are shaping and sharpening our portfolio, strengthening our balance sheet, and investing for sustainable growth. Please turn to slide four. Our commitment to value creation shows in how we manage cost. In fiscal 25, we achieved 50 million in run rate savings from our cost optimization program, more than double our stated full year 25 commitments. To date, we have achieved approximately 15 million in savings related to network design and operating efficiency. This is not limited to strategic footprint actions. It also includes deploying AI solutions to reduce scrap and improve OEE, strategic planning actions to minimize freight and maximize on-time deliveries, and structural improvements to our global procurement strategy. The remaining run rate savings are related to SG&A. Our updated business model has enabled much more efficient decision making. It has also led to difficult but necessary decisions to eliminate areas of redundant cost in the updated model. As of quarter end, we have eliminated approximately 8% of professional roles within the company or 190 positions. These changes have been carefully considered over this past year and were acted on in Q4 in a manner which allowed us to communicate to impacted colleagues our heartfelt appreciation for their contributions to GRIFE. These actions drove the significant acceleration beyond our previous full year 25 commitments. Due to our progress to date, we are raising our anticipated fiscal 26 cumulative cost saving run rate commitments from 50 to 60 million to 80 to 90 million. We will also expand our anticipated full year 27 cumulative run rate commitment from 100 million to 120 million. Our cost optimization program has continued to evolve since the start of the year. What began as a top-down initiative is now being fueled from the ground up. Across the organization, our colleagues are embracing the challenge, identifying new opportunities, driving local action, and creating meaningful change. This work is making GRIFE a more focused and agile organization, better positioned to capture value as demand returns. Importantly, this isn't just about taking costs out. It's about building an agile next-generation Greif. The Greif business system enables repeatable excellence across more than 250 sites in 40 countries, allowing us to do more with fewer resources. We're removing unnecessary layers to empower local leaders and speed up decision-making. And we are embedding a mindset of efficiency, responsiveness, and value creation across every function and facility. This isn't a one-time initiative. It's a structural shift in how we operate, compete, and grow. Excuse me. Please turn to slide five. A significant finding from our cost optimization program, which is now realizable as the divestment of container boards, are the clear and meaningful synergies in operating adhesives and recycled fiber as part of sustainable fiber solutions. Therefore, beginning in fiscal 26, those products will be reported within our fiber segment results. These changes are designed to enhance our go-to-market approach while also benefiting our cost optimization program. This leaves the integrated solution segment primarily closures effective October 1st we are renaming that segments to innovative closure solutions which is a highly profitable and critical growth focus force please turn to slide 6 our Q4 results reinforce our strategic focus on four target end markets in customized polymer solutions Volumes were flat year over year. However, small containers continued positive volume momentum driven by the agrochemicals in markets. This is an area where we have been investing to grow both organically and through M&A. Mid single digit declines in both IVC and large polymer drums driven by softness in industrial markets in EMEA during the quarter. offset the positive growth in small containers. In durable metals, volumes declined 6.6%, reflecting softness across industrial end markets. Our team remains focused on managing the business for cash flow and optimizing cost, while maintaining a strong position that will capitalize on growth as demand returns. Sustainable fiber volumes declined 7.7%, reflecting approximately 1.7 million tons of URB economic downtime during September. Converting was also negatively impacted by continued soft fiber drum demands. Integrated solutions continues to see volume improvements driven by closures. These products, generating 30% plus gross margin, continue to win new business through innovation and cross-selling, including on our DrivePlus digital platform. In wrapping up my section, I'll close by pointing to a few items which clearly demonstrate, through the noisiness of Fulia 25, the value creation occurring under our strategy. Our polymers and closure business are growing. Our cost optimization is well ahead of plan and it has expanded to 120 million of anticipated total commitments. Our free cash conversion was nearly 50% in 2025 and expected to be at 50% in 2026. Our performer leverage is below one times. is a strong, doable company, and we're accelerating our value creation. I'll now turn it over to Larry for the financials on slide seven.