NEW YORK - Greif Inc. (NYSE:GEF) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 6.7% in after-hours trading on Wednesday.
The industrial packaging company posted adjusted earnings per share of $0.85 for the quarter ended October 31, missing the consensus estimate of $1.09. Revenue came in at $1.42 billion, up from $1.31 billion in the same quarter last year.
"I am pleased to report a solid fourth quarter and full year 2024 result, particularly in light of the continuation of this extended period of industrial contraction," said CEO Ole Rosgaard in a statement.
Net income for the quarter decreased 6.5% year-over-year to $63.4 million. Adjusted EBITDA fell 2% to $197.6 million compared to $201.6 million in Q4 2023.
For the full fiscal year 2024, Greif reported net income of $262.1 million, down 27% from $359.2 million in 2023. Annual revenue increased to $5.45 billion from $5.22 billion the previous year.
Looking ahead, the company provided low-end guidance for fiscal 2025, projecting adjusted EBITDA of $675 million and adjusted free cash flow of $225 million. Management cited ongoing industrial contraction and lack of "compelling demand inflection on the horizon" for the conservative outlook.
Greif will host an investor day on December 11 in New York City to provide more details on its strategic initiatives and 2025 outlook. The company also announced plans to eliminate $100 million in structural costs through various optimization efforts.
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