Greif (GEF) 5 Dec 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Greif Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the call over to Bill D'Onofrio, Vice President of Corporate Development and Investor Relations. Please go ahead.

day, good and you, everyone. Thank Fiscal Welcome Call. XXXX Conference Quarter to Greif's Earnings Fourth

During market Officer, Day on optimization well Chief provide our leading his year, the today, call thoughts an be Executive landscape. He undergone the update the important as will the which provide will have our you on as Ole week. operating fiscal we model Investor XXXX effort to over current past next an will Rosgaard, also

Hilsheimer, will quarter Larry an overview well Our our fourth Officer, Chief provide of our financial as Financial as results XXXX.

please In questions material accordance with individual basis. Regulation Fair we an from on topics Disclosure, because consider discussing are Please you prohibited ask important turn X. you Slide with information nonpublic regarding to

will and make plans, discussed. Actual we future events. involving statements beliefs could to call, differ from expectations results forward-looking today's materially those related During

referencing we today's to comparable most directly reconciliation will financial in Additionally, appendix the that found be measures and the be the metrics certain GAAP non-GAAP can presentation. of

I'll the Ole. to now presentation turn over

Thanks, everyone, and for today. joining morning, and good thank you Bill,

to start, Unfortunately, one an we and discovered we want release. year our address and just I released subsequently matter. Yesterday, earnings. the reissued error XXXX XQ Before we full

proceed over to to Let remarks. me turn this remainder address with before of Larry we the Larry? prepared the

tax original on income Thank our of business. in release earnings incorrectly the Despite had usually our $XX disposal Good we million an you, which to morning. a Ole. error related dependable quality in a of included we had expense controls, gain

was million, A excluding was reported our impact result, income, and earnings $X.XX of diluted share. $XX.X originally a our As per Class the per share net adjustments QX

and share, respectively. $XX.X those $X.XX corrected, figures are million As per

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a fully as in allow year, Over organizing the core the in us operate that and competitive the changed enable company size we of to past manner us will the future. double company we how a have to fundamentally leverage our advantages

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synergies diverse That made more we conviction of total from biggest market industrial this strong addressable than enables clear perspective have products. packaging the We comprehensive opportunity see fully of also in said, in us operating other that have market a and serve to companies. portfolio we products, growth the growth our polymer-based customers which end is

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Slide Please turn X. to

the have X our have changed To made the our strides way and years, fundamentally operates past Over strategy. significant we Build on business Last

to million the into have growth over a Business $XXX fiscal business business end optimized at completed be X.X collective and and GBS of impact model, invested innovation. Greif to cost changes with provide least our of to $X the announce billion optimization of these accretive us of System of confidence enhanced acquisitions, and We The reductions margin allocated the formal in capital XXXX. technology and accelerated by now efforts

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our QX turn to Now on results X. attention let's Slide

Management, industrial is than XX Institute current through have operate to the Since longer XXXX excellence Supply we period, industrial continues seen period in historic November. industrial which of contraction. an U.S. months tracking business against began the of Our with of not activity by contraction

Our environment guidance. Larry macroeconomic in keep performance length critically been protracted our as cycle XXXX it during has important is this impressive, mines, of soft this the but to presents

the guidance. fourth both opportunities Polymer November in our any the basis. sentiment were said, business. sentiment the demand increased quarter, although our market, call, that consideration our our bullish has sequential remained customer On commented base model which but business pessimistic that expectations are slightly volumes notable when still In QX is less market rather to global taken region, remained into formulating on a metals from strongest driving outperforming a XXXX on into specific we EMEA into QX heading was overall optimization That our attribute and EMEA we not and down ongoing to fiscal we in and cross-selling end

through market, GIP durable softness America, to seen Metals North Our GIP Overall, in the has a recovery with EMEA. same business. And offset while and URB XX% same-store operating on demand as has demand shown remains our X% operating and largest still North down of not contraction products mixed is over our at business continuing polymer-based choppy America In still November. We operating still basis a down leverage the X-year which rates a fully okay, has the Containerboard it in a significant in although quarters currently anticipate a of we few the at is those has with believe untapped year-over-year been extended this is on recovery on consecutive is almost are rates volumes growth PPS, running quarter. quarter. volumes XX% of over basis demand result operating X-year basis cycle. XX%

of is portfolio. are and a on year-over-year pieces reminder, APAC soft, LatAm quarter. regional those is be to a continued our overall factors the small LatAm offset about improving, basis the of in demand APAC has As while neutral but

through X financial on results. And Larry? to with walk that, turn over our to I will things Larry Slide

all you, our you Ole, this call for Thank morning. and thank joining

to consistent million quarter EBITDA fourth execute to environment. results was million operating Fourth adjusted Our last the demonstrate $XXX compared our regardless of year. ability $XXX quarter

However, also million that million on quarter compared acted flow $XXX we appropriate an business capital $X from free working the cash as levels. our identified was various adjusted [indiscernible]. and to year our decisively QX unplanned last sentiment $XXX demand Hurricane to Fourth exiting million headwind experienced reduced teams

continue future. to While and take steps presence, managing we results towards the

unlocks we excited Investor [ Day. to Drake model are and which [indiscernible] more finalized value about Ole we new talk levers our ] operating for As optimization effort, mentioned, significant

week, customer NPS of the At XX. we service. quarter, completed Net loyalty rating to is and legendary next shows considered our the Day This that of manufacturing will above financial of our Investor correlation advantage This XXth between well the the provide significance significant customer outline advocacy. clearly high performance information we our increasing and continually XX, resulting which is score competitive industry. level in of proof customer Promoter world-class of a Survey in engagement is The for benchmark

significant Lastly, and progress our we ownership X synergy now over of made on and into integration capture. Ipackchem are months have

As the since we sector by has low operate the was at significant destocking volume have to and noted in the ag continued year then. quarters, few in previous impacted

high the than I in year less in which that will that on first have full ownership guidance. we business contribution gate, our convection financials, While EBITDA case we overall in will be anticipate of business touch

the through Slide to turn X Please results. GIP to walk

but in intense business, basis margins. million overview, EBITDA [indiscernible] resulting in we stated our results we EBITDA in finding the team given over QX. GIP sentiment $X XX down philosophy on volume uncertain Pricing We proud provided but our experienced resilience. team value competition our and generally Exiting global up has of finished GIP Ole market QX, to are is is been environment his As very adjusted pessimistic. ways points demand sticking the the to win dollars, quarter our in on

Slide Please results. for PPS XX turn to

XXX an business of decline points dollar million paper margin of year-over-year. EBITDA $X and experienced basis decline Our adjusted adjusted EBITDA

driven is flow-through Underlying the guidance. improved to than imbalance comparable. new pricing our which XXX to heading recovery have of the Containerboard to tube and XX-plus volumes in our recent We are operating result of less recognized demand. improve our margins margin of price which mixed. due the of fiscal paper EBITDA continued 'XX has and anticipate is rates business that and favorable points corrugated endured paper basis core throughout in soft generally will in This Fiber However, boxboard continue the industry, changes, the by Solutions and solid continued lag sustainable demand [indiscernible] overall the in contemplated some cost positive OCC that year. due segment remains volumes by is to core into as paper percent sequentially business a

Slide to capital allocation. to turn Please XX discuss

our XXXX exactly Day. the in into out cattle Investor years strategy, our deployed laid X we priorities Now we have build-to-last according to

of Next will week, will next allocation our go-forward which evolution capital growth for the fuel I on an framework, provide update Greif.

is Our reduction. debt top near-term priority

relative XXXX EBITDA leverage with fiscal low Wind of acquisitions, X.XX a at the X.Xx. to Our in target a in range coupled our our denominator end to ratio. resulted denominator the down scale covers will our recent X calculation ratio EBITDA leverage of quickly

in will our paying within get the range. to we down However, on intermediate focus target debt time,

an In able acquisition during and target, XXXX, of and at now the this we'll our we to in leverage that playbook an beginning still stated made debt pay to down utilize recession. were same manage industrial of externally advance we industrial recession,

discuss fiscal Slide turn Please XX XXXX our to outlook. to

we Given prudent guides which present in commented end it the XXXX. trends, continued fiscal to most feel today, to market is and remarks throughout quarters, only demand on previous prepared uncertainty start mixed we and again low have

we year to positive that fiscal a are range. is important negative that yet see have We in presenting to gives inflections changing our XXXX. also confidence in It or significant remember any

months Next quarter. on end X-month year with XX fourth and a long be XX September fiscal will long

drivers, reason, understand on bridge to provide like you fiscal XX-month guidance, an that basis XX-month guidance. from our low-end on a can basis you you key help which XX-month was with few I'd calculated our For to 'XX's guidance XXXX to

'XX seasonality any year-end. did at Fiscal impact have not significant

fiscal million a And point multiplying XX. key to $XXX $XXX have few is heading taking it fiscal and XX tailwinds XX-month dividing 'XX. we That 'XX. for million simply From invested so assumed by fair EBITDA there, a an you gets comparative it starting year-end point by into starting of 'XX for

most uplift, date the this of RISI of pricing in change $XX metals is as recognized coming largely integrated, million from and polymers, and OCC First, with price which cost price year-over-year. of paper neutral cost call of

which MA less from ownership uplift U.S. from disposed of of period contribution fiscal our Delta EBITDA year Ipackchem business. incremental million $XX incremental a the represents the Second,

XXX. you is continuation an the organic trends million segments. of Fiber in by to each of up growth an uplift in new Third, tailwind on headwinds in our Metals Polymers Solutions volume bring rate exit XXX volume & despite of mid-single-digit integrated. tailwinds of based from low driven and $XX single-digit Those That primarily assumption

headwinds several have assumed also in guidance. We

Let low-end me take number. understand up you our through at those million guidance to we how end $XXX help you as

from U.S. unfavorable $XX dollar. million driven strengthening by the a year-over-year FX headwind First,

from Second, model costs increase Plus of and goods medical other benefits elements, Greg also $XX ]. from IT a and which items in license customer investments $XX SG&A our cost in as business in from new to operating operating due and commuter headwind investments increased sold million million as reflect such shift the a to is million $XX headwinds into reflected fees, from cybersecurity [ which digitization, additional we

In addition XX-month our to XX-month SG&A, these fiscal to fiscal contractual creates applied years. a to of fees change headwinds as year-end headwind

headwind audit your change don't example, The fees and an this year. fees considered low-end because For have XX-month guidance. final tax you is in

inflationary increased incremental million volume costs. bring low-end us Remember, manufacturing factors incremental but an cost $XX to offset guidance. and to factoring tailwinds this the is assume our in Those also partially and transportation in also assumption, the headwind We XXX. attributable

assumes of it but only impact full known the potential headwinds, all tailwinds. So explicitly

Ole things XX With upcoming of that, I'll turn Investor back provide with Slide a to our you on to Day. preview

in Thank your you continued for today all for interest and Greif. in dialing

open. demonstrate well positioned teams I'm the we Registration use to proactively global leader will we next our essential the highest earnings global a will deliver Day to done strategy. you time. of work is compelling, our continually have Greif a be for our market Last Build stronger return. last valuable shareholder to event Next still accelerate your Investor since that and to and Investor week for week insightful at industries power of capital Day, proud our anticipate allocating and is

investor attending. And team at our so interested And please are you e-mail day@greif.com if is in that investorday@greif.com.

time will for today. open for the you please lines Operator, your you Thank Q&A.

[Operator of Instructions] question be first from Sidoti Daniel & Our will Company. Harriman coming

just where regarding focus. next looking bit the see we don't where from been about then, feel given to investment too customized you've environment. regarding from in a if you of for some provide that solutions. you incremental week's solely much the Solutions to the And Larry, in the more company, if But level but out little want after Obviously, is else I going could Polymer a just commentary perspective, Day, steal Investor to future are how difficult polymer could acquisitions past what to you be a able in not it's expect accomplish the leverage

Solutions invest the margins for cash thanks Daniel, for primary place free can in because that's can And and of also we that is of XX%. the we Polymer XX%. question. one a flow well growth we where business, excess Obviously, achieve conversion achieve in excess of in

why runway us to demonstrate that at market. very, very also we that's attractive The market. to it's is invest in will long Day, so that So in that Investor

] will be in and have business, a will a but metals-based small as our It intend saying which I automation. closes But relative part I that cash very, we of still business it's be we fiber-based amiss don't And attractive [ that, that very well, overall volumes will also there, it's we is primary if business, do a especially and investments generates be expand to capture that, automation. maintaining in. will a mention metals, machine the

much consider The I mentioned will thing for often our are pleased like with. -- and to we pack paper transaction supplement Yes. that which operation, very profitable coal would with also very this integrated did, businesses is is we we downstream continue very, we've the

So but much those well. opportunities will focal opportunistic we that as are those are as a be not on point,

change recession of rates, where down that this of we cash as able would because ratio gap ratio, to right reductions, volume there. $XXX the comfortable us down at normal below that further very, rapidly if would industrial will alone, because volume just million margin just replaced at Relative rapidly to be occurs and how the impact the to we with recovery pay the take we're us aggressively take and from leverage down feel of very now X

So focus at, down to priority it that of a ratio. we're for comfortable pay us is where we're debt but

be Baird. will coming Panjabi of question next Our Ghansham from

through your productivity? then do EBITDA flow about you program, kind $XXX came of I target relative function you And Is substantial network think, XXXX. the because it -- base. details SG&A how next And your that something the various -- guess and Can across to large cited, the a then quite we the us allows back more on think how about? I cut also, over buckets the million think just of you how give should new operating structure to timing to how I elements over savings going is cost that you X that realization years? said also, do so it

Yes. Thanks, Ghansham.

of we're First broken to fixing I that's all, stress here. anything that. want not just

good, we are we but to We and very that's our why even That's ambition, started better. the want program. be

organized as right level us and the now said, the do we I There's this way really Sigma -- enabled buckets. and high So operate business ourselves to at has Lean it's now systems have Six now. that with we our X combined

by is first operating network facilities X.X our the new market we operate and new the world. structure and also we Obviously, we systems. more And during the and the second Day, have in accelerating simply XXX then the is we bright how that optimize optimization about Kim benefits Larry are further will talk organization. structure. SG&A driven Investor the that can business market We efficiencies do network believe will about around that talk GBS in that

say. than as realizing to the we $XXX savings we is before Obviously, like would the out. rather later, difficult sooner but anticipate it's outlined full come when the to As million to

Yes.

relates to it want the Because starting Larry, is months quite component. for it point you and a off specific we versus legacy hit is if for the the volume to of seems able then large, improvement at volume number? in I the starting on to Okay. do next to -- obviously, being volumes can? on And which XX, you your there? to your as outlook just businesses, the EBITDA can year, is gives in construct your that XX of end, you mentioned math the what you're $XX guidance. confidence clarify What what adjusting few things. across quite as assumption base Great. million for low just And terms

Yes.

now, business corrugated containerboard We are uplift seeing that in you have time seeing -- been and some for our Ghansham.

So a Solutions is paper from well. good of that bit the Polymer as segment. lift

this to investments confidence recent our bulk we're of in did sheet growth going sorry, made the container will a see months some have on that feeder let a We of our the back and contractual me what open I'm from business. intermediate contribute was go We Ole, Dallas the paper the and business. we've the... that June win up in lot. is in we ramping had year, business significant that And

postal that just around U.S. the XX,XXX of XXX,XXX And from feeders business total was sheet Ghansham, you that. that's the and to capacity the down is service, the tonnes. of won We give effect Yes. idea tonnes, an

us, contracts. major year So win a and that's multiple that's a for

contract out win. well. that sheet be Dallas, of facilities only serviced not will was And significant a Yes. as but feeder our it But other

we So fiber in business. of have the the side confidence great

in so business platforms. you $XX broadly nice that $XX made, across business, all growth -- our Solutions Our million, just IBC give $XX million our there in we investments we've definitely And roughly Polymer X million have let me prospects. fiber

$XX about our we're million, at $XX roughly, volume in of million Ghansham. actually roughly metal However, contraction solutions, looking

hopefully, helpful. that's So

Our Matt Raymond from James. next Roberts will question be of coming

if could further frame like end your have recently announced and further look very the through on what what in of me any EBITDA decrease could some and increases. high-end speculating independent But in that to of pending mix kind are bridge. that could OCC? regard price low price, you a demand, in help maybe space on kind you without And your the containerboard reasonable range of early peers customers gave cost price XXXX increases given hearing or appreciate from read-throughs passing what color I ultimately, you on Larry, price thorough scenario be

Thanks, Matt.

that But things. confidence that happen. a at is put could biggest real obviously, of range, in we just if we I'll such uncertainty with driver the things in the high-end give is a range guidance just wide some together. term. this a had you us industrial following can variety look, when And create recession And So for of a going

a high-end on is put then number, focus You everybody to going any midpoint.

[ So to up. ], think, I folly something it's put

said, we space, just week X. and out that liner also But price right now. space effective strong $XX January medium Obviously, dynamics our containerboard believe, in are customers very increase. increase demand on supports the a $XXX that on to rolled we the And this price that in

this of level. inflection. gains industrial still levels The other roughly out have is We XXXX when of to volume million $XXX centered will there the the our come economy volume that recovers volume

sorry. So or you. 'XX, -- it's 'XX 'XX Thank

So those there. just drivers very powerful are

million we do add out spelled that You gain of initiative out what to $XXX that, we the year. this

So we drivers there's built of And we positives. negatives the and for the all like in said, none a lot of upside.

year. optimism this So gives fairly a good for us

can I as interject if promise Matt, well. that you just

of So will sort volume length had how market of look we this what at and contraction operates of if the we that terms recovery. drive in the

look average things And earlier, years rate X that's XXXX, at over goods. I a still the interest believe, below X Most long-term also, you for chemicals home people housing driven. at remain they been the and or lot, and have Existing they lowest impacts you sales low. are durable you they're home drive below if And fewer sales years, order loops I buying been since and the of look end these when comments markets, historically last underlying PMI, at sales, the they that the made U.S. So then now. the XX. look at

will only effect sales, customers' will and And home have our but not that up on going will hopefully down, rate interest business the opening major as a so that start business keep our when well. existing

So watch. that's to one

business. polymer side And I helpful. ask maybe very the if Ole on and of the maybe Larry, could

gains organically you if both that how up last IBC Maybe plant Are in speaking demand mean lingering incremental on could for capacity? trending you've I and on discuss give competitive And pressure you discussed price more the space? the on share the inorganically. in business that Or price is opened grown that for initial contrary, So any polymer or having to Malaysia. still that quarter? broadly those you products, recently you

First don't operate the margins of That's But in individual market at I that end is factor an comment on well can that chosen all, you we polymer into plans. if look overall in end achieve we fact, to XXs. in, premium of important where our space the segment excess of mention. XX%, the

in The that the chemicals. that growth a agro in ties focused with arable world, packaging other into we see food the That growing, we it's sort now leader we demand the means made, AgChem land is, acquisitions available, in why drivers particular, into that the is of really ] we in for by in market. that's but That global which yield market have for population lands driven in less market. also the on that and And the market [ are there's becoming on on. find leader a higher there's getting we

will to So margins enjoy market, grow customers and and our we grow will helping I'm in confident we and yield well. as good continue that to continue

America next our Securities. Bank from of question of And coming will Staphos be George

deal Can little where of remain a model. kind quantify some going a little the covered Can a it talk spent you forward? are that lot you developing know about Ipackchem little cost you drivers? confident on about little optimization. a to I this. want you you the of and you Obviously, I bit covered Obviously, you've can back in Secondly, just with but now, bit the time underlying you push a bit to relative bit. talk why the of variance So

gave would You in have you of it you the $XX suggest million by and some quantified us cadence. target window a terms that

So and be the and what had biggest follow-ons. tell to giving outlining I hit able a of couple fiscal numbers is might us pause 'XX what you [indiscernible] the for

that, do the there. played this that's bit But then before just markets way little answer business I now. Ipackchem, when into in our But Larry the a me the let the contraction question. go I'll right that that, let And saw deal obviously agrochemical Larry after we first on through say closed the going case numbers. George, we

look inventory I at cost -- had $X you we impact we adjustment that Yes. mean, that million had.

leave we $X Ipack us compared business which about to short thought case, of million Our $XX $XX million. still million was from plus on the decreases, about with $X is our 'XX we synergies will back farmers out run million uplift are That have on rate synergies now. get we this obtaining But line in year. right volume their we all that confidence doing the high dependent manage once that's they coming to bottom of volumes the are everything can volume

strategic they're that of buy business. they're on back. we're confident long-range of and was thing. for I the using it will diluting less when that all profitability you kind a Eventually mean things, and things things come And obviously, have sale buy to

your literally of the initiate put our We our it yesterday. question, this In to cost decision to announced terms this I couple in colleagues George, mean, weeks. other to just arrived we of at effort context, in takeout last

and $XXX in not bucket much over in million period, confident or year about each much on at how each mentioned, Ole ranges elements to point get in of but that we have are how much we're have much 'XX to X will We're not in identified done confident able that extremely time. in this each be number We get of those we X-year 'XX, going done 'XX. how the how

It have up, it have had But I'll right? able doesn't there. build to that mean assume get you Larry, would a by you somehow, been I right? if 'XX, I to Okay. up goal that you leave to think just you show can

not benchmarking do we built and data by year, on have based of identified or our We've ranges this all but do Six this that month based these in analysis this our have ranges, can Sigma programs year. month you on George, things the this of

there all every get haven't "Look, and time that, do. I'd lot all this don't been you've point, the run It's how -- you to at a it -- I It works. yet. day not to hard just more got work laid We to gets out in that's saying, a business. back just respect there's that fair it." say doing I'm and

is This on have not for been one will it's we while. in a target XXXX. achieve we And a working

And so to quarter you tell next said, the will difficult Larry that. be that or as this it's

but you definitely in. not all well. -- tell as it's can So I that

some to Yes. your know here or a run be you don't bit and in you do Understood. little negatives what how we that but that's you advocate of and difficult, what it's to trying XXXX positives Can talk tariffs the your about terms share? we Listen, do now do might right, right visit, for what for we're volume and investors, outlook the you're I say, but beyond. here. know can of evaluate you

mean we experiences the that I last now the obviously Yes. from time they imposed. had tariffs, don't

we benefits time, means be and point really business, we remember happened into You play our into if would our And won't produce that it to have materials does raw business source of last view. a that large, prices saw locally. to means and our tariffs sell steel our that positive go locally. locally we play by We customers tariffs that us. which from probably it [indiscernible] up,

So what that's us. calculate with don't it benefits something we

net effect the So that's of tariffs.

obviously, all buildup. power better the give the the again, guessing of Net a quarter anything rest in year of terms Any us over can you for helpful. year, builds how structure. whatever thing, help I'll slower be Last and to the might will be guidance you and It but and be it turn terms first is this it in would on of Okay. thoughtfulness trade than appreciate earnings quarters, the worse for would relative do of it trade the I'm first year, there latter look of of the over will ramp. the portion the more

in just basis. Yes. George, not tends be what would expect guidance, about metals that price inventory. tends have as ramp. and index mean, on to decreasing I our bag through adjustment margins do mechanism the slightly at -- we obviously, that were clearly our business then And usually, higher-priced July. would changes into to we built lowers a be is point do quarter since first on slower contracts a some been price a have because to our because we in a little through quarter Also, announced recognized first on bit pricing, our our although what longer steel paper play we bleeding with of prices the And

So through year. you part early of the of the impact of out have little that a the the bit we year play rest positively in that

say January about for X. effective Larry, your X or increases Did price you I'm February were sorry that. me.

through basis roll the mechanisms. delayed to X, but they January through contract on a tend

And our Fargo. coming next Hajde will Wells be Gabe from of question

I'm this. know pretty sure I the answer to

overhead some that from underabsorbed But your You've you the standpoint? -- think, out, laid that about I referenced that your -- limit of or context the or opportunity the a of now $XXX kind overhead. twice et like under in of of consolidation, is fixed ability volume million fixed which way million to rooftop it $XXX monetize cetera. savings looks unlock Does

No.

you of my is EV transition. your any different work for sorted seeing experiences and multifamily guys course, consumer ICE of In you the EV, living winter, there into from sense a then, that things might less versus But kind in houses, towards like mind like versus versus can that demand preferences disagree. things and in this any a given that maybe other that -- customers the be words, additives affordability? push you for or shift engines to and single-family maybe have and a point then reactionary guys X pop lubricants I've million permanent $XXX stuff in got change do perhaps from feels what industrial an months is in XX bit your structural to little And

actually -- me I'd sort in take Yes, those of say let reverse.

United So head Columbus, Ohio happens market most demand has in under-housed in up housing this higher be never country mean the I to States. right now. been the

So shift I think there's permanent don't multifamily. a to

about been about are home and lowest point it new is they've love -- demand is real now to a let I existing homes in also who for single would into there's existing since of home at be a right us people the [indiscernible] me think there of XXXX. clear, now, get lot But driver less sales house. multifamily than pent-up the sitting sales

better with it, buying to in put those lubricant carpet like people move product go come this. well, That a I'm room take I when house particularly of house lot selling people also go the when home this And I it. one then to they're look the you you didn't in, way. and this that So in, you you and out, freshen drives up lot they or you really a paying can decides going homes, causes the say, so you "Oh, in this stage mean need " in, sell the get just love this Then to of things. change to stuff new the demands, sales, spouse it. [indiscernible] business. other or

In trend of be kind mean, of and that consumer and long-term experiences stuff. rather that shifts to could consequences. and look, thing, would terms demand I have a the macro than that

people the don't a I the you indicates analysis third vehicles ago read demand lubricants -- not vast that EVs, the the number did that's for is long-term is of or haven't we element EV car. a need think a anything that, mentioned, in in the the that that our EVs engine all years a thing. the things in there axles actually as within there's plants. actually in themselves, it's machinery really And historical much and of as ironically, is an industrial lubricants combustion lot and On

still on people has And XXXX that by look X% you longer. towards requires run see it's out. and CAGR grow their is driven the loop. hybrids, over at which cuts, you EV oil who what cars The CAGR actually like is plateaued And if

any that. don't effect of So we see

of trying see kind million. scratching standpoint. our has love been that what volume we'd a -- head mean, to just I guys you Listen, understand the from to It's we're $XXX impediment unlock

that in terms that doing their Investor presentations. say, we [indiscernible] to next at Both going just that be I'm $XXX actually. week, Day million, in of color will more putting will cover to

go and maybe the pieces leave terms dissect of I'll any different to Well, kind it tried to I and mean, to of own be customers trying is your are things -- there. footprint response are in also this in I proactive doing know you your consolidating of was George I going there. there. to maybe gone But from.

resulted don't we mean, I this we would -- particular us any it's that. but our obviously that, if in not Obviously, do fashion. is not No, address that to related plant, something not needing that a customers related to

maybe bit or $XX to synergies. data them want appropriately. math fine but question, was The Last the gave associated and Ipackchem try with you or point, diligence of $X EBITDA putting a Okay. to points I million use little a too some million

Ipackchem but goes inflow I the of think fiscal in or 'XX. from so you 'XX, sale million Maybe seeing that's $XX of million was I'm the told of $XX And you said was 'XX million $XX less fiscal contribution then away. delta. that in cash EBITDA a us Delta. that

pretty you So that are on I the not guys math? Ipackchem? right is mean close Or

Yes.

So on Delta, delta $X million. million, for X.Xx. which sold was QX in headwind about we about The $XX was

for from is guidance Ipackchem, So is last in get lift end to year-over-year year for the little the on run Ipack coming were the $X this $XX year, low results we net rate million. our year. of the They On a $XX million think a million. I back-ended delta. for that

demand plan, driven, million it's trend short our all is business of Gabe. still So XX-some which

helps that hopefully, So you.

And that is XX. $XX million an

yes, XX sorry, it's obviously. months, I'm Yes,

question Butler from Our Stifel. of next be will Brian coming

you have built is for the you're of maybe some new 'XX. growth resegmenting that guidance? and since kind what give organic going of Maybe of a low-end low-end into kind guidance you and down color segments Can around the path

we when what X% tubes of We've in at is growth to about mean kind containerboard and sheet URB, our we've on Dallas X I to is seeing and built corrugated said, corrugated X. kind lot tied growth for the investment sheets we're in our as I the our cores Yes. CRB The business, look X range. a of trend business. -- got about and of we've got theater

roughly X% Metal single in I said, low Solutions, our were plastics Our it's and digits like down. then really

way. on gone coming but to over XXXX. Okay. this we've savings, just in It's $XXX a maybe couple in $XXX of not the I'm know going And times, million another ask I all then million it of kind

there's So 'XX. something in

low-end your X a but that You statement? have you don't is, know in Is that guidance. what fair

That's just accurate. -- that's

Okay.

$XX So there's know, -- million $X million, other again, it's something X. I don't than whether or but it's

We'll in is get you, then Brian, our And fiscal 'XX year. fiscal year. it's this the remind just to 'XX, baseline, something

$XXX for million? 'XX the what,

million savings $XXX is from . a The XXXX baseline.

Right.

savings years. in going you're this year, the savings next the 'XX. So but get to starting over X wasn't any There

Yes.

coming Truist. will Roxland Our next Michael be question from of

does apologize containerboard guess today. I assume your This the I is of increase? [indiscernible] Mike price missed on full if Roxland it in the I earlier but guidance call, just for implementation

No, as [indiscernible]

there? for then are What I are your And And just, it. Got go where thoughts seeing URB? to on URB. pricing you guess, switching what might

We Yes. on don't talk increases. future pricing

XXs being grades haven't our any of kind robust containerboard. seen the the lift in most real that much rates really or have pickup. inflection of rates of in rest of is for that cores said, sort operating paper. we've we but the portfolio As boxboard of demand the demand, of no been the stable across drag segment, in in business same paper And The other than

last a value-added discussions to from just any away in there switching maybe there for paper? has is in further general, -- pricing And on pricing or more just been then me. thoughts Understood. around index model index pricing any

resi Away model? from the

Exactly, yes.

we're not don't mean of that. I We that. part discuss

are We a in containerboard, small player.

there's So been to no knowledge, developments. my

George is Bank question a of America next follow-up of from Our Staphos Securities.

boxboard maybe more X if and in and if I'm Mike's the of questions, and your earlier, wrong than do answer containerboard, a seeing have you're markets. Can -- growth me tube seeing on you of you're any thought correctly CRB, think provide yet up the other you I bit X%, you you're curious, I I lift for to in looking I and one correct perhaps question core, much And based in on how you not paper of a and to URB said I was what heard the color in markets. prior

pun put no me all together, help boxes So intended. those

the corrugated at down is Just sort our of just industry so X%. and and Dallas all, markets, then first if excludes APA at of X% we -- look year-over-year, demand if that you is the numbers, the look up on

we're -- we flat core, and up actually if In tube X%, But paper supports slightly QX. like there. improvements base. demand, at specialty but in So from softness year-over-year. the products tube and adhesives. products The down we it's North by protectors by from growth that's look spin although are expressed we've you low like we're really offset make, American market end a That's

So you yes. refer any know comp I have if don't to that.

Our Gabe next go Wells from question Fargo. up Hajde of will

million I relates the then this technology, it inflationary Larry. As sort is like to you of see what that. $XX XX year, of discrete called of out million, $XXX medical headwinds And items things

question it's next on we about for then And is, from some appreciate a of through are that again, incurring think go-forward I And basis? this you that million? inflation CapEx the sort a we're to secondarily, cost, of treadmill OpEx Grace $XX any should whether week. million kind is thunder So new or implement feeling $XXX

Yes. The manufacturing our was cost overall in increase inflationary costs. increases

guidance. increases -- So low-end impact the -- at we're in into demand time low. these we got had that is when tying -- And to just some volume a of that it's related cost acquisitions lift all so said. it's we've costs But obviously, from all you've

the of but because dynamics. the is volume down just pressure demand you've So added costs, manufacturing

So It's just margin million that that, back lift $XXX to then to goes squeezed. that the volume you've recovery about. related if got that comes

we quarter, was You million million $XXX about million in in to $XXX acquisitions when in that talked about $XX $XX -- PPS, space, number. in segments, last the might the remember -- our old million, that GIP $XX we to about talked about million it's up about roughly

overall inflationary things cost those will Kim will part after but operational of the and talk more lift about next yes, there's be of labor all manufacturing items comes going So that And through just there, cost those Patty efficiencies. into that in kind week. and it

with discrete costs cost -- Okay. $XXX there fiscal savings? implementing any this this in 'XX year And are million

not. we any on that there -- and some consolidations plant will any go likely, I obviously, things if there the most obviously be. long-term do into to you benefit, equation Yes, severance-related costs that will count -- goes would generate extent whole to do of that obviously, the do or head extent or before you to but moves, obviously that that something be like the that mean,

back call closing And Rosgaard Ole I remarks. to would for like turn now to the

thank And Greif, once all you see week Investor at Thank hope your in for you next you. to and interest Thank we you. more Day.

for today's And participating. you call. conference Thank this concludes

You Thanks. disconnect. may now