Graphic Packaging Holding's biggest risks in the FY2024 10-K
- Graphic Packaging faces substantial risks from raw material and energy cost inflation, debt obligations, and product substitution threats.
- Global manufacturing operations expose the company to foreign exchange fluctuations, geopolitical conflicts, and facility disruptions.
The risks most specific to Graphic Packaging Holding
- Industry Risks
The Company's financial results could be adversely impacted if there are significant increases in prices for raw materials, energy, transportation and other necessary supplies and services, and the Company is unable to raise prices or improve productivity to reduce costs
Increases in prices for raw materials like secondary fiber, wood, and petroleum-based materials can hurt financial results if the company cannot raise prices.
- Industry Risks
Competition and product substitution could have an adverse effect on the Company's financial results
Competition from plastic, shrink film, and alternative paperboard packaging producers can reduce sales and market share.
- Industry Risks
Changes in buying habits and preferences for products by customers and consumers could have an effect on our sales volumes
Shifting consumer preferences and pressure to reduce packaging waste by switching away from paperboard can depress sales volumes.
- Operational Risks
The Company could experience material disruptions at our facilities, that could adversely impact the Company's financial results and could increase the cost of insurance and level of deductibles
Natural disasters exacerbated by climate change can cause material disruptions at manufacturing facilities and increase insurance costs.
- Operational Risks
The Company is subject to the risks of doing business in foreign countries
Foreign operations in 20 countries outside the U.S. generated approximately 30% of net sales in 2024, exposing revenues to currency exchange rate fluctuations.
- Operational Risks
The Company could be adversely impacted if the Company is unable to successfully integrate acquired businesses
Failure to successfully integrate past and future acquisitions could prevent the company from achieving anticipated cost savings and synergies.
- Financial Risks
The Company had an aggregate principal amount of $5,209 million of outstanding debt as of December 31, 2024
The company carried an aggregate principal amount of $5,209 million of outstanding debt as of December 31, 2024.
- Financial Risks
Because of the Company's debt level, a portion of its cash flows from operations is dedicated to payments on indebtedness and the Company's ability to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be restricted in the future
Heavy debt service obligations under senior notes and credit agreements dedicate significant cash flow to interest and principal payments, restricting future financing.
All 14 risk factors
Headings as the filing states them, in filing order.
Industry Risks
- 01The Company's financial results could be adversely impacted if there are significant increases in prices for raw materials, energy, transportation and other necessary supplies and services, and the Company is unable to raise prices or improve productivity to reduce costs
- 02Competition and product substitution could have an adverse effect on the Company's financial results
- 03Changes in buying habits and preferences for products by customers and consumers could have an effect on our sales volumes
Operational Risks
- 04The Company’s information technology systems could suffer interruptions, failures, unauthorized access, or breaches and our business operations could be disrupted, adversely affecting results of operations and the Company’s reputation
- 05The Company has contingency plans in place to prevent or mitigate the impact of these events, however, if they are not effective on a timely basis, business interruptions could occur which may adversely impact results of operations
- 06The Company could experience material disruptions at our facilities, that could adversely impact the Company's financial results and could increase the cost of insurance and level of deductibles
- 07The Company may face a shortage of skilled workers and key management personnel
- 08The Company’s operations and financial results could be adversely impacted by events outside the Company’s control, such as pandemics or other global health emergencies, or geopolitical conflicts and other social and political unrest or change
- 09The Company is subject to the risks of doing business in foreign countries
- 10The Company's capital spending may not achieve the desired benefits, which could adversely impact future financial results
- 11The Company could be adversely impacted if the Company is unable to successfully integrate acquired businesses
- 12The Company may not be able to develop and introduce new products and adequately protect its intellectual property and proprietary rights, which could harm its future success and competitive position
Financial Risks
- 13The Company had an aggregate principal amount of $5,209 million of outstanding debt as of December 31, 2024
- 14Because of the Company's debt level, a portion of its cash flows from operations is dedicated to payments on indebtedness and the Company's ability to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be restricted in the future
Other Graphic Packaging Holding 10-Ks
- FY2025 10-K risk factors14 risks1 new1 dropped5 reworded
The company added a $2,065 million goodwill impairment risk and expanded disclosures on IT disruptions, capital project budgets, and portfolio optimization.
Filed Mar 02, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.