Third quarter 2026
Filed Nov 3, 2026Net Sales of $2,192 million were slightly higher year-over-year, with volumes up 1%, while Net Income declined to $22 million and Adjusted EBITDA declined to $289 million.
Sales and volume increased modestly and management reported sequential Adjusted EBITDA margin expansion, but third-quarter profitability declined sharply year over year amid commodity input and operating cost inflation, unfavorable price and lower volume/mix.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Sales, three months ended September 30GAAP | $2.19B | – | $2 million increase |
| Volume/mix impact, three months ended September 30other | $19M | – | 1% increase |
| Price impact, three months ended September 30other | $15M | – | 1% decrease |
| Foreign exchange/other impact, three months ended September 30other | $2 million unfavorable | – | – |
| Cost of Sales, three months ended September 30GAAP | $1.89B | – | – |
| Selling, General and Administrative, three months ended September 30GAAP | $162M | – | – |
| Other Expense, Net, three months ended September 30GAAP | $16M | – | – |
| Business Combinations, Exit Activities and Other Special Items, Net, three months ended September 30GAAP | $28M | – | – |
| Income from Operations, three months ended September 30GAAP | $101M | – | – |
| Interest Expense, Net, three months ended September 30GAAP | $69M | – | – |
| Income Tax Expense, three months ended September 30GAAP | $11M | – | – |
| Net Income, three months ended September 30GAAP | $22M | – | – |
| Net Income Per Share - Basic, three months ended September 30GAAP | $0.07 | – | – |
| Net Income Per Share - Diluted, three months ended September 30GAAP | $0.07 | – | – |
| Weighted Average Number of Shares Outstanding - Diluted, three months ended September 30GAAP | 297M | – | – |
| EBITDA, three months ended September 30non-GAAP | $254M | – | decreased 30% |
| Adjusted EBITDA, three months ended September 30non-GAAP | $289M | – | $94 million decline |
| Adjusted EBITDA Margin, three months ended September 30non-GAAP | 13.2% | expanded sequentially for the second consecutive quarter | – |
| Adjusted Net Income, three months ended September 30non-GAAP | $67M | – | – |
| Adjusted Earnings Per Share - Basic, three months ended September 30non-GAAP | $0.23 | – | – |
| Adjusted Earnings Per Share - Diluted, three months ended September 30non-GAAP | $0.23 | – | – |
| Capital expenditures, three months ended September 30GAAP | $64M | – | – |
| Net Sales, nine months ended September 30GAAP | $6.54B | – | – |
| Income from Operations, nine months ended September 30GAAP | $215M | – | – |
| Net Income, nine months ended September 30GAAP | $3M | – | – |
| Net Income Per Share - Diluted, nine months ended September 30GAAP | $0.01 | – | – |
| EBITDA, nine months ended September 30non-GAAP | $653M | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $768M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30non-GAAP | 11.8% | – | – |
| Adjusted Net Income, nine months ended September 30non-GAAP | $136M | – | – |
| Adjusted Earnings Per Share - Diluted, nine months ended September 30non-GAAP | $0.46 | – | – |
| Net Cash Provided by Operating Activities, nine months ended September 30GAAP | $295M | – | – |
| Capital Spending, nine months ended September 30GAAP | $287M | – | – |
| Adjusted Net Cash Provided by Operating Activities, nine months ended September 30non-GAAP | $601M | – | – |
| Adjusted Cash Flow, nine months ended September 30non-GAAP | $314M | – | increased $646 million |
| Cash and Cash Equivalents, September 30GAAP | $337M | – | – |
| Total Debt (Long-Term, Short-Term and Current Portion), third quarter 2026other | $5.52B | – | – |
| Net Debt, third quarter 2026non-GAAP | $5.18B | $300 million decline | – |
| Net Leverage Ratio, third quarter 2026non-GAAP | 4.8x | – | – |
2026 outlook
- Revenueapproximately $8.6 billion
- NoteAdjusted EBITDA of approximately $1.05 billion
- NoteAdjusted EPS of approximately $0.65
- NoteAdjusted Cash Flow in the range of $600 million to $700 million
- Notecapital spending below $450 million
Capital returns
- The Company returned approximately $98 million to stockholders during the first nine months of 2026 through regular dividends.
- Dividends Paid were $(98) million for the nine months ended September 30, 2026, versus $(96) million for the nine months ended September 30, 2025.
- Repurchase of Common Stock was $0 million for the nine months ended September 30, 2026, versus $(150) million for the nine months ended September 30, 2025.
What drove it
- The $2 million increase in third-quarter Net Sales was driven by a 1% increase, or $19 million, in volume/mix.
- The volume/mix contribution was partially offset by a 1% decrease, or $15 million, of price and $2 million of unfavorable foreign exchange/other impact.
- The $94 million decline in Adjusted EBITDA was driven by $83 million of increased commodity input and operating cost inflation, $15 million of unfavorable price impact and $3 million of lower volume/mix.
- Adjusted EBITDA drivers were partially offset by positive $2 million of Net Performance and $5 million of favorable foreign exchange.
- Innovation Sales Growth in the second quarter was $42 million.
- Management cited structural cost reduction and productivity initiatives, commercial excellence initiatives and price improvements in the fourth quarter and into 2027.
Concerns
- Third-quarter Net Income was $22 million, versus $142 million in third quarter 2025.
- Third-quarter Adjusted EBITDA was $289 million, versus $383 million in third quarter 2025.
- Third-quarter Adjusted EBITDA Margin was 13.2%, versus 17.5% in the third quarter of 2025.
- Net Leverage Ratio was 4.8x in third quarter 2026, compared to 3.8x in fourth quarter 2025.
- The filing identifies inflation and volatility in raw material and energy costs, pressure for lower cost products, debt level and currency movements as risks.
What to watch
- Fourth-quarter price improvements and whether commercial excellence initiatives offset commodity input and operating cost inflation.
- Further Adjusted EBITDA margin progression following sequential expansion for the second consecutive quarter.
- Execution against 2026 expectations for approximately $8.6 billion of Net Sales, approximately $1.05 billion of Adjusted EBITDA and approximately $0.65 of Adjusted EPS.
- Delivery of $600 million to $700 million of 2026 Adjusted Cash Flow and capital spending below $450 million.
- Net debt reduction and the Net Leverage Ratio following the reported 4.8x level in third quarter 2026.
Balance sheet and cash flow
- Cash and Cash Equivalents were $337 million at September 30, 2026, versus $261 million at December 31, 2025.
- Short-Term Debt and Current Portion of Long-Term Debt were $854 million at September 30, 2026, versus $549 million at December 31, 2025.
- Long-Term Debt was $4,645 million at September 30, 2026, versus $5,022 million at December 31, 2025.
- Total Debt (Long-Term, Short-Term and Current Portion) was $5,520 million in third quarter 2026, compared to $5,592 million in fourth quarter 2025 and $5,688 million in second quarter 2026.
- Net Debt was $5,183 million in third quarter 2026, compared to $5,331 million in fourth quarter 2025 and $5,483 million in second quarter 2026.
- Net Cash Used in Investing Activities was $(48) million for the nine months ended September 30, 2026, versus $(736) million for the nine months ended September 30, 2025.
- Net Cash Used in Financing Activities was $(168) million for the nine months ended September 30, 2026, versus $366 million for the nine months ended September 30, 2025.
- Retirement of Long-Term Debt was $(400) million for the nine months ended September 30, 2026.
Analysis
Third-quarter sales were essentially flat year over year at $2,192 million versus $2,190 million, but the sales bridge showed a 1% increase, or $19 million, in volume/mix. That contribution was mostly offset by a 1% decrease, or $15 million, of price and $2 million of unfavorable foreign exchange/other impact. The company did not report segment revenue in the filing, limiting visibility into end-market and geographic sources of the volume improvement.
Management, verbatim
In the third quarter, we demonstrated progress on our near-term strategic priorities. We drove year-over-year revenue and volume growth and for the second consecutive quarter, expanded Adjusted EBITDA margin sequentially.
Robbert Rietbroek, President and CEO
Our strong relative performance despite elevated inflation reflects the resilience of our business and the benefits of our structural cost reduction and productivity initiatives.
Robbert Rietbroek, President and CEO
Our decisive actions to enhance and optimize the business this year support continued margin improvement, strong cash flow generation, and a return to EBITDA growth next year.
Robbert Rietbroek, President and CEO
Not in the filing
stated, not guessed- Segment revenue and segment-level growth metrics were not reported.
- GAAP gross margin and gross profit were not reported.
- Quarterly operating cash flow, quarterly adjusted cash flow and quarterly free cash flow were not reported.
- A tax rate was not reported.
- Prior-quarter values for Net Sales, Net Income, operating income, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin were not reported.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.