Graphic Packaging Holding Company reported its third quarter 2024 financial results, with net sales decreasing by 6%, or $133 million, to $2,216 million compared to $2,349 million in the prior year period. This decline was primarily attributed to a $109 million impact from the divestiture of the Augusta, GA bleached paperboard manufacturing facility and reduced open market sales participation, alongside a $35 million net decline from packaging operations where price reductions were partially offset by volume growth.
Adjusted EBITDA for the third quarter of 2024 was $433 million, a $49 million decrease from $482 million in the third quarter of 2023, resulting in an Adjusted EBITDA Margin of 19.5% compared to 20.5% in the prior year. The decline was mainly driven by the Augusta divestiture and related bleached paperboard price and volume declines of $34 million, as well as $25 million from previously disclosed weather and power issues. Net Income was $165 million, or $0.55 per share, compared to $170 million, or $0.55 per share, in the third quarter of 2023.
The company's total debt decreased by $178 million to $5,430 million, with net debt decreasing by $158 million to $5,304 million, though the net leverage ratio slightly increased to 3.1x from 3.0x in the prior year. Capital expenditures in the quarter were $313 million, an increase from $207 million in Q3 2023, reflecting an acceleration in equipment purchases for the Waco, Texas recycled paperboard manufacturing facility. Graphic Packaging also returned approximately $291 million to stockholders during the first nine months of 2024 through dividends and share repurchase activity, and indicated that 2025 financial results are targeted to be in line with its Vision 2030 base financial model.
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