Boxboard Update: Waco Producing URB Targeting Industrial Applications, but Challenges Persist

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Boxboard Update: Waco Producing URB Targeting Industrial Applications, but Challenges Persist

Truist Securities

Equity Research Report July 15, 2026

INDUSTRIALS: Paper

Boxboard Update: Waco Producing URB

Targeting Industrial Applications, but Michael Roxland

212-326-4839 Challenges Persist Michael.Roxland@truist.com

We had a chance to check in with our boxboard industry contacts in and

Niccolo Piccini around uncoated recycled board (URB) following Graphic Packaging’s (GPK, Hold)

212-303-4140 announcement that it intends to produce URB targeting more industrial end markets

Nico.Piccini@truist.com (link). Overall, it appears that GPK is being opportunistic in terms of URB deployment

and looking to optimize production at its Waco, TX mill. That said, questions remain

5 Page Document about Waco’s ability to produce URB and success in penetrating industrial end markets,

particularly given machine capabilities, peer integration (50%+), and established

customer relationships as well as the potential for lower profitability.

Reasons for this report GPK’s Waco mill has a triple layer, fourdrinier machine that produces a square sheet.

✓ Sector Update That said, tube & core and partitions, which comprise a majority of industrial end market

applications for URB, utilize cylinder machines. The URB systems at Greif (GEF, Hold)

and Ox Industries (private) all have cylinder machines as does Sonoco Products (SON,

Buy), except for its mill at Hartsville, SC which has a fourdrinier machine. Further, GPK

is targeting 14 to 30-point calipers for its PaceSetter Ridgeline URB product, while our

contacts have suggested that most partitions are 40-point. In addition, many tubes &

cores are derived from narrow-width rolls, which Waco may be reluctant to cut given the