GPGI Inc's stock tumbled 11.23% in pre-market trading on Thursday, following the release of its first-quarter 2026 financial results which revealed a significant net loss and highlighted operational challenges at one of its key divisions.

The company reported a GAAP net loss of $235 million for the quarter, a sharp reversal from profitability in the prior period. While pro forma adjusted net sales increased 3% to $421.2 million, pro forma adjusted EBITDA fell 16% to $82.1 million. The earnings disappointment was driven in part by what the company described as "unanticipated market headwinds" at its Husky division, citing oil and resin price volatility along with continued tariff uncertainty.

Looking ahead, GPGI provided second-quarter guidance calling for adjusted net sales of $425 million to $475 million and adjusted EBITDA of $105 million to $120 million. The company also issued full-year outlooks for pro forma adjusted net sales and EBITDA, suggesting management expects some recovery from the first-quarter challenges.