Today, our CEO, Ole Rosgaard, will provide a strategy and market update, followed by our CFO, Larry Hilsheimer, with a review of our financial results and guidance. We continued to execute against our strategy during the second quarter, with a particular focus on productivity and cost optimization, which remains a core driver of our margin improvements. I'm pleased to report that we have achieved $75 million of savings, putting us on track toward our full-year target range of $80 million-$90 million. We remain confident in that range for the full year as we went into the year anticipating the first half performance we delivered.
Our confidence on driving value through those three priorities is possible because of our improving margin profile and durable free cash flow generation. Margins improved 110 basis points, and free cash flow improved by $93 million compared to a Q2 2025, which by the way, also included cash flow from the divested containerboard business. While we sincerely hope for a resolution soon, we also recognize the risks the conflict presents on broader demand and industrial sentiments. As such, we are adjusting our full-year EBITDA guidance to reflect the disruptive impact experienced in Q2 and continued softness related to the conflict through year-ends.
Underlying industrial end market demand remained consistent with what we've seen over the past 12 months. That broad demand picture was overlaid by direct impacts to our business in Q2 related to the Middle East conflicts. While the total EBITDA loss was less than $5 million in Q2, potential for continued disruption is factored into our guidance. It is clear our growth strategy is sound, and when a meaningful inflection on demand does occur, Greif will unlock significant operating leverage and earnings growth.