PKG
Packaging Corporation of America203.66
-0.82-0.4%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Demand inflects; full mills 2026
Q&A amplified demand strength beyond prepared remarks, with January legacy bookings up 11% and billings 8% YoY, prompting full mills all 2026 despite two fewer Q1 days. Greif integration advanced faster than expected: Massillon rebuilt in 3.5 months, slightly accretive Q1, inventory excess from ditched commitments to unwind next two quarters. Winter storms hit shipments hard, clouding Q1 volume/costs atop ~$10/ton mill sequential rise. Management dismissed end-market worries, citing broad recovery in autos/building products. They'll run tight. Investors watch storm fallout and Greif synergies.
Key Stats
Market Cap
18.33BP/E (TTM)
20.57Basic EPS (TTM)
9.90Dividend Yield
0.02%Recent Filings
8-K
Board shrinks, exec promoted
Packaging Corporation of America director Paul T. Stecko retires, shrinking the board from 10 to 9 at the 2026 annual meeting—no disagreements noted. Fabian Strauss, 45, rises to SVP Finance, Controller & Treasurer on March 1 with $455,000 salary; he joined in 2022. Board tweaks equity plans for better retirement vesting. Smooth transitions.
10-K
FY2025 results
Packaging Corporation of America posted $9.0B in FY2025 net sales, up 7.2% y/y, with Packaging segment sales surging 7.8% to $8.3B on higher prices/mix and Greif acquisition volumes, though legacy shipments held flat. Q4 roared with containerboard production at 85.8 BSF (up from Q3's 77.4 BSF and 2024 Q4's 76.8 BSF) and corrugated shipments hitting 20.1 BSF (beating Q3's 18.1 BSF and prior-year Q4's 17.1 BSF). Operating income edged up 0.5% to $1.1B despite $151M special charges including Wallula restructuring; Packaging drove gains via pricing while absorbing Greif integration costs. Q4 repurchases totaled $153M; debt hit $4.0B post-$1.8B Greif buy, offset by $1.6B operating cash flow and $1.2B liquidity. Q1 2026 earnings outlook trails Q4 amid outages and costs. Customer concentration risks ODP paper sales.
8-K
Q4 earnings miss on charges
Packaging Corporation of America reported Q4 2025 net income of $102M ($1.13/share), down from $221M ($2.45/share) last year due to Wallula mill restructuring charges and Greif acquisition costs. Excluding special items, earnings fell $0.15 to $2.32/share amid lower volumes and higher costs, yet full-year adjusted EPS rose 80¢ to $9.84 on $9.0B sales. Greif integration advances; Q1 guidance targets $2.20/share. Volumes dipped slightly.
8-K
Reaffirms 4Q EPS at $2.40
PCA reaffirmed 4Q25 EPS forecast of $2.40 excluding special items, as legacy corrugated shipments dipped 1.8% per day through November yet surged 17.3% including Greif acquisition. Greif outperforms expectations; Wallula reconfiguration promises $75-85M annual savings via capacity shifts. Integration advances smoothly. Special items loom from acquisition and reconfiguration.
8-K
Wallula mill reconfiguration
Packaging Corporation of America approved shutting down its No. 2 paper machine and kraft pulping at the Wallula mill on December 3, 2025, cutting 250,000 tons of annual capacity by Q1 2026 end while keeping No. 3 running. This triggers $205 million pre-tax charges—$165 million non-cash, $40 million cash—and 200 job cuts, but slashes costs by $125 per ton via better utilization. Capacity shifts to other mills. High wood and power costs demanded it.
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