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Packaging Corporation of America (PKG) investor relations material

Packaging Corporation of America Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary23 Oct, 2025

Executive summary

  • Q3 2025 net income was $227M ($2.51/share); adjusted net income was $247M ($2.73/share), up from $239M ($2.65/share) in Q3 2024, driven by improved legacy business earnings and higher prices/mix, partially offset by Greif acquisition costs.

  • The Greif containerboard business acquisition was completed in September 2025 for $1.8B, adding two mills and eight plants, with integration costs and higher interest expense impacting results.

  • Excluding special items and acquisition impact, earnings rose $0.19/share year-over-year, with special items mainly from the Greif acquisition and facility closures.

Financial highlights

  • Q3 2025 net sales were $2.31B, up from $2.18B in Q3 2024 (+6% YoY); adjusted EBITDA was $503M, up from $461M.

  • Free cash flow reached a record $277M after $192M in capex; quarter-end cash balance was $806M.

  • Gross margin for Q3 2025 was 21.8%; operating margin was 14.0%.

  • Special items expense of $0.22/share related to the Greif acquisition; $25M in related costs for Q3.

Outlook and guidance

  • Q4 2025 earnings expected at $2.40/share, excluding special items, with higher outage expenses and seasonally lower volumes.

  • Per-day corrugated shipments expected to rise, but with three fewer shipping days; export containerboard sales to increase but remain below typical Q4 levels.

  • Maintenance outage at DeRidder mill to increase costs by $0.29/share; Packaging segment prices expected to be lower due to seasonal mix.

  • Expects significant improvement in acquired business operations, with continued integration costs and seasonally lower volumes.

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Frequently asked questions

Packaging Corporation of America (PCA) operates as a paper & packaging company in the United States. The company's Packaging segment offers various corrugated products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products. It also manufactures gypsum wallboard; and containerboard, which is used as a raw material by the company's packaging plants to produce corrugated products and by other manufacturers of paperboard products, including noncorrugated boxes, liquid or food containers, cartons, sacks, and envelopes. The company's Paper segment produces communication-based papers including coated paperboard used for packaging products such as cereal boxes and four-color printing for magazines and catalogs; whitetop liner used in the production of corrugated containers; recycled linerboard for use in the production of corrugated containers; and containerboard. As of December 31, 2018, it operated eight pulp mills, five paper mills, two converted facilities, two container plants, one heavy duty box plant, fifteen corrugated product plants, twenty-seven shipping/converting facilities.

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