Packaging Corporation of America (PKG) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $192 million ($2.15/share); adjusted net income was $210 million ($2.35/share), down from $224 million ($2.48/share) in Q2 2025, on net sales of $2.5 billion, up from $2.2 billion.

• Greif acquisition contributed $0.14/share to earnings, exceeding expectations, while legacy business earnings declined due to higher costs.

• Corrugated operations achieved record shipments, with strong demand and realization of price increases.

• Earnings were impacted by higher freight, labor, and operating costs, partially offset by increased sales volume and Greif contributions.

• Integration of Greif assets progressing, with full system integration expected by year-end.

Financial highlights

• Adjusted EPS decreased by $0.13/share year-over-year, with legacy business down $0.27/share, partially offset by Greif's $0.14/share contribution.

• Special items expense of $0.20/share included facility closure costs, Wallula Mill restructuring, and Greif integration charges.

• EBITDA excluding special items was $486 million, up from $451 million year-over-year.

• Capital spending for the quarter was $206 million.

• Free cash flow was $170 million after $206 million CapEx; no share repurchases.

Outlook and guidance

• Q3 2026 adjusted EPS expected at $2.91/share.

• Continued strong demand in packaging, with higher prices as price increases are implemented.

• Lower maintenance outage expenses in packaging, higher in paper segment for Q3.

• Greif's Q3 earnings contribution expected to be slightly lower than Q2 due to outage expenses.

• CapEx forecast for 2026 remains $840-$870 million; DD&A around $710 million.