Packaging Corporation of America (PKG) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $2.60B vs. $2.31B; net income was $262.3M, or $2.93 diluted EPS, and adjusted net income was $272.0M, or $3.04 EPS, vs. $246.7M and $2.73 a year earlier.

• Adjusted EPS rose $0.31 YoY, including $0.24/share from Greif and $0.07/share from the legacy business; results exceeded $2.91 guidance by $0.13/share.

• Greif contribution, improved Packaging price/mix and higher legacy Packaging volume supported results; elevated operating costs partly offset gains.

Financial highlights

• Q3 operating income rose 18.7% to $385.3M; gross profit increased $100M YoY.

• Adjusted consolidated EBITDA was $577.2M vs. $503.4M; 9M adjusted EBITDA was $1.55B vs. $1.38B.

• 9M net sales were $7.46B vs. $6.63B; reported net income was $625.3M vs. $672.3M, while adjusted net income was $697.4M vs. $679.1M.

• Q3 cash from operations was $472M; after $247.3M CapEx, free cash flow was $225M. 9M operating cash flow was $1.18B.

Outlook and guidance

• Q4 adjusted EPS guidance is $2.81; earnings are expected to decline $0.20–$0.25 from Q3, excluding special items, amid outages and higher costs.

• Q4 corrugated shipments are expected above Q3 and at or near prior-year levels per shipping day, with two fewer shipping days than Q3; seasonal mix is expected to weaken.

• Prices are expected to improve as announced increases are implemented; most of the $70 increase is expected in Q1 2027, with some realization in Q4.

• Q4 Paper volume is expected to decline with slightly higher prices; three mill outages will reduce containerboard production and increase maintenance expense.

• FY2026 CapEx guidance is $865M–$890M; adjusted depreciation and amortization is expected just above $705M.