Packaging Corporation of America (PKG) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $2.60B vs. $2.31B YoY; net income was $262.3M, or $2.93 diluted EPS, while adjusted net income was $272.0M, or $3.04 EPS.

• Adjusted EPS rose $0.31 YoY, including $0.24 from acquired Greif operations and $0.07 from the legacy business; adjusted earnings exceeded guidance by $0.13 per share.

Financial highlights

• Q3 operating income was $385.3M vs. $324.5M YoY; nine-month operating income was $927.7M vs. $938.5M.

• Nine-month net sales were $7.46B vs. $6.63B; net income was $625.3M vs. $672.3M, and diluted EPS was $6.98 vs. $7.45.

• Q3 adjusted EBITDA was $577.2M vs. $503.4M; nine-month adjusted EBITDA was $1.55B vs. $1.38B.

• Cash from operations was $472M; after $247M CapEx, free cash flow was $225M.

• Q3 cash uses included $134M dividends, $66M cash taxes and $29M net cash interest; no shares were repurchased.

Outlook and guidance

• Q4 adjusted EPS guidance is $2.81; sequential earnings are expected to decline $0.20–$0.25, with price realization partly offsetting outage and input costs.

• Q4 shipments are expected above Q3 and at or near prior-year levels per shipping day; seasonal corrugated mix is expected to weaken as e-commerce volumes rise.

• Q4 containerboard and corrugated prices are expected to improve; most of the $70 price increase is expected to be realized in Q1 2027, with some realization in Q4.

• Q4 paper volume is expected to be seasonally lower with slightly higher prices; three mill outages will reduce containerboard production and raise maintenance expense.

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