Packaging Corporation of America (PKG) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 net income was $221 million ($2.45/share); excluding special items, net income was $222 million ($2.47/share), up from $192 million ($2.13/share) in Q4 2023.

• Full year 2024 net income was $805 million ($8.93/share); excluding special items, $814 million ($9.04/share), compared to $765 million ($8.48/share) in 2023.

• Net sales reached a Q4 record of $2.1 billion, up from $1.9 billion in Q4 2023; full-year net sales were $8.4 billion, up from $7.8 billion in 2023.

• EBITDA excluding special items was $439 million in Q4 2024, up from $393 million in Q4 2023; full-year EBITDA was $1.64 billion, up from $1.60 billion in 2023.

• Corrugated products plants set record quarterly and annual shipment levels; operational improvements and capital investments supported growth.

Financial highlights

• Q4 2024 adjusted EPS increased $0.34 year-over-year, driven by higher prices, mix, and volume in both packaging and paper segments.

• Full-year 2024 adjusted EPS was $9.04, up from $8.70 in 2023.

• Q4 2024 EBITDA excluding special items was $439 million, up from $393 million in Q4 2023; full-year EBITDA was $1.64 billion, up from $1.60 billion in 2023.

• Q4 2024 gross profit was $470 million, up from $410 million in Q4 2023; full-year gross profit was $1.78 billion, up from $1.70 billion in 2023.

• Capital spending for 2024 was $852 million, up from $670 million in 2023.

Outlook and guidance

• Q1 2025 earnings expected at $2.21 per share, with record first quarter shipments in the Packaging segment anticipated.

• Domestic prices to rise with improved mix and price increases; export prices assumed stable.

• Paper segment volume forecast slightly lower with flat prices and mix.

• Cost inflation expected across most categories, especially energy, chemicals, labor, and logistics.

• Packaging segment volume expected to set new Q1 records, though containerboard volume will be lower due to fewer operating days and scheduled outages.