Packaging Corp of America
NYSE:PKG

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Packaging Corp of America
NYSE:PKG
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Price: 213.88 USD 3.42% Market Closed
Market Cap: 19.2B USD

Packaging Corp of America
Investor Relations

In the dynamic landscape of the American packaging industry, Packaging Corporation of America (PCA) stands out as a notable player, crafting its success story through strategic operations and a comprehensive product offering. Founded in 1959, PCA has grown to become the fourth largest producer of containerboard and corrugated packaging products in the United States, serving a diverse range of industries from food and beverage to electronics and pharmaceuticals. Headquartered in Lake Forest, Illinois, the company operates through a vertically integrated model, which allows it to efficiently control costs and ensure quality from the production of raw materials to the delivery of finished packaging solutions. This model includes an extensive network of mills and converting plants, which work together seamlessly to meet the demands of a varied clientele.

What sets PCA apart is its commitment to operational excellence and sustainable practices, underscored by its focus on customer-centric solutions. The company's revenue model pivots around its production of containerboard, which is used to create corrugated packaging solutions tailored to the specific needs of its customers. By managing forests responsibly and employing state-of-the-art manufacturing techniques, PCA not only minimizes its environmental footprint but also maximizes the economic efficiency of its operations. The business thrives on its ability to provide innovative, reliable, and cost-effective packaging that adequately protects products and meets logistical challenges. Through a finely tuned synergy of innovation and sustainability, PCA continues to carve out its niche, reinforcing its presence in a market defined by ever-evolving consumer preferences and economic landscapes.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 23, 2025
AI Summary
Q3 2025

Earnings Beat: Q3 adjusted earnings were $2.73 per share, $0.04 above guidance, driven by stronger pricing and mix in the Packaging segment and lower freight costs.

Solid Revenue Growth: Net sales reached $2.3 billion, up from $2.2 billion last year, with EBITDA (excluding special items) rising to $503 million from $461 million.

Greif Acquisition Progress: The company completed the Greif containerboard business acquisition, contributing one month of results and already showing operational improvements.

Packaging Margins Up: Packaging segment EBITDA margin improved to 23.1%, exceeding last year's 22.2%, helped by stronger price/mix and cost controls.

Strong Cash Flow: PCA generated a record $469 million in cash from operations and $277 million in free cash flow in Q3.

Q4 Guidance: PCA expects Q4 earnings of $2.40 per share (excluding special items), with higher maintenance outage expenses and seasonally lower packaging prices and mix.

Cost Pressures: Electricity and other input costs remain a major headwind, with no expectation of relief in the near term.

Key Financials
Net Income
$227 million
EPS
$2.51
Adjusted Net Income
$247 million
Adjusted EPS
$2.73
Net Sales
$2.3 billion
EBITDA (excluding special items)
$503 million
Packaging Segment Sales
$2.1 billion
Packaging Segment EBITDA
$492 million
Packaging Segment EBITDA Margin
23.1%
Paper Segment Sales
$161 million
Paper Segment EBITDA
$40 million
Paper Segment EBITDA Margin
24.9%
Free Cash Flow
$277 million
Cash From Operations
$469 million
CapEx
$192 million
Dividends Paid
$113 million
Cash and Marketable Securities
$806 million
Liquidity
$1.4 billion
Q4 EPS Guidance (excluding special items)
$2.40
Earnings Call Recording
Other Earnings Calls

Management

Mr. Mark W. Kowlzan
Chairman of the Board & CEO
No Bio Available
Mr. Robert P. Mundy
Principal Accounting Officer, EVP & CFO
No Bio Available
Mr. Thomas A. Hassfurther PCA
Executive Vice President of Corrugated Products
No Bio Available
Mr. Charles J. Carter
Executive Vice President of Mill Operations
No Bio Available
Mr. Donald Ray Shirley
Senior VP of Corporate Engineering & Process Technology
No Bio Available
Prafulla D'Souza
Vice President of Marketing & Communications Corrugated Products
No Bio Available
Ms. Darla J. Olivier
Senior VP of Tax, ESG & Government Affairs
No Bio Available
Mr. Joseph W. Vaughn
Senior VP of Engineering, Project Management & Operations Support
No Bio Available
Ms. Barb Sessions
ESG Survey Contact
No Bio Available

Contacts

Address
ILLINOIS
Lake Forest
1955 W Field Ct
Contacts