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Packaging Corporation of America Reports Fourth Quarter and Full Year Results

PAPER INDUSTRY NEWS

Jino John

1/28/20261 min read

Lake Forest, Illinois — Packaging Corporation of America (NYSE: PKG) today reported financial results for the fourth quarter and full year ended December 31, 2025, reflecting higher revenues, solid operating performance in its core businesses, and continued progress on strategic initiatives.

Fourth Quarter 2025 Financial Results

  • Net sales were approximately $2.36 billion, up over 10% compared to the fourth quarter of 2024.

  • Net income was $102 million, or $1.13 per diluted share.

  • Net income excluding special items was $209 million, or $2.32 per diluted share.

Segment Operating Income – Fourth Quarter 2025 (Excluding Special Items)

  • Packaging segment operating income was $309.2 million, driven by higher sales volumes and contributions from recent acquisitions.

  • Paper segment operating income was $32.7 million, reflecting stable demand and pricing partially offset by higher operating costs.

Full Year 2025 Financial Results

  • Net sales for the full year were approximately $9.0 billion, compared to $8.4 billion in 2024.

  • Net income was $774 million, or $8.58 per diluted share.

  • Net income excluding special items was $888 million, or $9.84 per diluted share.

Segment Operating Income – Full Year 2025 (Excluding Special Items)

  • Packaging segment operating income totaled $1.26 billion, reflecting strong performance across the company’s box plants and containerboard mills.

  • Paper segment operating income was $129.6 million, supported by consistent customer demand despite market cost pressures.

Operational and Strategic Updates

  • Results for the quarter and year include acquisition-related and restructuring costs, primarily associated with facility optimization initiatives and the integration of the Greif containerboard business.

  • The company continues to focus on operational efficiency, disciplined capital allocation, and integration synergies from recent acquisitions.

  • PCA previously declared a quarterly dividend of $1.25 per share, payable in January 2026.

Outlook

Packaging Corporation of America remains focused on strengthening its core packaging and paper operations, managing costs in a dynamic demand environment, and delivering long-term value to shareholders through disciplined operations and capital returns.