Packaging Corp. of America: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Key takeaways

EPS excluding special items rose: Diluted EPS excluding special items was $2.40 against $2.31 a year earlier. Reported diluted EPS was $1.91 against $2.26, with special items of $0.49 per share. Source
Earnings above first-quarter guidance: Excluding special items, earnings were $0.20 above the $2.20 first-quarter guidance, mainly on legacy packaging volume and mix. Source
Legacy prices and mix added most: Legacy packaging prices and mix added $0.17 per share within the $0.09 year-over-year increase in EPS excluding special items. Source
Packaging operating income and EBITDA: Packaging segment operating income was $260.3m against $278.1m. Excluding special items it was $316.5m against $284.0m, and segment EBITDA excluding special items was $481.8m against $409.3m. Source
Greif integration progressing, inventories cut: Management said it made progress integrating Greif and significantly reduced inventories on hand at the corrugated operations. Source
Wallula No. 2 machine charges recorded: The company recorded $53.3m of charges for the announced discontinuation of the No. 2 machine and kraft pulping at Wallula, the largest first-quarter special item. Source

“We achieved a first quarter record in shipments per day in our legacy corrugated operations.”
Mark W. Kowlzan, Chairman and CEO

Guidance

Area	Period	Figure	Against last quarter
Diluted EPS excluding special items Source	second quarter of 2026	$2.33 per share	New

What changed from last quarter

New guidance: Second-quarter EPS guidance excluding special items of $2.33 per share was given for the first time, after first-quarter guidance in the prior release. Source

Quarterly results and EPS drivers

EPS excluding special items rose: Diluted EPS excluding special items was $2.40 against $2.31 a year earlier. Reported diluted EPS was $1.91 against $2.26, with special items of $0.49 per share. Source
Earnings above first-quarter guidance: Excluding special items, earnings were $0.20 above the $2.20 first-quarter guidance, mainly on legacy packaging volume and mix. Source
Legacy prices and mix added most: Legacy packaging prices and mix added $0.17 per share within the $0.09 year-over-year increase in EPS excluding special items. Source
Greif operations posted a loss: The acquired Greif operations generated a loss of $0.06 per share in the quarter, the company reported. Source
Segment operating income and EBITDA: Total segment operating income was $251.3m against $280.3m. EBITDA excluding special items was $485.5m against $421.1m a year earlier. Source

Packaging segment shipments and sales

First-quarter record in legacy shipments: Management called first-quarter shipments per day in the legacy corrugated operations a record. Source
Packaging operating income and EBITDA: Packaging segment operating income was $260.3m against $278.1m. Excluding special items it was $316.5m against $284.0m, and segment EBITDA excluding special items was $481.8m against $409.3m. Source
Packaging sales rose year over year: Packaging segment sales were $2,188.6m against $1,970.3m a year earlier. Paper segment sales were $159.9m against $154.2m. Source
Depreciation rose sharply: Depreciation, amortization and depletion was $225.2m against $138.0m. Packaging segment depreciation was $215.9m against $128.4m. Source
Demand improvement and better mix: Management cited continued demand improvement, together with improved mix, as driving the quarter's earnings performance. Source
Packaging prices expected to rise: Management expects containerboard and corrugated prices to move higher in the second quarter from announced price increases and better corrugated mix. Source

“Our Paper segment exceeded our expectations on sales volume and we began to implement our previously announced price increases, driving high margins and profitability.”
Mark W. Kowlzan, Chairman and CEO

Mills and containerboard supply

Mills performed well on production: Management said the containerboard mills' production and efficiency helped offset higher freight, recycled fiber and other input costs, and early-quarter weather. Source
Mill system to run at full capacity: Management said the mill system needs to keep running at full capacity to meet containerboard needs. Source
Acquisition lifted containerboard inventory: Containerboard inventory fell from the fourth quarter of 2025 but rose from the first quarter of 2025, which management linked to the acquisition. Source

Paper segment performance

Paper volume exceeded expectations: Management said Paper sales volume exceeded its expectations and linked Paper price increases to high margins and profitability. Source
Paper segment profit was lower: Paper segment operating income was $32.9m against $35.6m, and segment EBITDA excluding special items was $37.7m against $40.2m. Source
Paper prices expected to rise: Management expects Paper prices to rise in the second quarter as previously announced increases are implemented, with volume held flat while running at full capacity. Source

“I am very proud of the performance of our people across the entire business, achieving commercial and operating success that is evident in our results.”
Mark W. Kowlzan, Chairman and CEO

Costs, pricing and margins

Maintenance and labor costs were lower: Lower maintenance outage expense added $0.09 per share, and lower legacy labor and operating costs added $0.08. Source
Freight and volume offset gains: Higher freight costs reduced EPS by $0.13, and lower legacy production and sales volume reduced it by $0.11. Source
Second-quarter freight and fiber costs up: Management expects freight, fiber and chemicals costs to rise in the second quarter on higher prices, with energy costs seasonally lower. Source
Smaller seasonal wage decline expected: The usual first-to-second-quarter decline in wages and benefits expense will be smaller, due to higher expected stock compensation and benefits costs. Source
Higher tax rate in second quarter: Management expects a higher tax rate in the second quarter from the tax benefit of share-based awards that vested in the first quarter. Source

Greif integration and restructuring charges

Greif integration progressing, inventories cut: Management said it made progress integrating Greif and significantly reduced inventories on hand at the corrugated operations. Source
Wallula No. 2 machine charges recorded: The company recorded $53.3m of charges for the announced discontinuation of the No. 2 machine and kraft pulping at Wallula, the largest first-quarter special item. Source
Closure costs and acquisition costs: Corrugated facility closure costs of $2.9m were recorded in other expense, alongside $3.4m of acquisition and integration costs. Source

Capital, cash and taxes

Capital spending up, cash down: Capital spending was $164.7m against $148.1m a year earlier. Cash, cash equivalents and marketable debt securities were $615.5m against $914.4m. Source
Net interest expense rose: Net interest expense was $32.6m against $12.9m a year earlier. Source
Lower tax provision: The provision for income taxes was $48.9m against $63.6m a year earlier. Source

Coming up, as management said on 23 April 2026

Second-quarter special items expected: Management expects second-quarter costs for the Wallula restructuring, acquisition and integration, and corrugated closures, and said more special items may arise. Source

Figures management reported

Figure	Reported
Legacy corrugated shipments, year over year Source	up 1.2%
Legacy corrugated shipments per day, year over year Source	up 2.8%
Total corrugated shipments including Greif, year over year Source	up 19.9%
Total shipments per day including Greif, year over year Source	up 21.8%
Containerboard production Source	1,398,000 tons
Containerboard inventory change from fourth quarter 2025 Source	down 39,000 tons
Containerboard inventory change from first quarter 2025 Source	up 48,000 tons
Paper segment sales volume, year over year Source	up 2.7%

Risks management discussed

Operational: Greif operations had lower volume and higher costs, tied to the January winter storm, unfavorable mix, and freight and recycled fiber costs. Source
External: Management cited weather challenges earlier in the quarter as a factor it had to offset. Source

Earlier plans management reported on

Ahead: Management said Paper sales volume exceeded its expectations in the quarter. Source
Ahead: Earnings excluding special items finished above the first-quarter guidance given in the prior release. Source
On track: Management said implementation of previously announced price increases began in the quarter. Source
Not stated: Management described continued progress on integrating the acquired Greif business. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

PACKAGING CORPORATION OF AMERICA REPORTS FIRST QUARTER 2026 RESULTS

Lake Forest, IL, April 22, 2026 - Packaging Corporation of America (NYSE: PKG) today reported first quarter 2026 net income of $171 million, or $1.91 per share, and net income of $215 million, or $2.40 per share, excluding special items. First quarter net sales were $2.4 billion in 2026 and $2.1 billion in 2025.

	Three Months Ended
	March 31,
	2026	2025	Change
Diluted earnings per share attributable to Packaging Corporation of America shareholders
Reported Diluted EPS	$1.91	$2.26	$(0.35)
Special Items Expense	0.49	0.05	0.44
Diluted EPS excluding Special Items	$2.40	$2.31	$0.09
For descriptions and amounts of our special items, see the schedules with this release.
Diluted EPS excluding Special Items is a non-GAAP financial measure. For information regarding our use of non-GAAP financial measures and descriptions and amounts of our special items, see the schedules with this release.

Reported earnings in the first quarter of 2026 include special items primarily for restructuring of the Wallula, WA containerboard mill, acquisition and integration-related costs and closure costs related to corrugated products facilities.

Excluding special items, the $.09 per share increase in first quarter 2026 earnings compared to the first quarter of 2025 was driven primarily by favorable prices and mix in the legacy packaging business $.17, lower fiber cost in the legacy packaging business $.11, lower maintenance outage expenses $.09, lower labor and operating costs in the legacy packaging business $.08, favorable price and mix in the paper segment $.02, favorable volume in the paper segment $.01, lower tax rate $.01 and lower share count $.01. These items were partially offset by higher freight costs ($.13), lower production and sales volume in the legacy packaging business ($.11), higher depreciation expense in the legacy packaging business ($.05), higher labor and operating costs in the paper segment ($.03) and higher corporate and other expenses ($.03). The acquired Greif operations generated a loss of ($.06) during the quarter.

Excluding special items, earnings were $.20 above first quarter guidance of $2.20 per share primarily due to favorable volume and mix in the legacy packaging segment, favorable labor and operating costs, and a lower tax rate. These items were partially offset by higher freight costs and lower than expected earnings from the acquired Greif operations due to lower volume and higher costs from the January winter storm and unfavorable mix, freight and recycled fiber costs.

Financial information by segment is summarized below and in the schedules with this release.

	(dollars in millions)
	Three Months Ended
	March 31,
	2026	2025
Segment operating income (loss)
Packaging	$260.3	$278.1
Paper	32.9	35.6
Corporate and Other	(41.9)	(33.4)
	$251.3	$280.3
Segment operating income (loss) excluding special items
Packaging	$316.5	$284.0
Paper	32.9	35.6
Corporate and Other	(38.5)	(33.4)
	$310.9	$286.2
EBITDA excluding special items
Packaging	$481.8	$409.3
Paper	37.7	40.2
Corporate and Other	(34.0)	(28.4)
	$485.5	$421.1
Segment operating income (loss) excluding special items and EBITDA excluding special items are non-GAAP financial measures. We provide information regarding our use of non-GAAP financial measures and reconciliations of historical non-GAAP financial measures presented in this press release to the most comparable measure reported in accordance with GAAP in the schedules to this press release.

In the legacy packaging business, total corrugated products shipments were up 1.2% and shipments per day were up 2.8% compared to the first quarter of 2025, with one fewer shipping day in 2026. Including the acquired Greif business, total corrugated products shipments were up 19.9% and shipments per day were up 21.8% compared to the first quarter of 2025. Containerboard production was 1,398,000 tons, and containerboard inventory was down 39,000 tons compared to the fourth quarter of 2025 and up 48,000 tons compared to the first quarter of 2025, primarily due to the acquisition. In the Paper segment, sales volume was up 2.7% from the first quarter of 2025.

Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “We achieved a first quarter record in shipments per day in our legacy corrugated operations. We saw continued demand improvement which, together with improved mix, drove our strong earnings performance for the quarter. Our containerboard mills performed exceptionally well both in terms of production and efficiency, which helped us mitigate the effects of higher freight, recycled fiber and other input costs as well as the weather challenges we faced earlier in the quarter. We continued to make good progress on the integration of our acquired Greif business, and significantly reduced inventories on hand at the corrugated operations. With strong demand and second quarter maintenance outages at five of our containerboard mills, we will need to continue to run the mill system at full capacity to support our containerboard needs. Our Paper segment exceeded our expectations on sales volume and we began to implement our previously announced price increases, driving high margins and profitability. I am very proud of the performance of our people across the entire business, achieving commercial and operating success that is evident in our results.”

Mr. Kowlzan added, “Looking ahead as we move from the first quarter into the second quarter, we expect demand in the Packaging segment to remain strong and corrugated volume to increase with one more shipping day and some seasonal improvement. Prices for containerboard and corrugated products will move higher with the implementation of our previously announced price increases and improved corrugated mix. Packaging mill production will be slightly higher with one more operating day and production improvements at some of the mills more than offsetting the impact of maintenance outages. Mill maintenance outage expenses will be higher. We expect flat volume and higher prices in the Paper segment as we continue to operate at full capacity and implement our previously announced paper price increases. Costs for freight, fiber and chemicals will be up due to higher prices and energy costs are expected to be seasonally lower. The sequential improvement in expenses for wages and benefits that we normally experience from first quarter to second quarter will be less than in past years due to higher expected stock compensation expenses and benefits costs in the second quarter. Finally, our tax rate will be higher due to the tax-related benefit of share-based compensation awards that vested in the first quarter. Considering these items, we expect second quarter earnings of $2.33 per share, excluding special items.”

We present our earnings expectation for the upcoming quarter excluding special items as special items are difficult to predict and quantify and may reflect the effect of future events. We currently expect to incur costs related to the Wallula mill restructuring, acquisition and integration related costs for our recent acquisitions and charges related to closures of corrugated products facilities during the second quarter; however, additional special items may arise due to second quarter events.

PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates ten mills and 91 corrugated products plants and related facilities.

Forward-looking statements notice

Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about our future earnings and financial condition, expected benefits from acquisitions and restructuring activities, our industry and our business strategy. Statements that contain words such as “will”, “should”, “anticipate”, “believe”, “expect”, “intend”, “estimate”, “hope” or similar expressions, are forward-looking statements. These forward-looking statements are based on the current expectations of PCA. Because forward-looking statements involve inherent risks and uncertainties, the plans, actions and actual results of PCA could differ materially. Among the factors that could cause plans, actions and results to differ materially from PCA’s current expectations include the following: the impact of general economic conditions; conditions in the paper and packaging industries, including competition, product demand and product pricing; fluctuations in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; the possibility of unplanned outages or interruptions at our principal facilities; and legislative or regulatory requirements, particularly concerning environmental matters, as well as those identified under Item 1A. Risk Factors in PCA’s Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and available at the SEC’s website at “www.sec.gov”.

Conference Call Information:

Packaging Corporation of America

Consolidated Earnings Results

Unaudited

(dollars in millions, except per-share data)

	Three Months Ended
	March 31,
	2026	2025
Net sales	$2,367.8	$2,141.0
Cost of sales	(1,914.9)	(1,686.3)
Gross profit	452.9	454.7
Selling, general, and administrative expenses	(180.3)	(161.4)
Other expense, net	(21.3)	(13.0)
Income from operations	251.3	280.3
Non-operating pension income	1.1	-
Interest expense, net	(32.6)	(12.9)
Income before taxes	219.8	267.4
Provision for income taxes	(48.9)	(63.6)
Net income	$170.9	$203.8
Earnings per share:
Basic	$1.92	$2.27
Diluted	$1.91	$2.26

Computation of diluted earnings per share under the two class method:
Net income	$170.9	$203.8
Less: Distributed and undistributed income available to participating securities	(1.1)	(1.4)
Net income attributable to PCA shareholders	$169.8	$202.4
Diluted weighted average shares outstanding	89.1	89.6
Diluted earnings per share	$1.91	$2.26

Supplemental financial information:
Capital spending	$164.7	$148.1
Cash, cash equivalents, and marketable debt securities	$615.5	$914.4

(1) The three months ended March 31, 2026 include the following:

$53.3 million of charges related to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, Washington containerboard mill. The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate.

$3.4 million of charges for acquisition and integration costs related to recent acquisitions. The costs were recorded in “Other expense, net.”

$2.9 million of charges consisting of closure costs related to corrugated products facilities. The costs were recorded in “Other expense, net.”

(2) The three months ended March 31, 2025 include $5.9 million of charges consisting of closure costs related to corrugated products facilities. The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate.

Packaging Corporation of America

Segment Information

Unaudited

	Three Months Ended
	March 31,
	2026	2025
Segment sales
Packaging	$2,188.6	$1,970.3
Paper	159.9	154.2
Corporate and Other	19.3	16.5
	$2,367.8	$2,141.0
Segment operating income (loss)
Packaging	$260.3	$278.1
Paper	32.9	35.6
Corporate and Other	(41.9)	(33.4)
Income from operations	251.3	280.3
Non-operating pension income	1.1	-
Interest expense, net	(32.6)	(12.9)
Income before taxes	$219.8	$267.4
Segment operating income (loss) excluding special items
Packaging	$316.5	$284.0
Paper	32.9	35.6
Corporate and Other	(38.5)	(33.4)
	$310.9	$286.2
EBITDA excluding special items
Packaging	$481.8	$409.3
Paper	37.7	40.2
Corporate and Other	(34.0)	(28.4)
	$485.5	$421.1

(1) Income (loss) from operations excluding special items, segment operating income (loss) excluding special items, earnings before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion (EBITDA), segment EBITDA, EBITDA excluding special items, and segment EBITDA excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our segments and our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. The tables included in "Reconciliation of Non-GAAP Financial Measures" on the following pages reconcile the non-GAAP measures with the most directly comparable GAAP measures. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such.

Packaging Corporation of America

Reconciliation of Non-GAAP Financial Measures

Unaudited

	Three Months Ended
	March 31,
	2026	2025
Packaging
Segment operating income	$260.3	$278.1
Facilities closure and other costs	2.9	5.9
Wallula mill restructuring	53.3	-
Segment operating income excluding special items	$316.5	$284.0
Paper
Segment operating income	$32.9	$35.6
Segment operating income excluding special items	$32.9	$35.6
Corporate and Other
Segment operating loss	$(41.9)	$(33.4)
Acquisition and integration-related costs	3.4	-
Segment operating loss excluding special items	$(38.5)	$(33.4)
Income from operations	$251.3	$280.3
Income from operations, excluding special items	$310.9	$286.2

(1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures.

Packaging Corporation of America

Reconciliation of Non-GAAP Financial Measures

Unaudited

Net Income Excluding Special Items and EPS Excluding Special Items

	Three Months Ended
	March 31,
	2026				2025
	Income before Taxes	Income Taxes	Net Income	Diluted EPS	Income before Taxes	Income Taxes	Net Income	Diluted EPS
As reported in accordance with GAAP	$219.8	$(48.9)	$170.9	$1.91	$267.4	$(63.6)	$203.8	$2.26
Special items :
Facilities closure and other costs	2.9	(0.7)	2.2	0.02	5.9	(1.5)	4.4	0.05
Wallula mill restructuring	53.3	(13.7)	39.6	0.44	-	-	-	-
Acquisition and integration-related costs	3.4	(0.9)	2.5	0.03	-	-	-	-
Total special items	59.6	(15.3)	44.3	0.49	5.9	(1.5)	4.4	0.05
Excluding special items	$279.4	$(64.2)	$215.2	$2.40	$273.3	$(65.1)	$208.2	$2.31

(1) Net income excluding special items and earnings per share excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and their performance. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such.

(2) Pre-tax special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded and this rate is adjusted for each subsequent quarter to be consistent with the estimated annual effective tax rate, in accordance with ASC 270, Interim Reporting, and ASC 740-270, Income Taxes - Intra Period Tax Allocation. For all periods presented, income taxes on pre-tax special items represent the current amount of tax. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1.

Packaging Corporation of America

Reconciliation of Non-GAAP Financial Measures

Unaudited

EBITDA and EBITDA Excluding Special Items

EBITDA represents income before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items:

	Three Months Ended
	March 31,
	2026	2025
Net income	$170.9	$203.8
Non-operating pension income	(1.1)	-
Interest expense, net	32.6	12.9
Provision for income taxes	48.9	63.6
Depreciation, amortization, and depletion	225.2	138.0
EBITDA	$476.5	$418.3
Special items:
Facilities closure and other costs	2.9	2.8
Acquisition and integration-related costs	3.4	-
Wallula mill restructuring	2.7	-
EBITDA excluding special items	$485.5	$421.1

(1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures.

Packaging Corporation of America

Reconciliation of Non-GAAP Financial Measures

Unaudited

The following table reconciles segment operating income (loss) to segment EBITDA and segment EBITDA excluding special items:

	Three Months Ended
	March 31,
	2026	2025
Packaging
Segment operating income	$260.3	$278.1
Depreciation, amortization, and depletion	215.9	128.4
EBITDA	476.2	406.5
Facilities closure and other costs	2.9	2.8
Wallula mill restructuring	2.7	-
EBITDA excluding special items	$481.8	$409.3
Paper
Segment operating income	$32.9	$35.6
Depreciation, amortization, and depletion	4.8	4.6
EBITDA	37.7	40.2
EBITDA excluding special items	$37.7	$40.2
Corporate and Other
Segment operating loss	$(41.9)	$(33.4)
Depreciation, amortization, and depletion	4.5	5.0
EBITDA	(37.4)	(28.4)
Acquisition and integration-related costs	3.4	-
EBITDA excluding special items	$(34.0)	$(28.4)
EBITDA excluding special items	$485.5	$421.1

(1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures.

Contacts
Barbara Sessions
INVESTOR RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com
WHAT: WHEN: PRE-REGISTRATION: OR · CALL-IN NUMBER: WEBCAST INFO: REBROADCAST DATES: REBROADCAST NUMBERS:
Packaging Corporation of America’s 1st Quarter 2026 Earnings Conference Call · Conference ID: Packaging Corporation of America · Thursday, April 23, 2026 at 9:00am Eastern Time · https://dpregister.com/sreg/10205353/102faf6c869 · (833) 816-1102 (U.S.); (866) 605-3852 (Canada) or (412) 317-0684 (International) · Dial in by 8:45am Eastern Time · www.packagingcorp.com · April 23, 2026 through May 7, 2026 · (855) 669-9658 (U.S. and Canada); (412) 317-0088 (International) · Passcode: 6558573