01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Packaging Corporation of America (PCA) reported 2025 net sales of $8.99 billiona, up from $8.38 billion in 2024, and net income of $774.1 million, or $8.58 per diluted share, compared with $805.1 million, or $8.93 per diluted share, in 2024.
Excluding special items, net income was $888.0 millionb, or $9.84 per diluted share, versus $814.5 million, or $9.04 per diluted share, in 2024. Management attributed the improvement in legacy PCA earnings to higher prices and mix in Packaging and Paper and lower fiber costs, partly offset by a loss of ($0.16) per share from the first four months of ownership of the acquired Greif containerboard business. Special items totaled $114 million of expense in 2025, including $128.0 million of Wallula mill restructuring charges.
The company completed the $1.8 billionc cash acquisition of the Greif containerboard business on September 2, 2025, adding two containerboard mills with approximately 800,000 tons of production capacity. Cash from operations rose to $1,557.5 million from $1,191.2 million, while investing outflows were $2,572.9 million, reflecting the acquisition and $828.9 million of capital expenditures. Total debt reached $4.0 billion at year end, with $573 million of undrawn revolver capacity net of letters of credit, and liquidity was $1,241 million including borrowing availability.
The company expects 2026 capital investments of $800 million to $870 milliond. The Paper segment remains under pressure: its largest customer, ODP Corporation, represented 58% of Paper segment sales and 4% of consolidated sales in 2025, and the supply agreement runs through December 31, 2026. Management also noted a $70 per ton linerboard and medium price increase effective March 1, 2026, and expects first-quarter 2026 earnings to be lower than the fourth quarter of 2025.
02—Key points
Key Highlights
- Net sales rose to $8,989.3 million in 2025 from $8,383.3 million in 2024, driven by the Greif acquisition and higher Packaging prices and mix.
- Net income was $774.1 million ($8.58 per diluted share) versus $805.1 million ($8.93) in 2024; excluding special items, EPS was $9.84 versus $9.04.
- Packaging segment EBITDA excluding special items was $1,830 million in 2025 versus $1,598 million in 2024, while Paper segment EBITDA excluding special items was $148 million versus $154 million.
- The $1.8 billion Greif containerboard acquisition closed September 2, 2025, funded with $500 million of 5.20% senior notes and $1.0 billion of term loans.
- Total debt was $4.0 billion at December 31, 2025, up from $2.5 billion a year earlier, with $668 million of cash and marketable debt securities.
- Operating cash flow increased to $1,557.5 million from $1,191.2 million; 2026 capital expenditures are expected at $800 million to $870 million.
- Customer concentration: ODP Corporation accounted for 58% of Paper segment sales and 4% of consolidated sales, with its agreement running through December 31, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Packaging Corp. of America kept $0.09.
- Revenue$8.99B100.0%
- Cost of revenue−$7.10B79.0%
- Gross profit$1.89B21.0%
- Operating costs−$782.6M8.7%
- Operating income$1.11B12.3%
- Interest, other & tax−$332.9M3.7%
- Net income$774.1M8.6%
Where FY2025 revenue went
$8.99B- Cost of revenue: $7.10B, 79% of revenue
- Net income: $774.1M, 8.6% of revenue
- SG&A: $634.2M, 7.1% of revenue
- Other operating costs: $148.4M, 1.7% of revenue
- Interest, other & tax: $332.9M, 3.7% of revenue
Kept 8.6% as net incomeNet income $774.1M · 8.6%Other operating costs $148.4M · 1.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.99B$8.38B | +7.2% |
| Cost of Revenue | $7.10B$6.60B | +7.6% |
| Gross Profit | $1.89B$1.78B | +6.0% |
| SG&A Expenses | $634.20M$610.30M | +3.9% |
| Operating Income | $1.11B$1.10B | +0.5% |
| Net Income | $774.10M$805.10M | −3.9% |
| EPS (Basic) | $8.61$8.97 | −4.0% |
| EPS (Diluted) | $8.58$8.93 | −3.9% |
| Shares Outstanding (Basic) | 89.30M89.10M | +0.2% |
| Shares Outstanding (Diluted) | 89.60M89.50M | +0.1% |
05—Questions
Frequently Asked Questions
How did PCA's earnings change in 2025?
Net income fell to $774.1 million, or $8.58 per diluted share, from $805.1 million, or $8.93 per diluted share, in 2024. Net income excluding special items rose to $888.0 million, or $9.84 per diluted share, from $814.5 million, or $9.04 per diluted share. The company cited higher prices and mix and lower fiber costs, partly offset by higher operating and converting costs and a loss from the acquired Greif business.
What was the Greif acquisition and how is it reflected in results?
On September 2, 2025, PCA completed the acquisition of the containerboard business of Greif, Inc. for $1.8 billion in cash. The business includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants. Its results are included in the Packaging segment from the acquisition date, and the filing cites about $44 million of depreciation and amortization and $28 million of additional interest expense associated with it.
How is the company financing its obligations and how much debt does it carry?
At December 31, 2025, PCA had $4.0 billion of debt outstanding, including $1.0 billion of floating-rate borrowings, and $573 million of unused revolving credit capacity net of letters of credit. The Greif financing included a $500 million three-year term loan, a $500 million seven-year term loan, and $500 million of 5.20% senior notes due 2035. The company paid $449.6 million in common dividends during 2025.
What risks does the Paper segment face?
Paper faces declining demand as electronic alternatives reduce use of communication papers, and the filing notes North American uncoated freesheet shipments fell 9.6% in 2025. Its largest customer, ODP Corporation, accounted for 58% of Paper segment sales in 2025. If the agreement is not renewed after December 31, 2026, ODP's purchase obligation would phase down over two years beginning January 1, 2027. Paper segment operating income was $130 million in both 2025 and 2024.
What is the outlook for the first quarter of 2026?
PCA expects first-quarter 2026 earnings to be lower than the fourth quarter of 2025. Drivers include two fewer operating days, a scheduled maintenance outage at the Counce, Tennessee mill, lower production at the reconfigured Wallula, Washington mill, and seasonal volume declines, partly offset by higher containerboard and corrugated prices and the benefit of the Wallula reconfiguration later in the quarter. The company notified customers of a $70 per ton price increase for linerboard and medium effective March 1, 2026.
06—Continue