How did Packaging Corporation of America perform in the third quarter of 2025?

The company reported net income of $226.9 million, or $2.51 per diluted share, compared with $238.1 million, or $2.64 per share, in the third quarter of 2024. Excluding special items, EPS was $2.73, up from $2.65. Net sales increased to $2.31 billion from $2.18 billion.

What effect did the Greif containerboard acquisition have on the quarter?

The filing says the acquisition closed on September 2, 2025, and Greif results reduced earnings by about $0.19 per diluted share in the first month. This included roughly $12 million of depreciation and amortization ($0.09 per share), $8 million of additional interest expense ($0.06 per share), and about $12 million from extended mill outages and timing effects ($0.10 per share). Acquisition and integration costs of $25.0 million were treated as special items.

What is the company's fourth quarter 2025 earnings expectation?

Management expects fourth quarter 2025 earnings of $2.40 per share excluding special items. It expects higher maintenance outage expenses of about $0.29 per share, lower seasonal Packaging prices, higher energy and fiber costs, and continued Massillon mill outage effects, partly offset by improvement at the acquired mills. Additional special items may arise.

How did the Packaging and Paper segments perform?

Packaging segment operating income was $327.5 million in the third quarter of 2025, compared with $320.7 million a year earlier. Paper segment operating income was $35.6 million, versus $38.5 million. Corporate and Other posted an operating loss of $38.6 million, compared with $32.1 million a year earlier.

PKG 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 23, 2025. Cited figures are marked; the original filing is the authoritative source.

Packaging Corporation of America (NYSE: PKG) reported third quarter 2025 net income of $226.9 million^a, or $2.51 per diluted share, compared with $238.1 million, or $2.64 per diluted share, in the third quarter of 2024.

Excluding special items, net income was $246.7 million^b, or $2.73 per share, versus $2.65 per share a year earlier. Net sales were $2.3 billion in 2025 compared with $2.2 billion in 2024. The results were furnished under Item 2.02 in a press release dated October 22, 2025, which is included as Exhibit 99.1.

The quarter was shaped by the acquisition of the Greif containerboard business, which closed on September 2, 2025. The company said Greif's first month reduced earnings by about $0.19^c per share in total, including approximately $0.09 from depreciation and amortization after preliminary purchase accounting step-up adjustments, $0.06 from additional interest expense, and $0.10 from extended mill outages and timing effects. Special items for the quarter totaled $0.22 per diluted share, mainly acquisition and integration costs of $25.0 million.

Management reported that legacy PCA packaging performed strongly, with corrugated volume reflecting cautious customer ordering, and that legacy containerboard inventory ended at targeted levels. For the fourth quarter of 2025, management expects earnings of $2.40^d per share excluding special items.

It cited higher maintenance outage expenses of about $0.29 per share, seasonally lower Packaging prices, higher energy and fiber costs, and continued Massillon mill outage effects into October, partly offset by expected improvement at the acquired Greif mills and a full quarter of Riverville mill operations. Management also expects further acquisition and integration costs and possible additional special items.

02—Key points

Key Highlights

Third quarter 2025 GAAP diluted EPS was $2.51, down from $2.64 in the third quarter of 2024; excluding special items, EPS was $2.73 versus $2.65.
Net income was $226.9 million for the quarter versus $238.1 million a year earlier; net sales rose to $2.31 billion from $2.18 billion.
The Greif containerboard business acquisition closed September 2, 2025; its first month reduced earnings by about $0.19 per diluted share in total, per the filing.
Packaging segment operating income was $327.5 million versus $320.7 million, and $347.9 million excluding special items versus $321.6 million a year earlier.
Cash, cash equivalents and marketable debt securities were $806.4 million at September 30, 2025, compared with $841.3 million a year earlier; capital spending was $192.1 million for the quarter versus $146.7 million.
Fourth quarter 2025 guidance is $2.40 per share excluding special items, with higher maintenance outage expenses of about $0.29 per share and lower seasonal Packaging prices.
Interest expense rose to $19.3 million from $9.7 million, reflecting Greif acquisition financing.

03—Questions

Frequently Asked Questions

How did Packaging Corporation of America perform in the third quarter of 2025?
The company reported net income of $226.9 million, or $2.51 per diluted share, compared with $238.1 million, or $2.64 per share, in the third quarter of 2024. Excluding special items, EPS was $2.73, up from $2.65. Net sales increased to $2.31 billion from $2.18 billion.
What effect did the Greif containerboard acquisition have on the quarter?
The filing says the acquisition closed on September 2, 2025, and Greif results reduced earnings by about $0.19 per diluted share in the first month. This included roughly $12 million of depreciation and amortization ($0.09 per share), $8 million of additional interest expense ($0.06 per share), and about $12 million from extended mill outages and timing effects ($0.10 per share). Acquisition and integration costs of $25.0 million were treated as special items.
What is the company's fourth quarter 2025 earnings expectation?
Management expects fourth quarter 2025 earnings of $2.40 per share excluding special items. It expects higher maintenance outage expenses of about $0.29 per share, lower seasonal Packaging prices, higher energy and fiber costs, and continued Massillon mill outage effects, partly offset by improvement at the acquired mills. Additional special items may arise.
How did the Packaging and Paper segments perform?
Packaging segment operating income was $327.5 million in the third quarter of 2025, compared with $320.7 million a year earlier. Paper segment operating income was $35.6 million, versus $38.5 million. Corporate and Other posted an operating loss of $38.6 million, compared with $32.1 million a year earlier.

04—Continue

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