01—Abstract
Summary
Summary of the 8-K filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Packaging Corporation of America (NYSE: PKG) reported third quarter 2026 net income of $262 milliona, or $2.93 per diluted share, compared with $226.9 million, or $2.51 per share, in the third quarter of 2025.
Excluding special items, diluted EPS was $3.04b, versus $2.73 a year earlier and $.13 above the company's third quarter guidance of $2.91. Net sales were $2.6 billion, up from $2.3 billion. The company attributed the year-over-year improvement largely to favorable price and mix in the Packaging segment and to $.24 of higher earnings from the acquired Greif operations, which generated earnings of $.13 per share in the quarter versus a loss of ($.11) a year earlier.
Special items in the quarter primarily related to facility closure costs, acquisition and integration costs, a fire at a corrugated products facility, and restructuring charges tied to the Wallula, WA containerboard mill. For the nine months ended September 30, 2026, Wallula-related charges totaled $60.0 millionc pre-tax. Cost headwinds cited included labor and operating expense, freight, recycled fiber and chemicals.
Corrugated products shipments per day rose 10.6% overall, while shipments in the legacy packaging business fell 0.5% per day. For the fourth quarter of 2026, management guided to diluted EPS of $2.81d excluding special items.
It expects seasonally weaker corrugated mix, maintenance outages at three mills, significantly higher maintenance outage expenses, and rising freight, recycled fiber, wood fiber, chemicals and energy costs, partly offset by improving containerboard and corrugated prices. Cash, cash equivalents and marketable debt securities were $761.8 million at September 30, 2026, and interest expense, net, rose to $32.3 million in the quarter from $19.3 million a year earlier.
02—Key points
Key Highlights
- Q3 2026 diluted EPS of $2.93 (GAAP) versus $2.51 in Q3 2025; excluding special items, EPS was $3.04 versus $2.73, and $.13 above the company's $2.91 guidance.
- Net sales rose to $2.6 billion from $2.3 billion; Packaging segment operating income was $397.8 million versus $327.5 million a year earlier.
- The acquired Greif operations contributed $.13 per share of earnings in Q3 2026, compared with a loss of ($.11) in Q3 2025.
- Corrugated products shipments per day increased 10.6% overall, while legacy packaging shipments declined 0.5% per day.
- Q4 2026 guidance calls for EPS of $2.81 excluding special items, with three mill maintenance outages and significantly higher maintenance expense expected.
- Management expects higher freight, recycled fiber, wood fiber, chemicals and energy costs in Q4, partly offset by rising containerboard and corrugated prices.
- Nine-month 2026 special items included $60.0 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, Washington mill.
03—Questions
Frequently Asked Questions
How did Packaging Corporation of America perform in the third quarter of 2026?
The company reported net income of $262.3 million, or $2.93 per diluted share, up from $226.9 million, or $2.51 per share, a year earlier. Net sales were $2,601.7 million versus $2,313.4 million. Excluding special items, diluted EPS was $3.04, compared with $2.73 in the third quarter of 2025.
What drove the year-over-year earnings increase excluding special items?
The company attributed the $.31 per share increase to $.24 of higher earnings from the acquired Greif operations and $.07 of higher earnings in the legacy business. Favorable price and mix in the Packaging segment contributed $.79, partly offset by higher labor and operating expense ($.28), higher freight expense ($.26) and higher corporate and other expense ($.13).
What is the company's guidance for the fourth quarter of 2026?
Management expects fourth quarter 2026 earnings of $2.81 per share, excluding special items. It anticipates containerboard production will be lower due to maintenance outages at three mills, with significantly higher outage expenses, and expects freight, recycled fiber, wood fiber, chemicals and energy costs to increase.
What special items affected results this quarter?
Special items in the third quarter of 2026 totaled $9.7 million after tax, or $0.11 per share, and were primarily for facility closure costs, acquisition and integration-related costs, a fire at a corrugated products facility, and restructuring charges related to the Wallula, WA containerboard mill. The company also disclosed $60.0 million of Wallula-related charges for the nine months ended September 30, 2026.
How did the company's cash position and interest costs change?
Cash, cash equivalents, and marketable debt securities totaled $761.8 million at September 30, 2026, compared with $806.4 million a year earlier. Net interest expense rose to $32.3 million in the third quarter from $19.3 million in the prior-year quarter, and to $98.3 million for the nine months from $45.2 million.
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