PKG · Packaging Corp. of America

352 filings

PKG SEC Filings

Packaging Corp. of America - 352 total filings

Filing record · 2016–202610-K1110-Q328-K91

Showing 1–50 of 352 filings

Packaging Corp. of America 8-K Report, Financial Results (Oct 22, 2026)

Packaging Corporation of America (NYSE: PKG) reported third quarter 2026 net income of $262 million, 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 $3.04, 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 million 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 $2.81 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.

Oct 22, 2026 10-Q

Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2026

Packaging Corporation of America (PCA) reported second-quarter 2026 net sales of $2.49 billion, up from $2.17 billion in the second quarter of 2025, and net income of $192.1 million, or $2.15 per diluted share, compared with $241.5 million, or $2.67 per diluted share, a year earlier. Excluding special items, net income was $210.1 million, or $2.35 per diluted share, versus $224.2 million, or $2.48 per diluted share, in the prior-year quarter. The filing attributes the earnings decline in the legacy business to higher freight costs, unfavorable price and mix in the Packaging segment, higher labor and operating costs, higher depreciation and amortization, higher fiber costs, a higher tax rate and higher interest expense, partly offset by higher volumes, lower maintenance outage expense and a $0.14 per share contribution from the acquired Greif containerboard business. For the six months ended June 30, 2026, net sales were $4.86 billion and net income was $363.0 million, or $4.05 per diluted share, versus $445.3 million, or $4.93 per diluted share, a year earlier. Interest expense, net rose to $66.0 million from $26.0 million, reflecting financing for the Greif Acquisition completed on September 2, 2025 for $1.8 billion in cash. Cash flow from operations was $705.3 million for the six months, and capital expenditures were $370.6 million; the company expects 2026 capital investments of $840 million to $870 million. At June 30, 2026, cash and cash equivalents were $442.8 million and long-term debt was $3.97 billion. Management expects third-quarter 2026 earnings, excluding special items, to be higher than the second quarter, citing expected price and mix improvement from two Packaging price increases, one additional shipping day, and fewer mills with annual outages, while noting that freight costs are expected to remain elevated. The filing also discloses a pending class action lawsuit (Artuso Pastry Foods Corp v. Packaging Corporation of America, et al.) alleging containerboard price-fixing, which PCA says is without merit.

Aug 7, 2026 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jul 23, 2026)

Packaging Corporation of America reported second quarter 2026 net income of $192.1 million, or $2.15 per diluted share, compared with $241.5 million, or $2.67 per diluted share, in the second quarter of 2025. Excluding special items, net income was $210.1 million, or $2.35 per share, versus $224.2 million, or $2.48 per share, a year earlier. Net sales rose to $2.49 billion from $2.17 billion, and income from operations fell to $291.2 million from $333.7 million. The filing attributes the reported decline mainly to special items for facility closures, restructuring of the Wallula, WA containerboard mill, and acquisition and integration costs. Excluding special items, the company says the acquired Greif operations added $0.14 per share, offsetting a $0.27 decline in legacy business earnings. Higher freight costs ($0.26), higher corporate and other expenses ($0.12), and unfavorable price and mix in the packaging business ($0.11) were the largest legacy headwinds, partly offset by higher packaging production and sales volume ($0.26). The company said second quarter earnings of $2.35 per share, excluding special items, were $0.02 above its guidance of $2.33 per share. Corrugated products shipments rose 24.3% per day and in total versus the second quarter of 2025, and legacy packaging shipments rose 4.1% per day and in total, which management described as an all-time quarterly record for its legacy corrugated operations. Management said it began to realize its first announced price increase in corrugated products. For the third quarter, management expects earnings of $2.91 per share, excluding special items. It expects higher containerboard and corrugated prices, continued strong packaging demand, higher freight and recycled fiber costs, and lower maintenance outage expenses in the Packaging segment, with higher outage expenses in the Paper segment due to a scheduled outage at the International Falls mill. The company also expects further acquisition, integration and facility closure costs in the third quarter.

Jul 23, 2026 8-K

Packaging Corp. of America 8-K Report, Shareholder Vote Results (May 13, 2026)

Packaging Corporation of America (PCA) reported in this Current Report on Form 8-K (Item 5.07) the results of its 2026 Annual Meeting of Stockholders, held May 12, 2026. Stockholders voted on three proposals: the election of nine directors, ratification of KPMG LLP as the independent registered public accounting firm, and an advisory approval of executive compensation. All nine director nominees were elected. Cheryl K. Beebe received 74,535,448 votes for, 5,009,056 against and 41,399 abstentions. Samuel M. Mencoff and Roger B. Porter drew the largest opposition, with 8,681,658 and 11,849,812 votes against, respectively. Broker non-votes were 3,975,507 for each nominee. Stockholders ratified KPMG LLP as the auditor with 82,796,126 votes for, 744,560 against and 20,724 abstentions. The executive compensation proposal passed with 76,265,206 votes for, 2,299,022 against, 1,021,675 abstentions and 3,975,507 broker non-votes.

May 13, 2026 10-Q

Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2026

Packaging Corporation of America (PKG) reported first-quarter 2026 net sales of $2.37 billion, up from $2.14 billion in the first quarter of 2025, with net income of $170.9 million, or $1.91 per diluted share, compared with $203.8 million, or $2.26 per diluted share, a year earlier. Results were weighed down by $44 million of after-tax special items expense, primarily from the Wallula mill restructuring, which included the permanent shutdown of the No. 2 paper machine and kraft pulping facilities. Excluding special items, net income was $215 million, or $2.40 per diluted share, versus $208 million, or $2.31 per diluted share, in the prior-year quarter. The filing attributes the improvement in legacy PCA earnings to higher prices and mix, lower fiber costs, and lower maintenance outage expense, partly offset by a per-share loss from the acquired Greif containerboard business. Income from operations fell to $251.3 million from $280.3 million, while interest expense, net rose to $32.6 million from $12.9 million, reflecting financing for the $1.8 billion Greif Acquisition completed September 2, 2025. Net cash provided by operating activities was $329.3 million, and cash and cash equivalents declined to $397.1 million at March 31, 2026 from $529.0 million at December 31, 2025, as the company spent $164.7 million on capital additions, paid $111.9 million in dividends, and repurchased $58.8 million of common stock. The company expects 2026 capital investments of $840 million to $870 million and expects second-quarter earnings excluding special items to be lower than the first quarter. The filing also discloses a purported class action antitrust lawsuit, filed July 29, 2025, naming PCA and seven other containerboard producers, which alleges price-fixing and seeks treble damages. Management believes the allegations are without merit, and the company states it does not consider any other pending legal actions reasonably likely to have a material adverse effect.

May 8, 2026 8-K

Packaging Corp. of America 8-K Report, Financial Results (Apr 23, 2026)

Packaging Corporation of America (NYSE: PKG) reported first quarter 2026 net income of $171 million, or $1.91 per diluted share, compared with $203.8 million, or $2.26 per diluted share, in the first quarter of 2025. Excluding special items, net income was $215 million, or $2.40 per share, up from $2.31 per share a year earlier and $0.20 above the company's first quarter guidance of $2.20 per share. Net sales rose to $2.37 billion from $2.14 billion. Reported results include special items of $0.49 per share, primarily $53.3 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, Washington containerboard mill, along with $3.4 million of acquisition and integration costs and $2.9 million of corrugated facility closure costs. The Packaging segment drove the improvement on an adjusted basis, with segment operating income excluding special items of $316.5 million versus $284.0 million a year earlier. Management attributed the gain mainly to favorable prices and mix, lower fiber costs, and lower maintenance outage expenses, partially offset by higher freight costs and lower legacy volume. The acquired Greif operations generated a loss of $0.06 per share in the quarter. Legacy corrugated shipments per day rose 2.8%, and total shipments including Greif rose 21.8% per day. Interest expense, net, increased to $32.6 million from $12.9 million, and cash, cash equivalents and marketable debt securities were $615.5 million, down from $914.4 million. For the second quarter of 2026, the company expects earnings of $2.33 per share excluding special items, citing higher containerboard and corrugated prices, one additional shipping day, higher maintenance outage expenses at five containerboard mills, and higher freight, fiber and chemical costs. Management also expects a higher tax rate due to tax benefits from share-based compensation vesting in the first quarter. Additional special items related to the Wallula restructuring, acquisition integration and facility closures are anticipated in the second quarter.

Apr 23, 2026 8-K

Packaging Corp. of America 8-K Report, Executive Changes (Mar 3, 2026)

Packaging Corporation of America (PCA) filed this Form 8-K on March 3, 2026 to report several leadership and compensation changes. Director Paul T. Stecko informed the Board on February 25, 2026 that he will retire and not stand for reelection at the 2026 Annual Meeting of Stockholders. He is not leaving due to any disagreement with the company, and he will serve until his term expires at that meeting. Effective at the Annual Meeting, the Board will shrink from ten to nine directors. Fabian C. Strauss, age 45, was promoted on March 1, 2026 from Vice President, Controller and Treasurer to Senior Vice President – Finance, Controller & Treasurer, and he will serve as principal accounting officer. He will receive an annual base salary of $455,000 and is eligible for annual incentive and long-term equity awards. The filing also reports that Robert Mundy, the former Executive Vice President and Chief Financial Officer, retired as Special Advisor effective March 1, 2026. Under a post-retirement agreement, his 9,928 restricted shares vest as of the retirement date, subject to continued compliance with confidentiality, non-competition and non-solicitation covenants. His 3,900 TSR performance units and 9,928 ROIC performance units continue to vest on their originally scheduled dates. On February 25, 2026, the Compensation Subcommittee approved new forms of equity award agreements under the Second Amended and Restated 1999 Long-Term Equity Incentive Plan for TSR performance units, ROIC performance units and RSUs. These forms apply to awards made on or after that date and will be used beginning with fiscal year 2026 long-term incentive grants. The changes add retirement-based vesting, defined as termination on or after age 55 with age plus service of at least 70, and revise disability and death provisions.

Mar 3, 2026 10-K

Packaging Corp. of America Annual Report, Year Ended Dec 31, 2025

Packaging Corporation of America (PCA) reported 2025 net sales of $8.99 billion, 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 million, 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 billion 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 million. 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.

Feb 26, 2026 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jan 28, 2026)

Packaging Corporation of America reported fourth quarter 2025 net income of $102 million, or $1.13 per share, compared with $221.1 million, or $2.45 per share, in the fourth quarter of 2024. Excluding special items, fourth quarter net income was $209 million, or $2.32 per share, versus $2.47 per share a year earlier. For full year 2025, net income was $774 million, or $8.58 per share, and $888 million, or $9.84 per share excluding special items, compared with $805 million, or $8.93 per share, and $814 million, or $9.04 per share, excluding special items in 2024. Net sales were $9.0 billion for 2025 and $8.4 billion for 2024. Reported results include special items for the restructuring of the Wallula, WA containerboard mill ($128.0 million of charges), acquisition and integration costs for the Greif containerboard business ($33.2 million for the full year), and corrugated facility closures. Fourth quarter results came in below the company's own guidance because of unfavorable December volume and mix in the legacy corrugated business and lower production and sales volume in the acquired Greif business, which had extended outages at the Massillon mill. Legacy corrugated shipments per day were down 1.7% from the fourth quarter of 2024, while shipments per day including Greif were up 17.0%. Management said its order book strengthened through the quarter and demand improved in January. For the first quarter of 2026, management expects earnings of $2.20 per share excluding special items. The outlook reflects higher domestic containerboard and corrugated prices, with containerboard price increases beginning in March, offset by two fewer operating days, a scheduled outage at the Counce, TN mill, lower output at the reconfigured Wallula mill, and cost inflation. The company also noted that a winter storm could affect shipments and costs.

Jan 28, 2026 8-K

Packaging Corp. of America 8-K Report, Regulation FD Disclosure (Dec 10, 2025)

Packaging Corporation of America (PKG) filed a Form 8-K on December 10, 2025 under Item 7.01 (Regulation FD Disclosure) to furnish a slide presentation (Exhibit 99.1) for investor meetings held December 10 and 11, 2025 with Chairman and CEO Mark W. Kowlzan and EVP and CFO Kent A. Pflederer. The filing is furnished rather than filed, so it is not subject to Section 18 liability unless specifically incorporated by reference. The presentation reiterates that, based on operations through the end of November, PCA continues to forecast fourth-quarter 2025 earnings of $2.40 per share, excluding special items. Legacy PCA corrugated shipments are down approximately 1.8% per day for 4Q through November versus the same period in 2024, while including the acquired Greif business, shipments are up 17.3% per day. The company says the acquired Greif business has performed better than expected so far in Q4, and it is performing additional maintenance at the Massillon mill in December. The presentation also details the Wallula mill reconfiguration, which management expects to yield annual savings of $75 to $85 million compared to 2025 actual, with roughly 250,000 tons of annual capacity to be replaced at other mills. The 2026 capital plan is still being developed, with an estimate to be provided on the Q4 earnings call; management currently expects spending similar to 2025. Q3 2025 results showed EPS of $2.73 excluding special items versus $2.65 in Q3 2024, with net sales of $2.1 billion for the Packaging segment and EBITDA excluding special items up to $503 million.

Dec 10, 2025 8-K

Packaging Corp. of America 8-K Report, Exit or Disposal Costs (Dec 4, 2025)

Packaging Corporation of America (NYSE: PKG) announced on December 3, 2025 a plan to permanently shut down the No. 2 paper machine and kraft pulping facilities at its Wallula, Washington containerboard mill, while continuing to operate the No. 3 paper machine and recycled pulping facilities at the mill. The actions are expected to be completed by the end of the first quarter of 2026. The company estimates pre-tax restructuring charges of $205 million, substantially all recorded in the fourth quarter of 2025 and first quarter of 2026. These comprise approximately $165 million of non-cash impairment and accelerated depreciation charges and $40 million of cash charges for contract termination, severance and other charges. The company expects a reduction of approximately 200 positions. The press release states that after the actions the mill will have capacity to produce 285,000 tons per year of recycled linerboard and corrugating medium on the W3 machine, a reduction of 250,000 tons of annual production capacity. The company says the mill is expected to produce approximately 400,000 tons of containerboard this year and that the new configuration is expected to lower production cost at the mill by approximately $125 per ton from 2025 levels. Management states that the reduced capacity will be replaced with production enhancements at other PCA mills beginning in the fourth quarter of 2026, including approximately 140,000 tons per year of capacity at the Jackson mill. The Item 2.05 and Item 2.06 disclosures are incorporated by reference, and the impairment and accelerated depreciation charges are the key items for investors to track in upcoming reporting periods.

Dec 4, 2025 10-Q

Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2025

Packaging Corporation of America reported third-quarter 2025 net sales of $2.31 billion, up from $2.18 billion a year earlier, and net income of $226.9 million, 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, or $2.73 per diluted share. Results were driven by higher containerboard and corrugated prices and mix, partially offset by lower legacy volume, higher operating costs and higher interest expense. For the first nine months of 2025, net sales were $6.63 billion and net income was $672.3 million, or $7.45 per diluted share. The quarter was dominated by the September 2, 2025 acquisition of the containerboard business of Greif, Inc. for $1.8 billion in cash, which adds two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants. The purchase was financed with $1.5 billion of net debt proceeds, including $500 million of 5.20% senior notes due 2035 and $1.0 billion of term loans, and total long-term debt rose to $3.97 billion from $2.47 billion at December 31, 2024. Net cash provided by operating activities was $1.11 billion for the nine months, compared with $866 million a year earlier. Management expects fourth-quarter earnings to be lower than the third quarter of 2025, citing a scheduled DeRidder maintenance outage, seasonally lower prices and volumes, and continued Massillon mill outage effects. The company also faces a newly filed purported class action alleging containerboard price-fixing, which it says is without merit and will be defended vigorously.

Nov 6, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Results (Oct 23, 2025)

Packaging Corporation of America (NYSE: PKG) reported third quarter 2025 net income of $226.9 million, 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, 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 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 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.

Oct 23, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Obligation (Sep 2, 2025)

Packaging Corporation of America (PKG) reported in this Form 8-K that it completed the acquisition of the containerboard business of Greif, Inc. and Greif Packaging LLC for approximately $1.8 billion in cash. The closing was effective August 31, 2025. The acquired business includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants located across the United States. The transaction was governed by a Purchase and Sale Agreement dated June 30, 2025. PCA funded the purchase price with approximately $300 million of cash on hand and the net proceeds of $1.5 billion of new borrowings under term loan facilities and a previously disclosed senior note offering. On September 2, 2025, PCA fully drew down the Term Loan Facilities, which the filing describes as previously disclosed in separate Form 8-K filings dated August 6, 2025 and August 15, 2025. For investors, the filing shows a material acquisition that expands PCA's containerboard and corrugated footprint, financed predominantly with new debt. The filing itself does not describe the strategic rationale or the effect on financial results.

Sep 2, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Obligation (Aug 15, 2025)

Packaging Corporation of America priced an offering of $500 million aggregate principal amount of 5.200% Senior Notes due 2035 on August 11, 2025, and expects to close the issuance and sale on August 15, 2025. The Notes are unsecured senior obligations of the Company, with interest payable semi-annually on February 15 and August 15, beginning February 15, 2026. Net proceeds are expected to be approximately $495.1 million, which the Company intends to use, together with drawings on its term loan facilities and cash on hand, to finance the acquisition of the containerboard business of Greif, Inc. (the Greif Acquisition) and related transaction fees and expenses. The Notes include a special mandatory redemption feature: if the Greif Acquisition is not consummated on or before June 30, 2026 (subject to extension under the Greif Purchase Agreement), or if that agreement is terminated earlier, the Company must redeem the Notes in whole at 101% of principal plus accrued and unpaid interest. The Notes are redeemable at the Company's option before May 15, 2035 at the greater of a make-whole price (Treasury Rate plus 15 basis points) or par, and at 100% of principal plus accrued interest on or after that date. Upon a change of control triggering event, holders may require repurchase at 101% of principal plus accrued interest. The Indenture restricts the Company and its subsidiaries from incurring secured indebtedness above certain limits, entering into sale and leaseback transactions, and merging or consolidating with another person or disposing of substantially all of the Company's assets. The offering is being made under an effective registration statement (File No. 333-289469) with a prospectus supplement and base prospectus both dated August 11, 2025.

Aug 15, 2025 10-Q

Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2025

Packaging Corporation of America reported second-quarter 2025 net sales of $2,171.3 million, up from $2,075.3 million in the second quarter of 2024, and net income of $241.5 million, or $2.67 per diluted share, versus $198.9 million, or $2.21 per diluted share, a year earlier. Net income included $17 million of net special items income in the quarter; excluding special items, net income was $224.2 million, or $2.48 per diluted share. Income from operations rose to $333.7 million from $276.0 million, driven primarily by higher containerboard and corrugated products prices and mix in the Packaging segment and lower fiber costs, partially offset by higher operating costs, maintenance outage expense, and freight expense. For the six months ended June 30, 2025, net sales were $4,312.3 million and net income was $445.3 million, or $4.93 per diluted share. Cash flow and liquidity remained solid. Net cash provided by operating activities for the first six months was $638.7 million, compared with $538.7 million a year earlier, and cash and cash equivalents stood at $787.9 million at June 30, 2025. Long-term debt was $2,475.2 million, and all of the company's debt carried fixed interest rates. The company expects 2025 capital investments of $840 million to $870 million and expects third-quarter earnings, excluding special items, to be higher than second-quarter earnings. The filing also discloses a definitive agreement announced July 1, 2025 to buy the containerboard business of Greif, Inc. for $1.8 billion in cash, which includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants; closing is expected by the end of the third quarter, subject to customary conditions including regulatory approval. In addition, on July 29, 2025, the company and seven other containerboard producers were named as defendants in a purported class action alleging antitrust violations, which the company says is without merit.

Aug 7, 2025 8-K

Packaging Corp. of America 8-K Report, Material Agreement (Aug 6, 2025)

On July 31, 2025, Packaging Corporation of America (PCA) entered into two new credit agreements with lenders, agents and other parties named therein: a Commercial Credit Agreement and a Farm Credit Agreement. The Commercial Credit Agreement provides a $500 million three-year unsecured term loan facility and a $600 million unsecured revolving credit facility, while the Farm Credit Agreement provides a $500 million seven-year unsecured term loan facility. Borrowings under both agreements will be guaranteed by PCA's material subsidiaries. The term loan proceeds may be used only to complete the Greif Acquisition, and PCA expects to fully draw the term loan facilities at the closing of that acquisition. The Commercial Credit Agreement replaces PCA's Old Credit Agreement with Mizuho Bank, Ltd., dated June 8, 2021 and amended April 27, 2023, which was terminated. The Old Credit Agreement would have expired on June 8, 2026. Apart from approximately $27.5 million of letters of credit, no borrowings were outstanding under the Old Credit Agreement, and no borrowings are currently outstanding under the new revolving facility. The agreements contain customary affirmative and negative covenants, including limits on liens, mergers and consolidations, asset sales and subsidiary indebtedness, as well as a maximum consolidated leverage ratio. Loans bear interest at Term SOFR or the Base Rate plus an Applicable Margin, and PCA may prepay loans at any time without premium or penalty.

Aug 6, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jul 24, 2025)

Packaging Corporation of America (NYSE: PKG) furnished a press release under Item 2.02 reporting second-quarter 2025 results. Net income was $241.5 million, or $2.67 per diluted share, compared with $198.9 million, or $2.21 per share, in the second quarter of 2024. Excluding special items, diluted EPS was $2.48 versus $2.20 a year earlier. Special items were primarily gains from the sale of real estate tied to previously closed corrugated products facilities, partly offset by costs related to the pending Greif containerboard business acquisition. Net sales were $2.17 billion, up from $2.08 billion. Packaging segment operating income was $346.3 million versus $279.8 million, while Paper segment operating income was $25.8 million versus $26.7 million. Management said results were $0.07 above its second-quarter guidance of $2.41 per share. For the third quarter, management expects earnings of $2.80 per share excluding special items. It expects higher corrugated shipments and containerboard production, lower export containerboard sales, and roughly flat Packaging pricing and mix. Freight costs will rise with the full effect of rail rate increases, and a containerboard inventory build is planned ahead of the fourth-quarter maintenance outage at the DeRidder mill. Management noted that customers have remained cautious into July amid ongoing economic uncertainty. The guidance excludes any impact from the pending Greif containerboard business acquisition, which is subject to certain conditions including regulatory approval. At June 30, 2025, cash, cash equivalents, and marketable debt securities totaled $955.9 million, compared with $1,172.8 million a year earlier. Six-month net income was $445.3 million, or $4.93 per diluted share. Capital spending was $169.7 million in the quarter, down from $245.0 million in the second quarter of 2024.

Jul 24, 2025 8-K

Packaging Corp. of America 8-K Report, Material Agreement (Jul 3, 2025)

On June 30, 2025, Packaging Corporation of America (PCA) entered into a definitive Purchase and Sale Agreement with Greif, Inc. and Greif Packing LLC, a wholly-owned subsidiary of Greif (the Seller), to acquire Greif's containerboard business for $1.8 billion in cash. The filing describes customary representations, warranties, and covenants, with the parties anticipating closing in the third quarter of 2025 or sooner, subject to customary conditions including expiration or early termination of the Hart-Scott-Rodino waiting period. The agreement includes termination rights for both parties, including if closing has not occurred by June 30, 2026 (the Outside Date), which is subject to two ninety-day extensions in certain circumstances. PCA would owe a termination fee to the Seller in certain circumstances involving failure to receive antitrust approval. The agreement also contains indemnification provisions and contemplates a transition services agreement and other post-closing covenants to facilitate transfer and integration of the acquired business. The full agreement is filed as Exhibit 10.1 to the Form 8-K, and the summary in the filing is qualified in its entirety by that document. The filing does not describe the financing arrangements for the acquisition beyond referencing covenants relating to PCA's financing arrangements.

Jul 3, 2025 8-K

Packaging Corp. of America 8-K Report, Regulation FD Disclosure (Jul 1, 2025)

Packaging Corporation of America (PCA, NYSE: PKG) announced on July 1, 2025 that it has entered into a definitive agreement to acquire the containerboard business of Greif, Inc. for $1.8 billion in cash. The filing states the transaction is expected to close by the end of PCA's third quarter, subject to customary conditions and regulatory approvals, including HSR Act review. The acquired business includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants across the United States, generating approximately $1.2 billion in sales and $212 million of EBITDA for the 12 months ended April 30, 2025. Management cites a purchase price of 8.5X LTM EBITDA, or 6.6X including $60 million of expected pre-tax synergies, which are projected to be fully realized within two years after closing. PCA expects the acquisition to be accretive to earnings immediately. The company plans to fund the deal with $1.5 billion of new debt ($1.0 billion under new bank term loans and $500 million of notes) and cash on hand, with approximately $20 million of purchase price and transaction expenses funded from cash. Pro forma net debt to EBITDA leverage is expected to be 1.7X, compared with 0.9X currently, and the filing estimates incremental net interest expense of about $100 million per year. The transaction is presented as a strategic expansion of PCA's corrugated products business, providing containerboard integration into its existing system. The slide presentation also notes a full step-up in asset tax basis and ongoing maintenance capital of $40 to $50 million per year for the acquired business. Investors should weigh the synergy and accretion claims against the significant increase in leverage and interest expense.

Jul 1, 2025 8-K

Packaging Corp. of America 8-K Report, Shareholder Vote Results (May 12, 2025)

Packaging Corporation of America (PCA), trading under the symbol PKG on the New York Stock Exchange, filed this Current Report under Item 5.07 to report the results of its 2025 Annual Meeting of Stockholders, held May 7, 2025. Stockholders elected all ten director nominees, including Cheryl K. Beebe, Duane C. Farrington, Karen E. Gowland, Donna A. Harman, Mark W. Kowlzan, Robert C. Lyons, Samuel M. Mencoff, Roger B. Porter, Thomas S. Souleles, and Paul T. Stecko. Vote totals for each nominee are reported, with the most votes against the nominees Beebe (5,275,498) and Mencoff and Porter, who had the highest abstention counts among others. Stockholders also ratified the audit committee's appointment of KPMG LLP as the independent registered public accounting firm, with 80,335,918 votes for, 1,214,521 against, and 88,989 abstentions. In a non-binding advisory vote, stockholders approved PCA's executive compensation, with 69,405,053 votes for, 4,174,407 against, 1,259,272 abstentions, and 6,800,696 broker non-votes. For investors, the filing reflects routine annual meeting outcomes with no reported changes to governance, financial results, or business operations. The results indicate broad support for board nominees, the auditor, and executive pay, though a meaningful number of votes were cast against certain directors and the compensation proposal.

May 12, 2025 10-Q

Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2025

Packaging Corporation of America reported first-quarter 2025 net sales of $2.14 billion, up from $1.98 billion in the first quarter of 2024, and net income of $203.8 million, or $2.26 per diluted share, compared with $146.9 million, or $1.63 per diluted share, a year earlier. Excluding special items, net income was $208.2 million, or $2.31 per diluted share. The increase was driven primarily by higher containerboard and corrugated prices and mix and higher Packaging volume, partially offset by higher operating costs and lower Paper segment volume. Packaging segment operating income rose to $278.1 million from $203.8 million, while Paper segment operating income rose to $35.6 million from $29.7 million. Cash flow from operations was $339.1 million, compared with $260.4 million a year earlier, while capital expenditures were $148.1 million. At March 31, 2025, the company held $751.7 million in cash and cash equivalents, $91.4 million in short-term and $71.3 million in long-term marketable debt securities, and $2,474.7 million of long-term debt. Management expects 2025 capital investments of $840 million to $870 million and expects second-quarter earnings to be higher than first-quarter earnings, citing planned price increases, offset by higher costs from an outage moved into the second quarter, higher freight costs, and higher depreciation. The company paid $112.3 million in dividends and declared a regular quarterly dividend of $1.25 per share. It did not repurchase shares during the quarter, leaving $436.0 million available under its repurchase authorization. The company also disclosed a DeRidder litigation settlement of $59.2 million, which had not yet been paid as of March 31, 2025, with an offsetting insurance receivable of the same amount.

May 8, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Results (Apr 23, 2025)

Packaging Corporation of America reported first quarter 2025 net income of $204 million, or $2.26 per diluted share, compared with $146.9 million, or $1.63 per share, in the first quarter of 2024. Excluding special items, which were primarily $5.9 million of closure costs related to corrugated products facilities, net income was $208 million, or $2.31 per share, versus $1.72 per share a year earlier. Net sales rose to $2.1 billion from $2.0 billion, and the company described the quarter as a new first quarter revenue record. Management attributed the $0.59 per-share increase in adjusted earnings mainly to higher prices and mix ($0.78) and volume ($0.27) in the Packaging segment, partly offset by higher operating costs ($0.37). Results were $0.10 above first quarter guidance of $2.21 per share. Packaging segment operating income was $278.1 million, up from $203.8 million, and Paper segment operating income was $35.6 million, up from $29.7 million. Corrugated products shipments per day rose 2.5% year over year, and containerboard production reached a record first quarter level of 1,250,000 tons. Cash, cash equivalents, and marketable debt securities declined to $914.4 million from $1,253.2 million, while capital spending increased to $148.1 million from $76.7 million. For the second quarter, management expects earnings of $2.41 per share, excluding special items. The outlook reflects lower containerboard volume, a pulled-forward maintenance outage that raises second-quarter costs, higher rail freight and logistics expenses from contract rate increases at six mills, and higher depreciation. Management also cited ongoing uncertainty from domestic and foreign tariff actions that could affect volume and costs.

Apr 23, 2025 8-K

Packaging Corp. of America 8-K Report, Executive Changes (Feb 28, 2025)

Packaging Corporation of America (PCA, NYSE: PKG) disclosed on February 28, 2025 a set of planned leadership changes. Robert P. Mundy, Executive Vice President and Chief Financial Officer, notified the company on February 26, 2025 that he will step down as CFO effective May 1, 2025, and will remain employed in an advisory role through his planned retirement date of March 1, 2026, receiving his current base salary until then. Kent A. Pflederer, Senior Vice President, General Counsel and Secretary, will become Executive Vice President and CFO on May 1, 2025, serving as principal financial and principal accounting officer, with an annual base salary of $750,000 effective that date and eligibility for incentive and long-term equity awards. The filing states no agreements were entered into with Mr. Pflederer in connection with the appointment. The accompanying press release, filed as Exhibit 99.1 and dated February 26, 2025, also announces operational leadership changes. Thomas A. Hassfurther, Executive Vice President, Corrugated Products, has been named President of PCA, reporting to Chairman and CEO Mark W. Kowlzan, with responsibility for strategic growth efforts, capital allocation and acquisition opportunities in addition to the corrugated products business. D. Ray Shirley, Senior Vice President, Corporate Engineering and Process Technology, has been named Executive Vice President, Corrugated Products, reporting to Mr. Hassfurther and assuming day-to-day management of that business while continuing to oversee engineering and technology. The filing describes PCA as the third largest producer of containerboard and corrugated packaging products in the United States and a leading producer of uncoated freesheet paper in North America, operating eight paper mills and 86 corrugated products plants and related facilities.

Feb 28, 2025 10-K

Packaging Corp. of America Annual Report, Year Ended Dec 31, 2024

Packaging Corporation of America (PCA) reported net sales of $8.4 billion for 2024, up from $7.8 billion in 2023, and net income of $805 million, or $8.93 per diluted share, compared with $765 million, or $8.48 per diluted share, in 2023. Excluding special items, net income was $814 million, or $9.04 per diluted share. The increase was driven primarily by higher volumes in the Packaging and Paper segments and lower freight and logistics expenses, partially offset by lower prices and mix, higher operating and converting costs, and higher annual outage expense. Packaging segment operating income rose to $1,102 million from $1,074 million, and Paper segment operating income rose to $130 million from $119 million. Cash flow from operations was $1,191 million in 2024, versus $1,315 million in 2023. Investing outflows were $278 million, including $670 million of capital investments, and financing outflows were $876 million, which included $449 million of dividends and the repayment of $400 million of 3.65% senior notes due 2024. The company ended 2024 with $685 million of cash and cash equivalents, $167 million of marketable debt securities, and $323 million of unused revolver capacity. Total debt was $2.5 billion, all fixed-rate senior notes. The company expects 2025 capital investments of $840 million to $870 million. Management notified customers of a $70 per ton linerboard and $90 per ton medium price increase effective January 1, 2025, and a $60 per ton increase for office, printing, and converting papers effective January 13, 2025. The DeRidder mill litigation was settled for a minimum of $59.2 million, which is fully offset by a corresponding insurance recovery receivable. The filing also notes that ODP Corporation, the largest Paper segment customer, accounted for 58% of Paper segment sales and 4% of consolidated sales in 2024, and that the agreement runs through December 31, 2025.

Feb 27, 2025 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jan 29, 2025)

Packaging Corporation of America (NYSE: PKG) reported fourth quarter 2024 net income of $221 million, or $2.45 per diluted share, and $222 million, or $2.47 per share, excluding special items. Fourth quarter net sales were $2.1 billion in 2024 versus $1.9 billion in 2023. For the full year 2024, net income was $805 million, or $8.93 per share, and $814 million, or $9.04 per share excluding special items, on net sales of $8.4 billion compared with $7.8 billion in 2023. The company attributed the $.34 per share increase in fourth quarter earnings excluding special items primarily to higher prices and mix and volume in the Packaging segment, partially offset by higher operating costs. Operationally, the Packaging segment showed strong demand, with total corrugated product shipments and shipments per day up 9.1% versus last year's fourth quarter and containerboard inventory up 54,000 tons from the fourth quarter of 2023. Management described record fourth quarter total shipments and an all-time record shipments per day, along with new annual records for shipments and mill production. Full year 2024 Packaging segment operating income was $1,101.5 million, and Paper segment operating income was $129.7 million. Looking ahead, management expects first quarter 2025 earnings of $2.21 per share. The company cited higher domestic containerboard prices, new first quarter shipment records expected in corrugated products plants, lower containerboard volume from two fewer operating days and scheduled mill maintenance outages at the Counce, TN and Valdosta, GA mills, and expected price inflation across most cost categories, including higher labor, wood, energy and chemical costs. The results were disclosed in a press release furnished as Exhibit 99.1, and the Item 2.02 information is furnished rather than filed.

Jan 29, 2025 10-Q

Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2024

Packaging Corporation of America reported third-quarter 2024 net sales of $2.18 billion, up from $1.94 billion a year earlier, and net income of $238.1 million, or $2.64 per diluted share, compared with $183.2 million, or $2.03 per diluted share, in the third quarter of 2023. The increase was driven primarily by higher Packaging volume and prices/mix, lower freight and logistics expenses, and lower scheduled outage expenses, partly offset by higher operating and converting costs and higher depreciation. Management expects fourth-quarter earnings to be lower than third-quarter earnings, citing two fewer shipping days, seasonally higher energy and chemical costs, higher scheduled mill maintenance outage costs, and a slightly higher depreciation expense. For the first nine months of 2024, net sales were $6.24 billion and net income was $584.0 million, or $6.48 per diluted share, versus $6.38 per diluted share a year earlier. Cash provided by operating activities was $865.8 million, down from $979.8 million, while capital additions rose to $468.4 million from $328.6 million, and the company expects 2024 capital investments of $670 million to $690 million. The company repaid $400 million of 3.65% senior notes due September 2024 using proceeds from a 5.70% note offering and cash on hand, and ended the period with $676.6 million of cash and cash equivalents and $2.49 billion of fixed-rate senior notes outstanding. A key item for investors is the DeRidder litigation: a jury awarded plaintiffs about $91.8 million in compensatory damages in April 2024, and the company recorded a $127.7 million accrual, including $35.9 million of interest, offset by an equal insurance recovery receivable. The company intends to appeal and believes its insurance covers the verdict and interest.

Nov 7, 2024 8-K

Packaging Corp. of America 8-K Report, Financial Results (Oct 23, 2024)

Packaging Corporation of America (NYSE: PKG) reported third quarter 2024 net income of $238 million, or $2.64 per diluted share, compared with $183.2 million, or $2.03 per share, in the third quarter of 2023. Excluding special items, net income was $239 million, or $2.65 per share. Net sales rose to $2.2 billion from $1.9 billion. The company said the results were $.20 per share above its third quarter guidance of $2.45. Reported results included special items, primarily closure costs for certain corrugated products facilities. The increase in earnings was driven mainly by higher volume and higher prices and mix in the Packaging segment. Packaging segment operating income was $320.7 million, up from $256.8 million, and Paper segment operating income was $38.5 million, up from $27.6 million. Corrugated products shipments per day were up 11.1% year over year, and containerboard production of 1,293,000 tons was an all-time quarterly record. For the nine months ended September 30, 2024, net income was $584.0 million, or $6.48 per diluted share, and capital spending was $468.4 million, compared with $328.6 million a year earlier. For the fourth quarter, management expects demand in the Packaging segment to remain strong, but total corrugated shipments will be reduced by two fewer shipping days and recent hurricane damage to Florida strawberry crops. Scheduled outage costs are estimated to be $(.12) per share higher than in the third quarter, and operating and converting costs are expected to rise on seasonal energy and chemical costs. Management projects fourth quarter earnings of $2.47 per share, excluding any significant special items.

Oct 23, 2024 10-Q

Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2024

Packaging Corporation of America reported second-quarter 2024 net sales of $2.08 billion, up from $1.95 billion in the second quarter of 2023, and net income of $198.9 million, or $2.21 per diluted share, compared with $202.7 million, or $2.24 per diluted share, a year earlier. Excluding special items, diluted EPS was $2.20 versus $2.31. The filing attributes the earnings decline mainly to lower Packaging and Paper prices and mix, higher operating costs and depreciation, and a higher tax rate, partially offset by higher Packaging and Paper volumes. Packaging segment income from operations was $280 million, compared with $286 million a year earlier, while Packaging volumes benefited from a new all-time containerboard production record of 1.3 million tons. For the first six months of 2024, net sales rose to $4.05 billion from $3.93 billion, but income from operations fell to $472.0 million from $555.0 million and net income declined to $345.9 million from $392.8 million. The filing notes a $125.7 million accrual for the DeRidder litigation jury verdict, offset by an equal insurance recovery receivable. Operating cash flow for the six months was $538.7 million, down from $640.3 million, while capital expenditures were $321.7 million. Cash and cash equivalents ended the period at $613.6 million, and the company did not repurchase any shares during the quarter. Management expects third-quarter 2024 earnings to be higher than second-quarter earnings, citing expected price and mix improvements, higher containerboard volume, and a potential new third-quarter shipment record, partly offset by seasonal energy costs and one fewer shipping day. The company expects 2024 capital investments of $670 million to $690 million, and all of its debt carries fixed interest rates.

Aug 8, 2024 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jul 24, 2024)

Packaging Corporation of America (NYSE: PKG) reported second quarter 2024 net income of $198.9 million, or $2.21 per diluted share, compared with $202.7 million, or $2.24 per diluted share, in the second quarter of 2023. Excluding special items, diluted EPS was $2.20, versus $2.31 a year earlier. Net sales rose to $2,075.3 million from $1,952.1 million. The company beat its second quarter guidance of $2.07 per share by $0.13, citing higher Packaging segment volume, lower operating and converting costs, and lower freight costs. Packaging segment income was $279.8 million, roughly flat with $285.8 million a year earlier, and Paper segment income was $26.7 million, versus $29.1 million. Management said strong Packaging market conditions drove a new all-time containerboard production record of 1,281,000 tons and a record corrugated shipments-per-day month for June. Corrugated shipments per day rose 9.2% year over year. Capital spending was $245.0 million in the quarter, up from $126.4 million, and cash, cash equivalents and marketable debt securities totaled $1,172.8 million, compared with $629.6 million at June 30, 2023. For the third quarter of 2024, management expects prices and mix to rise in both segments, along with higher containerboard export prices and higher containerboard volume. It projects third quarter earnings of $2.45 per share, excluding special items it does not currently expect. The company also plans to build containerboard inventory ahead of a scheduled October maintenance outage at its Deridder mill.

Jul 24, 2024 8-K

Packaging Corp. of America 8-K Report, Executive Changes (May 9, 2024)

Packaging Corporation of America (PKG) filed this Form 8-K to report results from its 2024 Annual Meeting of Stockholders, held May 8, 2024. The filing covers two items: stockholder approval of the Second Amended and Restated 1999 Long-Term Equity Incentive Plan (Item 5.02) and the voting results for all matters put to stockholders (Item 5.07). The Plan's description appears in the Proxy Statement filed March 28, 2024, as supplemented on April 3, 2024, and the full Plan text was attached as Appendix B to the Proxy Statement. All eleven director nominees received more votes for than against, though the margins varied. Cheryl K. Beebe received 72,134,723 votes for and 4,673,558 against, while Roger B. Porter received 61,236,883 votes for and 13,113,239 against. The stockholder proposal regarding a director election resignation bylaw received 12,644,915 votes for and 63,816,263 votes against. The Plan was approved with 70,515,959 votes for and 6,210,977 votes against. Stockholders also ratified KPMG LLP as the independent registered public accounting firm with 80,848,054 votes for and 1,830,602 votes against, and approved executive compensation with 71,793,232 votes for and 4,930,720 votes against. For investors, the key takeaways are the stockholder approval of the equity incentive plan, the reappointment of KPMG LLP, and the continued support for the director slate. The 8-K also records a stockholder proposal that drew substantially more votes against than for.

May 9, 2024 10-Q

Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2024

Packaging Corporation of America reported first-quarter 2024 net sales of $1,979.5 million, essentially flat versus $1,976.3 million in the first quarter of 2023. Net income was $146.9 million, or $1.63 per diluted share, compared with $190.1 million, or $2.11 per diluted share, a year earlier. Excluding special items, net income was $154.6 million, or $1.72 per diluted share, versus $198.3 million, or $2.20 per diluted share, in the prior-year quarter. The decline was driven primarily by lower containerboard and corrugated products prices and mix, higher scheduled mill outage expenses, and higher depreciation, partially offset by higher volumes and lower operating and converting costs. Packaging segment income from operations fell to $203.8 million from $268.0 million, while Paper segment income from operations was $29.7 million compared with $34.1 million. Cash generation remained solid, with net cash provided by operating activities of $260.4 million and cash and cash equivalents of $692.4 million at March 31, 2024. The company paid $112.0 million in dividends and did not repurchase any shares under its $1 billion authorization, leaving $436.0 million available. Management expects capital investments of $470 million to $490 million in 2024 and anticipates second-quarter earnings will be higher than the first quarter, citing announced price increases and higher published index prices. A material subsequent event occurred on April 24, 2024, when a jury in the remaining DeRidder mill lawsuit awarded plaintiffs approximately $91.8 million in compensatory damages plus prejudgment interest. The company recorded a $123.7 million accrual, including $31.9 million of interest, and an equal $123.7 million insurance recovery receivable, and it intends to appeal, believing its insurance covers the verdict.

May 8, 2024 8-K

Packaging Corp. of America 8-K Report, Financial Results (Apr 23, 2024)

Packaging Corporation of America (NYSE: PKG) reported first quarter 2024 net income of $147 million, or $1.63 per diluted share, and net income of $155 million, or $1.72 per share, excluding special items, on net sales of $2.0 billion in both 2024 and 2023. Reported diluted EPS declined from $2.11 in the first quarter of 2023, and the filing attributes the decline excluding special items primarily to lower prices and mix in the Packaging segment ($1.33 per share), partially offset by higher Packaging volume ($0.71 per share). Results were $0.18 above first quarter guidance of $1.54 per share. Special items were primarily costs at the Jackson, AL mill related to paper-to-containerboard conversion. Operationally, management said containerboard and corrugated products demand exceeded expectations, with corrugated shipments per day up 11.0% year over year and the company ending the quarter at a record low weeks-of-inventory supply for the time of year. Cash, cash equivalents, and marketable debt securities rose to $1.25 billion from $520.2 million a year earlier, and capital spending fell to $76.7 million from $112.4 million. For the second quarter, management expects second quarter earnings of $2.07 per share, citing higher Packaging prices and mix, strong demand, and lower operating and converting costs, offset by lower Paper volume from a scheduled outage at the International Falls, MN mill, higher freight costs from rail rate increases, and higher depreciation.

Apr 23, 2024 10-K

Packaging Corp. of America Annual Report, Year Ended Dec 31, 2023

Packaging Corporation of America (PCA) reported net sales of $7.8 billion for 2023, down from $8.5 billion in 2022, and net income of $765 million, or $8.48 per diluted share, compared with $1,030 million, or $11.03 per diluted share, in 2022. Net income excluding special items was $784 million, or $8.70 per diluted share. Management attributed the decline primarily to lower prices and mix in the Packaging segment and lower volumes in the Packaging and Paper segments, partially offset by higher Paper prices and mix, lower operating and converting costs, and lower annual outage expense. Packaging segment income from operations fell to $1,074 million from $1,424 million, while Paper segment income rose to $119 million from $103 million. The company ended 2023 with $1,206 million of cash and marketable debt securities and $1,529 million of total liquidity including revolver availability. Net cash provided by operating activities was $1,315 million, compared with $1,495 million in 2022. Capital expenditures for property and equipment were $470 million, and dividends paid totaled $449 million. Total debt outstanding was $2.9 billion, all fixed-rate senior notes. In November 2023 the company issued $400 million of 5.70% senior notes due 2033 and intends to use the proceeds, with cash on hand, to repay its 3.65% senior notes due September 15, 2024. For 2024, management expects first-quarter earnings to be lower than fourth-quarter 2023, citing a prolonged outage at the Jackson mill for the conversion of the No. 3 machine and a scheduled outage at the Counce mill. The company notified customers of price increases of $70 per ton for linerboard and $100 per ton for medium effective January 1, 2024, and expects 2024 capital investments of $470 million to $490 million.

Feb 29, 2024 8-K

Packaging Corp. of America 8-K Report, Executive Changes (Feb 29, 2024)

Packaging Corporation of America (PCA) furnished an 8-K under Item 7.01 announcing that Chairman and CEO Mark W. Kowlzan and EVP and CFO Robert P. Mundy would present at the Bank of America Global Agriculture & Materials Conference on February 29, 2024. The slide presentation is furnished as Exhibit 99.1 and is not deemed "filed" for Exchange Act purposes. The slides describe Packaging segment demand as strengthening in the second half of 2023, with first-quarter 2024 corrugated products volume exceeding guidance and higher Packaging segment prices expected from 1Q24 price increases. Management also cites completion of Phase II of the Jackson mill conversion to containerboard, expected moderation in inflation, and a strong balance sheet that supports opportunistic capital allocation and shareholder returns. The slides report 2023 Packaging net sales of $7,135.6 million, EBITDA of $1,546.8 million, and an EBITDA margin of 21.8%, compared with 2022 net sales of $7,780.7 million and a 23.8% margin. For 2023, cash flow from operations was $1,315 million, additions to property, plant and equipment were $470 million, and free cash flow was $845 million. Reported diluted EPS was $8.48 for 2023 versus $11.03 for 2022, and EPS excluding special items was $8.70 versus $11.14. The slides also show a six-year average ROIC of 16.8% against a six-year average WACC of 7.9%. Separately, under Item 5.02, Pamela A. Barnes, Senior Vice President, Finance, and Controller, notified PCA on February 28, 2024 that she will retire on April 1, 2024. Upon her retirement, Mr. Mundy will become principal accounting officer while continuing as principal financial officer.

Feb 29, 2024 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jan 25, 2024)

Packaging Corporation of America reported fourth-quarter 2023 net income of $189 million, or $2.10 per diluted share, compared with $211.7 million, or $2.31 per share, in the fourth quarter of 2022. Excluding special items, fourth-quarter net income was $192 million, or $2.13 per share. Full-year 2023 net income was $765 million, or $8.48 per share, versus $1.03 billion, or $11.03 per share, in 2022. Excluding special items, full-year net income was $784 million, or $8.70 per share. Net sales were $1.94 billion for the fourth quarter of 2023 and $7.8 billion for the full year, compared with $1.98 billion and $8.5 billion in 2022. Fourth-quarter results were $0.37 per share above the company's fourth-quarter guidance of $1.76 per share, driven mainly by higher Packaging volume, lower operating and converting costs and lower freight and logistics expenses. The Packaging segment's full-year segment income was $1,074.3 million, down from $1,423.7 million in 2022, while the Paper segment's full-year segment income rose to $118.9 million from $103.0 million. Management said demand in the Packaging segment was stronger than expected during the quarter. The company restarted the No. 3 machine at its Wallula, WA mill and plans to restart the No. 2 machine there in the first quarter of 2024. Capital spending was $469.7 million for 2023, compared with $824.2 million in 2022, and cash, cash equivalents and marketable debt securities were $1,205.6 million at year-end, up from $470.1 million a year earlier. For the first quarter of 2024, management expects first-quarter earnings of $1.54 per share. The outlook reflects higher corrugated products shipments, two additional shipping days, lower containerboard volume from the Jackson, AL mill conversion and a scheduled Counce, TN maintenance outage, and higher recycled fiber and energy prices. The Jackson conversion outage is estimated to reduce first-quarter earnings by $0.16 per share. The filing also notes that the press release contains non-GAAP measures and that special items for the first quarter are expected to include charges related to the paper-to-containerboard conversion at the Jackson, AL mill.

Jan 25, 2024 8-K

Packaging Corp. of America 8-K Report, Corporate Update (Nov 30, 2023)

On November 27, 2023, Packaging Corporation of America entered into an underwriting agreement with Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC, as representatives of the underwriters, for the issuance and sale of $400,000,000 in aggregate principal amount of 5.700% Senior Notes due 2033. The filing states that net proceeds are expected to be approximately $396.0 million after the underwriting discount and estimated offering expenses. The Corporation intends to use the net proceeds, together with a portion of its cash on hand, to redeem, repurchase, or otherwise repay its outstanding 3.650% Senior Notes due 2024, which mature on September 15, 2024. Until applied, the net proceeds will be invested in short-term interest-bearing securities. The filing states that nothing in the Form 8-K constitutes a notice of redemption for the 2024 Notes. The filing also lists the related exhibits: the Underwriting Agreement dated November 27, 2023, an Officers' Certificate dated November 30, 2023 under Section 301 of the 2003 indenture with U.S. Bank Trust Company, National Association, the form of 5.700% Senior Notes due 2033, and a legal opinion of Mayer Brown LLP dated November 30, 2023.

Nov 30, 2023 10-Q

Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2023

Packaging Corporation of America reported third-quarter 2023 net sales of $1.94 billion, down from $2.13 billion in the third quarter of 2022, and net income of $183.2 million, or $2.03 per diluted share, compared with $262.5 million, or $2.80 per diluted share, a year earlier. For the nine months ended September 30, 2023, net sales were $5.86 billion versus $6.50 billion, and net income was $576.0 million, or $6.38 per diluted share, versus $818.2 million, or $8.70 per diluted share. Management attributed the decline primarily to lower Packaging prices and mix and lower volumes, along with higher depreciation expense, a higher tax rate, and other expenses, partly offset by lower operating costs. Packaging segment income from operations fell to $257 million in the quarter from $359 million, and the company stated it expects fourth-quarter earnings to be lower than the third quarter. The balance sheet remained solid, with cash and cash equivalents of $573.2 million at September 30, 2023, up from $320.0 million at December 31, 2022, and total long-term debt of $2,075.7 million, with $399.5 million classified as current maturities. Operating cash flow for the nine months was $979.8 million, compared with $1,074.9 million a year earlier, while capital expenditures were $328.6 million. The company paid $336.9 million in dividends and repurchased $41.5 million of common stock during the period, with $436.0 million remaining under its repurchase authorization. Management expects 2023 capital investments of approximately $475 million and plans to restart the No. 3 machine at its Wallula mill in the fourth quarter as demand improves. The company reported that it is not aware of any material liabilities from guarantees and that legal proceedings are not reasonably expected to have a material adverse effect. The DeRidder mill incident litigation remains pending, and the company stated it is unable to estimate a range of reasonable possible losses for those cases.

Nov 3, 2023 8-K

Packaging Corp. of America 8-K Report, Financial Results (Oct 24, 2023)

Packaging Corporation of America (NYSE: PKG) reported third quarter 2023 net income of $183.2 million, or $2.03 per diluted share, compared with $262.5 million, or $2.80 per diluted share, in the third quarter of 2022. Excluding special items, which were primarily costs related to paper-to-containerboard conversion at the Jackson, AL mill, net income was $185.1 million, or $2.05 per share, versus $2.83 per share a year earlier. Net sales were $1.94 billion, compared with $2.13 billion. Results were $0.17 above the company's third quarter guidance of $1.88 per share, driven mainly by higher volume in the Packaging and Paper segments and lower operating and converting costs. Packaging segment income fell to $256.8 million from $359.2 million, reflecting lower price and mix, which the company cited as the largest factor in the year-over-year decline. Paper segment income rose to $27.6 million from $26.1 million. Corrugated products shipments per day were up 1.9% year over year, while total shipments, with two fewer shipping days, were down 1.3%. Containerboard inventory was 84,000 tons lower than a year earlier. For the fourth quarter, management expects fourth quarter earnings of $1.76 per share. It anticipates less market-related downtime, higher shipments per day, and lower average prices in Packaging, along with higher operating and converting costs. Management also plans to restart the No. 3 machine at the Wallula, WA mill during the fourth quarter to bring inventories to desired levels. The company expects special items in the fourth quarter to include conversion-related charges at the Jackson, AL mill.

Oct 24, 2023 10-Q

Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2023

Packaging Corporation of America (PKG) reported a quarter of lower sales and earnings for the three months ended June 30, 2023. Net sales were $1.95 billion, down from $2.24 billion in the second quarter of 2022, and net income was $202.7 million, or $2.24 per diluted share, compared with $301.5 million, or $3.20 per diluted share, a year earlier. Management attributed the decline primarily to lower volumes in the Packaging and Paper segments, lower Packaging prices and mix, and higher depreciation. Excluding special items, diluted EPS was $2.31 versus $3.23 in the prior-year quarter. For the six months ended June 30, 2023, net sales were $3.93 billion and net income was $392.8 million, or $4.35 per diluted share. Net cash provided by operating activities was $640.3 million, and the company held $477.1 million in cash and cash equivalents at June 30, 2023. Dividends paid in the first half totaled $224.5 million, and no shares were repurchased under the $1 billion authorization, leaving $477.5 million available. All debt was at fixed rates as of June 30, 2023. Looking ahead, management expects third-quarter earnings to be lower than the second quarter, citing lower containerboard prices, one fewer shipping day, higher scheduled outage expenses at the International Falls, MN mill, and slightly higher depreciation, freight and tax rate. Planned 2023 capital investments are approximately $475 million.

Aug 4, 2023 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jul 25, 2023)

Packaging Corporation of America reported second quarter 2023 net income of $202.7 million, or $2.24 per diluted share, compared with $301.5 million, or $3.20 per diluted share, in the second quarter of 2022. Excluding special items, net income was $208.9 million, or $2.31 per share, versus $303.7 million, or $3.23 per share, a year earlier. Net sales were $1,952.1 million, down from $2,237.3 million. Results were $0.35 per share above the company's second quarter guidance of $1.96, driven mainly by lower operating costs from efficiency and usage initiatives and lower freight and logistics expenses. The filing attributes the year-over-year decline primarily to lower volumes in the Packaging and Paper segments and lower Packaging price and mix. In the Packaging segment, total corrugated products shipments and shipments per day fell 9.8% from the prior-year second quarter, though shipments per day rose 2.7% from the first quarter of 2023. Packaging segment income was $285.8 million, compared with $419.8 million a year earlier. Management temporarily idled its Wallula, WA mill during the quarter. Special items in the quarter related mainly to the paper-to-containerboard conversion at the Jackson, AL mill and closure costs for corrugated products facilities and design centers. For the third quarter of 2023, management guided to earnings of $1.88 per share. It expects Packaging shipments per day to improve from the second quarter but lower prices following announced containerboard price decreases. Scheduled outage expenses are expected to be about $0.06 per share higher, driven by maintenance at the International Falls, MN mill, and depreciation and the tax rate are expected to be slightly higher. Cash, cash equivalents and marketable debt securities were $629.6 million at June 30, 2023, down from $810.8 million a year earlier.

Jul 25, 2023 8-K

Packaging Corp. of America 8-K Report, Shareholder Vote Results (May 4, 2023)

Packaging Corporation of America (PCA) filed this Current Report under Item 5.07 to disclose the results of its 2023 Annual Meeting of Stockholders, held May 2, 2023. Stockholders elected all ten director nominees, ratified KPMG LLP as the independent registered public accounting firm, and approved PCA's executive compensation on an advisory basis. Director elections showed varying levels of support. Nominees Cheryl K. Beebe, Mark W. Kowlzan, Samuel M. Mencoff, Roger B. Porter, and Thomas S. Souleles received notably more Votes Against than some other nominees, with Porter drawing 16,443,299 Votes Against and 59,938,932 Votes For. Duane C. Farrington, Donna A. Harman, Thomas P. Maurer, and Paul T. Stecko each received over 70 million Votes For with comparatively few Votes Against. Each nominee also recorded a Broker Non-Vote count of 4,374,117. On the other proposals, KPMG's ratification received 79,104,653 votes for and 1,660,315 against. Stockholders approved executive compensation with 72,343,447 votes for and 3,968,815 against. On the frequency of future say-on-pay votes, 74,831,036 stockholders voted for one year, 78,781 for two years, and 1,436,641 for three years. PCA stated it will hold executive compensation votes every year until stockholders next vote on the frequency.

May 4, 2023 10-Q

Packaging Corp. of America Quarterly Report for Q1 Ended Mar 31, 2023

Packaging Corporation of America reported first-quarter 2023 net sales of $1.98 billion, down from $2.14 billion in the first quarter of 2022, and net income of $190 million, or $2.11 per diluted share, compared with $254 million, or $2.70 per diluted share, a year earlier. Net income excluding special items was $198 million, or $2.20 per diluted share. The company attributed the decline primarily to lower volumes in its Packaging and Paper segments and higher operating costs, depreciation, freight and logistics expenses, converting costs, and non-operating pension expense, partially offset by higher prices and mix. Packaging segment income from operations fell to $268 million from $362 million, while Paper segment income from operations rose to $34 million from $22 million. Management expects second-quarter earnings to be lower than the first quarter. It anticipates improved Packaging volume despite one fewer shipping day, but lower prices following previously published domestic containerboard price decreases and lower export prices. It also expects higher converting costs, scheduled maintenance outage expense, depreciation, and freight and logistics expenses, the last driven by contract rail rate increases at most mills. Liquidity remained solid, with $368 million of cash and cash equivalents, $152 million of marketable debt securities, and $321 million of unused revolving credit capacity at March 31, 2023. Operating cash flow was $280 million and capital expenditures were $112 million, and the company expects 2023 capital investments of approximately $475 million. Dividends of $1.25 per share were declared, and no shares were repurchased during the quarter, leaving $477.5 million available under the repurchase authorization.

May 3, 2023 8-K

Packaging Corp. of America 8-K Report, Financial Results (Apr 25, 2023)

Packaging Corporation of America (NYSE: PKG) reported first quarter 2023 net income of $190 million, or $2.11 per diluted share, and net income of $198 million, or $2.20 per share, excluding special items. First quarter net sales were $2.0 billion in 2023 compared with $2.1 billion in 2022. Reported diluted EPS fell from $2.70 in the prior-year quarter, and EPS excluding special items fell from $2.72. Management attributed the decline primarily to lower volumes in the Packaging segment, along with higher operating costs and depreciation, partially offset by higher prices and mix in both Packaging and Paper. Results were $0.03 below first quarter guidance of $2.23 per share, primarily due to lower volume and lower prices and mix in Packaging. Corrugated products shipments and shipments per day were down 12.7% from the first quarter of 2022. CEO Mark W. Kowlzan cited higher interest rates, persistent inflation, and a shift in consumer spending toward services, noting demand softened as the quarter progressed. Packaging segment income was $268.0 million versus $362.2 million a year earlier, while Paper segment income rose to $34.1 million from $22.4 million. Cash, cash equivalents, and marketable debt securities were $520.2 million, and capital spending was $112.4 million. For the second quarter of 2023, the company expects earnings of $1.96 per share, citing lower containerboard prices and export prices, higher converting, maintenance outage and depreciation expenses, and higher freight costs from recent rail rate increases. Special items in the second quarter are expected to include charges related to paper-to-containerboard conversion activities at the Jackson, Alabama mill. The information is furnished under Item 2.02 and the results are presented in the press release furnished as Exhibit 99.1.

Apr 25, 2023 10-K

Packaging Corp. of America Annual Report, Year Ended Dec 31, 2022

Packaging Corporation of America (PCA) is the third largest producer of containerboard products and a leading producer of uncoated freesheet (UFS) paper in North America, operating eight mills and 89 corrugated products plants. For 2022, net sales were $8.5 billion, up from $7.7 billion in 2021, and net income was $1,029.8 million, or $11.03 per diluted share, compared with $841.1 million, or $8.83 per diluted share, in 2021. Excluding special items, net income was $1,040.2 million, or $11.14 per diluted share. The Packaging segment drove the results, with segment income from operations of $1,423.7 million, supported by higher containerboard and corrugated prices and mix, partially offset by lower corrugated shipments of 63.4 billion square feet, down 3.4% for the year. The filing describes a deterioration in packaging demand beginning in mid-2022 as customers reduced inventories, leading PCA to cut containerboard production during the second half of the year, and published containerboard prices began declining in the fourth quarter of 2022. Management expects first-quarter 2023 earnings to be lower than the fourth quarter of 2022. Cash from operating activities was $1,495.0 million, capital expenditures were $824.2 million, and dividends paid were $420.3 million, while the company repurchased 4.0 million shares for $522.6 million. At year-end, the company had $2.5 billion of fixed-rate senior notes outstanding and $470 million of cash and marketable debt securities. The Paper segment improved, with income from operations of $103.0 million compared with $39.1 million in 2021, driven mainly by higher paper prices and mix. The company's largest Paper customer, ODP Corporation, accounted for 48% of Paper segment sales and 4% of consolidated sales, and a new agreement with ODP runs through December 31, 2024.

Feb 23, 2023 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jan 26, 2023)

Packaging Corporation of America (NYSE: PKG) reported fourth quarter 2022 net income of $212 million, or $2.31 per share, and net income of $215 million, or $2.35 per share, excluding special items. Fourth quarter net sales were $1.98 billion in 2022 compared with $2.04 billion in 2021. For the full year 2022, net income was $1.03 billion, or $11.03 per share, and $1.04 billion, or $11.14 per share excluding special items, on net sales of $8.5 billion versus $7.7 billion in 2021. The filing furnishes a press release announcing these results under Item 2.02. Management attributed the fourth quarter decline in earnings excluding special items, to $2.35 from $2.76 per share, primarily to lower Packaging volumes, higher operating costs, and higher freight and logistics expenses, partially offset by higher Packaging prices and mix. Packaging shipments per day fell 8.7% and total corrugated products shipments fell 10.2% year over year, with one fewer shipping day. Results were $0.13 above fourth quarter guidance of $2.22 per share. Management also reported repurchasing over 3 million shares during the quarter at an average price of $126.70. For the first quarter of 2023, management expects earnings of $2.23 per share, excluding special items. It anticipates lower Packaging prices following recent decreases in published domestic containerboard prices, four additional shipping days, higher labor, benefit, chemical, interest and pension costs, and a higher tax rate, partly offset by lower wood, recycled fiber and energy prices. Special items in the first quarter are expected to relate to paper-to-containerboard conversion at the Jackson, Alabama mill.

Jan 26, 2023 10-Q

Packaging Corp. of America Quarterly Report for Q3 Ended Sep 30, 2022

Packaging Corporation of America (PKG) reported third-quarter 2022 net sales of $2,125.9 million, up from $2,000.1 million in the third quarter of 2021, and net income of $262.5 million, or $2.80 per diluted share, compared with $250.7 million, or $2.63 per diluted share, a year earlier. Net income excluding special items was $266 million, or $2.83 per diluted share. The company attributed the earnings increase primarily to higher prices and mix in its Packaging and Paper segments, lower interest expense, and a lower tax rate, partially offset by higher operating costs, lower volumes, higher freight and logistics expenses, higher scheduled outage expenses, and higher depreciation. For the nine months ended September 30, 2022, net sales were $6,499.6 million and net income was $818.2 million, or $8.70 per diluted share, versus $624.6 million, or $6.55 per diluted share, in the prior-year period. For the nine months, net cash provided by operating activities was $1,074.9 million, while capital expenditures were $577.1 million, and the company paid $304.4 million in dividends and repurchased $142.0 million of common stock. At September 30, 2022, the company had $648.7 million of cash and cash equivalents, $77.7 million of short-term marketable debt securities, and $67.1 million of long-term marketable debt securities, and all of its outstanding debt carried fixed interest rates. The company expects 2022 capital investments of approximately $820 million, including the conversion of the No. 3 paper machine at its Jackson, Alabama mill to containerboard. Management expects fourth-quarter earnings per share to be lower than the third quarter, citing lower Packaging demand, four fewer shipping days, scheduled outage expenses, and higher operating and energy costs. The filing also notes a settlement with the EPA and DOJ related to the DeRidder mill, under which the company will pay a $2.5 million civil penalty, subject to a 45-day notice and comment period. The company reports that it is not aware of any reasonably possible material adverse effect from its ordinary-course legal actions, and it describes the DeRidder lawsuits as in the early stages, with a loss range that cannot be estimated.

Nov 3, 2022 8-K

Packaging Corp. of America 8-K Report, Financial Results (Oct 25, 2022)

Packaging Corporation of America (NYSE: PKG) reported third quarter 2022 net income of $262 million, or $2.80 per diluted share, and net income of $266 million, or $2.83 per share, excluding special items. Third quarter net sales were $2.1 billion, compared with $2.0 billion in the third quarter of 2021. Reported results include special items, primarily costs at the Jackson, AL mill related to paper-to-containerboard conversion. Results were $.03 above the company's third quarter guidance of $2.80 per share, driven by higher prices and mix in the Packaging and Paper segments and lower operating costs. Management highlighted significant cost inflation and demand in the Packaging segment well below expectations. Corrugated products shipments and shipments per day were down 6.0% year over year. Excluding special items, the $.14 per share increase in earnings was driven mainly by higher prices and mix, partially offset by higher operating costs ($.77) and lower Packaging volume ($.52). Packaging segment income was $359.2 million versus $365.2 million a year earlier, while Paper segment income rose to $26.1 million from $11.0 million. For the fourth quarter of 2022, the company expects earnings of $2.22 per share, excluding special items. Management expects most Packaging demand issues to continue, and cites four fewer shipping days, a seasonally less rich mix, lower average export containerboard prices, higher scheduled outage expenses and higher energy costs. Special items in the fourth quarter are expected to include charges related to the paper-to-containerboard conversion at the Jackson, AL mill. The earnings release and an earnings conference call on October 25, 2022 at 9:00am Eastern Time are referenced in the filing.

Oct 25, 2022 10-Q

Packaging Corp. of America Quarterly Report for Q2 Ended Jun 30, 2022

Packaging Corporation of America reported second-quarter 2022 net sales of $2,237.3 million, up from $1,879.9 million in the second quarter of 2021, and net income of $301.5 million, or $3.20 per diluted share, compared with $207.3 million, or $2.17 per diluted share, a year earlier. For the six months ended June 30, 2022, net sales were $4,373.7 million and net income was $555.7 million, or $5.91 per diluted share. The Packaging segment drove the results, with higher prices and mix ($286 million in the quarter) and higher containerboard and corrugated volume ($62 million in the quarter). Packaging segment income from operations rose to $419.8 million in the quarter from $317.2 million, and Paper segment income rose to $22.7 million from $2.6 million. The company generated $644.3 million of operating cash flow in the first six months of 2022, versus $419.8 million a year earlier, and spent $397.5 million on additions to property, plant and equipment. At June 30, 2022, it held $667.3 million of cash and cash equivalents, $82.3 million of short-term and $61.2 million of long-term marketable debt securities, and long-term debt of $2,472.6 million. All of its debt carried fixed interest rates. The company did not repurchase shares under its $1 billion authorization during the quarter, and it announced an increase in its quarterly dividend to $1.25 per share from $1.00. Management stated that third-quarter earnings are expected to be lower than second-quarter earnings, excluding special items, citing inflation in operating and converting costs, higher freight expenses, and a postponed International Falls mill outage moved into the third quarter. The company also noted that its Advance Packaging acquisition, completed in December 2021, was excluded from its internal control assessment for 2022. The DeRidder mill incident litigation remains pending, and the company says it cannot estimate a range of reasonable possible losses for those cases.

Aug 4, 2022 8-K

Packaging Corp. of America 8-K Report, Financial Results (Jul 26, 2022)

Packaging Corporation of America (NYSE: PKG) furnished a Form 8-K under Item 2.02 reporting its second quarter 2022 results, as described in Exhibit 99.1, a press release dated July 25, 2022. The company reported second quarter net income of $301 million, or $3.20 per diluted share, and net income of $304 million, or $3.23 per share, excluding special items. Net sales were $2.2 billion in the second quarter of 2022 compared with $1.9 billion in the second quarter of 2021. Reported diluted EPS was $3.20 versus $2.17 a year earlier, and the company said results were $0.40 above its second quarter guidance of $2.83 per share. The quarter's earnings gain was driven mainly by higher prices and mix in the Packaging segment ($2.04 per share) and higher volume in Packaging ($0.12), partially offset by higher operating costs ($0.95 per share), higher freight and logistics expenses ($0.25), and higher converting costs ($0.10). Packaging segment income was $419.8 million versus $317.2 million a year earlier, while Paper segment income was $22.7 million versus $2.6 million. Management described significant ongoing cost inflation and supply chain challenges, and said corrugated products demand was flat with the prior year's record second quarter. Looking ahead, management expects third quarter 2022 earnings of $2.80 per share, citing continued inflation in gas, purchased electricity, chemicals and labor, higher freight costs from rail service challenges and fuel surcharges, and higher outage costs from the postponed International Falls mill outage. The company also announced an additional $60 per ton price increase on all paper grades, effective with shipments beginning September 6, and noted that special items in the third quarter are expected to relate to paper-to-containerboard conversion activities at the Jackson, Alabama mill.

Jul 26, 2022