Packaging Corporation of America (PKG), headquartered in Lake Forest, Illinois, is a leading producer of containerboard and corrugated packaging solutions across the U.S. With mills and plants focused on efficient production for industrial and consumer needs, it supports shareholders through a consistent dividend policy. The company has a market capitalization of $19.27 billion, making PKG a “large-cap” stock. PKG’s shares reached a 52-week high of $249.51 on Feb. 12, but are down 16.1% from that level. ...

Packaging Corporation of America Schedules Conference Call to Discuss First Quarter 2026 Operating Results Packaging Corporation of America Schedules Conference Call to Discuss First Quarter 2026 Operating Results Share LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) will hold a conference call on Thursday April 23, 2026 at 9:00 a.m. Eastern Time to discuss first quarter 2026 results. The conference call leader will be Mark Kowlzan. First quarter earnings results will be rel ...

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Core Viewpoint - Packaging Corporation of America (PCA) has a strong continuity in management, with key executives having long tenures at the company, indicating stability and experience in the industry [1] Management Tenure - Mark Kowlzan, the CEO, has been with PCA for 30 years, showcasing significant leadership stability [1] - Kent Pflederer, the CFO, has been with the company for 19 years, contributing to financial oversight and strategy [1] - Ray Shirley, EVP of Corrugated, has also been with PCA for 30 years, further emphasizing the depth of experience within the management team [1]

Acquisition and Business Expansion - Packaging Corporation of America completed the acquisition of Greif, Inc.'s containerboard business for $1.8 billion, adding two mills with a production capacity of approximately 800,000 tons[15] - The company completed the Greif Acquisition in September 2025 for a purchase price of $1,804 million, net of cash acquired[168] - The company purchased approximately 1,150,000 tons of recycled fiber in 2025, which will increase in proportion due to the Greif Acquisition[83] Production and Sales Performance - In 2025, the Packaging segment produced 5.2 million tons of containerboard, an increase from 4.5 million tons in 2023, representing a growth of 15%[22] - Containerboard production in 2025 reached 304.9 billion square feet, up from 265.4 billion square feet in 2023, marking a 15% increase[18] - Corrugated products shipments in 2025 totaled 71.1 billion square feet, compared to 60.5 billion square feet in 2023, reflecting an increase of 17.5%[18] - Net sales increased by $606 million, or 7.2%, to $8.989 billion in 2025 compared to $8.383 billion in 2024[148] - Net income was $774 million, or $8.58 per diluted share, in 2025, down from $805 million, or $8.93 per diluted share, in 2024[139] - Gross profit increased by $107 million in 2025, driven by higher prices and mix in both Packaging and Paper segments[151] Customer Base and Market Dynamics - Approximately 70% of corrugated products sales are to regional and local accounts, indicating a diversified customer base[40] - ODP Corporation is the largest customer, accounting for 58% of the Paper segment sales revenue and 4% of consolidated sales revenue in 2025[52] - The primary end-use markets for corrugated products include food, beverages, and agricultural products (40%), and retail and wholesale trade (29%)[41] Financial Overview and Costs - In 2025, the total company costs, including cost of sales (COS) and selling, general, and administrative expenses (SG&A), amounted to $7.7 billion, with cash costs at $7.0 billion[104] - A 1% increase in COS and SG&A costs would result in an additional $77 million in total costs and $70 million in cash costs[104] - The company ended the year with $668 million in cash and marketable debt securities, and total liquidity of $1.241 billion[139] - Interest expense increased by $38 million in 2025, primarily due to financing for the Greif Acquisition[158] Labor and Workforce Management - The company has experienced labor shortages and higher turnover rates but has maintained adequate workforce availability[58] - As of December 31, 2025, the company employed approximately 16,800 employees, with 57% of hourly employees under collective bargaining agreements[61] - The company is expanding recruiting and training programs to attract and retain a talented workforce amid increasing demand for qualified personnel[59] Environmental and Compliance Issues - The company aims to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 35% by 2030 from a 2021 baseline and achieve net-zero carbon emissions by 2050[192] - The company incurred $64 million in environmental compliance costs in 2025, up from $60 million in 2024[186] - The company believes future environmental compliance costs may increase due to potential greenhouse gas regulations, but also sees opportunities in renewable energy[191] Financial Risks and Liabilities - The company is subject to significant fluctuations in the cost of purchased fuels and chemicals, with a $0.10 per million MMBTU increase in natural gas prices resulting in approximately $3 million of additional expense[85] - The integration of the Greif containerboard business may face substantial difficulties and costs, affecting financial results if not managed properly[100] - The company may incur significant environmental liabilities due to evolving regulations, which could lead to increased operating expenses and capital expenditures[98] Shareholder and Stock Performance - The cumulative total return of the company's common stock from December 31, 2020, to December 31, 2025, shows a decline from $184.84 to $173.59, indicating a decrease in shareholder value over this period[133] - As of December 31, 2025, the company has $283.1 million remaining available for repurchase of its common stock under the authorized share repurchase program[126] - During the fourth quarter of 2025, the company repurchased 0.8 million shares of common stock for $153.0 million, and in the third quarter of 2023, it repurchased 0.3 million shares for $41.5 million[126] Operational Efficiency and Cost Management - The company operates 91 corrugated products plants, strategically located within a 150-mile radius of customers to minimize freight costs[30] - The company consumed approximately 101 million MMBTUs of fuel in 2025, with an average cost of $3.90 per MMBTU[182] - The company purchased 24 million CkWh of electricity in 2025 at an average cost of $7.34 per CkWh[183] Financial Metrics and Performance Indicators - EBITDA for 2025 increased to $1,759.8 million, compared to $1,626.9 million in 2024, reflecting a growth of approximately 8.1%[210] - EBITDA excluding special items for 2025 was $1,861.6 million, compared to $1,637.1 million in 2024, indicating a significant increase[210] - Special items for 2025 included $128.0 million in charges related to the Wallula mill restructuring and $33.2 million for the Greif acquisition[207]

Summary of the Conference Call for Packaging Corporation of America (PCA) Company Overview - **Company**: Packaging Corporation of America (PCA) - **Participants**: - Mark Kowlzan - CEO - Kent Pflederer - CFO - Ray Shirley - EVP of Corrugated Key Points Industry and Market Conditions - PCA is increasing containerboard prices by **$70 per ton** from January levels, indicating a stable market outlook [4][6] - Demand for corrugated products remains strong, with **bookings up 7%-8%** despite winter weather disruptions [6][4] - February shipments increased by **4.5%**, showing resilience in demand [5][6] - The company is optimistic about the upcoming stronger box volume season in Q2 [5] Operational Performance - PCA's mill system is operating at full capacity, with production exceeding expectations [8][6] - The company has successfully navigated winter storm disruptions without significant production losses [6][7] - PCA has improved operational efficiency and reliability at the acquired Greif Mills, with production capacity expected to increase from **600,000 tons to over 800,000 tons** [22][21] Strategic Initiatives - PCA is focusing on diversifying its customer base, including larger national accounts, while maintaining strong relationships with existing customers [28][30] - The company has invested **$5.2 billion** since 2017 in box plants and mills to enhance operational capabilities [29] - PCA is implementing energy projects, including gas turbine installations, to mitigate rising electricity costs, with plans to produce electricity independently at four out of ten mills [61][62] Future Outlook - PCA anticipates a normalization in demand from the housing sector as interest rates stabilize [14][15] - The company is bullish on growth opportunities in various sectors, including housing and the protein market, particularly beef [43][42] - PCA's volume growth has significantly outpaced the industry, with a **275%-300% increase** in box volume since becoming a public company in 2020 [50][51] Challenges and Considerations - The corrugated market has faced stagnation in certain sectors, such as housing and traditional automotive, due to economic conditions [13][14] - PCA acknowledges the need for continued investment in equipment and technology to maintain competitive advantage [50][48] - The industry faces challenges with aging equipment and labor shortages, necessitating ongoing capital investment [47][48] Integration and Management - PCA is on track with the integration of Greif Mills, focusing on transitioning to a decentralized management structure [24][26] - The company emphasizes succession planning and the development of younger leadership within the organization [81][82] Financial Performance - PCA reported a **12% growth** in volume for 2024 compared to 2023, despite previous flat performance [42][43] - The company expects to achieve significant EBITDA growth from ongoing investments and operational improvements [55][56] Additional Insights - PCA's approach to pricing and customer relationships is characterized by a strong focus on one-on-one interactions, ensuring customer needs are met effectively [39][38] - The company is adapting to changing market dynamics, including the shift towards e-commerce and the demand for right-sized packaging solutions [70][72] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting PCA's operational strengths, market outlook, and future growth opportunities.

Packaging Corporation of America Bank of America Global Agriculture & Materials Conference February 25, 2026 Mark W. Kowlzan Chairman & CEO Kent A. Pflederer Executive V. P. & CFO Packaging Corporation of America ("PCA") Some of the statements contained in this presentation that are not historical in nature may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often identified by the words "will," "should," "anticipate," "b ...

Core Viewpoint - The article discusses the importance of accessing investment portfolios for informed decision-making and strategic planning in the financial sector [1] Group 1 - The need for secure sign-in processes to protect sensitive financial information is emphasized [1] - Access to portfolios allows companies to track performance and make necessary adjustments [1] - The article highlights the growing trend of digital tools in investment management [1]

Core Viewpoint - U.S. packaging companies are experiencing significant declines in stock prices due to unexpected drops in cardboard prices linked to sluggish demand and ongoing tariff uncertainties [1] Group 1: Market Performance - Shares of U.S. packaging companies were among the leading decliners in the market on Monday [1] - The decline in stock prices is attributed to a decrease in cardboard prices, which fell unexpectedly [1] Group 2: Demand and Pricing - Analysts from Stifel indicated that tariff uncertainties may delay planned increases in cardboard prices [1] - The sluggish demand for packaging materials is a contributing factor to the decline in cardboard prices [1]

Market Overview - Stock index futures are down, with Dow futures falling 0.25%, S&P 500 futures down 0.22%, and Nasdaq 100 futures declining 0.35% amid renewed tariff-related uncertainty following President Trump's announcement [3][4] - U.S. Customs and Border Protection stated that tariffs imposed under the International Emergency Economic Powers Act will no longer be collected starting Tuesday [3] Tariff Announcement - President Trump announced an increase in the global tariff level from 10% to 15% after the Supreme Court struck down most of the tariffs imposed last year [4] Travel Sector Impact - The ongoing shutdown of the U.S. Department of Homeland Security (DHS) is creating uncertainty in airport operations and the travel sector, with expedited screening programs initially affected [5][6] - TSA PreCheck remains operational but may face adjustments due to potential staffing shortages, while Global Entry has been suspended [6][7] Bitcoin ETF Withdrawals - Investors have withdrawn nearly $3.8 billion from U.S.-listed spot Bitcoin ETFs over the past five weeks, marking the longest streak of outflows since February 2025 [9] - BlackRock's iShares Bitcoin Trust has led the declines, shedding approximately $2.13 billion during this period [9][10] Company-Specific Movements - Novo Nordisk's stock tumbled by 15% after its next-generation obesity drug CagriSema underperformed compared to Eli Lilly's competing treatment in a phase 3 trial [11][12] - Top gainers in premarket trading included Eli Lilly (+2.34%), Revvity (+1.95%), and Corning (+1.86%), while decliners included Smurfit Westrock (-6.54%) and Packaging Corporation of America (-5.59%) [4]