PCA(US:PKG)2025-01-28 23:02Financial Performance - Fourth quarter 2024 net income was $221 million, or $2.45 per share, compared to $189.2 million, or $2.10 per share in Q4 2023, representing a 5.5% increase in earnings per share[1]. - Full year 2024 net income was $805.1 million, compared to $765.2 million in 2023, reflecting a 5.0% increase[20]. - Net income for Q4 2024 was $221.1 million, an increase from $189.2 million in Q4 2023, representing a growth of 16.0%[23]. - The diluted EPS for Q4 2024 was $2.45, compared to $2.10 in Q4 2023, representing a 16.7% increase[20]. - Full year 2024 net sales reached $8.4 billion, up from $7.8 billion in 2023, indicating a year-over-year growth of approximately 7.7%[1]. Segment Performance - The Packaging segment's operating income for Q4 2024 was $297.2 million, an increase from $263.8 million in Q4 2023, while the Paper segment's operating income rose to $34.8 million from $28.1 million[6]. - The Paper segment reported an operating income of $34.8 million in Q4 2024, an increase from $28.1 million in Q4 2023, representing a growth of 23.9%[26]. - Packaging segment sales for the full year 2024 were $7,690.9 million, up 7.8% from $7,135.6 million in 2023[16]. - Segment operating income for the Packaging segment in Q4 2024 was $297.2 million, compared to $263.8 million in Q4 2023, marking an increase of 12.5%[26]. - Segment EBITDA for the Packaging segment in Q4 2024 was $424.6 million, up from $383.5 million in Q4 2023, a rise of 10.7%[26]. Operational Metrics - Total corrugated product shipments increased by 9.1% in Q4 2024 compared to the same quarter last year, with shipments per day also reaching record levels[6]. - Containerboard production for Q4 2024 was 1,310,000 tons, with inventory levels increasing by 54,000 tons compared to Q4 2023[6]. - For the three months ended December 31, 2024, total segment sales reached $2,146.1 million, an increase of 10.8% compared to $1,937.9 million in the same period of 2023[16]. Future Outlook - The company expects first quarter 2025 earnings of $2.21 per share, reflecting anticipated seasonal slowdowns and increased costs[7]. - The company plans to continue its market expansion and product conversion strategies, particularly in the linerboard segment[18]. Capital Expenditures and Charges - Capital spending for Q4 2024 was $201.3 million, up from $141.1 million in Q4 2023, indicating a focus on investment in operations[13]. - The company incurred $1.7 million in charges related to facility closures in Q4 2024, compared to $0.9 million in Q4 2023[18]. - The company announced a $9.7 million charge related to the discontinuation of uncoated freesheet paper production at the Jackson mill for the full year 2024[18]. - The total special items for the full year 2024 amounted to $12.4 million, impacting the net income positively by $9.4 million[20]. Profitability Metrics - The company reported a gross profit of $469.7 million in Q4 2024, compared to $410.1 million in Q4 2023, showing a significant improvement in profitability[13]. - EBITDA for Q4 2024 reached $438.2 million, compared to $392.3 million in Q4 2023, reflecting a year-over-year increase of 11.7%[23]. - EBITDA for the Packaging segment for the full year 2024 was $1,597.5 million, an increase of 2.7% from $1,555.7 million in 2023[18]. - EBITDA excluding special items for the full year 2024 was $1,637.1 million, up from $1,603.8 million in 2023, indicating a growth of 2.1%[23]. Interest and Depreciation - Interest expense for the full year 2024 was $41.4 million, down from $53.3 million in 2023, a decrease of 22.5%[23]. - Depreciation, amortization, and depletion for the full year 2024 totaled $525.6 million, compared to $517.7 million in 2023, an increase of 1.5%[23].