PCA(US:PKG) Businesswire·2026-01-27 22:23Core Viewpoint - Packaging Corporation of America (PCA) reported a decline in net income for the fourth quarter of 2025 compared to the previous year, primarily due to lower production and sales volumes, as well as increased operating costs. However, the company experienced growth in net sales year-over-year and expects improved demand moving forward [1][4][8]. Financial Performance - Fourth quarter 2025 net income was $102 million, or $1.13 per share, compared to $221 million, or $2.45 per share, in the fourth quarter of 2024. Excluding special items, net income was $209 million, or $2.32 per share, down from $293 million, or $2.47 per share, in the same quarter of 2024 [1][2][12]. - Full year 2025 net income was $774 million, or $8.58 per share, compared to $805 million, or $8.93 per share, in 2024. Excluding special items, full year net income was $888 million, or $9.84 per share, up from $814 million, or $9.04 per share, in 2024 [1][2][12]. Sales and Revenue - Fourth quarter net sales for 2025 were $2.4 billion, an increase from $2.1 billion in 2024. Full year net sales reached $9.0 billion in 2025, compared to $8.4 billion in 2024 [1][2][12]. - Segment sales for Packaging increased to $2.19 billion in Q4 2025 from $1.98 billion in Q4 2024, while Paper segment sales remained relatively stable [15][16]. Segment Performance - The Packaging segment reported an operating income of $173.3 million in Q4 2025, down from $297.2 million in Q4 2024. For the full year, operating income was $1.125 billion, slightly up from $1.101 billion in 2024 [6][16]. - The Paper segment's operating income was $32.7 million in Q4 2025, down from $34.8 million in Q4 2024, with full year performance remaining stable at $129.6 million [6][16]. Operational Insights - PCA's corrugated product shipments were down 1.7% year-over-year in Q4 2025, but shipments per day increased by 17.0% when including the acquired Greif business. Containerboard production was 1,407,000 tons, with inventory up by 84,000 tons compared to Q4 2024 [7][8]. - The company faced challenges in December 2025 with unfavorable volume and mix in the legacy corrugated business and production issues in the acquired Greif business [5][8]. Future Outlook - PCA anticipates higher per-day volume in its legacy corrugated products plants in Q1 2026, despite a seasonally slower period. The company expects to operate its containerboard mills at full capacity but will produce less containerboard than in Q4 2025 due to scheduled maintenance and fewer operating days [8][9]. - The company forecasts first quarter earnings of $2.20 per share, with expectations of price inflation across most operating costs, while also assessing potential impacts from recent winter storms [8][9].