PCA(US:PKG) ZACKS·2026-01-28 18:32Core Insights - Packaging Corporation of America (PKG) reported adjusted earnings per share (EPS) of $2.32 for Q4 2025, missing the Zacks Consensus Estimate of $2.41 and reflecting a 6% year-over-year decline due to lower volume and unfavorable production results from the acquired Greif Inc. business [1][10] Financial Performance - Q4 sales increased by 10.1% year-over-year to $2.36 billion, but this figure fell short of the Zacks Consensus Estimate of $2.42 billion [3][10] - The cost of products sold rose by 14.3% year-over-year to $1.92 billion, leading to a gross profit decline of 4.7% to $448 million [3] - Adjusted operating income for Q4 was $310.2 million, a 2.1% increase from $303.9 million in Q4 2024 [4] Segment Performance - In the Packaging segment, sales rose by 10.8% year-over-year to $2.19 billion, driven by higher prices, although lower production and sales volume offset this growth [5] - Total corrugated product shipments fell by 1.7% year-over-year, but including the Greif business, shipments per day increased by 17% [6] - The Paper segment reported revenues of $154 million, up 1.8% year-over-year, but lower than estimates, with adjusted operating profit decreasing to $33 million from $35 million in the prior year [7] Annual Performance - For FY 2025, PKG's adjusted EPS was $9.84, below the Zacks Consensus Estimate of $9.93, while total sales reached $8.99 billion, reflecting a 7.2% year-over-year increase but missing the consensus estimate of $9.06 billion [8] Cash Flow and Outlook - The company ended 2025 with a cash balance of $668 million, down from $852 million at the end of 2024 [9] - For Q1 2026, PKG expects higher year-over-year volume in its legacy corrugated products plants, projecting an EPS of $2.20 [11] Stock Performance - PKG's shares have declined by 3.8% over the past year, compared to an 8.6% decline in the industry [12]