PCA details efficiency gains at upgraded Greif mills

Financial Performance - Q4 net sales reached $2.36 billion, reflecting a 10.1% increase year over year [1] - Full-year net sales totaled $8.99 billion, up 7.2% year over year [1] - Q4 net income was $101.8 million, down 54% year over year [1] - Full-year net income stood at $774.1 million, a decrease of 3.9% year over year [1] Business Conditions - The CEO described business conditions in 2025 as "challenging," but noted some positive aspects in performance [1] - Box shipments from PCA's legacy system were the second-highest ever for Q4, following a record in 2024 [1] - Overall corrugated shipments for 2025 remained flat compared to 2024, with improved trends noted in January [1] Acquired Assets - Q4 marked the first full quarter of integrating Greif's assets, revealing some weaknesses [1] - PCA has made significant progress in integrating and improving the acquired Greif assets, with operational efficiency improving by an estimated 15% at the Massillon and Riverville mills [1] Industry Demand - The North American containerboard industry faced a tough 2025, resulting in a 10% production capacity loss [1] - PCA believes the sector is showing signs of improvement, with a more positive sentiment among customers [1] Pricing and Production - PCA anticipates minor benefits from a $70 per ton containerboard price increase starting in March, with more significant benefits expected in Q2 and beyond [1] - The company plans to align machine operations with demand and will not have excess board for the open market [1] Operational Challenges - PCA is assessing the impact of a recent winter storm that caused plant shutdowns, particularly in Tennessee, Texas, and the Gulf Coast region [1] - Despite some operations continuing, shipments were suspended during the storm [1] Future Investments - PCA is investing in making three mills "energy independent" over the next two and a half years, which will help mitigate future electricity cost increases [1] - The investment plan includes installing gas turbines at the Riverville and Jackson mills, with a third mill also planned [2] Outlook - Machine shutdowns and restructuring at the Wallula mill are expected to be completed by mid-February, with cost improvements anticipated in Q2 [2] - PCA is optimistic about ending 2026 with higher year-over-year demand and expects growth in corrugated volume from both legacy and acquired plants [2]