Financial Data and Key Metrics Changes - Fourth quarter net income for 2025 was $102 million or $1.13 per share, while excluding special items, it was $209 million or $2.32 per share, compared to $222 million or $2.47 per share in Q4 2024 [2][3] - Fourth quarter net sales increased to $2.4 billion in 2025 from $2.1 billion in 2024, and total company EBITDA, excluding special items, rose to $486 million in 2025 from $439 million in 2024 [3][4] - Full year 2025 earnings were $888 million or $9.84 per share, up from $815 million or $9.04 per share in 2024, with total net sales for 2025 at $9 billion compared to $8.4 billion in 2024 [4][3] Business Line Data and Key Metrics Changes - The packaging segment's EBITDA, excluding special items, was $476 million in Q4 2025 with sales of $2.2 billion, resulting in a margin of 21.7%, compared to EBITDA of $426 million and sales of $2 billion in Q4 2024 [6][7] - For the full year 2025, packaging segment EBITDA was $1.83 billion with sales of $8.3 billion, achieving a margin of 22.1%, up from $1.6 billion and $7.7 billion in 2024 [7] - The paper segment's EBITDA, excluding special items, was $37 million in Q4 2025 with sales of $154 million, resulting in a margin of 24.2%, compared to $39 million and $151 million in Q4 2024 [17] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices were $0.50 per share above Q4 2024 but down $0.32 per share compared to Q3 2025, with export containerboard prices flat year-over-year [11] - Corrugated shipments per day were down 1.7% compared to last year's record Q4, although total shipments for the year were essentially flat with 2024 [12][13] - January bookings in legacy corrugated and sheet plants were up over 11%, indicating a positive trend in underlying demand [13] Company Strategy and Development Direction - The company is focused on integrating the acquired Greif operations and improving operational efficiency, with plans for gas turbine energy projects to enhance energy independence and reduce costs [10][22] - The company aims to maintain a balanced approach to capital allocation, investing in growth while returning value to shareholders through dividends and buybacks [22] - The company expects to run its mills at full capacity to meet demand, with a forecast for solid year-over-year growth in corrugated volume [23] Management's Comments on Operating Environment and Future Outlook - Management noted that demand is improving, with expectations for year-over-year growth in corrugated volume and strong shipment volume from acquired plants [23] - The company anticipates challenges from inflationary pressures on costs, particularly in labor, energy, and materials, but expects to benefit from the Wallula reconfiguration starting in March [25] - Management expressed confidence in the operational improvements made at the Massillon and Riverville mills, which are expected to enhance efficiency and reliability [36][75] Other Important Information - Cash provided by operations reached a record $443 million in Q4, with free cash flow of $124 million after capital expenditures [19] - The company has planned annual outages in 2026, which are expected to impact earnings significantly, with estimated costs of approximately $1.39 per share [21] - The company has approximately $283 million of remaining share repurchase authority, indicating ongoing commitment to returning capital to shareholders [19] Q&A Session Summary Question: Can you provide more granularity on cost increases in the containerboard business? - Management indicated uncertainty due to seasonal weather impacts and inflationary concerns, but estimated a cost increase of about $10 per ton [28][34] Question: What is the impact of winter storms on operations? - Management noted that winter storms caused power outages and disruptions, but the mills managed to run through the challenges, although shipping was affected [30][31] Question: How are the Greif acquisition commitments being handled? - Management confirmed that they are discontinuing the purchase commitments made by Greif and will not pursue similar agreements moving forward [46] Question: What is the outlook for demand in the housing and protein markets? - Management reported improved demand across all segments, with positive consumer sentiment and GDP growth contributing to a more favorable outlook [50][51] Question: How does the company view the containerboard market compared to last year? - Management expressed a more positive outlook compared to the previous year, citing improved visibility and consumer sentiment as key factors [62]

Financial Data and Key Metrics Changes - The company reported first quarter net income of $204 million or $2.26 per share, an increase from $155 million or $1.72 per share in the same quarter of 2024 [5][6] - First quarter net sales were $2.1 billion in 2025 compared to $2 billion in 2024, with total company EBITDA, excluding special items, at $421 million in 2025 versus $333 million in 2024 [5][6] - The increase in earnings per share was driven by higher prices and mix in the Packaging segment, contributing $0.78 per share, and volume contributing $0.27 per share [6][7] Business Line Data and Key Metrics Changes - In the Packaging segment, EBITDA, excluding special items, was $409 million with sales of $2 billion, resulting in a margin of 21%, up from an EBITDA of $326 million and sales of $1.8 billion with an 18% margin in the previous year [10] - The Paper segment reported EBITDA of $40 million with sales of $154 million, yielding a 26% margin, compared to $41 million and $164 million in sales with a 25% margin in the first quarter of 2024 [17][18] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix were $0.72 per share above the first quarter of 2024, while export containerboard prices were up $0.06 per share compared to the same period [12] - Total volume and shipments per day in corrugated products plants were up 2.5% versus last year, although the Paper segment volume was lower by 7% compared to a strong first quarter of 2024 [13][18] Company Strategy and Development Direction - The company is focused on operational efficiency, cost reduction initiatives, and capital project execution to mitigate the impact of inflation [7][11] - A new state-of-the-art high-efficiency box plant in Glendale, Arizona, has been successfully started up, increasing box capacity significantly and enhancing service capabilities in key markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued economic uncertainty affecting demand but expects box shipments to be higher than the first quarter and above last year's levels [14][24] - The company is cautious about customer ordering patterns due to macroeconomic factors and trade tensions, which may impact future guidance [31][32] Other Important Information - Cash provided by operations reached a record $339 million, with free cash flow also at a record $191 million [20] - The company adjusted its planned maintenance outage schedule to manage economic uncertainty, resulting in increased planned outage expenses for the second quarter [21][22] Q&A Session Summary Question: Adjustments in guidance and forecast - Management noted that customer caution is influencing ordering patterns, leading to a more prudent approach in business [31][32] Question: Inventory and production levels - Management explained that production is being adjusted based on expected demand, with some small machines down for maintenance in May [41][42] Question: Higher prices and mix in packaging - The company effectively implemented price increases, contributing to better-than-expected results [50][52] Question: E-commerce growth and margins - E-commerce is a growing segment, but margins remain consistent as the company focuses on long-term customer relationships [56][58] Question: Rail contract rate increases - Management confirmed multiple rail increases impacting freight costs, with additional increases expected in the second quarter [70][73] Question: Capital expenditures - The company is on track with its capital expenditure guidance, with significant projects underway [72] Question: Containerboard supply and production - Management expressed confidence in meeting demand through improved productivity and potential adjustments in export volumes [144] Question: Basis weights and lightweighting trends - The company noted a general trend of decreasing basis weights, driven by customer needs and technological advancements [148][149]