Packaging Corporation of America (PCA) reported fourth-quarter 2025 net income of $102 million, or $1.13 per diluted share, reflecting lower earnings compared with the same period in 2024, as softer volumes and higher costs weighed on results.
Excluding special items, net income reached $209 million, or $2.32 per share.
Quarterly net sales totaled $2.4 billion, up from $2.1 billion a year earlier, supported by higher pricing and contributions from acquired operations. For the full year 2025, PCA posted reported net income of $774 million, or $8.58 per share, compared with $805 million, or $8.93 per share, in 2024. Excluding special items, full-year earnings increased to $9.84 per share, up from $9.04 per share a year earlier. Annual net sales rose to $9.0 billion, from $8.4 billion in 2024.
Cost pressures and acquisition impacts
PCA said fourth-quarter earnings were affected by lower production and sales volumes in its legacy packaging operations, higher operating and maintenance costs, increased freight expenses, and higher depreciation. These factors were partly offset by improved pricing and product mix in the Packaging segment, along with lower fiber costs.
The recently acquired Greif containerboard business generated a loss of $0.05 per share during the quarter, largely due to extended maintenance outages at the Massillon mill and inventory management measures. Fourth-quarter results also fell short of company guidance, driven by weaker-than-expected December volumes and mix in both the legacy corrugated business and the acquired operations.
Segment performance
In the Packaging segment, reported operating income declined to $173.2 million in the fourth quarter, compared with $297.2 million a year earlier. Excluding special items, segment operating income increased to $309.2 million. For the full year, Packaging operating income excluding special items rose to $1.26 billion.
The Paper segment delivered relatively stable results, with fourth-quarter operating income of $32.7 million, broadly in line with the prior year. Paper volumes increased slightly year over year, supported by strong price realization and customer demand, according to the company.
Volumes, inventories and outlook
Corrugated product shipments in PCA’s legacy business declined 1.7% year over year in the fourth quarter but improved sequentially from the third quarter. Including the Greif acquisition, shipments per day rose sharply compared with both the prior year and the previous quarter. Containerboard production reached 1.41 million tons, while inventories increased year over year, largely reflecting the acquisition.
Commenting on the results, Chairman and CEO Mark W. Kowlzan said order trends improved as the quarter progressed, with stronger demand continuing into January 2026. He added that integration of the Greif business advanced significantly and that no planned outages are scheduled at the acquired mills during the first half of the year.
Looking ahead, PCA expects higher per-day volumes in its legacy corrugated operations during the first quarter of 2026, despite seasonal softness. The company anticipates operating its containerboard mills at full capacity, though total production will be lower than in the fourth quarter due to fewer operating days and scheduled maintenance. PCA forecasts first-quarter earnings of approximately $2.20 per share, excluding special items, while noting ongoing cost inflation related to energy, wood, chemicals and labor.
Packaging Corporation of America (PCA) is the third-largest producer of containerboard and corrugated packaging in North America. The company operates 10 mills and 91 corrugated products plants across the United States.
Source: Packaging Corporation of America (PCA)
