Packaging Corporation of America (PCA) reported record corrugated shipments and higher second-quarter sales as strong demand and contributions from its recently acquired Greif operations helped offset rising freight, fiber and operating costs.
The company posted net income of $192 million, or $2.15 per diluted share, for the second quarter of 2026. Earnings excluding special items were $210 million, or $2.35 per share, compared with $2.48 per share in the same period last year. Quarterly net sales increased to $2.5 billion, up from $2.2 billion a year earlier.
Reported results included costs related to facility closures, the restructuring of the Wallula, Wash., containerboard mill, and acquisition and integration activities.
Record shipments support packaging performance
PCA achieved an all-time quarterly record for corrugated shipments within its legacy operations, reflecting sustained customer demand throughout the quarter.
Total corrugated shipments increased 24.3% from the second quarter of 2025, largely reflecting the addition of the acquired Greif business. Excluding the acquisition, shipments in PCA's legacy packaging business still rose 4.1%, with the same number of shipping days as the prior year.
Containerboard production reached 1.415 million tons, while inventory declined by 25,000 tons compared with the first quarter of 2026.
The company continued to operate its mill system at full capacity while reducing export containerboard sales by approximately 30,000 tons from first-quarter levels to prioritize domestic corrugated demand.
Greif acquisition contributes to earnings
The acquired Greif operations made a positive contribution during the quarter, supported by strong volumes at corrugated plants and improved mill performance.
According to PCA, production at the acquired mills consistently exceeded the operating capabilities observed at the time of the acquisition. The acquired business contributed $0.14 per share to quarterly earnings, including a temporary depreciation benefit related to purchase accounting adjustments.
Adjusted operating income excluding special items increased to $314.9 million, up from $310.7 million a year earlier, while adjusted EBITDA rose to $485.7 million, compared with $450.8 million in the second quarter of 2025.
Costs continue to weigh on earnings
Despite stronger operating performance, earnings from PCA's legacy business declined compared with the prior year.
The company cited significantly higher freight costs as the largest headwind, along with higher corporate expenses, unfavorable pricing and product mix in the packaging business, increased labor and operating costs, higher depreciation, rising fiber costs, a higher tax rate and increased interest expense.
These pressures were partly offset by higher packaging volumes, lower maintenance outage costs and stronger performance in the paper business.
Outlook
PCA expects strong demand to continue into the third quarter, supported by one additional shipping day and the ongoing implementation of previously announced price increases for both containerboard and corrugated products.
The company also anticipates higher packaging mill production, improved operating performance across its mill system and lower maintenance outage costs in the Packaging segment. Scheduled maintenance at the International Falls mill, however, is expected to temporarily reduce paper production and sales volumes.
Freight and recycled fiber costs are expected to remain elevated, while chemical and purchased electricity costs are projected to increase. Wood fiber and natural gas costs are expected to remain relatively stable.
Based on current market conditions, PCA forecasts third-quarter earnings of $2.91 per share, excluding special items.
Chairman and CEO Mark W. Kowlzan said record corrugated shipments, disciplined mill operations and the successful integration of the Greif assets helped the company navigate a challenging cost environment while continuing to meet strong customer demand.
Packaging Corporation of America (PCA) is the third-largest producer of containerboard and corrugated packaging products in North America and a leading manufacturer of uncoated freesheet paper. The company operates 10 mills and 90 corrugated products plants and related facilities across North America.
