Results
Lake Forest, IL, October 21, 2026 – Packaging Corporation of America (NYSE: PKG) today reported third quarter 2026 net income of $262 million, or $2.93 per share, and net income of $272 million, or $3.04 per share, excluding special items.
Third quarter net sales were $2.6 billion in 2026 and $2.3 billion in 2025.
Reported earnings in the third quarter of 2026 include special items primarily for facility closure costs, acquisition and integration-related costs, the impact of a fire at a corrugated products facility, and restructuring charges relating to the Wallula, WA containerboard mill.
Reported earnings in the third quarter of 2025 included special items for costs and charges related to the Greif containerboard business acquisition and closures of corrugated products facilities.
5Excluding special items, the $.31 per share increase in third quarter 2026 earnings compared to the third quarter of 2025 resulted from $.24 higher earnings from the acquired Greif operations and $.07 higher earnings in the legacy business.
1The acquired Greif operations generated earnings of $.13 in the third quarter of 2026 compared to a loss of ($.11) in the third quarter of 2025.
3The higher earnings in the legacy business were driven by favorable price and mix in the Packaging segment $.79, favorable production and sales volume in the Packaging segment, including the benefit of a higher volume of containerboard supplied by the legacy mills to the acquired Greif operations $.12, favorable price and mix in the Paper segment $.05 and a lower share count $.02.
These items were partially offset by higher labor and operating expense ($.28), higher freight expense ($.26), higher corporate and other expense ($.13), higher fiber costs ($.12), higher depreciation and amortization expense ($.06), higher maintenance outage expense in the Paper segment ($.04), lower volume in the Paper segment ($.01), and higher interest expense, excluding Greif acquisition indebtedness ($.01).
4Excluding the impact of special items, earnings were $.13 above third quarter guidance of $2.91 per share primarily due to favorable price and mix in the Packaging segment and favorable earnings from the acquired Greif operations, partially offset by higher labor and operating costs and unfavorable corrugated products sales volume.
Total corrugated products shipments were up 10.6% per day and in total compared to the third quarter of 2025.
In the legacy packaging business, corrugated products shipments were down 0.5% per day and in total compared to the third quarter of 2025, with the same number of shipping days in each period.
Containerboard production was 1,489,000 tons, and containerboard inventory was up 34,000 tons compared to the second quarter of 2026 and down 29,000 tons compared to the third quarter of 2025.
6In the Paper segment, sales volume was down 2.5% from the third quarter of 2025.
Management commentary
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “We executed very well across all aspects of our operations, resulting in very strong earnings performance for the quarter despite continued cost headwinds from freight, recycled fiber and chemicals and some weakness in agricultural end markets in our corrugated business.
Our mills ran at full capacity during the quarter, and we are meaningfully realizing production benefits from projects at our Jackson mill as well as improved operating performance at the acquired Greif mills.
We managed to build sufficient inventory to put us in position to efficiently supply our corrugated operations in the fourth quarter and help us continue to mitigate escalating freight costs.
Our white paper operations turned in another excellent quarter, with higher than expected sales volumes, strong price realization and safe and successful completion of the maintenance outage at the International Falls mill.”
Outlook
Mr. Kowlzan added, “Looking ahead as we move from the third quarter into the fourth quarter, we expect solid corrugated products demand with some seasonal improvement.
2Shipments per day are expected to be at or around last year’s fourth quarter level with two fewer shipping days than the third quarter and total shipments are expected to be higher than the third quarter.
Prices for containerboard and corrugated products are expected to improve as we continue to implement earlier price increases, but corrugated products mix will be seasonally weaker with higher e-commerce volumes.
7Containerboard production will be lower with maintenance outages at three of our mills, and mill maintenance outage expenses, including the impact on production volume from fourth quarter outages, will be significantly higher in the fourth quarter.
We expect seasonally lower volume and slightly higher prices in the Paper segment.
We expect freight costs to increase with diesel fuel prices increasing above third quarter levels.
8We also expect costs for recycled fiber to continue to increase as well as higher wood fiber costs due to winter yields and mill mix.
Costs for chemicals and energy will increase due to higher prices and higher seasonal energy usage.
Considering these items, we expect fourth quarter earnings of $2.81 per share, excluding special items.”
We present our earnings expectation for the upcoming quarter excluding special items as special items are difficult to predict and quantify and may reflect the effect of future events.
We currently expect to incur acquisition and integration related costs and costs related to the closure of corrugated products facilities during the fourth quarter; however, additional special items may arise due to fourth quarter events.
Results
Consolidated Earnings Results
The three and nine months ended September 30, 2026 include the following:
$6.2 million and $23.1 million, respectively, of charges consisting of closure costs related to corrugated products facilities and the write-off of expenditures related to sustainability and renewable energy projects.
The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
$3.0 million and $9.8 million, respectively, of charges for acquisition and integration costs related to recent acquisitions.
The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
$3.0 million of charges related to fire damage at a corrugated products facility.
The costs were recorded in “Other expense, net.”
Corporate events
$0.3 million and $60.0 million, respectively, of charges related to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, Washington containerboard mill.
The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
Results
The three and nine months ended September 30, 2025 include the following:
$1.3 million of charges and $17.5 million of income, respectively, related to the closure of certain corrugated products facilities.
For the three months ended September 30, 2025, the charges were partially offset by a gain on an asset disposal related to a closed corrugated products facility.
For the nine months ended September 30, 2025, the charges were completely offset by gains from the sales of closed corrugated products facilities during the second quarter of 2025.
These items were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
Corporate events
$25.0 million and $26.6 million, respectively, of charges for acquisition and integration costs related to the announced Greif, Inc. acquisition, which were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
Results
Segment Information
Net Income Excluding Special Items and EPS Excluding Special Items (1)
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