Packaging Corporation of America (PKG) investor relations material

Market and Operational Update

• Containerboard prices are being increased by $70 per ton from January levels, with full implementation planned and no change in market outlook from prior communications.

• Corrugated demand and per-day shipments are up over last year, with bookings rising 7%-8% despite winter weather disruptions.

• Operational performance has improved, especially after reliability initiatives in acquired Greif Mills, with production now exceeding expectations.

• The company is running its mill system at full capacity ahead of scheduled outages and expects stronger box volume in Q2.

• Winter storms caused an estimated $6 million impact, but equipment and safety held up well, and significant production losses were avoided.

Industry Trends and Growth Drivers

• Volume growth is broad-based, though housing and traditional auto sectors remain stagnant due to high interest rates and EV transition.

• Anticipates demand normalization in housing and auto if interest rates improve over the next few years.

• Organic growth is strong across a diverse customer base, with the Greif acquisition providing a platform for further expansion.

• Reshoring and re-industrialization are underway in the U.S., with positive implications for corrugated products if supported by state and federal policies.

• Double-digit volume growth in 2024 over 2023, with continued strength into 2025 and upside potential in housing and protein sectors.

Greif Acquisition and Integration

• Completed $1.8 billion acquisition of Greif containerboard business in August 2025, adding two mills and eight plants.

• Since closing the Greif deal, significant upgrades have been made at Massillon and Riverville Mills, boosting combined run rate from 600,000 to over 800,000 tons in five months.

• Cost efficiency and product quality have improved, with the integration process on track to fully operate as part of the company within six to seven months.

• Expected $60 million in synergies from the Greif acquisition, enhancing scale and integration.

• Transitioning from a centralized to a decentralized, entrepreneurial environment is a key integration challenge.