Packaging Corporation of America (PKG) Investor Presentation summary

Strategic positioning and operational highlights

• Ranks among the top three North American producers of containerboard and corrugated packaging, with a strong presence in uncoated freesheet paper and a consistent profitable growth strategy.

• Maintains a robust national footprint, leveraging best-in-class operations and a low-cost integrated supply chain.

• Management team has a proven track record of navigating economic cycles and sustaining industry-leading margins.

• Recent Greif acquisition enhances integration, asset utilization, and capital deployment efficiency.

• Strong balance sheet supports reinvestment, shareholder returns, and strategic growth.

Financial performance and capital allocation

• Q3 2025 net sales rose 6% year-over-year to $2.3 billion, with EPS (excluding special items) at $2.73 and packaging EBITDA margin at 23.1%.

• Free cash flow has remained strong, with $601 million generated YTD Q3 2025 and a history of consistent cash generation.

• Capital expenditures and acquisitions have totaled over $5 billion since 2017, supporting both organic and strategic growth.

• Maintains a 5-year average dividend payout ratio of 50% and yield of 3%, with a sustainable approach to shareholder returns.

• Return on invested capital (ROIC) averaged 16.5% over seven years, consistently exceeding the 8% WACC.

Growth, integration, and acquisition strategy

• Corrugated products volume has outperformed the industry, with a 2.8% CAGR since 2017 versus industry decline.

• Integration rate for containerboard supply remains high, supporting average packaging segment EBITDA margins above 22%.

• Greif acquisition (completed August 2025) added two mills and eight plants, with $1.2 billion in LTM sales and $230 million EBITDA.

• Acquisition rationale includes enhanced scale, cost synergies, and access to a stable customer base.

• Wallula mill reconfiguration expected to yield $75–$85 million in annual savings, with capacity shifts to lower-cost facilities.