Packaging Corporation of America (PKG) Q1 2025 earnings summary

Executive summary

• Net sales reached a record $2.14 billion in Q1 2025, up from $1.98 billion in Q1 2024, with net income of $208 million ($2.31/share) excluding special items, compared to $155 million ($1.72/share) in Q1 2024.

• Results exceeded guidance by $0.10/share, driven by higher prices and improved mix in the Packaging segment.

• Growth was led by higher prices, improved mix and volume in Packaging, and higher prices in Paper, offset by increased costs and a higher tax rate.

Financial highlights

• EBITDA excluding special items was $421.1 million, up from $333.2 million in Q1 2024.

• Gross profit increased to $454.7 million from $370.4 million year-over-year.

• Operating income rose to $280.3 million from $196.0 million.

• Cash from operations set a Q1 record at $339 million; free cash flow also a record at $191 million.

• Capital expenditures totaled $148 million in Q1; full-year capex expected around $800–$870 million.

Outlook and guidance

• Q2 2025 earnings expected at $2.41/share, with higher planned outage costs and continued price increases in Packaging.

• Corrugated product shipments and box shipments anticipated to rise quarter-over-quarter and year-over-year, despite economic uncertainty and cautious customer ordering.

• Second half demand expected to be significantly higher, with production aligned to match demand.

• Guidance reflects potential negative impacts from global trade tensions and tariff actions.