Packaging Corporation of America (PKG) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 net income was $102 million ($1.13/share); excluding special items, net income was $209 million ($2.32/share), on net sales of $2.4 billion, up from $2.1 billion in Q4 2024.

• Full-year 2025 net sales reached $9 billion, up from $8.4 billion in 2024; adjusted full-year earnings were $888 million ($9.84/share), up from $815 million ($9.04/share) in 2024.

• Special items included Wallula mill restructuring, Greif acquisition and integration costs, and facility closures.

• Integration of the Greif acquisition progressed well, with operational improvements and system integration underway.

• Share repurchases totaled 760,000 shares at an average price of $201 per share in Q4.

Financial highlights

• Q4 2025 net sales were $2.4 billion, up from $2.1 billion in Q4 2024; full-year net sales rose to $9.0 billion from $8.4 billion.

• Adjusted Q4 EBITDA was $486 million, up from $439 million in Q4 2024; full-year adjusted EBITDA was $1.86 billion, up from $1.64 billion.

• Q4 included $1.19/share in special items, mainly from Wallula Mill restructuring and Greif acquisition costs.

• Capital spending for 2025 was $829 million, up from $670 million in 2024.

• Year-end cash and marketable securities totaled $668 million; liquidity was about $1.25 billion.

Outlook and guidance

• Q1 2026 earnings expected at $2.20/share, excluding special items.

• Corrugated volume and demand are forecasted to grow year-over-year in Q1, with seasonal improvement in mix.

• Full-year 2026 CapEx estimated at $840–$870 million; dividend payments expected at $450 million.

• Annual maintenance outages in 2026 will impact earnings by $1.39/share, spread across quarters.

• Anticipated benefits from Wallula restructuring and containerboard price increases starting in March.