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Sep 30, 2024

PCA Q3 2024 Earnings Report

PCA reported third quarter earnings, driven by strong demand and price increases in the Packaging segment, as well as solid performance in the Paper segment.

Key Takeaways

Packaging Corporation of America reported a strong third quarter with net income of $238 million, or $2.64 per share. Excluding special items, net income was $239 million, or $2.65 per share. The results were driven by higher volume and prices in the Packaging segment and strong performance in the Paper segment.

Net income for the third quarter 2024 was $238 million, or $2.64 per share.

Excluding special items, net income was $239 million, or $2.65 per share.

Net sales for the third quarter 2024 were $2.2 billion.

Corrugated products shipments per day increased by 11.1% compared to the third quarter of 2023.

Total Revenue
$2.18B
Previous year: $1.94B
+12.7%
EPS
$2.65
Previous year: $2.05
+29.3%
Containerboard Production
1.29M
Previous year: 1.12M
+15.7%
Gross Profit
$505M
Previous year: $413M
+22.4%
Cash and Equivalents
$841M
Previous year: $727M
+15.8%
Free Cash Flow
$180M
Previous year: $250M
-27.8%
Total Assets
$8.75B
Previous year: $8.18B
+7.0%

PCA

PCA

PCA Revenue by Segment

Forward Guidance

PCA expects fourth quarter earnings of $2.47 per share, excluding special items.

Positive Outlook

  • Demand in the Packaging segment is expected to remain strong with corrugated shipments-per-day continuing to strengthen and slightly higher containerboard volume.
  • Continued realization from the previously announced price increases.
  • Higher export prices are expected.
  • Prices and mix in the Paper segment should be fairly flat.
  • Containerboard inventory will be built prior to year-end.

Challenges Ahead

  • Total shipments for the corrugated business will be impacted by two less shipping days.
  • Recent hurricane damage to the strawberry crops in Florida will impact total shipments.
  • A seasonally less rich mix compared to the third quarter is expected.
  • Shipments in the Paper segment will be lower versus the seasonally stronger third quarter.
  • Operating and converting costs are expected to increase driven by higher seasonal energy costs and chemical costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income