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Sep 30
PCA Q3 2025 Earnings Report
Packaging Corporation of America reported its third quarter 2025 earnings.
Key Takeaways
The company delivered strong results in its core packaging business, despite the integration costs from the recent Greif acquisition which impacted net income.
Net income for Q3 2025 was $226,900,000, with adjusted EPS of $2.73.
Revenue grew to $2,313,400,000, up from $2,182,400,000 a year ago.
Integration of Greif's containerboard business began in September and impacted earnings due to extended mill outages and increased maintenance.
The legacy PCA packaging business continued to perform well with efficient mill operations and targeted inventory levels.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Q4 is expected to be impacted by seasonal factors, additional maintenance outages, and ongoing integration costs, but improvements are anticipated in acquired mill performance.
Positive Outlook
- Higher per-day corrugated shipments expected
- Export containerboard sales to increase compared to Q3
- Full-quarter benefit from improved operations at Riverville mill
- Seasonally lower freight costs expected to help margins
- Inventory optimization across acquired operations underway
Challenges Ahead
- Three fewer shipping days than Q3
- Higher maintenance outage expenses, especially at DeRidder and Massillon mills
- Lower prices in the Packaging segment due to seasonal mix
- Seasonally higher energy and fiber costs
- Lower sales and production volume in the Paper segment due to seasonal trends
Revenue & Expenses
Visualization of income flow from segment revenue to net income