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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Packaging Corp. (PKG - Free Report) Headquartered in Lake Forest, IL, Packaging Corporation of America is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. The company operates ten mills and 90 corrugated products manufacturing plants.
PKG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PKG has a Growth Style Score of B, forecasting year-over-year earnings growth of 6.5% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $10.48 per share. PKG boasts an average earnings surprise of +2.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PKG should be on investors' short list.
Net Income: Q3 2026 net income of $262 million, or $2.93 per share; excluding special items, $272 million, or $3.04 per share, versus Q3 2025's $247 million, or
A Look at Packaging Corp of America (PKG) After 4.2% Gain -- GF Value $234.81 vs Price $248.92
On October 22, 2026, Packaging Corp of America PKG shares rose 4.2% to a current price of $248.92. The stock is performing well, with a 52-week range of $191.50 to $259.98.
GF Value™ verdict: Current price is $248.92 compared to GF Value™ of $234.81, indicating the stock is 6.0% overvalued.GF Score™ is 91/100, suggesting a strong investment quality overall.Notable signal: Insider activity shows that insiders sold $15.0 million worth of shares over the past 12 months without any buying.Is PKG Overvalued or Undervalued?Packaging Corp of America PKG is currently trading above its GF Value™, which is GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, growth trends, and future performance projections. The current price of $248.92 reflects a 6.0% premium over the GF Value™ of $234.81, suggesting that the stock may be overvalued at this time. This overvaluation presents a risk to potential investors, as the margin of safety is somewhat limited.
However, the GF Valuation label indicates that PKG is fairly valued, which may imply that while the stock is currently overvalued compared to the intrinsic value, it is still within a reasonable range considering its growth prospects and market position. Investors should be cautious, as buying at a premium can lead to lower future returns, especially if the market corrects the price closer to its intrinsic value.
How Does PKG's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)32.4x19.8xForward P/E18.4xN/ACurrently, PKG's trailing P/E ratio of 32.4x is significantly higher than its 5-year median P/E of 19.8x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis supports the GF Value™ verdict, suggesting that PKG is overvalued based on its historical performance and valuation metrics.
What Does PKG's GF Score™ Tell Us?The GF Score™ measures various aspects of a company's performance and financial health, providing an overall assessment of its investment quality. With a GF Score™ of 91/100, PKG is rated highly, indicating strong fundamentals. The strongest sub-ranks for PKG are Growth (9/10) and Profitability (8/10), showcasing excellent growth prospects and effective profit generation. The weakest area is Financial Strength, which received a score of 6/10, indicating some concerns regarding the company's balance sheet.
MetricRatingGF Score™91/100Financial Strength6/10Profitability8/10Growth9/10Valuation7/10Momentum10/10Overall, PKG's strong GF Score™ reflects a solid investment potential, particularly in growth and momentum. However, the financial strength score indicates some caution is needed, as it may affect the sustainability of the company's operations and ability to weather economic downturns.
What Are Gurus and Insiders Doing with PKG?Currently, four gurus hold shares of PKG, with four adding to their positions and two trimming their holdings in recent quarters. This indicates a generally positive outlook among institutional investors. However, insider activity reveals that insiders sold $15.0 million worth of shares in the past year without any buying activity. This pattern of selling may suggest that insiders are taking profits or could be wary of the stock's current valuation, which adds an element of caution for potential investors.
What This Means for InvestorsBased on the GF Value™ assessment, Packaging Corp of America PKG is considered overvalued at its current price of $248.92. While the company has strong growth and profitability metrics, the elevated price relative to its intrinsic value raises concerns about the sustainability of its current valuation. Investors should weigh these factors carefully, considering both the growth potential and the risks associated with the stock's current price. For further details, please visit the Packaging Corp of America (PKG) stock page.
Frequently Asked QuestionsWhat is PKG's GF Score™?
PKG has a GF Score™ of 91/100, indicating a strong overall investment quality based on multiple performance metrics.
Is PKG overvalued or undervalued?
PKG is currently overvalued, with a GF Value™ of $234.81 compared to its market price of $248.92, suggesting a 6.0% premium.
What is PKG's P/E ratio?
The P/E ratio for PKG is 32.4x, which is significantly above its 5-year median of 19.8x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
3 Dividend Leaders Set for Strong Growth in 2025Packaging Corporation of America NYSE: PKG reported third-quarter 2026 net income of $262 million, or $2.93 per share, while adjusted net income excluding special items totaled $272 million, or $3.04 per share. Adjusted earnings rose from $2.73 per share in the third quarter of 2025 and exceeded the company’s guidance of $2.91 per share.
Net sales increased to $2.6 billion from $2.3 billion a year earlier, while total company EBITDA excluding special items rose to $577 million from $503 million. Chairman and Chief Executive Officer Mark Kowlzan said the quarter benefited from price realization and a stronger-than-expected contribution from the company’s acquired Greif business, though higher labor, operating, freight and fiber costs tempered the gains.
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Packaging Corporation of America: Buy The DipSpecial items reduced quarterly earnings by $0.11 per share and primarily included costs and write-offs related to facility closures, acquisition and integration activities, a fire at PCA’s Palmyra, Pennsylvania, sheet feeder, and Wallula restructuring charges.
Pricing and Greif Integration Drive Packaging Results PCA’s packaging segment generated $578 million of EBITDA excluding special items on $2.4 billion in sales, producing a 23.9% margin. That compared with EBITDA of $492 million on $2.1 billion in sales and a 23.1% margin a year earlier.
Packaging Corporation of America: A Total Package to Buy and HoldKowlzan said the acquired Greif business contributed $0.24 per share on a year-over-year basis, generating $0.13 per share of earnings in the quarter versus a $0.11 per-share loss in the first month of ownership during the prior-year period. Going forward, PCA said it will no longer separately disclose the acquisition’s earnings contribution because comparable periods will include Greif ownership for the full quarter.
President Tom Hassfurther said domestic containerboard and corrugated product prices and mix contributed $0.75 per share versus the prior-year quarter and $1.11 per share compared with the second quarter. PCA has realized substantially all of its first net $50 price increase and about half of its second $50 increase, he said. The company expects to realize nearly all of the remaining second increase during the fourth quarter.
A third, $70 price increase will be realized across the fourth and first quarters, with the majority expected in the first quarter, according to Hassfurther. He said PCA remains focused on price during the current increase cycle, while describing its overall objective as “profitable revenue growth.”
The company said it is operating in a tight containerboard market that appears to be tightening further as seasonal fourth-quarter demand picks up. PCA’s legacy mills produced 1.286 million tons of containerboard during the quarter, up 77,000 tons from the second quarter and 31,000 tons from a year earlier. Acquired mills produced 203,000 tons, despite an extensive annual maintenance outage at the Riverville mill.
PCA’s systemwide containerboard inventories increased by 34,000 tons from the end of the second quarter. Kowlzan said the inventory build positioned the company to serve customers during the fourth quarter even as three containerboard mills undergo annual maintenance outages.
Demand Trends and Acquisition Synergies Total corrugated shipments increased about 11% from a year earlier on both a total and per-day basis, while legacy-business shipments declined 0.5%. Hassfurther attributed the legacy decline in part to lower agricultural shipments, including lettuce-related issues affecting customers. He said demand remained solid across much of the rest of PCA’s customer base.
Bookings were strong in September and were up more than 5% in October, according to Hassfurther, while billings lagged somewhat and are expected to catch up in the fourth quarter. PCA forecasts fourth-quarter shipments per day will be at or around the prior-year level, with total shipments higher than the third quarter because of the number of shipping days.
Hassfurther said e-commerce remains a growing end market, though not at its prior growth rate. Protein-related packaging demand, particularly tied to beef, has remained weak, while building products have yet to improve meaningfully, he said.
Integration of the Greif operations continues to advance. PCA’s legacy mills supplied approximately 45,000 more tons of containerboard to the acquired system than they did a year earlier. Hassfurther said the company is ahead of its synergy targets and is currently achieving a synergy run rate between $40 million and $50 million, supported by integration benefits, mill reliability and cost performance. He said acquired mills are operating at a run rate about 70,000 tons above their production level at the time of acquisition.
Cash Flow, Investment and Outlook Chief Financial Officer Kent Pflederer said cash provided by operations totaled $472 million in the quarter. After $247 million of capital expenditures, PCA generated $225 million in free cash flow. The company paid $134 million in dividends, $66 million in cash taxes and $29 million in net cash interest during the period, and it did not repurchase shares.
PCA now expects 2026 capital expenditures of $865 million to $890 million and depreciation and amortization of just above $705 million, excluding special items. Pflederer said the updated outlook mainly reflects the timing of expenditures and assets placed in service rather than a change in the company’s overall plans.
The company expects fourth-quarter maintenance outage expense of $0.72 per share, bringing the full-year total to $1.48 per share. The fourth-quarter estimate rose by $0.08 per share from the prior update because of timing, an expanded scope of work at Riverville, and additional work planned at DeRidder.
For the fourth quarter, PCA forecast adjusted earnings of $2.81 per share. The company expects solid corrugated demand, continued pricing improvement and higher total corrugated shipments from the third quarter. However, it also expects higher freight, recycled fiber, wood fiber, chemical and energy costs, as well as substantially higher maintenance-outage expenses and lower containerboard production.
Kowlzan said PCA is working toward a containerboard system capacity of roughly 6 million tons through projects at mills including Jackson, Counce, Massillon and Riverville. The company is also pursuing gas-turbine projects at Jackson, DeRidder and Riverville, although the Riverville installation is expected later because it remains in the permitting process.
About Packaging Corporation of America (NYSE:PKG)Packaging Corporation of America NYSE: PKG is a manufacturer of corrugated packaging and containerboard products serving businesses primarily in the United States. Its products include shipping boxes, retail packaging, displays, protective packaging and specialty corrugated solutions used to transport and present a broad range of consumer and industrial goods.
The company also produces uncoated freesheet paper and related paper products for commercial printing, office use, publishing, converting and other applications.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Packaging Corporation of America (PKG) Q3 2026 Earnings Call October 22, 2026 9:00 AM EDT
Company Participants
Mark Kowlzan - Chairman of the Board & CEO
Thomas Hassfurther - President
Kent Pflederer - Executive VP & CFO
Conference Call Participants
George Staphos - BofA Securities, Research Division
Michael Roxland - Truist Securities, Inc., Research Division
Mark Weintraub - Seaport Research Partners
Anojja Shah - UBS Investment Bank, Research Division
Philip Ng - Jefferies LLC, Research Division
Anthony Pettinari - Citigroup Inc., Research Division
Hillary Cacanando - Deutsche Bank AG, Research Division
Presentation
Operator
Thank you for joining Packaging Corporation of America's Third Quarter 2026 Earnings Conference Call. Your host today will be Mark Kowlzan, Chairman and Chief Executive Officer of PCA. Upon conclusion of his narrative, there will be a question-and-answer session.
I would now like to turn the conference call over to Mr. Kowlzan. Please go ahead when you're ready.
Mark Kowlzan
Chairman of the Board & CEO
Thank you, Jamie. Appreciate it very much. Good morning, everyone, and thank you all for participating in Packaging Corporation of America's Third Quarter 2026 Earnings Release Conference Call. Again, I'm Mark Kowlzan, Chairman and CEO of PCA. And with me on the call today is Tom Hassfurther, our President; and Kent Pflederer, our Chief Financial Officer.
I'll begin the call as usual with an overview of the third quarter results, and then I'll be turning the call over to Tom and Kent, who will provide further details. And then after that, I'll be wrapping things up, and then we'd be glad to take questions.
Yesterday, we reported third quarter net income of $262 million or $2.93 per share. Excluding special items, third quarter 2026 net income was $272 million or $3.04 per share compared to the third quarter 2025 net income of $247 million or $2.73 per share. Third quarter net sales were $2.6 billion in 2026 and $2.3
Key Takeaways Packaging Corp reported adjusted Q3 EPS of $3.04, beating estimates of $2.95 and guidance of $2.91.Net sales rose 12.5% y/y to $2.6B, while gross profit climbed 19.8% to $604M.Packaging segment profits increased on favorable price mix, while Paper's profits fell due to higher expenses.
Packaging Corporation of America (PKG - Free Report) reported third-quarter 2026 adjusted earnings of $3.04 per share, up 11.4% year over year and beating the Zacks Consensus Estimate of $2.95 by 3.05%. The bottom line also exceeded the company's guidance of $2.91, driven by favorable price and mix in the Packaging segment and contributions from the acquired Greif, Inc. (GEF - Free Report) operations.
Including special items related to facility closures, the Wallula mill restructuring, acquisition and integration costs, and a corrugated products facility fire, earnings in the quarter were $2.93 per share compared with the prior-year quarter’s $2.51.
Net sales increased 12.5% year over year to $2.60 billion and beat the consensus estimate of $2.56 billion. Total corrugated products shipments rose 10.6% year over year, supported by the acquired operations.
Packaging Corp's Gross Profit Rises Y/Y in Q3Gross profit increased 19.8% year over year to $604 million. The gross margin expanded to 23.2% from 21.8% in the prior-year quarter, reflecting stronger profitability despite higher operating costs.
Cost of sales increased 10.4% to $2 billion from $1.81 billion. Selling, general and administrative expenses rose 18.4% to $182.7 million. The company faced higher labor and operating expenses, increased corporate and other costs, and higher freight costs.
Adjusted operating income increased 13.4% year over year to $398 million. Adjusted EBITDA advanced 14.7% to $577 million, reflecting improved Packaging segment performance and contributions from the acquired Greif business.
PKG’s Q3 Segmental PerformancesPackaging: Sales in this segment increased 13.4% year over year to $2.41 billion, aided by contributions from the acquired Greif business, higher production and sales volumes, and favorable price and mix. The figure beat our estimate of $2.30 billion. These gains were partly offset by higher labor and operating costs. Shipments per day at legacy corrugated products plants inched up 0.5%. Containerboard production was 1,489,000 tons.
Adjusted operating profit was $407.7 million compared with $347.9 million in the prior-year quarter, reflecting favorable price and mix, higher production and sales volumes, and contributions from the acquired Greif operations. Our model projected the segment’s adjusted operating income to be $394 million.
Paper: The segment’s revenues were $163.2 million in the July-September quarter, up 1.2% year over year. Our model projected the segment’s sales to be $174 million. Sales volume declined 2.5% from the third quarter of 2025.
The segment reported an operating profit of $29 million compared with the year-ago quarter’s $35.6 million. The decline was primarily due to higher maintenance outage expenses, partly offset by favorable price and mix. Our model projected the segment’s adjusted operating income to be $47 million.
Packaging Corp's Cash Position Declines Y/YPKG ended the quarter with $762 million in cash, cash equivalents and marketable debt securities, down from $807 million a year earlier.
The company generated net income of $262 million compared with $227 million in the prior-year quarter. Net interest expenses increased to $32.3 million from $19.3 million, creating an additional headwind to earnings.
PKG Provides Q4 Earnings GuidancePackaging Corp expects fourth-quarter 2026 adjusted earnings of $2.81 per share, reflecting anticipated maintenance expenses and seasonal cost pressures.
The company expects lower seasonal volume and slightly higher prices in the Paper segment. Freight costs are also projected to increase with higher diesel fuel prices, while recycled fiber costs are expected to continue rising. These factors are expected to influence profitability despite the anticipated benefits from improved containerboard and corrugated products pricing.
Packaging Corp Stock’s Price PerformanceThe company’s shares have gained 14.5% in the past year compared with the industry’s growth of 4.5%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsBall Corporation (BALL - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3. The Zacks Consensus Estimate for BALL’s third-quarter 2026 earnings is pegged at $1.06 per share, suggesting year-over-year growth of 3.9%.
The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.74 billion, indicating growth of 10.6% from the prior-year reported figure.
Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release third-quarter 2026 results on Oct. 29. The Zacks Consensus Estimate for SLGN’s third-quarter 2026 earnings is pegged at $1.25 per share, implying a year-over-year dip of 2.5%.
The Zacks Consensus Estimate for Silgan Holdings’ top line is pegged at $2.07 billion, suggesting an increase of 3.1% from the prior-year reported figure.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Is Packaging Corp of America (PKG) Fairly Valued After Q3 Earnings Beat? EPS at $2.93 vs. $2.91 Estimate, Revenue at $2.6 Billion
Strong Performance Amid Ongoing Challenges
Packaging Corp of America PKG released its 8-K filing on October 21, 2026, announcing third-quarter earnings that showcased solid financial performance despite prevailing industry challenges. The company reported net income of $262 million, or $2.93 per share, well above the analyst estimate of $2.91 per share. Revenues reached $2.6 billion compared to $2.3 billion in the same quarter of 2025.
Packaging Corporation of America is a U.S.-based producer of containerboard and corrugated packaging products. The company operates within two primary segments: Packaging, which manufactures linerboard, corrugating medium, and corrugated containers, and Paper, producing uncoated freesheet paper for various applications. PCA serves a broad range of customers across industries such as food and beverage, e-commerce, retail, agriculture, and manufacturing. Notably, PCA maintains a vertically integrated supply chain, producing a significant portion of its containerboard from owned timberlands.
Performance and ChallengesPCA’s third-quarter earnings benefited from an increase in revenue and operational efficiency. The increase in net sales by 12.5% year-over-year, coupled with a 10.6% rise in corrugated product shipments, reflects the company's ability to meet customer demands effectively. However, PCA faced challenges, such as rising labor costs, higher freight expenses, and costly maintenance outages. These issues continue to put pressure on margins, which feature prominently in the company’s ongoing operational strategy.
Mark W. Kowlzan, Chairman and CEO, emphasized PCA's effective operational execution, noting,
We executed very well across all aspects of our operations, resulting in very strong earnings performance for the quarter despite continued cost headwinds from freight, recycled fiber and chemicals..."These cost pressures may present future challenges as the company moves forward.
Financial AchievementsThe third-quarter net income excluding special items reached $272 million, or $3.04 per share, marking a significant increase from $2.73 per share in Q3 2025. This reflects an increase in profitability driven primarily by higher earnings from the acquired Greif operations which turned a loss of $0.11 per share in Q3 2025 into a profit of $0.13 per share in Q3 2026. The legacy Packaging segment reported earnings increased by $0.79 per share, showcasing the successful execution of pricing and product mix strategies.
PCA has demonstrated its capacity to maintain gross profits, which rose to $603.9 million from $504.3 million year-over-year. The company notably achieved an EBITDA of $577.2 million despite the higher operational costs observed during the quarter.
Financial MetricQ3 2026Q3 2025ChangeNet Sales$2,601.7 million$2,313.4 million+12.5%Net Income$262 million$226.9 million+15.5%Diluted EPS$2.93$2.51+16.7%EBITDA$577.2 million$503.4 million+14.6%Factors such as pricing strategies, production efficiency, and effective management of acquired operations underpin PCA's financial successes. The company ended the quarter with strong liquidity, holding $761.8 million in cash and equivalents.
GuruFocus Valuation CheckAccording to GuruFocus data, Packaging Corp of America PKG has a GF Score of 91/100, indicating a strong position based on multiple financial metrics. The current GF Value is calculated at $234.81, while PKG's current price stands at $239.00, indicating the stock is approximately 1.8% overvalued. This slight overvaluation implies investors should consider potential corrections in the stock price.
Packaging Corp of America has a financial strength rating of 6/10 and a profitability rank of 8/10, suggesting a solid financial foundation and strong profitability relative to peers. The growth rank of 9/10 indicates promising potential for future expansion. However, the company has experienced notable insider selling, amounting to $15.0 million over the past 12 months, which could signal caution for investors.
Investors are encouraged to review the company's overall performance and potential risks. For a deeper dive, visit the Packaging Corp of America stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Packaging Corp of America for further details.
GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $234.81 (1.8% overvalued); its GF Score™ is 91/100; 4 gurus currently hold the stock, with 4 adding and 2 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Packaging Corp of America PKG research.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Packaging Corporation of America (NYSE:PKG – Get Free Report) has been assigned an average rating of “Moderate Buy” from the ten brokerages that are covering the stock, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $271.86.
Several research analysts have weighed in on the stock. Wells Fargo & Company decreased their price objective on shares of Packaging Corporation of America from $246.00 to $245.00 and set an “equal weight” rating for the company in a report on Wednesday, October 7th. UBS Group cut their target price on shares of Packaging Corporation of America from $292.00 to $289.00 and set a “buy” rating on the stock in a research note on Monday, October 5th. Citigroup reduced their price target on shares of Packaging Corporation of America from $254.00 to $253.00 and set a “neutral” rating on the stock in a research report on Friday, October 2nd. Weiss Ratings raised shares of Packaging Corporation of America from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 25th. Finally, Truist Financial boosted their price objective on Packaging Corporation of America from $270.00 to $280.00 and gave the company a “buy” rating in a report on Monday, October 12th.
Read Our Latest Report on Packaging Corporation of America
PKG stock opened at $239.06 on Thursday. The company has a current ratio of 2.94, a quick ratio of 1.86 and a debt-to-equity ratio of 0.85. The firm has a 50 day simple moving average of $237.35 and a 200-day simple moving average of $230.48. The company has a market capitalization of $21.30 billion, a P/E ratio of 31.05, a PEG ratio of 1.96 and a beta of 0.75. Packaging Corporation of America has a twelve month low of $191.50 and a twelve month high of $259.98. Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $3.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.11. Packaging Corporation of America had a net margin of 7.25% and a return on equity of 18.94%. The firm had revenue of $2.60 billion for the quarter, compared to analysts’ expectations of $2.61 billion. During the same period in the prior year, the company posted $2.73 earnings per share. The firm’s quarterly revenue was up 12.5% on a year-over-year basis. On average, equities research analysts predict that Packaging Corporation of America will post 10.45 earnings per share for the current fiscal year.
Packaging Corporation of America Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th were issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Packaging Corporation of America’s dividend payout ratio (DPR) is currently 77.92%.
Insider Activity at Packaging Corporation of America In related news, President Thomas A. Hassfurther sold 12,531 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $250.00, for a total transaction of $3,132,750.00. Following the sale, the president directly owned 218,751 shares of the company’s stock, valued at approximately $54,687,750. This represents a 5.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Donald R. Shirley sold 12,000 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $250.71, for a total value of $3,008,520.00. Following the sale, the vice president directly owned 19,110 shares in the company, valued at approximately $4,791,068.10. This represents a 38.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 40,391 shares of company stock valued at $10,196,101. Insiders own 1.60% of the company’s stock.
Hedge Funds Weigh In On Packaging Corporation of America Hedge funds have recently added to or reduced their stakes in the business. Greenleaf Trust increased its stake in Packaging Corporation of America by 1.7% during the second quarter. Greenleaf Trust now owns 2,705 shares of the industrial products company’s stock valued at $645,000 after purchasing an additional 46 shares during the last quarter. Pinnacle Associates Ltd. lifted its position in shares of Packaging Corporation of America by 4.0% in the 3rd quarter. Pinnacle Associates Ltd. now owns 1,547 shares of the industrial products company’s stock worth $355,000 after buying an additional 59 shares during the last quarter. Root Financial Partners LLC lifted its position in shares of Packaging Corporation of America by 28.4% in the 1st quarter. Root Financial Partners LLC now owns 276 shares of the industrial products company’s stock worth $59,000 after buying an additional 61 shares during the last quarter. CX Institutional lifted its position in shares of Packaging Corporation of America by 8.2% in the 2nd quarter. CX Institutional now owns 816 shares of the industrial products company’s stock worth $195,000 after buying an additional 62 shares during the last quarter. Finally, Avidian Wealth Enterprises LLC grew its position in shares of Packaging Corporation of America by 3.1% during the 3rd quarter. Avidian Wealth Enterprises LLC now owns 2,110 shares of the industrial products company’s stock valued at $484,000 after buying an additional 63 shares during the last quarter. Institutional investors and hedge funds own 89.78% of the company’s stock.
Packaging Corporation of America Company Profile (Get Free Report)
Packaging Corporation of America (NYSE:PKG) is a manufacturer of corrugated packaging and containerboard products serving businesses primarily in the United States. Its products include shipping boxes, retail packaging, displays, protective packaging and specialty corrugated solutions used to transport and present a broad range of consumer and industrial goods.
The company also produces uncoated freesheet paper and related paper products for commercial printing, office use, publishing, converting and other applications.
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Packaging Corp. (PKG - Free Report) reported $2.6 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 12.5%. EPS of $3.04 for the same period compares to $2.73 a year ago.
The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $2.56 billion. With the consensus EPS estimate being $2.95, the EPS surprise was +3.05%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Packaging Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment Sales- Packaging: $2.41 billion versus $2.27 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.4% change.Segment Sales- Corporate and Other: $24.5 million versus $24.93 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.7% change.Segment Sales- Paper: $163.2 million versus $160.15 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.Segment operating income (loss) excluding special items- Packaging: $407.7 million versus $482.65 million estimated by two analysts on average.Segment operating income (loss) excluding special items- Corporate and Other: $-38.9 million versus $-49.49 million estimated by two analysts on average.Segment operating income (loss) excluding special items- Paper: $29 million compared to the $39.9 million average estimate based on two analysts.View all Key Company Metrics for Packaging Corp. here>>>
Shares of Packaging Corp. have returned +0.3% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Packaging Corp. (PKG - Free Report) came out with quarterly earnings of $3.04 per share, beating the Zacks Consensus Estimate of $2.95 per share. This compares to earnings of $2.73 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.05%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $2.31 per share when it actually produced earnings of $2.35, delivering a surprise of +1.73%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Packaging Corp., which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.6 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.46%. This compares to year-ago revenues of $2.31 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Packaging Corp. shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 12.7%.
What's Next for Packaging Corp.?While Packaging Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Packaging Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.79 on $2.6 billion in revenues for the coming quarter and $10.46 on $10.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, AptarGroup (ATR - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This maker of consumer-product dispensing systems is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of -9.9%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level.
AptarGroup's revenues are expected to be $976.17 million, up 1.6% from the year-ago quarter.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported third quarter 2026 net income of $262 million, or $2.93 per share, and net income of $272 million, or $3.04 per share, excluding special items. Third quarter net sales were $2.6 billion in 2026 and $2.3 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended September 30, 2026 2025 Change Repo.
First Citizens Bank & Trust Co. purchased a new stake in Packaging Corporation of America (NYSE:PKG – Free Report) in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 3,911 shares of the industrial products company’s stock, valued at approximately $897,000.
Other institutional investors have also recently bought and sold shares of the company. Focus Financial Network Inc. increased its stake in shares of Packaging Corporation of America by 5.0% in the 3rd quarter. Focus Financial Network Inc. now owns 1,864 shares of the industrial products company’s stock valued at $427,000 after buying an additional 88 shares during the period. Sax Wealth Advisors LLC raised its position in shares of Packaging Corporation of America by 11.7% during the third quarter. Sax Wealth Advisors LLC now owns 1,828 shares of the industrial products company’s stock worth $419,000 after acquiring an additional 191 shares during the last quarter. NorthCrest Asset Manangement LLC bought a new stake in shares of Packaging Corporation of America during the third quarter worth $256,000. GAMMA Investing LLC lifted its stake in shares of Packaging Corporation of America by 12.9% during the third quarter. GAMMA Investing LLC now owns 6,778 shares of the industrial products company’s stock valued at $1,554,000 after acquiring an additional 775 shares during the period. Finally, Avidian Wealth Enterprises LLC lifted its stake in shares of Packaging Corporation of America by 3.1% during the third quarter. Avidian Wealth Enterprises LLC now owns 2,110 shares of the industrial products company’s stock valued at $484,000 after acquiring an additional 63 shares during the period. Institutional investors own 89.78% of the company’s stock.
Insider Activity In other Packaging Corporation of America news, President Thomas Hassfurther sold 12,531 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $250.00, for a total transaction of $3,132,750.00. Following the transaction, the president owned 218,751 shares in the company, valued at approximately $54,687,750. This trade represents a 5.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Donald Shirley sold 12,000 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $250.71, for a total value of $3,008,520.00. Following the transaction, the vice president owned 19,110 shares of the company’s stock, valued at $4,791,068.10. The trade was a 38.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 40,391 shares of company stock worth $10,196,101 in the last three months. Insiders own 1.60% of the company’s stock.
Analyst Ratings Changes PKG has been the topic of several recent research reports. UBS Group decreased their price target on Packaging Corporation of America from $292.00 to $289.00 and set a “buy” rating on the stock in a report on Monday, October 5th. Bank of America dropped their price objective on Packaging Corporation of America from $280.00 to $260.00 and set a “buy” rating for the company in a report on Friday, September 11th. Weiss Ratings upgraded shares of Packaging Corporation of America from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 25th. JPMorgan Chase & Co. raised their target price on shares of Packaging Corporation of America from $312.00 to $320.00 and gave the company an “overweight” rating in a research note on Wednesday, September 23rd. Finally, Wells Fargo & Company reduced their target price on shares of Packaging Corporation of America from $246.00 to $245.00 and set an “equal weight” rating on the stock in a research note on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Packaging Corporation of America has a consensus rating of “Moderate Buy” and an average target price of $271.86. Read Our Latest Report on PKG
Packaging Corporation of America Stock Performance Shares of Packaging Corporation of America stock opened at $235.92 on Friday. The firm has a fifty day moving average of $238.41 and a two-hundred day moving average of $229.72. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.86 and a current ratio of 2.94. The stock has a market capitalization of $21.02 billion, a price-to-earnings ratio of 30.64, a PEG ratio of 2.00 and a beta of 0.75. Packaging Corporation of America has a 52 week low of $191.50 and a 52 week high of $259.98.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.04. Packaging Corporation of America had a return on equity of 18.94% and a net margin of 7.25%. The business had revenue of $2.49 billion for the quarter, compared to analyst estimates of $2.49 billion. During the same period last year, the company earned $2.48 EPS. The firm’s revenue was up 14.7% on a year-over-year basis. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. As a group, equities research analysts predict that Packaging Corporation of America will post 10.45 EPS for the current year.
Packaging Corporation of America Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th were paid a $1.50 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $6.00 annualized dividend and a yield of 2.5%. Packaging Corporation of America’s dividend payout ratio is presently 77.92%.
(Free Report)
Packaging Corporation of America (NYSE: PKG) is a manufacturer of containerboard and corrugated packaging products in the United States. The company produces linerboard, corrugating medium and finished corrugated containers used to package and transport consumer, industrial, food and agricultural products.
PCA also manufactures specialty packaging products, including retail displays, protective packaging and custom-designed corrugated solutions. Through its Paper segment, the company produces and sells uncoated freesheet paper and related specialty papers for commercial printing, office use, converting and other applications.
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Key Takeaways Packaging Corporation of America is expected to report Q3 revenues of $2.56 billion, up 10.8% year over year.Packaging segment volumes are projected to rise 5.5%, with price and mix improving 2.7% amid strong demand.Higher freight and recycled fiber costs may hurt margins, partly offset by improved employee benefit costs.
Packaging Corporation of America (PKG - Free Report) is set to release third-quarter 2026 results on Oct. 21, after the closing bell.
The Zacks Consensus Estimate for PKG’s third-quarter revenues is pegged at $2.56 billion, indicating 10.8% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.95 per share. The Zacks Consensus Estimate for PKG’s third-quarter earnings has remained unchanged in the past 60 days. The estimate indicates year-over-year growth of 8.1%.
Image Source: Zacks Investment Research
PKG’s Earnings Surprise HistoryPackaging Corp.’s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in the other two, with the average surprise being 1.27%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Packaging Corp.Our proven model predicts a likely earnings beat this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Packaging Corp. has an Earnings ESP of +0.71%.
Zacks Rank: PKG currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped PKG’s Q3 PerformancePackaging Corp. acquired the containerboard business of Greif, Inc. (GEF - Free Report) in September 2025. The acquired business included two containerboard mills with about 800,000 tons of production capacity and eight sheet feeder and corrugated plants across the United States. Contributions from the acquired Greif business, as well as strong demand for packaging products, are likely to have aided the Packaging segment in the to-be-reported quarter.
The third quarter had one more shipping day than the second quarter of 2026, supporting higher shipments. The segment is also expected to have seen price and mix improvement in the third quarter, reflecting price increases implemented by the company. Packaging mill production is likely to have benefited from an additional operating day, fewer annual maintenance outages and improved operating performance across the containerboard mill system.
Our model projects Packaging segment volumes to increase 5.5% year over year, accelerating from the 2.9% growth reported in the second quarter of 2026. Price and mix are expected to have improved 2.7% in the quarter. The segment had reported a 2.9% volume decline in the third quarter of 2025. The revenue estimate for the Packaging segment stands at $2.3 billion, implying 8.3% growth from the year-ago quarter. Our model projects operating income of $394 million, up 13.3% from the prior-year period.
In the Paper segment, a planned mill maintenance outage is expected to have constrained sequential volume growth. However, continued implementation of previously announced paper price increases is likely to have supported pricing. Our model projects a 3% improvement in price and mix compared with 1.4% in the second quarter of 2026. Paper segment volumes are expected to have increased 5% year over year, moderating from the 6.2% growth reported in the second quarter but improving from the 0.6% decline recorded in the third quarter of 2025.
The Paper segment’s third-quarter revenues are estimated at $174 million, up 8.1% from the year-ago quarter. Operating income is projected at $46.8 million, up 31.5% year over year.
On the cost front, higher freight expenses and recycled fiber prices are expected to have weighed on margins relative to the second quarter of 2026. Increased mill production is also likely to have driven higher chemical and electricity consumption. These pressures are likely to have been partly offset by improved employee benefit costs, as unfavorable costs incurred in the second quarter are not expected to have recurred in the third quarter.
PKG had guided third-quarter 2026 adjusted earnings of $2.91 per share, suggesting 6.6% year-over-year growth and a 24% sequential improvement.
PKG’s Price PerformanceOver the past year, PKG shares have gained 13.3% compared with the industry’s 3.4% growth.
Image Source: Zacks Investment Research
Other Stocks That Warrant a LookHere are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.
Ball Corporation (BALL - Free Report) , slated to release third-quarter 2026 results on Nov. 3, has an Earnings ESP of +0.26% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ball’s third-quarter 2026 earnings is pegged at $1.06 per share, suggesting a year-over-year rise of 3.9%. BALL has a trailing four-quarter average surprise of 3.9%.
W.W Grainger Inc. (GWW - Free Report) , slated to release third-quarter 2026 results on Nov. 4, has an Earnings ESP of +0.83% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Grainger’s third-quarter 2026 earnings is pegged at $11.64 per share, suggesting a year-over-year rise of 14%. Grainger has a trailing four-quarter average surprise of 5.9%.
Wall Street analysts expect Packaging Corp. (PKG - Free Report) to post quarterly earnings of $2.95 per share in its upcoming report, which indicates a year-over-year increase of 8.1%. Revenues are expected to be $2.56 billion, up 10.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 1.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Packaging Corp. metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Segment Sales- Packaging' will reach $2.27 billion. The estimate points to a change of +6.6% from the year-ago quarter.
According to the collective judgment of analysts, 'Segment Sales- Corporate and Other' should come in at $24.93 million. The estimate points to a change of +3.4% from the year-ago quarter.
The combined assessment of analysts suggests that 'Segment Sales- Paper' will likely reach $160.15 million. The estimate suggests a change of -0.7% year over year.
Analysts predict that the 'Segment operating income (loss) excluding special items- Paper' will reach $37.40 million. Compared to the current estimate, the company reported $35.60 million in the same quarter of the previous year.
The average prediction of analysts places 'Segment operating income (loss) excluding special items- Packaging' at $397.65 million. Compared to the current estimate, the company reported $347.90 million in the same quarter of the previous year.
View all Key Company Metrics for Packaging Corp. here>>>
Over the past month, Packaging Corp. shares have recorded returns of -1.3% versus the Zacks S&P 500 composite's +2.4% change. Based on its Zacks Rank #3 (Hold), PKG will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Wall Street expects a year-over-year increase in earnings on higher revenues when Packaging Corp. (PKG - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of containerboard and corrugated packaging products is expected to post quarterly earnings of $2.94 per share in its upcoming report, which represents a year-over-year change of +7.7%.
Revenues are expected to be $2.56 billion, up 10.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.48% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Packaging Corp.?For Packaging Corp., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.21%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Packaging Corp. will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Packaging Corp. would post earnings of $2.31 per share when it actually produced earnings of $2.35, delivering a surprise of +1.73%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Packaging Corp. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Most investors chase sector trends and miss the companies quietly running through every downturn because the products they make get thrown away and repurchased on a weekly cycle. Three packaging stocks have built dividend records on exactly that pattern, and…
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Almost everything a consumer buys comes inside something, and that something gets thrown away and bought again. Demand for packaging follows how much people eat, drink and wash. Excitement about the economy has little to do with it, so these businesses keep running through downturns while nobody talks about them. Packaging Corp of America (NYSE:PKG | PKG Price Prediction) shows what the slow version of that looks like: its stock has returned 279% over the ten years ending October 2, 2026, while paying a quarterly dividend in every quarter of its record since 2003. We look at three packaging companies, what each one actually makes, and where each one can go wrong.
Ball Corporation: Aluminum Cans That Get Bought Again Every Week Ball Corporation (NYSE:BALL) makes aluminum beverage cans. Soft drink companies, beer makers and sparkling water brands buy them by the billion, fill them and ship them to stores. Ball sold its aerospace business and now makes almost nothing but cans, plus a small aerosol line that brought in $158M of revenue in the second quarter. In 2021, Ball shipped roughly 54 billion beverage containers in North and Central America, which the company put at about 41% of that market.
The best recent test was the 2020 downturn. Bars and stadiums closed, but people kept drinking at home, and the company said the “unprecedented surge in demand” that began that year caused shortages of some canned beverages. Ball kept its quarterly dividend at $0.15 from 2020 through late 2021 and then raised it to $0.20, where it has stayed for every payment since February 2022.
Ball’s margins are protected by its contracts. Its customer contracts include an aluminum price pass-through mechanism, so swings in metal costs mostly go to the buyer. Second-quarter revenue came in at $3.997B, up 20.4% from a year earlier, on aluminum packaging shipments that grew 4.3%. Comparable diluted EPS was $1.03, ahead of the $0.9878 estimate. Management confirmed full-year guidance for free cash flow above $900M and at least $800M returned to shareholders.
The stock has been less steady than the business. Shares rose 56.74% over ten years but are down 32.4% over five, and the yield is a low 1.41%. Shares trade at about 13 times forward earnings.
Risk: customer concentration. A small group of large global beverage brands buys most of Ball’s cans. They negotiate hard and can shift volume between suppliers when contracts come up for renewal. Ball is also absorbing higher plant start-up costs in North and Central America. Those costs pay off only if the big customers fill the new capacity.
Packaging Corp of America: Brown Boxes and a Long Dividend Record Packaging Corp makes containerboard, the stiff brown paper inside shipping boxes, at its own mills. It then turns that paper into corrugated boxes for food processors, beverage makers, manufacturers and retailers. It is the third-largest US producer of containerboard and corrugated boxes. Packaging made up $2.3113B of second-quarter sales, and paper only $157.3M.
Its dividend record shows how the business has held up in past downturns, and it includes a weak spot. During the 2008 to 2009 recession, the quarterly dividend went from $0.30 in 2008 to $0.15 in 2009. Box demand falls when industrial activity falls. The 2020 shock went differently. The payout stayed at $0.79 through every quarter of 2020 and rose to $1.00 with the December 2020 payment. It held at $1.25 from mid-2022 through late 2025 and is now $1.50.
PKG’s pricing power shows up in actual price increases. The company put through two sequential containerboard price increases in 2026, and those increases are the main reason its third-quarter guidance calls for adjusted EPS of $2.91, up from $2.35 in the second quarter. The trailing operating margin is 13.1%. The stock has gained 91.54% over five years. The yield is 2.29%, a supporting feature of the investment case.
Risk: the lag between rising costs and higher prices. Costs show up right away, and price increases take time to reach customers. Second-quarter GAAP net income fell to $192.1M from $241.5M on higher freight, corporate expenses and weak price and mix. Management also highlighted rising recycled fiber, chemical and electricity costs. Interest expense rose to $32.6M on acquisition debt, so the integration has to work.
Amcor: Pouches, Bottles and a Balance Sheet Worth Watching Amcor (NYSE:AMCR) makes flexible packaging, meaning the films, pouches and wrappers used for snacks, coffee, cheese and medical supplies. Since buying Berry Global, it also makes rigid plastic bottles, containers and closures. Its customers sell food, beverage, healthcare, personal care and home care products. Amcor trades on the NYSE, so a US investor buys it the same way as the other two names here. The foreign-domiciled plc has operations in 40+ countries, so currency swings flow through its results.
Medical packaging and grocery basics get bought in every economy. Amcor paid its quarterly dividend at $0.115 through 2020 and raised it to $0.1175 in November 2020. It has kept paying through the Berry integration and now pays $0.65 a quarter. Margins are moving the right way: fourth-quarter adjusted EBIT margin was 13.1%, up from 12.0% a year earlier, helped by about $100M of merger synergies in the quarter. Fiscal 2026 revenue reached $23.506B, with free cash flow of $1.303B.
The yield is 6.21%, the highest of the three, and it calls for caution. Net debt stood at $12.9B at fiscal year-end, and guidance for the six-month transition period ending in December puts leverage at 3.5x to 3.6x. Shareholders have waited a long time for a return: shares are down 7.51% over five years and up 6.51% since June 2019.
Risk: raw material and energy costs. Amcor makes its products from plastic resins and films, and it reported unprecedented input cost inflation along with supply disruptions tied to conflict in the Middle East. During the year, management cut free cash flow guidance from $1.8-1.9B to $1.5-1.6B. Volumes were also softer in healthcare and nutrition.
Quiet Holdings for a Durable Core These businesses stay out of the headlines while they keep generating cash. Packaging Corp of America has the best record of the three, though its 2009 dividend cut shows it is still tied to the economic cycle. Ball has the most reliable demand and contracts that pass metal costs to customers, but its stock has fell behind. Amcor needs the most patience while it pays down Berry debt, and over time its cash flow will show whether the larger company was worth building. Dull, dividend-paying compounders like these are the backbone of a portfolio built to live off the checks instead of selling shares, which is the whole idea behind our free dividend ladder guide.
Contact [email protected] for any questions or corrections.
Packaging Corporation of America (NYSE: PKG) will hold a conference call on Thursday October 22, 2026 at 9:00 a.m. Eastern Time to discuss third quarter 2026 results. The conference call leader will be Mark Kowlzan. Third quarter earnings results will be released after the market closes on Wednesday, October 21, 2026.
To access the conference call, you may pre-register for the conference by navigating to https://dpregister.com/sreg/10205357/102fc34e0c7. Once you have registered, you will receive your dial-in number. When dialing in the day of the call, please ask to join the Packaging Corporation of America earnings call.
If you prefer not to pre-register, you may dial in the day of the call using one of the following toll-free numbers: 833-816-1102 (U.S.), 866-605-3852 (Canada) or 412-317-0684 (International) by 8:45 a.m. (Eastern Time). Please ask to join the Packaging Corporation of America earnings call.
A replay of the call will also be available from October 22, 2026 until November 5, 2026. To access the recording, please use one of the following toll-free numbers: 855-669-9658 (U.S. and Canada) or (412) 317-0088 (International). The replay Access Code is: 8981933
This call will also be webcast and accessible at PCA’s website at www.packagingcorp.com. Please go to the Investor Relations tab to access the call.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates 10 paper mills and 90 corrugated products plants and related facilities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260917902610/en/
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) will hold a conference call on Thursday October 22, 2026 at 9:00 a.m. Eastern Time to discuss third quarter 2026 results. The conference call leader will be Mark Kowlzan. Third quarter earnings results will be released after the market closes on Wednesday, October 21, 2026. To access the conference call, you may pre-register for the conference by navigating to https://dpregister.com/sreg/10205357/102fc34e0c7. Once.
Packaging Corporation of America (PKG) Jefferies Global Industrials Conference 2026 September 10, 2026 8:10 AM EDT
Company Participants
Mark Kowlzan - Chairman of the Board & CEO
Kent Pflederer - Executive VP & CFO
Presentation
Unknown Analyst
All right, guys. Next up, we got Packaging Corp of America. We're excited to have the team here. Representing the company, we've got Mark Kowlzan, the CEO; and Kent, the CFO. Mark, do you want to kick things off? Just give us a sense of what you're seeing out there?
Question-and-Answer Session
Mark Kowlzan
Chairman of the Board & CEO
Yes. Thanks, Phil. And as usual, I've got probably 5 minutes of prepared remarks that I want to go through and then I want to spend more time on the fireside chat piece of this. But as usual, we'll go through a presentation. We're not going to do the slide-by-slide review. We've posted the presentation on the website and have hard copies available if anybody needs anything.
Before I begin, though, I do have to remind you about forward-looking statements disclosure in the presentation. The statements are made as of today, and actual results could differ materially from any expression in any forward-looking statements.
Again, I don't have nearly as much to say as when we were out on the road in the second quarter. So far, 3Q has progressed consistently with what we called out in the July earnings call. We continue to see very tight containerboard market conditions, and we're in a much better inventory position than where we were coming out of 2Q. We had all of the outages going on during that period of time. We continue to run incredibly well. We've had 2 excellent operating months now in the mill system in July and August with no maintenance outages or any other meaningful interruptions.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America's (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will participate in a Fireside Chat at Jefferies 2026 Global Industrials Conference being held in New York on Thursday, September 10, 2026 at 8:10am Eastern Time. Following, Mr. Kowlzan and Executive Vice President and CFO, Kent Pflederer will participate in a Q&A session. Immediately afterwards, they will be hosting a series of 1 x 1 meetings. For those interested in li.
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Stock to Watch: Packaging Corp. (PKG - Free Report) Headquartered in Lake Forest, IL, Packaging Corporation of America is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. The company operates ten mills and 90 corrugated products manufacturing plants.
PKG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PKG has a Growth Style Score of B, forecasting year-over-year earnings growth of 6.5% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $10.48 per share. PKG boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PKG should be on investors' short list.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) announced today that its Board approved a regular quarterly dividend of $1.50 per share on its common stock. The quarterly dividend of $1.50 per share will be paid to shareholders of record as of September 15, 2026, with a payment date of October 15, 2026. Future declaration of quarterly dividends and the establishment of future record and payment dates are subject to the final determination by PCA's Board of Direc.
Bank of Nova Scotia acquired a new stake in Packaging Corporation of America (NYSE:PKG – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 26,713 shares of the industrial products company’s stock, valued at approximately $6,365,000.
A number of other hedge funds have also recently modified their holdings of the stock. Daiichi Life Insurance Co. Ltd. acquired a new position in Packaging Corporation of America in the second quarter valued at approximately $3,426,000. Commerce Bank acquired a new stake in shares of Packaging Corporation of America during the 2nd quarter worth approximately $15,921,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Packaging Corporation of America during the 2nd quarter worth approximately $584,000. Quantbot Technologies LP purchased a new position in shares of Packaging Corporation of America during the 2nd quarter valued at approximately $819,000. Finally, Emerald Investment Advisers LLC purchased a new position in shares of Packaging Corporation of America during the 2nd quarter valued at approximately $5,180,000. Hedge funds and other institutional investors own 89.78% of the company’s stock.
Insider Activity In related news, President Thomas A. Hassfurther sold 12,531 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $250.00, for a total value of $3,132,750.00. Following the transaction, the president directly owned 218,751 shares of the company’s stock, valued at approximately $54,687,750. This trade represents a 5.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Donald R. Shirley sold 12,000 shares of the firm’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $250.71, for a total transaction of $3,008,520.00. Following the completion of the transaction, the vice president directly owned 19,110 shares in the company, valued at $4,791,068.10. This represents a 38.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 40,391 shares of company stock valued at $10,196,101. Insiders own 1.60% of the company’s stock.
Wall Street Analysts Forecast Growth A number of brokerages recently issued reports on PKG. JPMorgan Chase & Co. increased their price target on shares of Packaging Corporation of America from $269.00 to $271.00 and gave the stock an “overweight” rating in a report on Friday, July 24th. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $246.00 price objective (up from $245.00) on shares of Packaging Corporation of America in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft raised shares of Packaging Corporation of America from a “hold” rating to a “buy” rating and lifted their price objective for the company from $225.00 to $256.00 in a report on Monday, May 4th. Bank of America increased their target price on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Finally, Citigroup raised their target price on Packaging Corporation of America from $241.00 to $254.00 and gave the company a “neutral” rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $264.57. View Our Latest Stock Report on Packaging Corporation of America
Packaging Corporation of America Price Performance Packaging Corporation of America stock opened at $246.60 on Wednesday. The company’s fifty day moving average price is $241.76 and its 200 day moving average price is $227.83. Packaging Corporation of America has a 1 year low of $191.50 and a 1 year high of $259.98. The stock has a market capitalization of $21.97 billion, a P/E ratio of 32.03, a P/E/G ratio of 2.35 and a beta of 0.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.86 and a current ratio of 2.94.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share for the quarter, topping analysts’ consensus estimates of $2.31 by $0.04. Packaging Corporation of America had a net margin of 7.25% and a return on equity of 18.94%. The company had revenue of $2.49 billion during the quarter, compared to analysts’ expectations of $2.49 billion. During the same period in the prior year, the business posted $2.48 earnings per share. The firm’s revenue for the quarter was up 14.7% on a year-over-year basis. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. As a group, equities research analysts anticipate that Packaging Corporation of America will post 10.48 earnings per share for the current fiscal year.
Packaging Corporation of America Company Profile (Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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It has been about a month since the last earnings report for Packaging Corp. (PKG - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Packaging Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Packaging Corporation of America before we dive into how investors and analysts have reacted as of late.
Packaging Corp Q2 Earnings Beat Estimates on Record ShipmentsPackaging Corp reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.
Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.
Packaging Corp’s Gross Profit Rises Y/Y in Q2Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.
Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.
Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.
PKG’s Q2 Segmental PerformancesPackaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.
Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.
Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter.
Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Sales volume increased 6.3% from the second quarter of 2025.
The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix.
Packaging Corp's Cash Position DeclinesPKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.
For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.
PKG Q3 OutlookThe company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, Packaging Corp. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Packaging Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Bank of New York Mellon Corp bought a new stake in Packaging Corporation of America (NYSE:PKG – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 3,139,561 shares of the industrial products company’s stock, valued at approximately $748,095,000. Bank of New York Mellon Corp owned 3.52% of Packaging Corporation of America at the end of the most recent quarter.
Several other institutional investors have also recently made changes to their positions in PKG. GRIMES & Co WEALTH MANAGEMENT LLC bought a new stake in shares of Packaging Corporation of America during the 4th quarter worth approximately $4,664,000. PNC Financial Services Group Inc. increased its stake in Packaging Corporation of America by 7.8% in the first quarter. PNC Financial Services Group Inc. now owns 73,669 shares of the industrial products company’s stock worth $15,634,000 after purchasing an additional 5,355 shares during the period. Heartland Advisors Inc. increased its stake in Packaging Corporation of America by 47.6% in the fourth quarter. Heartland Advisors Inc. now owns 39,145 shares of the industrial products company’s stock worth $8,073,000 after purchasing an additional 12,621 shares during the period. Adams Natural Resources Fund Inc. lifted its position in shares of Packaging Corporation of America by 71.6% during the first quarter. Adams Natural Resources Fund Inc. now owns 12,700 shares of the industrial products company’s stock worth $2,695,000 after purchasing an additional 5,300 shares during the last quarter. Finally, G&S Capital LLC boosted its stake in shares of Packaging Corporation of America by 110.1% during the fourth quarter. G&S Capital LLC now owns 12,886 shares of the industrial products company’s stock valued at $2,657,000 after purchasing an additional 6,753 shares during the period. Institutional investors own 89.78% of the company’s stock.
Packaging Corporation of America Stock Down 1.2% NYSE:PKG opened at $249.87 on Friday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.94 and a quick ratio of 1.86. Packaging Corporation of America has a 1-year low of $191.50 and a 1-year high of $259.98. The company has a 50-day moving average of $240.55 and a 200 day moving average of $227.36. The firm has a market cap of $22.26 billion, a PE ratio of 32.45, a price-to-earnings-growth ratio of 2.39 and a beta of 0.80.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The industrial products company reported $2.35 EPS for the quarter, beating analysts’ consensus estimates of $2.31 by $0.04. Packaging Corporation of America had a net margin of 7.25% and a return on equity of 18.94%. The business had revenue of $2.49 billion for the quarter, compared to the consensus estimate of $2.49 billion. During the same quarter last year, the firm posted $2.48 EPS. The company’s revenue for the quarter was up 14.7% on a year-over-year basis. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. As a group, research analysts anticipate that Packaging Corporation of America will post 10.48 EPS for the current fiscal year. Analyst Upgrades and Downgrades Several research firms recently commented on PKG. Bank of America raised their price target on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Truist Financial boosted their price objective on shares of Packaging Corporation of America from $258.00 to $270.00 and gave the company a “buy” rating in a research report on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft upgraded shares of Packaging Corporation of America from a “hold” rating to a “buy” rating and upped their target price for the stock from $225.00 to $256.00 in a research note on Monday, May 4th. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $246.00 target price (up from $245.00) on shares of Packaging Corporation of America in a research report on Thursday, July 9th. Finally, Weiss Ratings downgraded shares of Packaging Corporation of America from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $264.57.
Read Our Latest Stock Analysis on Packaging Corporation of America
Insider Buying and Selling In related news, CEO Mark W. Kowlzan sold 9,266 shares of Packaging Corporation of America stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $217.08, for a total transaction of $2,011,463.28. Following the transaction, the chief executive officer directly owned 473,610 shares of the company’s stock, valued at $102,811,258.80. This trade represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, President Thomas A. Hassfurther sold 12,531 shares of Packaging Corporation of America stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $250.00, for a total transaction of $3,132,750.00. Following the transaction, the president directly owned 218,751 shares in the company, valued at approximately $54,687,750. The trade was a 5.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 37,657 shares of company stock worth $9,199,044. Insiders own 1.60% of the company’s stock.
(Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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BlackRock Inc. purchased a new stake in shares of Packaging Corporation of America (NYSE:PKG – Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 7,711,541 shares of the industrial products company’s stock, valued at approximately $1,837,506,000. BlackRock Inc. owned 8.65% of Packaging Corporation of America at the end of the most recent reporting period.
Several other hedge funds have also bought and sold shares of the business. DV Equities LLC bought a new position in shares of Packaging Corporation of America during the fourth quarter valued at approximately $26,000. Covestor Ltd boosted its position in shares of Packaging Corporation of America by 140.0% in the 4th quarter. Covestor Ltd now owns 156 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 91 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its stake in shares of Packaging Corporation of America by 94.1% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 165 shares of the industrial products company’s stock worth $34,000 after buying an additional 80 shares during the last quarter. Navalign LLC purchased a new stake in shares of Packaging Corporation of America in the 4th quarter worth approximately $36,000. Finally, Geneos Wealth Management Inc. increased its position in Packaging Corporation of America by 40.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 198 shares of the industrial products company’s stock valued at $39,000 after buying an additional 57 shares in the last quarter. Institutional investors own 89.78% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft upgraded Packaging Corporation of America from a “hold” rating to a “buy” rating and lifted their price objective for the company from $225.00 to $256.00 in a research note on Monday, May 4th. Weiss Ratings downgraded Packaging Corporation of America from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, August 11th. Citigroup lifted their price target on Packaging Corporation of America from $241.00 to $254.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. Truist Financial upped their price target on shares of Packaging Corporation of America from $258.00 to $270.00 and gave the stock a “buy” rating in a research note on Wednesday, July 15th. Finally, Bank of America upped their price target on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $264.57.
Check Out Our Latest Stock Analysis on Packaging Corporation of America Packaging Corporation of America Price Performance Shares of NYSE PKG opened at $253.10 on Thursday. Packaging Corporation of America has a twelve month low of $191.50 and a twelve month high of $259.98. The firm has a market cap of $22.55 billion, a P/E ratio of 32.87, a PEG ratio of 2.36 and a beta of 0.80. The company has a 50 day moving average of $240.05 and a 200 day moving average of $227.17. The company has a quick ratio of 1.86, a current ratio of 2.94 and a debt-to-equity ratio of 0.85.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.31 by $0.04. Packaging Corporation of America had a return on equity of 18.94% and a net margin of 7.25%.The business had revenue of $2.49 billion for the quarter, compared to analysts’ expectations of $2.49 billion. During the same period in the prior year, the firm posted $2.48 EPS. The firm’s quarterly revenue was up 14.7% on a year-over-year basis. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. As a group, research analysts expect that Packaging Corporation of America will post 10.48 EPS for the current fiscal year.
Insiders Place Their Bets In other Packaging Corporation of America news, CEO Mark W. Kowlzan sold 9,266 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $217.08, for a total transaction of $2,011,463.28. Following the transaction, the chief executive officer owned 473,610 shares in the company, valued at approximately $102,811,258.80. This represents a 1.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Thomas A. Hassfurther sold 12,531 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $250.00, for a total transaction of $3,132,750.00. Following the transaction, the president directly owned 218,751 shares of the company’s stock, valued at $54,687,750. The trade was a 5.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 37,657 shares of company stock worth $9,199,044. Corporate insiders own 1.60% of the company’s stock.
(Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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AssuredPartners Investment Advisors LLC acquired a new position in Packaging Corporation of America (NYSE:PKG – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 5,959 shares of the industrial products company’s stock, valued at approximately $1,420,000.
A number of other institutional investors and hedge funds have also bought and sold shares of PKG. BlackRock Inc. purchased a new stake in Packaging Corporation of America in the second quarter worth approximately $1,837,506,000. Bank of New York Mellon Corp bought a new stake in Packaging Corporation of America in the second quarter valued at approximately $748,095,000. Norges Bank purchased a new stake in shares of Packaging Corporation of America during the fourth quarter valued at approximately $237,649,000. Diamant Asset Management Inc. boosted its stake in shares of Packaging Corporation of America by 19,710.3% during the first quarter. Diamant Asset Management Inc. now owns 893,446 shares of the industrial products company’s stock valued at $189,607,000 after purchasing an additional 888,936 shares during the period. Finally, Deutsche Bank AG bought a new position in shares of Packaging Corporation of America in the second quarter worth approximately $133,174,000. 89.78% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling In other news, CEO Mark W. Kowlzan sold 9,266 shares of Packaging Corporation of America stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $217.08, for a total transaction of $2,011,463.28. Following the sale, the chief executive officer owned 473,610 shares in the company, valued at $102,811,258.80. This trade represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, President Thomas A. Hassfurther sold 7,063 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $254.00, for a total value of $1,794,002.00. Following the completion of the sale, the president owned 202,891 shares in the company, valued at $51,534,314. This represents a 3.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 37,657 shares of company stock valued at $9,199,044. Insiders own 1.60% of the company’s stock.
Analysts Set New Price Targets Several research firms have recently issued reports on PKG. Deutsche Bank Aktiengesellschaft raised Packaging Corporation of America from a “hold” rating to a “buy” rating and boosted their target price for the company from $225.00 to $256.00 in a research note on Monday, May 4th. UBS Group boosted their price target on Packaging Corporation of America from $271.00 to $292.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Bank of America raised their price objective on shares of Packaging Corporation of America from $242.00 to $263.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. boosted their target price on Packaging Corporation of America from $269.00 to $271.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Finally, Citigroup raised their price target on shares of Packaging Corporation of America from $241.00 to $254.00 and gave the company a “neutral” rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $264.57. Get Our Latest Analysis on PKG
PKG stock opened at $253.10 on Thursday. Packaging Corporation of America has a twelve month low of $191.50 and a twelve month high of $259.98. The stock has a market cap of $22.55 billion, a P/E ratio of 32.87, a PEG ratio of 2.36 and a beta of 0.80. The business’s 50-day moving average price is $240.05 and its 200-day moving average price is $227.17. The company has a quick ratio of 1.86, a current ratio of 2.94 and a debt-to-equity ratio of 0.85.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $2.35 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.04. The business had revenue of $2.49 billion for the quarter, compared to the consensus estimate of $2.49 billion. Packaging Corporation of America had a net margin of 7.25% and a return on equity of 18.94%. The company’s revenue for the quarter was up 14.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.48 earnings per share. Packaging Corporation of America has set its Q3 2026 guidance at 2.910-2.910 EPS. On average, equities research analysts forecast that Packaging Corporation of America will post 10.48 EPS for the current year.
Packaging Corporation of America Profile (Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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3 Dividend Leaders Set for Strong Growth in 2025Packaging Corporation of America NYSE: PKG reported lower adjusted earnings for the second quarter of 2026 compared with the prior year, even as sales and EBITDA increased, with management citing strong corrugated demand, higher freight costs and contributions from the recently acquired Greif containerboard business.
Chairman and Chief Executive Officer Mark Kowlzan said the company reported second-quarter net income of $192 million, or $2.15 per share. Excluding special items, net income was $210 million, or $2.35 per share, compared with $224 million, or $2.48 per share, in the second quarter of 2025. Net sales rose to $2.5 billion from $2.2 billion a year earlier, while total company EBITDA excluding special items increased to $486 million from $451 million.
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Packaging Corporation of America: Buy The DipKowlzan said special items totaled $0.20 per share and were primarily related to facility closure costs and write-offs, Wallula Mill restructuring charges, and expenses tied to the acquisition and integration of the Greif containerboard business.
Excluding special items, earnings declined by $0.13 per share from the year-ago quarter. Kowlzan said legacy business earnings were down $0.27 per share, partly offset by $0.14 per share of earnings from the acquired Greif business. The legacy decline was driven by several cost pressures, including higher freight, corporate and other expenses, lower price and mix in packaging, higher labor and operating costs, and higher fiber costs. Those headwinds were partly offset by higher production and sales volumes in packaging and paper, lower maintenance outage expense, and improved paper pricing and mix.
Packaging Corporation of America: A Total Package to Buy and Hold“We exceeded our guidance of $2.33 on the strength of our corrugated volumes, which helped drive cost favorability in areas that we could control and offset higher than forecast costs for freight, recycled fiber, and employee benefits,” Kowlzan said. He added that Greif’s earnings contribution also exceeded expectations.
Packaging Demand Remains Strong In the packaging segment, EBITDA excluding special items was $489 million on sales of $2.3 billion, resulting in a margin of 21.1%. That compared with EBITDA of $453 million on sales of $2 billion, or a 22.6% margin, in the second quarter of 2025.
The company produced 1.415 million tons of containerboard during the quarter. Legacy mills produced 1.209 million tons, roughly even with the first quarter and 14,000 tons above the prior-year period. Acquired mills produced 206,000 tons, which Kowlzan said significantly exceeded their production in any quarter since the acquisition.
President Thomas Hassfurther said corrugated operations “turned in yet another very strong quarter.” Shipments were up more than 24% in total and per day versus last year, with the legacy business up 4.1% and achieving an all-time record for total quarterly shipments. Hassfurther said demand was very strong across the company’s customer base, with particular strength in e-commerce related to Amazon Prime Day and related customers.
Hassfurther said domestic containerboard and corrugated products prices and mix were $0.11 per share below the second quarter of 2025 but $0.04 per share above the first quarter of 2026. He said the company began realizing the first announced price increase in June, expects most of that increase to roll in during July, and expects the second increase to begin in August with realization split between the third and fourth quarters.
The company reduced export containerboard sales during the quarter to build inventory for its corrugated plants. Export volume was 30,000 tons below the first quarter and 22,000 tons below the second quarter of 2025. Hassfurther said the company was able to meaningfully increase inventories in early July and described the current market environment in one word during the question-and-answer session: “tight.”
Greif Integration Exceeds Expectations Management said the acquired Greif business contributed $0.14 per share to earnings in the quarter, above expectations. Chief Financial Officer Kent Pflederer said $0.04 of that contribution came from a depreciation benefit tied to measurement-period adjustments to the valuation of fixed assets on the opening balance sheet. Excluding that benefit, Pflederer said the outperformance was driven largely by higher volumes and strong operational performance.
Hassfurther said PCA now views the acquired business as fully integrated and is operating it as one unit with the legacy business. Pflederer said the transition services agreement with Greif will run through the end of the year as the company brings remaining corrugated plants and one mill-related system onto PCA systems. He said three more plants are expected to transition in the third quarter and the final facilities in the fourth quarter.
Pflederer said PCA is on track, and possibly ahead, on Greif-related synergies. He cited mill production improvements and better reliability, as well as integration benefits that are beginning to show in the numbers. He said the company is “probably” on track to exceed a $30 million run rate by year-end.
Paper Segment Posts Higher Margins The paper segment reported EBITDA excluding special items of $39 million on sales of $157 million, for a 24.9% margin. That compared with EBITDA of $30 million on sales of $146 million, or a 20.8% margin, in the second quarter of 2025.
Kowlzan said paper sales volume was about 3% below the first quarter but about 6% above the second quarter of 2025. Prices and mix were up 2% from both the first quarter of 2026 and the prior-year quarter. He said the company continues to implement previously announced paper price increases and expects to benefit in the third quarter.
Costs, Outages and Capital Spending in Focus Pflederer said cash provided by operations was $376 million, and free cash flow was $170 million after $206 million of capital expenditures. Other cash uses included dividend payments of $111 million, cash tax payments of $78 million and net interest payments of $54 million. PCA did not repurchase shares during the quarter.
The company continues to forecast 2026 capital expenditures of $840 million to $870 million and depreciation, depletion and amortization of about $710 million, excluding special items. Pflederer said outage expense was $0.34 per share in the second quarter and is now estimated at $0.30 in the third quarter and $0.63 in the fourth quarter, for a full-year total of $1.41 per share.
Kowlzan said operational performance in the quarter was mixed because of production interruptions from utility power outages across the mill system. In response to a question, Pflederer said the outages likely affected production by about 10,000 tons. Kowlzan said the disruptions reinforced the need for gas turbine projects at three key facilities, which he said should reduce or eliminate reliance on the grid at those mills.
Kowlzan said a gas turbine project at the Jackson Mill is in construction and is targeted to come online next year in coordination with Jackson’s annual outage. Projects at Riverville, Virginia, and DeRidder, Louisiana, are moving through environmental permitting, with Kowlzan indicating those units could come online in the first to middle part of 2028.
Third-Quarter Guidance Calls for Higher Earnings Looking ahead, Kowlzan said PCA expects continued strong packaging demand, increased corrugated products volume due to one additional shipping day, and higher containerboard and corrugated prices as price increases are implemented. He also said the company expects one more day of mill operation, lower production impact from packaging maintenance outages and better operating performance across its containerboard mill system.
In paper, PCA expects lower volume and higher prices due to maintenance at International Falls and continued price increase implementation. Freight costs are expected to remain around the elevated levels seen in May and June, while recycled fiber prices are continuing to rise. The company also expects higher chemical and purchased electricity prices, with wood fiber and natural gas relatively flat.
PCA guided for third-quarter earnings of $2.91 per share, excluding special items.
About Packaging Corporation of America (NYSE:PKG)Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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Key Takeaways Packaging Corp posted a Q2 earnings beat as record corrugated shipments drove higher sales and volumes.PKG benefited from the Greif acquisition, while unfavorable price mix and higher costs offset some gains.PKG expects Q3 earnings of $2.91 per share on strong packaging demand and higher corrugated volumes. Packaging Corporation of America (PKG - Free Report) reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif Inc. (GEF) business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.
Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.
Packaging Corp’s Gross Profit Rises Y/Y in Q2Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.
Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.
Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.
PKG’s Q2 Segmental PerformancesPackaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. The figure beat our estimate of $2.14 billion. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.
Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.
Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter. Our model projected the segment’s adjusted operating income to be $313 million.
Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Our model projected the segment’s adjusted operating income to be $154 million. Sales volume increased 6.3% from the second quarter of 2025.
The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix. Our projection for the segment’s adjusted operating income was $32 million.
Packaging Corp's Cash Position DeclinesPKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.
For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.
PKG Q3 OutlookThe company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.
Packaging Corp Stock’s Price PerformanceThe company’s shares have gained 13.5% in the past year against the industry’s decline of 5.6%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsBall Corporation (BALL - Free Report) is scheduled to release second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for BALL’s second-quarter 2026 earnings is pegged at 99 cents per share, suggesting year-over-year growth of 10%.
The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.67 billion, indicating growth of 9.8% from the prior-year reported figure. Ball Corp has a trailing four-quarter average surprise of 3.7%.
Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release second-quarter 2026 results on July 29. The Zacks Consensus Estimate for SLGN’s second-quarter 2026 earnings is pegged at 96 cents per share, implying a year-over-year dip of 4.9%.
The Zacks Consensus Estimate for Silgan Holdings’ top line is pegged at $1.62 billion, suggesting an increase of 5.1% from the prior-year reported figure. Silgan Holdings has a trailing four-quarter average surprise of 1.8%.
AptarGroup, Inc. (ATR - Free Report) is scheduled to release second-quarter 2026 results on July 30. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2026 earnings is pegged at $1.34 per share, indicating a year-over-year dip of 19.3%.
The Zacks Consensus Estimate for the company’s top line is pegged at $1 billion, implying growth of 3.8% from the prior-year reported figure. ATR has a trailing four-quarter average surprise of 3.1%.
For the quarter ended June 2026, Packaging Corp. (PKG - Free Report) reported revenue of $2.49 billion, up 14.7% over the same period last year. EPS came in at $2.35, compared to $2.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of +3.57%. The company delivered an EPS surprise of +1.73%, with the consensus EPS estimate being $2.31.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Packaging Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment Sales- Packaging: $2.31 billion compared to the $2.21 billion average estimate based on three analysts. The reported number represents a change of +15.2% year over year.Segment Sales- Corporate and Other: $21.3 million versus $21.64 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.Segment Sales- Paper: $157.3 million versus the three-analyst average estimate of $160.04 million. The reported number represents a year-over-year change of +7.9%.Segment operating income (loss) excluding special items- Packaging: $327.8 million compared to the $317.11 million average estimate based on two analysts.Segment operating income (loss) excluding special items- Corporate and Other: $-47.2 million versus the two-analyst average estimate of $-39.57 million.Segment operating income (loss) excluding special items- Paper: $34.3 million compared to the $32.53 million average estimate based on two analysts.View all Key Company Metrics for Packaging Corp. here>>>
Shares of Packaging Corp. have returned -2% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Packaging Corp. (PKG - Free Report) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $2.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.73%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $2.17 per share when it actually produced earnings of $2.4, delivering a surprise of +10.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Packaging Corp., which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.49 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.57%. This compares to year-ago revenues of $2.17 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Packaging Corp. shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Packaging Corp.?While Packaging Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Packaging Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.97 on $2.54 billion in revenues for the coming quarter and $10.46 on $9.98 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Karat Packing (KRT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Karat Packing's revenues are expected to be $135 million, up 8.9% from the year-ago quarter.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported second quarter 2026 net income of $192 million, or $2.15 per share, and net income of $210 million, or $2.35 per share, excluding special items. Second quarter net sales were $2.5 billion in 2026 and $2.2 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended June 30, 2026 2025 Change .
California Public Employees Retirement System decreased its holdings in Packaging Corporation of America (NYSE:PKG – Free Report) by 2.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 153,476 shares of the industrial products company’s stock after selling 3,830 shares during the quarter. California Public Employees Retirement System owned 0.17% of Packaging Corporation of America worth $32,571,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in PKG. Vanguard Group Inc. lifted its holdings in Packaging Corporation of America by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,279,442 shares of the industrial products company’s stock worth $2,326,159,000 after buying an additional 51,790 shares in the last quarter. State Street Corp increased its position in shares of Packaging Corporation of America by 1.3% during the fourth quarter. State Street Corp now owns 4,185,761 shares of the industrial products company’s stock worth $868,349,000 after acquiring an additional 54,884 shares during the period. Charles Schwab Investment Management Inc. increased its position in shares of Packaging Corporation of America by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,478,505 shares of the industrial products company’s stock worth $717,372,000 after acquiring an additional 83,978 shares during the period. JPMorgan Chase & Co. raised its stake in shares of Packaging Corporation of America by 7.5% in the fourth quarter. JPMorgan Chase & Co. now owns 3,316,670 shares of the industrial products company’s stock valued at $683,997,000 after acquiring an additional 231,474 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Packaging Corporation of America by 2.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,816,736 shares of the industrial products company’s stock valued at $580,897,000 after acquiring an additional 73,047 shares in the last quarter. Institutional investors and hedge funds own 89.78% of the company’s stock.
Packaging Corporation of America Trading Down 0.1% PKG opened at $228.16 on Wednesday. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.88 and a current ratio of 3.07. Packaging Corporation of America has a one year low of $189.03 and a one year high of $249.51. The company has a market cap of $20.33 billion, a P/E ratio of 27.76, a PEG ratio of 2.13 and a beta of 0.80. The business’s 50-day simple moving average is $226.14 and its 200-day simple moving average is $222.17.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share for the quarter, topping the consensus estimate of $2.17 by $0.23. The firm had revenue of $2.37 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Packaging Corporation of America had a return on equity of 19.27% and a net margin of 8.04%.The firm’s revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.31 earnings per share. As a group, equities research analysts expect that Packaging Corporation of America will post 10.46 EPS for the current fiscal year.
Packaging Corporation of America Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were given a dividend of $1.50 per share. The ex-dividend date was Monday, June 15th. This represents a $6.00 annualized dividend and a dividend yield of 2.6%. This is a boost from Packaging Corporation of America’s previous quarterly dividend of $1.25. Packaging Corporation of America’s payout ratio is presently 72.99%.
Insider Buying and Selling at Packaging Corporation of America In related news, CEO Mark W. Kowlzan sold 9,266 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $217.08, for a total value of $2,011,463.28. Following the completion of the sale, the chief executive officer directly owned 473,610 shares of the company’s stock, valued at $102,811,258.80. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.60% of the company’s stock.
Analyst Ratings Changes Several research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft raised Packaging Corporation of America from a “hold” rating to a “buy” rating and boosted their target price for the stock from $225.00 to $256.00 in a research note on Monday, May 4th. Truist Financial lifted their price objective on Packaging Corporation of America from $258.00 to $270.00 and gave the company a “buy” rating in a research note on Wednesday, July 15th. Bank of America boosted their price objective on Packaging Corporation of America from $242.00 to $263.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Citigroup upped their target price on shares of Packaging Corporation of America from $229.00 to $241.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Finally, Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $246.00 target price (up from $245.00) on shares of Packaging Corporation of America in a report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $256.14.
Get Our Latest Stock Analysis on PKG
Packaging Corporation of America Profile (Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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Wall Street analysts expect Packaging Corp. (PKG - Free Report) to post quarterly earnings of $2.31 per share in its upcoming report, which indicates a year-over-year decline of 6.9%. Revenues are expected to be $2.4 billion, up 10.7% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Packaging Corp. metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment Sales- Packaging' should arrive at $2.21 billion. The estimate suggests a change of +10.2% year over year.
The consensus estimate for 'Segment Sales- Corporate and Other' stands at $21.64 million. The estimate indicates a year-over-year change of +10.4%.
The collective assessment of analysts points to an estimated 'Segment Sales- Paper' of $160.04 million. The estimate suggests a change of +9.8% year over year.
Analysts forecast 'Segment operating income (loss) excluding special items- Packaging' to reach $317.11 million. The estimate is in contrast to the year-ago figure of $321.70 million.
Analysts predict that the 'Segment operating income (loss) excluding special items- Paper' will reach $32.53 million. Compared to the current estimate, the company reported $25.80 million in the same quarter of the previous year.
View all Key Company Metrics for Packaging Corp. here>>>
Shares of Packaging Corp. have demonstrated returns of -2.4% over the past month compared to the Zacks S&P 500 composite's -0.6% change. With a Zacks Rank #3 (Hold), PKG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Packaging Corp is expected to report Q2 revenues of $2.40B, up 10.7% y/y, with EPS projected to fall 6.8%.PKG expects the Greif containerboard business to become accretive after a first-quarter earnings drag.PKG Packaging volume and pricing are expected to improve, while Paper revenues and operating income may rise. Packaging Corporation of America (PKG - Free Report) is set to release second-quarter 2026 results on July 22, after the closing bell.
The Zacks Consensus Estimate for PKG’s second-quarter revenues is pegged at $2.40 billion, indicating 10.7% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.31 per share. The Zacks Consensus Estimate for PKG’s second-quarter earnings has moved south in the past 60 days. The estimate indicates a year-over-year dip of 6.8%.
Image Source: Zacks Investment Research
PKG’s Earnings Surprise HistoryPackaging Corp’s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in the other two, the average surprise being a 1.3%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Packaging CorpOur model does not predict an earnings beat for PKG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Packaging Corp has an Earnings ESP of -0.18%.
Zacks Rank: PKG currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped PKG’s Q2 PerformancePackaging Corp closed the acquisition of the containerboard business of Greif, Inc (GEF - Free Report) in September 2025. The Greif containerboard business includes two containerboard mills with approximately 800,000 tons of production capacity, and eight sheet feeder and corrugated plants located across the United States. While Greif was a 6-cent-per-share drag in the first quarter of 2026 due to storm disruption and higher freight and recycled fiber costs, management expects the acquired operations to be accretive to earnings in the second quarter. This is likely to have aided the Packaging segment in the to-be-reported quarter.
Our model predicts the Packaging segment’s volume to rise 3.6% year over year. The price and mix impacts for the Packaging segment are expected to have been favorable at 3.3% for the quarter, per our model.
The estimate for the segment’s quarterly revenues is pegged at $2.14 billion, suggesting growth of 6.9% from the year-ago quarter’s reported number. Our model estimates the segment’s operating income to be $260 million, indicating a dip of 24.9% from the prior-year reported figure.
In the Paper segment, prices and mix are expected to have increased 1.8% year over year. We expect volume to increase 3.6% year over year.
The estimate for the Paper segment’s revenues is pegged at $154 million for the June-end quarter, suggesting growth of 6.6% from the year-ago reported figure. The estimate for the segment’s operating income is $32 million, indicating 24.2% growth from the prior-year quarter’s actual.
Packaging Stock's Price PerformanceOver the past year, PKG shares have gained 18.6% against the industry’s 4.1% decrease.
Image Source: Zacks Investment Research
Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Hubbell Incorporated (HUBB - Free Report) , slated to release second-quarter 2026 results on July 28, has an Earnings ESP of +0.62% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hubbell’s second-quarter 2026 earnings is pegged at $5.32 per share, suggesting a year-over-year rise of 7.9%. HUBB has a trailing four-quarter average surprise of 4.7%.
Deere & Company (DE - Free Report) , slated to release third-quarter fiscal 2026 results on Aug. 20, has an Earnings ESP of +6.92% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Deere’s third-quarter fiscal 2026 earnings is pegged at $4.82 per share, suggesting a year-over-year rise of 1.5%. DE has a trailing four-quarter average surprise of 10.2%.
Wall Street expects a year-over-year decline in earnings on higher revenues when Packaging Corp. (PKG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of containerboard and corrugated packaging products is expected to post quarterly earnings of $2.31 per share in its upcoming report, which represents a year-over-year change of -6.9%.
Revenues are expected to be $2.38 billion, up 9.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Packaging Corp.?For Packaging Corp., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.18%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Packaging Corp. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Packaging Corp. would post earnings of $2.17 per share when it actually produced earnings of $2.40, delivering a surprise of +10.60%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Packaging Corp. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Containers - Paper and Packaging industry, Sonoco (SON - Free Report) , is soon expected to post earnings of $1.48 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8%. Revenues for the quarter are expected to be $1.89 billion, down 0.9% from the year-ago quarter.
The consensus EPS estimate for Sonoco has been revised 0.3% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.97%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Sonoco will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) will hold a conference call on Thursday, July 23, 2026, at 9:00 a.m. Eastern Time to discuss second quarter 2026 results. The conference call leader will be Mark Kowlzan. Second quarter earnings results will be released after the market closes on Wednesday, July 22, 2026.
To access the conference call, you may pre-register for the conference by navigating to https://dpregister.com/sreg/10205355/102fb95d496. Once you have registered, you will receive your dial-in number. When dialing in the day of the call, please ask to join the Packaging Corporation of America earnings call.
If you prefer not to pre-register, you may dial in the day of the call using one of the following toll-free numbers: 833-816-1102 (U.S.), 866-605-3852 (Canada) or 412-317-0684 (International) by 8:45 a.m. (Eastern Time). Please ask to join the Packaging Corporation of America earnings call.
A replay of the call will also be available from July 23, 2026, until August 6, 2026. To access the recording, please use one of the following toll-free numbers: 855-669-9658 (U.S. and Canada) or 412-317-0088 (International). The replay Access Code is: 9358134.
This call will also be webcast and accessible at PCA’s website at www.packagingcorp.com. Please go to the Investor Relations tab to access the call.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates ten paper mills and 90 corrugated products plants and related facilities.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported first quarter 2026 net income of $171 million, or $1.91 per share, and net income of $215 million, or $2.40 per share, excluding special items. First quarter net sales were $2.4 billion in 2026 and $2.1 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended March 31, 2026 2025 Change .
While the top- and bottom-line numbers for Packaging Corp. (PKG) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Packaging Corp. (PKG) came out with quarterly earnings of $2.4 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $2.31 per share a year ago.
Packaging Corporation of America delivered strong Q1 results, with EPS of $2.40 beating guidance and revenue up 11% to $2.4 billion. PKG continues to gain market share but faces margin pressure from elevated input and freight costs and risks from sustained energy inflation. Q2 guidance of $2.33 EPS is below consensus, driven by planned maintenance outages and higher corporate expenses, but underlying demand remains robust.
Cwm LLC reduced its stake in shares of Packaging Corporation of America (NYSE: PKG) by 35.4% in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,847 shares of the industrial products company's stock after selling 10,873 shares during the
Key Takeaways Packaging Corp beats Q1 EPS estimates as pricing, mix, and lower fiber costs lift results.PKG Packaging segment drives growth with 11.1% sales rise and higher operating profit year over year.Margins shrink as costs climb and special charges tied to closures and acquisitions weigh on profits. Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported adjusted results, though special items weighed on reported profitability. Lower-than-expected earnings from the recently acquired Greif Inc.(GEF - Free Report) business also impacted sales. The Grief operations generated a loss of 6 cents per share during the quarter.
PKG’s Segmental PerformancePKG’s Packaging segment remained the primary growth engine. Segment sales increased 11.1% year over year to $2.19 billion in the quarter, reflecting stronger top-line momentum relative to the consolidated growth rate. Our model predicted the segment’s sales to be $2.21 billion for the quarter. Adjusted operating profit for the segment was $316.5 million compared with $284 million in the prior-year quarter.
The Paper segment delivered more modest expansion, with sales of $159.9 million compared with $154.2 million a year ago. We expected sales of $151 million for the Paper segment. Adjusted operating profit for the segment was $33 million compared with $36 million in the prior year quarter.
Packaging Corp. Margin Pressures Hit Reported ProfitDespite the double-digit sales increase, profitability metrics showed mixed movement on a reported basis. Gross profit was $453 million compared with $455 million in the prior-year quarter, while cost of sales climbed to $1.91 billion year-over-year from $1.69 billion. The gross margin came in at 19.1% in the first quarter of 2026 compared with 21.2% in the prior year quarter.
Below the gross line, selling, general and administrative expenses rose to $180.3 million from $161.4 million, while other expenses, net, increased to $21.3 million from $13.0 million.
PKG’s Special Items Lift Adjusted ComparisonsA key swing factor between reported and adjusted performance was special items recorded during the quarter. Special items totaled $44.3 million after tax.
The largest item was $53.3 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, WA, containerboard mill. PKG recorded $3.4 million of acquisition and integration-related costs and $2.9 million of facilities closure and other costs, which together added to the gap between reported and adjusted earnings.
Packaging Corp Cash Position Declines as Spending RisesCash, cash equivalents and marketable debt securities ended the quarter at $615.5 million, down from $914.4 million at the end of the prior-year quarter.
Capital spending rose to $164.7 million from $148.1 million in the year-ago period. Meanwhile, diluted weighted average shares outstanding were 89.1 million versus 89.6 million a year earlier, providing a small offset to per-share comparisons.
PKG’s OutlookPKG expects strong demand in the Packaging segment in the second quarter, with higher corrugated volumes supported by an extra shipping day and seasonal improvement. Prices for containerboard and corrugated products should rise due to earlier announced increases and a better product mix. Production at packaging mills will be slightly higher, though maintenance-related costs will increase. In the Paper segment, the company expects volumes to stay flat, but prices to increase.
The company expects second-quarter adjusted earnings to be around $2.33 per share.
Packaging Corp. Stock’s Price PerformancePackaging Corp’s shares have gained 11.5% over the past year against the industry’s decline of 11.1%. In comparison, the broader Zacks Industrial Products sector has increased 38% and the S&P 500 grew 35.9%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsAptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an 8.5% increase from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is scheduled to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Net Income: $171 million or $1.91 per share; excluding special items, $215 million or $2.40 per share.Net Sales: $2.4 billion in Q1 2026, up from $2.1 billion
Shares of Packaging Corporation of America (NYSE: PKG - Get Free Report) rose 6.4% on Thursday following a better than expected earnings announcement. The stock traded as high as $218.78 and last traded at $218.3440. Approximately 368,158 shares changed hands during trading, a decline of 64% from the average daily volume of 1,023,421 shares. The stock
Packaging Corporation of America (NYSE: PKG) reported first-quarter 2026 net income of $171 million, or $1.91 per share, with results affected by special items tied primarily to mill restructuring and acquisition integration. Excluding special items, the company posted net income of $215 million, or $2.40 per share, up from $208 million, or $2.31 per share, in
