Packaging Corporation of America reported fourth-quarter 2025 net income of $102 million, or $1.13 per share, and $209 million, or $2.32 per share on a non-GAAP basis excluding special items. Net sales grew 14.3% year-over-year to $2.4 billion, up from $2.1 billion in Q4 2024. Excluding special items, EPS fell by $0.15 from the prior year quarter, driven primarily by a 1.7% decline in legacy corrugated volumes ($0.23 impact), higher operating and maintenance outage costs ($0.37 combined), increased depreciation ($0.07) and freight expenses ($0.06). These headwinds were partly offset by higher packaging segment prices and mix ($0.50) and lower fiber costs ($0.10).

In the Packaging segment, operating income excluding special items rose to $309.2 million from $298.9 million a year ago, supported by a 17.0% increase in shipments per day when including the acquired Greif business and full-capacity runs at existing mills. Total containerboard production reached 1,407,000 tons, with inventories up by 84,000 tons due to the Greif acquisition. Paper segment operating income held steady at $32.7 million, with sales volume up 1% year-over-year. EBITDA excluding special items across all segments reached $486.3 million, up from $439.3 million in Q4 2024.

For the full year, PCA delivered net income of $774 million, or $8.58 per share, and $888 million, or $9.84 per share excluding special items, on net sales of $9.0 billion, a 7.1% increase from $8.4 billion in 2024. Segment EBITDA excluding special items climbed to $1.86 billion, up 13.7% from the prior year. The company repurchased 760,000 shares at an average price of $201, deploying approximately $153 million of cash. Operating cash flow increased year-over-year, reflecting benefits from recent capital investments and synergy capture in the Greif integration.

PCA expects first-quarter EPS of $2.20 per share excluding special items, based on two fewer operating days, a scheduled maintenance outage at the Counce, TN containerboard mill and reconfigured Wallula, WA operations coming online in March. Domestic containerboard and corrugated prices are anticipated to rise further, with export volumes slightly higher. Paper segment volume may decline slightly, with modest price pressure. Cost inflation is expected across labor, benefits, energy and chemicals, partially offset by lower scheduled outage expenses and depreciation. Weather-related disruptions from recent winter storms are under review for potential impacts on shipments and logistics costs.