Packaging Corporation of America reported fourth quarter 2025 net income of $102 million, or $1.13 per diluted share, down from $245 million, or $2.45 per share, in the prior year period. Excluding special items—the bulk of which related to the Wallula mill restructuring, Greif acquisition integration and facility closures—adjusted EPS was $2.32, $0.15 below the prior year. Net sales rose 14% year-over-year to $2.4 billion, driven by a 50 basis-point lift in packaging segment price and mix, partially offset by a 1.7% decline in corrugated shipments in the legacy business and acquisition-related headwinds in the fourth quarter.

For the full year, PCA generated net income of $774 million, or $8.58 per share (excluding special items: $9.84), compared to $805 million, or $8.93 per share, in 2024. Net sales grew 7% to $9.0 billion, with operating cash flow increasing by more than 15% versus the prior year. The company repurchased 760,000 shares at an average price of $201 during the year, deploying capital in line with its return-of-capital objective.

In the Packaging segment, operating income excluding special items increased to $309.2 million from $298.9 million a year ago, supported by export volume growth and price actions, though legacy corrugated shipments per day were down 1.7%. Including Greif operations, shipments per day were up 17%. Containerboard production reached 1.407 million tons, with inventories up 84,000 tons year-over-year due to the acquisition. Paper segment operating income held steady at $32.7 million, with sales volume up 1% year-over-year, while corporate expenses excluding special items rose modestly to $31.7 million.

Management expects first quarter adjusted earnings of $2.20 per share, reflecting a scheduled maintenance outage at Counce, TN, two fewer operating days, and planned full-capacity containerboard mill runs. Pricing initiatives beginning in March should enhance corrugated product mix, while export prices are anticipated to be flat to slightly down. The company forecasts modest volume gains in legacy corrugated plants, continued strength in acquired operations, and inflationary pressure on fiber, energy and labor costs due to winter conditions. Special items related to Wallula restructuring and Greif integration are expected to reoccur, though additional charges remain possible.