Packaging Corp. tops its own forecast as Greif mills swing to profit, guides fourth quarter to $2.81 a share

Packaging Corporation of America beat its own third-quarter forecast as the containerboard mills it bought from Greif swung to a profit, though the company expects earnings to dip in the fourth quarter as maintenance outages and freight costs bite.

Excluding special items, PCA earned $3.04 a share, 13 cents above its guidance of $2.91 and up from $2.73 a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Reported net income was $262 million, or $2.93 a share, up from $2.51. Net sales rose to $2.6 billion from $2.3 billion.

The acquired Greif operations earned 13 cents a share, compared with a loss of 11 cents in the year-ago quarter. The legacy business added 7 cents, as better pricing and mix in the Packaging segment outweighed higher labor, freight, fiber and corporate costs.

Volumes and mills

Total corrugated products shipments rose 10.6% with the acquisition, while legacy shipments slipped 0.5% per day. Containerboard production was 1,489,000 tons. Chairman and CEO Mark Kowlzan said the mills "ran at full capacity during the quarter."

Special items included facility closure costs, acquisition and integration costs, the impact of a fire at a corrugated products plant and restructuring charges tied to the Wallula, Washington, containerboard mill.

A softer fourth quarter

PCA expects fourth-quarter earnings of $2.81 a share excluding special items. Kowlzan pointed to maintenance outages at three mills, freight costs rising with diesel prices, higher recycled and wood fiber costs, and seasonally higher energy use. He said prices for containerboard and corrugated products should improve as earlier increases take hold.

By the numbers

• EPS excluding special items: $3.04, versus guidance of $2.91
• Reported EPS: $2.93, up from $2.51
• Net sales: $2.6 billion, up from $2.3 billion
• Packaging segment operating income: $397.8 million
• Q4 EPS guidance: $2.81 excluding special items

Sources

1. Packaging Corporation of America, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0001193125-26-428056

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