Packaging Corporation of America Reports 6% Net Sales Increase in Q3 2025

Packaging Corporation of America (PCA) reported its financial results for the third quarter and the first nine months of 2025, highlighting a net sales increase of 6% to $2.31 billion for the quarter, compared to $2.18 billion in the same period last year. For the nine months ended September 30, 2025, net sales reached $6.63 billion, up from $6.24 billion in 2024. The company’s net income for the third quarter was $226.9 million, or $2.51 per diluted share, down from $238.1 million, or $2.64 per diluted share, in the prior year. The decrease in net income was attributed to $20 million in special items related to the recent acquisition of Greif, Inc., which was completed on September 2, 2025, for $1.8 billion in cash.

The acquisition of Greif added significant capacity to PCA's operations, including two containerboard mills and eight corrugated plants across the U.S. The results from the Greif business are included in PCA's financials from the acquisition date. PCA's Packaging segment reported operating income of $328 million for the third quarter, a slight increase from $321 million in the same quarter of 2024. The increase was driven by higher prices and a favorable product mix, although it was partially offset by increased operating costs and lower production volumes. The Paper segment's operating income decreased to $36 million from $39 million year-over-year, primarily due to higher operating costs and lower sales volumes.

PCA's total assets increased to $10.98 billion as of September 30, 2025, up from $8.83 billion at the end of 2024, largely due to the acquisition. The company’s long-term debt rose significantly to $3.97 billion from $2.47 billion, reflecting the financing of the Greif acquisition. PCA's cash and cash equivalents stood at $634 million, down from $685 million at the end of 2024. The company also reported a decrease in its employee headcount, with 90 million shares of common stock issued as of September 30, 2025.

Looking ahead, PCA anticipates a challenging fourth quarter, expecting lower earnings compared to the third quarter due to seasonal factors, including fewer shipping days and higher maintenance costs. The company expects to manage production levels at the newly acquired mills to align with inventory needs. PCA's management remains focused on integrating the Greif operations and optimizing performance across its segments, while also navigating the broader market conditions affecting the packaging and paper industries.