Packaging Corporation of America Reports Increased Net Sales and Income in Q2 2025

Packaging Corporation of America (PCA) reported a notable increase in financial performance for the second quarter of 2025, with net sales reaching $2.17 billion, up from $2.08 billion in the same period last year. The company’s net income also rose to $241.5 million, or $2.67 per diluted share, compared to $198.9 million, or $2.21 per diluted share, in the prior year. This growth was attributed to higher prices and improved product mix in the Packaging segment, alongside lower fiber costs. The company declared dividends of $1.25 per share, consistent with the previous year.

In comparison to the second quarter of 2024, PCA's gross profit increased by $45 million to $483 million, driven by higher prices and mix in the Packaging segment, as well as lower fiber costs. However, this was partially offset by increased operating costs and maintenance expenses. The Packaging segment alone saw operating income rise to $346 million, up from $280 million, while the Paper segment's operating income slightly decreased to $26 million from $27 million. The overall income from operations for the quarter was $333.7 million, a 20.9% increase from $276 million in the previous year.

PCA is also pursuing strategic growth through the announced acquisition of Greif, Inc.'s containerboard business for $1.8 billion, expected to close by the end of the third quarter of 2025, pending regulatory approval. This acquisition aligns with PCA's growth strategy and aims to enhance the integration of containerboard production into its corrugated products facilities. The company operates eight mills and 85 corrugated products manufacturing plants, positioning itself as a leading player in the North American packaging industry.

Operationally, PCA reported a slight increase in total corrugated products shipments, which were flat overall but up 1.7% per workday compared to the previous year. The company’s cash and cash equivalents stood at $787.9 million as of June 30, 2025, reflecting a solid liquidity position. PCA's employee headcount remained stable, and the company continues to focus on optimizing its operational efficiency amid fluctuating market conditions.

Looking ahead, PCA anticipates higher corrugated shipments and containerboard production in the third quarter, although export sales may decline due to global trade challenges. The company expects stable pricing in both the Packaging and Paper segments, with no scheduled maintenance outages during the third quarter. Overall, PCA projects that third-quarter earnings will surpass those of the second quarter, excluding special items, as it continues to navigate the evolving market landscape.