Packaging Corp of America (NYSE – PKG) Reports Lower Net Income in Q4 2025

By Chris Stiles • Wednesday, January 28 12:10 • Permanent Link

Packaging Corporation of America (NYSE: PKG) has reported its fourth quarter and full-year 2025 results, showing a net income of $102 million, or $1.13 per share, for the fourth quarter, and $209 million, or $2.32 per share, excluding special items. This is in comparison to the fourth quarter of 2024, where net income was $2.45 per share, indicating a decrease of $1.32 per share. Full-year 2025 net income was $774 million, or $8.58 per share, compared to $888 million, or $9.84 per share, excluding special items, for the full year of 2024.

The net sales for the fourth quarter of 2025 were $2.4 billion, an increase from $2.1 billion in the fourth quarter of 2024. For the full year, net sales were $9.0 billion in 2025 and $8.4 billion in 2024.

In terms of segment operating income (loss), the packaging segment reported $173.3 million for the fourth quarter, down from $297.2 million in the same period in 2024. However, the paper segment saw a marginal decrease from $34.8 million in the fourth quarter of 2024 to $32.7 million in the same period in 2025.

The company also provided a breakdown of operating income (loss) excluding special items, which revealed that the packaging segment reported $309.2 million, up from $298.9 million in the same period in 2024. The paper segment reported consistent performance at $32.7 million for both periods.

Looking at EBITDA excluding special items, the packaging segment reported $475.9 million, an increase from $425.7 million in the same period in 2024. The paper segment reported $37.4 million, down from $39.3 million in the fourth quarter of 2024.

Mark W. Kowlzan, Chairman and CEO of Packaging Corporation of America, commented on the results, stating that the company had a strong year with growth in earnings excluding special items and operating cash flows, driven by the efforts of employees and capital investments across the business.

Looking ahead to the first quarter, Kowlzan expects higher per-day volume in the legacy corrugated products plants over last year and continued strength in the acquired corrugated operations. The company also expects to benefit from previously announced containerboard price increases beginning in March.

Following these announcements, the company's shares moved -0.28%, and are now trading at a price of $221.33. For more information, read the company's full 8-K submission here.

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