Packaging Corporation of America (PKG)

Sector: Consumer Discretionary|Industry: Packaging & Containers|Market Cap: $20.14B|Employees: 14.9K


Packaging Corporation of America (PCA) is the third-largest producer of containerboard products and a leading producer of uncoated freesheet (UFS) paper in North America. They operate eight mills and 86 corrugated products plants, primarily in the United States, serving a wide range of industries, with a focus on regional and local accounts. PCA's competitive advantage stems from its integrated operations, sustainable practices, and strong customer relationships.

  1. Filings

Filing Highlights

Financial Performance

Net sales reached $2.18 billion, up from $1.94 billion in the same quarter last year. The Packaging segment contributed significantly with a 14.1% increase due to higher volume and prices.

Net income increased to $238.1 million, or $2.64 per diluted share, compared to $183.2 million, or $2.03 per diluted share, in the prior year. This was driven by higher volume and prices in the Packaging segment, lower freight and logistics expenses, and lower interest expense.

While net income increased significantly, operating and converting costs also rose, partially offsetting the gains from higher sales volume and prices. This is attributed to operating the Wallula mill for the entire quarter, whereas it was temporarily idled in the prior year.

Growth & Strategy

Management Execution

Risk Factors

Competitive Position

Operational Efficiency

Innovation & Technology

Capital Allocation

ESG initiatives

Market Environment