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. The company operates eight mills and 86 corrugated products plants and related facilities. PCA is headquartered in Lake Forest, Illinois and operates primarily in the United States. The company's core business model involves manufacturing and selling containerboard, corrugated packaging products, and UFS paper. PCA's competitive advantages include a vertically integrated supply chain, a focus on regional and local accounts, and a commitment to sustainable practices. The company's primary revenue streams are derived from its Packaging and Paper segments.

PCA's competitive landscape includes major players like International Paper, WestRock Company, and Georgia-Pacific LLC, as well as numerous smaller, independent producers.

• Employees: Approximately 14,900 (as of December 31, 2023)
• Geographic Footprint: Primarily in the United States
• Headquarters: Lake Forest, Illinois
• Founded: 1999
• Number of locations/facilities: 8 mills and 86 corrugated products plants
• Revenue: $7.8 billion (FY2023)
• Key Subsidiaries/Brands: Operates under the PCA brand

• CEO: Mark W. Kowlzan (Chairman and CEO since January 2016 and July 2010, respectively)
• CFO: Robert P. Mundy (CFO since 2015)
• Executive Vice President - Mill Operations: Charles J. Carter
• Executive Vice President - Corrugated Products: Thomas A. Hassfurther

Key leaders have extensive experience in the paper and packaging industry, with many holding prior senior-level positions at PCA and other major companies.

• Annual Revenue: $7.8 billion (FY2023)
• Net Income: $765 million (FY2023)
• Total Assets: $8.7 billion (as of December 31, 2023)
• Employees: Approximately 14,900 (as of December 31, 2023)
• Key Financial Highlights: Net sales decreased by 8.0% compared to FY2022, driven by lower prices and volumes in the Packaging segment. Net income decreased by 26.5% compared to FY2022.

PCA's main product categories include:

• Containerboard: Linerboard and corrugating medium used in the production of corrugated products.
• Corrugated Packaging Products: Conventional shipping containers, multi-color boxes, displays, and protective packaging.
• Uncoated Freesheet (UFS) Paper: Commodity and specialty papers, including cut-size office papers and printing/converting papers.

The Packaging segment's net sales to third parties totaled $7.1 billion in 2023.

PCA operates through three reportable segments:

• Packaging: Produces containerboard and corrugated packaging products. In FY2023, this segment's income from operations was $1.1 billion.
• Paper: Manufactures and sells UFS paper. In FY2023, this segment's income from operations was $119 million.
• Corporate and Other: Includes corporate support services, transportation assets, and activity related to a variable interest entity. In FY2023, this segment's loss from operations was $118 million.

PCA's current strategic priorities include:

• Improving productivity and efficiencies at its mills and corrugated products facilities.
• Focusing on regional and local accounts.
• Investing in more efficient operations utilizing carbon-neutral fuels and in emerging and advancing technologies.
• Reducing greenhouse gas emissions.
• Maintaining a diverse workforce with a culture of respect and inclusion.

PCA's long-term business goals include reaching net-zero carbon emissions within its own operations and its value chain by 2050. The company is also focused on maintaining a highly talented workforce and achieving operational excellence.

PCA operates in the containerboard, corrugated packaging, and UFS paper industries. Key market trends include:

• Decreasing demand for existing UFS paper products due to increasing shifts to electronic alternatives.
• Fluctuations in prices, sales volumes, and margins for commodity grades of packaging and paper products.
• Intense competition in the industries in which PCA operates.
• Volatility in the cost of fiber, purchased fuels, and chemicals.

PCA is the third-largest producer of containerboard products in North America. The corrugated products industry consists of about 400 U.S. companies operating approximately 1,100 plants. The UFS paper market is also highly competitive, with numerous worldwide manufacturers.

• General Economic Conditions: Deterioration in economic conditions may harm demand for products and profitability.
• Industry Cyclicality: Changes in product prices may materially affect financial condition and results of operations.
• Competition: Intense competition could result in downward pressure on pricing and volume.
• Cost of Fiber: An increase in the cost of fiber could increase manufacturing costs and lower earnings.
• Cost of Purchased Fuels and Chemicals: An increase in the cost of purchased fuels and chemicals could lead to higher manufacturing costs, resulting in reduced earnings.