LAKE FOREST, ILLINOIS — Packaging Corporation of America (PCA) reported higher second-quarter sales for 2026, supported by strong corrugated packaging demand and contributions from its acquired Greif operations, although higher freight and raw material costs weighed on earnings.

For the quarter ended 30 June 2026, PCA reported net income of US$192 million, or US$2.15 per share. Excluding special items, adjusted net income was US$210 million, or US$2.35 per share.

Net sales increased to US$2.5 billion, compared with US$2.2 billion in the second quarter of 2025.

Higher Costs Offset Strong Packaging Demand

Adjusted earnings were US$0.13 per share lower than the same period last year.

The decline in legacy business earnings was primarily attributed to:

• Higher freight costs
• Increased corporate expenses
• Unfavorable packaging price and product mix
• Higher labor and operating costs
• Increased depreciation and amortization
• Higher recycled fiber costs
• Higher tax and interest expenses

These factors were partially offset by stronger production and sales volumes in both the packaging and paper businesses, as well as lower maintenance outage expenses.

The acquired Greif operations contributed US$0.14 per share to quarterly earnings.

Corrugated Packaging Volumes Increase

PCA reported continued strength in its packaging business during the quarter.

Compared with the second quarter of 2025:

• Total corrugated products shipments increased 24.3%
• Legacy packaging shipments increased 4.1%
• Paper segment sales volume rose 6.3%

The company also achieved a record quarterly shipment volume in its legacy corrugated operations.

Containerboard production reached 1.415 million tons during the quarter.

Acquisition Supports Growth

PCA said the acquired Greif business delivered positive earnings contributions through higher corrugated plant volumes and improved mill operating performance.

The company also continued operating its containerboard mill system at full capacity while reducing export sales to prioritize domestic corrugated packaging demand.

Third-Quarter Outlook Remains Positive

Looking ahead, PCA expects continued strength in the packaging segment during the third quarter.

The company anticipates:

• Higher corrugated shipment volumes
• Further implementation of announced containerboard and corrugated product price increases
• Higher packaging mill production
• Improved operating performance across its mill network
• Lower maintenance outage costs in the packaging business

However, PCA also expects continued cost pressure from:

• Elevated freight expenses
• Rising recycled fiber prices
• Higher chemical and purchased electricity costs

The company forecast third-quarter adjusted earnings of US$2.91 per share, excluding special items.

Company Overview

Packaging Corporation of America is the third-largest producer of containerboard products in North America and a leading producer of uncoated freesheet paper.

The company operates:

• 10 paper mills
• 90 corrugated products plants and related facilities

Last Updated on 24/07/2026 by Jota Machinery