The Packaging Corporation of America (PCA) has posted net income of $246.7m, or $2.73 per share, excluding special items, in the third quarter (Q3) of 2025.
This exceeded the previous year's figure of $238.8m, or $2.65 per share.
When including one-time items, earnings stood at $2.51 per share, compared with $2.64 in the corresponding quarter of 2024. These items comprised costs and charges linked to the acquisition of Greif’s containerboard business and expenses from closures of corrugated products facilities.
Net sales for the quarter reached $2.31bn, an increase from $2.18bn a year earlier.
The rise in earnings stemmed mainly from improved prices and mix in the packaging segment, reduced fibre costs, better prices and mix in the paper segment, and decreased maintenance outage expenses.
These gains were offset by elevated operating costs, reduced production and sales volume in the packaging segment, increased depreciation expenses, higher freight costs, and lower production volume in the paper segment.
Cost of products sold rose 8% year-on-year (YoY) to $1.81bn. Gross profit fell 0.2% to $504.3m.
In the packaging segment, sales grew 6% to $2.13bn. Corrugated product shipments for the legacy operations declined 1.1% YoY, but rose 5.3% when incorporating the acquired business.
Containerboard production totalled 1,255,000 tons at legacy mills and 47,000 tons at acquired mills. Adjusted operating income was $347.9m, up from $321.6m in the same quarter of the previous year.
The paper segment generated revenues of $161.2m, a 1.2% increase YoY.
Adjusted operating profit for the segment was $35.6m, compared with $38.5m in the same quarter of 2024.
PCA’s cash balance at the end of the third quarter amounted to $806.4m, down from $841.3m at the end of the corresponding quarter of the year before.
The company forecasts earnings per share of $2.40 for Q4 2025.
PCA chairman and CEO Mark W Kowlzan stated: “Looking ahead as we move from the third into the fourth quarter, we expect higher per-day corrugated shipments, with three less shipping days than the third quarter. Export containerboard sales will be higher than the third quarter, but will be relatively low when compared to traditional fourth quarter volume. Containerboard production in the legacy system will be slightly lower than the third quarter with the maintenance outage at the DeRidder mill, and maintenance outage expenses will be higher by approximately ($0.29) per share.
“Prices in the packaging segment will be lower as a result of a seasonally less rich mix. We expect seasonally higher energy and fiber costs and, on the whole, freight and other operating costs to be relatively flat. In the paper segment, we expect lower production and sales volumes than the seasonally stronger third quarter with flat pricing.”
PCA is the third largest producer of containerboard and corrugated packaging in North America and one of the largest producers of uncoated freesheet in the region, measured by production capacity. It operates ten mills and 93 corrugated products plants and related facilities.
In October 2025, the company submitted WARN notices for plant closures in Allentown, Pennsylvania, and Salisbury, North Carolina. These closures will impact 168 positions: 60 in Allentown and 108 in Salisbury.
