- Packaging Corp’s adjusted earnings per share (EPS) for Q3 2025 came in at $2.73, falling short of the $2.82 analyst estimate.
- The reported EPS decreased to $2.51 compared to $2.64 the previous year.
- Net sales rose by 6% year-over-year, reaching $2.31 billion, slightly above the projected $2.29 billion.
- Sales in the Packaging segment increased by 5.9% year-over-year, amounting to $2.13 billion, exceeding the anticipated $2.1 billion.
- The Paper segment witnessed a 1.2% increase in sales, totalling $161.2 million, surpassing the estimated $151.1 million.
- EBITDA, excluding certain items, grew by 9.3% year-over-year to $503.4 million, aligning closely with the $503.2 million estimate.
- Packaging adjusted EBITDA rose by 10% year-over-year to $491.8 million, slightly under the $494 million forecast.
- The Paper segment’s adjusted EBITDA saw a 7% year-over-year decline, reaching $40.1 million, which still exceeded the $37.5 million estimate.
- Depreciation, amortization, and depletion expenses increased by 15% year-over-year to $152.6 million, higher than the estimated $144.6 million.
- Comments from Chairman and CEO Mark W. Kowlzan highlighted strong performance in the legacy PCA packaging business, with cautious but improving corrugated volume and price trends.
- The Packaging segment is expected to experience lower prices due to a seasonally less favorable mix.
- Operational challenges arose from ongoing outages and maintenance at the Massillon mill, coupled with seasonally lower volumes in the corrugated business.
- Current analyst recommendations include 5 buys, 5 holds, and 2 sells for Packaging Corp’s stock.
Packaging Corporation of America on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Packaging Corporation of America (PCA). In a recent report titled “Packaging Corporation of America Bets Big on Corrugated Demand Amid Global Uncertainty; Will It Pay Off?” the analysts discussed PCA’s financial results for the second quarter of 2025.
According to the report, PCA reported a net income of $242 million or $2.67 per share, an increase from the previous year. Excluding special items, the net income was $224 million or $2.48 per share, surpassing the prior year’s figures. The positive results were attributed to lower operating and fiber costs, leading to a beat in guidance by $0.07 per share. Analysts are leaning bullish on PCA’s prospects as it navigates through varying market conditions.
A look at Packaging Corporation of America Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Packaging Corporation of America, a leading manufacturer of containerboard and corrugated packaging products, appears to have a balanced long-term outlook based on Smartkarma’s Smart Scores. With consistent scores of 3 across Value, Dividend, Growth, and Resilience, the company demonstrates stability and reliability in key financial metrics. Moreover, its Momentum score of 4 indicates strong market performance and potential for upward movement in the future.
The company’s diverse product offerings, including multi-color boxes, displays, meat boxes, and wax-coated boxes for the agricultural industry, position Packaging Corporation of America favorably in the market. This comprehensive product line contributes to its resilience and potential for sustained growth, making it an attractive option for investors seeking a solid long-term investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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