Packaging Corporation of America reported Q2 2025 net income of $242 million, or $2.67 per share, and net income of $224 million, or $2.48 per share, excluding special items. Q2 2025 net sales were $2.2 billion in 2025 and $2.1 billion in 2024.
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “We operated very well during the quarter, delivering strong earnings and cash flows as well as higher margins in the Packaging segment. Pricing in the Packaging segment was consistent with expectations as we fully realized our earlier announced price increases. Despite cautious ordering patterns from customers, corrugated products volume was solid and steady throughout the quarter, with per day shipments exceeding the Q2 2024 and the Q1 2025. As expected, export containerboard sales were lower. We ran our containerboard mills to meet demand and drew down inventory to end at targeted levels. The Paper segment delivered another profitable quarter with strong margin performance, as we realized our earlier price increases. We continued to successfully manage costs across all of our operations, executing our capital projects and efficiency initiatives, which have helped offset inflation.”
“Looking ahead as we move from the Q2 and into the Q3,” Mr. Kowlzan added. “While our corrugated products customers have remained cautious into July as economic uncertainty persists, we expect higher corrugated shipments, which will drive increased containerboard production. Export containerboard sales will be lower due to the effects of the global trade environment. We will build some containerboard inventory ahead of our Q4 maintenance outage at the DeRidder mill. We expect prices and mix in the Packaging segment to be relatively flat. We also expect flat pricing in the Paper segment and expect production and sales to increase with the International Falls mill outage completed in the Q2 and seasonal back-to-school orders. We have no scheduled maintenance outages during the Q3 and expect maintenance outage expense to be lower. Freight costs will be higher with the full effect of rail rate increases at our mills. Operating costs will be near Q2 levels and fiber costs will be slightly lower. Considering these items, we expect Q3 earnings of $2.80 per share, excluding special items. Our guidance does not include any possible impact from the pending acquisition of the Greif containerboard business, which is subject to satisfaction of certain conditions, including regulatory approval.”
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates eight mills and 85 corrugated products plants and related facilities.
