Packaging Corp of America Sales Rise as Shipments Climb
Net sales reached $2.5 billion in the second quarter, up from $2.2 billion a year earlier.
Packaging Corp of America (PKG) reported a rise in net sales for the second quarter, driven by a significant increase in corrugated product shipments.
The results reflected a period of volume growth across primary segments, though the company faced rising financing costs and one-time restructuring charges that weighed on the bottom line.
Net sales rose to $2.5 billion, compared with $2.2 billion in the second quarter of 2024. Diluted earnings per share excluding special items decreased to $2.35 a share, down from $2.48 a share in the prior-year period.
Growth was supported by a 24.3% increase in total corrugated products shipments per day compared to the second quarter of 2024. Legacy packaging business shipments rose 4.1% per day, while sales volume in the paper segment increased 6.3%.
Profitability improved in key operating segments. Packaging segment EBITDA excluding special items expanded to $488.6 million, up from $452.9 million. Paper segment EBITDA excluding special items rose to $39.1 million from $30.3 million.
Containerboard production totaled 1,415,000 tons. Inventory levels fell 25,000 tons from the first quarter of 2025 but remained 40,000 tons higher than the second quarter of 2024.
Earnings were impacted by a significant increase in net interest expense, which rose to $33.3 million from $13.1 million in the prior-year quarter. The company also recorded restructuring costs related to its containerboard mill in Wallula, Washington.
Offsetting some of these costs, the acquired Greif operations shifted to profitability. The unit contributed $0.14 a share to earnings in the second quarter, compared to a loss of $0.06 a share in the first quarter.
Packaging Corp of America issued third-quarter earnings guidance of $2.91 a share excluding special items.