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EarningsQ3 2026 Earnings Report
PKG Q3 2026 EPS Results
Actual EPS$3.04
Consensus EPS$2.93
Beat/MissBeat by +$0.11
One Year Ago EPS$2.73
PKG Q3 2026 Revenue Results
Actual Revenue$2.60B
Expected Revenue$2.61B
Beat/MissMissed by -$9.99M
YoY Revenue Growth+12.46%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
PKG Upcoming Earnings
Packaging's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
PKG Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. PCA reported year-over-year growth in net income, sales, EBITDA, Packaging margins, pricing, cash flow, and Greif integration, exceeded third-quarter guidance, and described demand, operational performance, synergies, and capacity expansion opportunities favorably. The main challenges were higher input and capital costs, maintenance outages, lower agriculture and protein volumes, lower export volumes, a weaker Paper segment comparison, and fourth-quarter earnings expected at $2.81 per share excluding special items. Overall, the highlights significantly outweighed the lowlights.Company Guidance
Year-over-Year Earnings and Revenue Growth
Third quarter 2026 net income was $262 million, or $2.93 per share, while net income excluding special items was $272 million, or $3.4 per share, compared with $247 million, or $2.73 per share, in the third quarter of 2025. Net sales increased to $2.6 billion from $2.3 billion, and total company EBITDA excluding special items increased to $577 million from $503 million.
Earnings Beat Guidance
The company exceeded its third-quarter guidance of $2.91 per share, driven by strength in price realization and a higher-than-expected contribution from the acquired Greif business. These benefits were partially offset by higher labor and operating costs, partially driven by lower-than-forecast corrugated products volume.
Packaging Segment Margin Improvement
Packaging EBITDA excluding special items increased to $578 million from $492 million, while sales increased to $2.4 billion from $2.1 billion. The Packaging segment margin improved to 23.9% from 23.1% in the prior-year quarter.
Greif Acquisition Performance and Integration
The acquired Greif business contributed $0.13 per share in the third quarter versus a $0.11 per-share loss in the first month of ownership in the prior year. Management said the acquired mills delivered exceptional performance, integration levels continued to improve, and the business meaningfully contributed to profitability.
Synergies Ahead of Plan
Integration and operational improvements are running ahead of the company's original synergy targets. The synergy run rate is now between $40 million and $50 million, compared with the previously discussed $30 million for this year and next year. PCA supplied approximately 45 thousand more tons of containerboard into the acquired Greif system during the quarter, and the acquired mills are producing 70 thousand more tons on a run-rate basis than at the time of acquisition.
Strong Containerboard Production and Mill Performance
The mills produced 1.489 million tons during the quarter. Legacy mills produced 1.28 million tons of containerboard, approximately 77 thousand tons more than the second quarter of 2026 and 31 thousand tons more than the third quarter of 2025. Acquired mills produced 203 thousand tons despite Riverville being down for an extensive annual maintenance outage. Management described operational performance as excellent and much improved from the second quarter.
Improved Inventory Position and Customer Supply
System-wide inventories increased by 34 thousand tons from the end of the second quarter. Management said the company had caught up on keeping plants adequately supplied, resumed shipping through the most efficient methods possible, and was in a good position to supply customers in the fourth quarter despite three containerboard mills being down for annual maintenance.
Containerboard Pricing Progress
Domestic containerboard and corrugated products prices and mix were $0.75 per share above the third quarter of 2025 and $1.11 per share above the second quarter of 2026. The company realized substantially all of the first net $50 increase and about half of the second $50 increase, with almost all of the remainder of the second increase expected in the fourth quarter. Realization of the $70 increase will be split between the fourth quarter and first quarter, skewed more toward the first quarter.
Solid Demand Outside Agriculture
Demand was solid throughout the quarter across the remainder of the customer base despite lower agriculture end-market volume. Total shipments were up around 11% year over year and per day, while legacy business shipments were down 0.5%, which management said was about in line with expectations after considering lower agricultural shipments.
Strong Bookings and Tight Market Conditions
Bookings were up a little over 5% in September and were doing very well in October. Management described the containerboard market as very tight and said its own system indicated that the market was further tightening with the seasonal pickup expected in the fourth quarter.
Paper Segment Pricing and Performance Above Expectations
Paper segment sales were $163 million versus $161 million in the third quarter of 2025. Although EBITDA was $34 million versus $40 million and the margin was 20.6% versus 24.9%, management said sales volume, price realization, and cost performance were above expectations. Prices and mix were up 2.8% from the second quarter of 2026 and 3.8% from the third quarter of 2025.
Positive Cash Flow Generation
Cash provided by operations was $472 million. After $247 million of capital expenditures, free cash flow was $225 million. The company also paid $134 million of dividends during the quarter.
Capital Investment and Capacity Expansion
The company forecast full-year 2026 capital expenditures of $865 million to $890 million. Management said it continues to invest in Jackson, DeRidder, Riverville, Counce, and box plants across the United States. The Jackson winder started up at the end of September and is running as planned, while the Counce No. 2 machine improvement work is expected to provide further productivity, quality, and cost benefits.
Long-Term Production Capacity Opportunity
Management expects the 2026 production run rate to be approximately 5.757 million tons and said PCA is on track to become a 6 million-ton system as current projects are completed. The company said Jackson could become a million-ton-per-year mill over the next year and a half.
Successful Box Plant Startup
The new Newark box plant in Ohio had an exceptionally good startup and allowed the company to announce the closure of Middletown earlier than it otherwise would have. Further equipment installations and upgrades are continuing at box plants across the United States.
Energy Projects Progressing
PCA is in installation mode on the gas turbine project at Jackson, is breaking ground at DeRidder, and is progressing through permitting for the Riverville installation. Management said the energy projects are expected to provide benefits more in the 2028 period, with the Riverville project potentially coming online in late 2028.
Fourth-Quarter Demand and Pricing Outlook
Management expects solid corrugated products demand with seasonal improvement in the fourth quarter. Shipments per day are expected to be at or around the prior-year fourth-quarter level, with two fewer shipping days than in the third quarter, while total corrugated shipments are expected to be higher than in the third quarter. Containerboard and corrugated products prices are expected to improve as earlier price increases continue to be implemented.
PKG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed