Q2 2026 Packaging Corp of America Earnings Call Transcript
Key Points
- Packaging Corp of America (PKG) reported second quarter net income of $192 million, or $2.15 per share, with net sales increasing to $2.5 billion from $2.2 billion in the previous year.
- The company's EBITDA, excluding special items, increased to $486 million from $451 million in the previous year, indicating strong operational performance.
- The acquisition of the Greif containerboard business contributed $0.14 per share to earnings, exceeding expectations due to strong volumes and improved operating performance.
- The company successfully started up a new state-of-the-art Ohio plant ahead of schedule, enhancing capabilities and operational efficiency.
- Packaging Corp of America (PKG) managed costs effectively in controllable areas, particularly in the box plant system, to offset elevated freight and recycled fiber costs.
- Excluding special items, earnings decreased by $0.13 per share compared to the second quarter of 2025, primarily due to higher freight costs and other expenses.
- The legacy business experienced a $0.27 decrease in earnings, driven by higher freight costs, corporate expenses, and lower price and mix in the Packaging business.
- Operational performance was impacted by production interruptions due to utility power outages across the mill system.
- Export sales volume of containerboard was lower than both the first quarter of 2026 and the second quarter of 2025, as the company decided to lower export sales to build inventory.
- The company faced higher costs for freight, recycled fiber, and employee benefits, which were higher than forecasted.
Thank you for joining Packaging Corporation of America's second quarter 2026 earnings results conference call. Your host today will be Mark Kowlzan, Chairman and Chief Executive Officer of PCA. Upon conclusion of his narrative, there will be a Q&A session.
I would now like to turn the floor over to Mr. Kowlzan. Please proceed when you are ready.
Thanks, Jamie, and good morning, everyone, and thank you all for participating in Packaging Corporation of Americas' second quarter 2026 earnings release conference call. Again, I'm Mark Kowlzan, Chairman and CEO of Packaging Corporation of America, and with me on the call today is Tom Hassfurther, President; and Kent Pflederer, our Chief Financial Officer.
I'll begin the call as usual with an overview of our second quarter results, and then I'll be turning the call over to Tom and Ken who'll provide further details. I'll then wrap things up, and then we'll be glad to take questions.
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