Short answer
Packaging Corporation of America (PKG) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $9.0B (+7.2% year over year) and net income of $774M.
- Top risk flagged: ODP (formerly Office Depot) represents 58% of Paper segment sales and 4% of consolidated sales; agreement expires December 31, 2026
FY2025 key financial metrics · XBRL
- Revenue
- $9.0B
- +7.2% YoY
- Net income
- $774M
- −3.9% YoY
- Operating margin
- 12.3%
- −0.8 pp YoY
- Gross margin
- 21.0%
- −0.2 pp YoY
- EPS (diluted)
- $8.58
- −3.9% YoY
- ROE
- 16.8%
- −1.4 pp YoY
- Operating cash flow
- $1.6B
- +30.8% YoY
Source: XBRL data from the Packaging Corporation of America (PKG) FY2025 10-K on SEC EDGAR. USD.
Packaging Corporation of America FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Third-largest North American containerboard producer; integrated mill-to-box model serving ~12,000 customers across packaging and UFS paper segments
- Acquired Greif's containerboard business Sept 2, 2025 for $1.8B cash; added 2 mills (~800,000 tons capacity) and 8 plants, lifting total capacity to ~5.8M tons (358 BSF)
- Containerboard production rose to 5,154K tons in 2025 vs 5,046K tons in 2024; corrugated shipments up to 71.1 BSF from 66.9 BSF
- Workforce reached ~16,800 employees post-Greif acquisition; new CFO appointed and two EVP roles restructured in February 2025
- Wallula, WA mill's No. 2 machine and kraft pulping permanently shut down Q4 2025, partially offsetting capacity added via Greif deal
Management Discussion & Analysis
- Net sales $8,989M, up $606M (+7.2% YoY); Packaging segment drove growth at $8,294M (+$603M, +7.8%), Paper declined to $615M (-$9M, -1.5%)
- Operating margin 12.3% vs 13.1% YoY (income from ops $1,107M vs $1,101M on higher sales); net income fell to $774M from $805M due to $151M special items vs $12M in 2024 and $38M higher net interest expense
- Best segment: Packaging, operating income $1,125M (+$24M), EBITDA ex-special items $1,830M vs $1,598M; worst: Paper, operating income flat at $130M, EBITDA ex-special items declined to $148M from $154M
- Operating cash flow $1,558M (+$367M YoY); capex $829M vs $670M; dividends $450M; buybacks $153M (0.8M shares); Greif acquisition consumed $1,804M, financed via $1,494M new debt including $500M 5.20% senior notes due 2035
- Q1 2026 outlook: higher legacy corrugated volume YoY but sequentially lower; domestic prices higher with March price increase benefit; cost inflation across most inputs except fiber; Wallula reconfiguration savings begin late Q1; earnings expected below Q4 2025
Risk Factors
- ODP (formerly Office Depot) represents 58% of Paper segment sales and 4% of consolidated sales; agreement expires December 31, 2026
- $4.0B debt outstanding with $1.0B at floating rates; $573M undrawn revolving credit facility as of December 31, 2025
- Greif containerboard acquisition completed September 2, 2025; reliant on Seller transition services for accounting, IT, and purchasing during integration
- EPA enacted more stringent particulate matter emissions standards, complicating air permit compliance and increasing operating/capital costs
- Recycled fiber exposure rising post-Greif acquisition; $10/ton price increase equals ~$20M additional annual expense
Generated from the filing text; verify against the original. How to read a 10-K
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