Packaging Corporation of America (PKG) FY2025 10-K Annual Report
Packaging Corporation of America (PKG) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Packaging Corporation of America FY2025 10-K Analysis
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
Packaging Corporation of America FY2025 Key Financial MetricsXBRL
Revenue
$9.0B
▲ +7.2% YoY
Net Income
$774M
▼ -3.9% YoY
Gross Margin
21.0%
▼ -25bp YoY
Operating Margin
12.3%
▼ -82bp YoY
Net Margin
8.6%
▼ -99bp YoY
ROE
16.8%
▼ -145bp YoY
Total Assets
$10.7B
▲ +21.4% YoY
EPS (Diluted)
$8.58
▼ -3.9% YoY
Operating Cash Flow
$1.6B
▲ +30.8% YoY
Source: XBRL data from Packaging Corporation of America FY2025 10-K filing on SEC EDGAR. All figures in USD.
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