Exhibit 99.1 PACKAGING CORPORATION OF AMERICA REPORTS THIRD QUARTER 2026 RESULTS
Exhibit 99.1 PACKAGING CORPORATION OF AMERICA REPORTS THIRD QUARTER 2026 RESULTS Lake Forest, IL, October 21, 2026 – Packaging Corporation of America (NYSE: PKG) today reported third quarter 2026 net income of $262 million, or $2.93 per share, and net income of $272 million, or $3.04 per share, excluding special items. Third quarter net sales were $2.6 billion in 2026 and $2.3 billion in 2025.
Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended September 30, 2026 2025 Change Reported $ 2.93 $ 2.51 $ 0.42 Diluted EPS Special Items 0.11 0.22 (0.11 ) Expense (1) Diluted EPS excluding $ 3.04 $ 2.73 $ 0.31 Special Items (2) (1) For descriptions and amounts of our special items, see the schedules with this release. (2) Diluted EPS excluding Special Items is a non-GAAP financial measure. For information regarding our use of non-GAAP financial measures and descriptions and amounts of our special items, see the schedules with this release.
Reported earnings in the third quarter of 2026 include special items primarily for facility closure costs, acquisition and integration-related costs, the impact of a fire at a corrugated products facility, and restructuring charges relating to the Wallula, WA containerboard mill. Reported earnings in the third quarter of 2025 included special items for costs and charges related to the Greif containerboard business acquisition and closures of corrugated products facilities. Excluding special items, the $.31 per share increase in third quarter 2026 earnings compared to the third quarter of 2025 resulted from $.24 higher earnings from the acquired Greif operations and $.07 higher earnings in the legacy business. The acquired Greif operations generated earnings of $.13 in the third quarter of 2026 compared to a loss of ($.11) in the third quarter of 2025. The higher earnings in the legacy business were driven by favorable price and mix in the Packaging segment $.79, favorable production and sales volume in the Packaging segment, including the benefit of a higher volume of containerboard supplied by the legacy mills to the acquired Greif operations $.12, favorable price and mix in the Paper segment $.05 and a lower share count $.02. These items were partially offset by higher labor and operating expense ($.28), higher freight expense ($.26), higher corporate and other expense ($.13), higher fiber costs ($.12), higher depreciation and amortization expense ($.06), higher maintenance outage expense in the Paper segment ($.04), lower volume in the Paper segment ($.01), and higher interest expense, excluding Greif acquisition indebtedness ($.01). Excluding the impact of special items, earnings were $.13 above third quarter guidance of $2.91 per share primarily due to favorable price and mix in the Packaging segment and favorable earnings from the acquired Greif operations, partially offset by higher labor and operating costs and unfavorable corrugated products sales volume.
Financial information by segment is summarized below and in the schedules with this release.
(dollars in millions) Three Months Ended Segment operating September 30, income (loss) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Packaging $ 397.8 $ 327.5 Paper 29.0 35.6 Corporate and Other (41.5 ) (38.6 ) $ 385.3 $ 324.5 Segment operating income (loss) excluding special items (1) Packaging $ 407.7 $ 347.9 Paper 29.0 35.6 Corporate and Other (38.9 ) (32.7 ) $ 397.8 $ 350.8 EBITDA excluding special items (1) Packaging $ 577.7 $ 491.8 Paper 33.6 40.1 Corporate and Other (34.1 ) (28.5 ) $ 577.2 $ 503.4 (1) Segment operating income (loss) excluding special items and EBITDA excluding special items are non-GAAP financial measures. We provide information regarding our use of non-GAAP financial measures and reconciliations of historical non-GAAP financial measures presented in this press release to the most comparable measure reported in accordance with GAAP in the schedules to this press release.
Total corrugated products shipments were up 10.6% per day and in total compared to the third quarter of 2025. In the legacy packaging business, corrugated products shipments were down 0.5% per day and in total compared to the third quarter of 2025, with the same number of shipping days in each period. Containerboard production was 1,489,000 tons, and containerboard inventory was up 34,000 tons compared to the second quarter of 2026 and down 29,000 tons compared to the third quarter of 2025. In the Paper segment, sales volume was down 2.5% from the third quarter of 2025. Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “We executed very well across all aspects of our operations, resulting in very strong earnings performance for the quarter despite continued cost headwinds from freight, recycled fiber and chemicals and some weakness in agricultural end markets in our corrugated business. Our mills ran at full capacity during the quarter, and we are meaningfully realizing production benefits from projects at our Jackson mill as well as improved operating performance at the acquired Greif mills. We managed to build sufficient inventory to put us in position to efficiently supply our corrugated operations in the fourth quarter and help us continue to mitigate escalating freight costs. Our white paper operations turned in another excellent quarter, with higher than expected sales volumes, strong price realization and safe and successful completion of the maintenance outage at the International Falls mill.” Mr. Kowlzan added, “Looking ahead as we move from the third quarter into the fourth quarter, we expect solid corrugated products demand with some seasonal improvement. Shipments per day are expected to be at or around last year’s fourth quarter level with two fewer shipping days than the third quarter and total shipments are expected to be higher than the third quarter. Prices for containerboard and corrugated products are expected to improve as we continue to implement earlier price increases, but corrugated products mix will be seasonally weaker with higher e-commerce volumes. Containerboard production will be lower with maintenance outages at three of our mills, and mill maintenance outage expenses, including the impact on production volume from fourth quarter outages, will be significantly higher in the fourth quarter. We expect seasonally lower volume and slightly higher prices in the Paper segment. We expect freight costs to increase with diesel fuel prices increasing above third quarter levels. We also expect costs for recycled fiber to continue to increase as well as higher wood fiber costs due to winter yields and mill mix. Costs for chemicals and energy will increase due to higher prices and higher seasonal energy usage. Considering these items, we expect fourth quarter earnings of $2.81 per share, excluding special items.” We present our earnings expectation for the upcoming quarter excluding special items as special items are difficult to predict and quantify and may reflect the effect of future events. We currently expect to incur acquisition and integration related costs and costs related to the closure of corrugated products facilities during the fourth quarter; however, additional special items may arise due to fourth quarter events.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates ten mills and 90 corrugated products plants and related facilities.
Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about our future earnings and financial condition, expected benefits from acquisitions and restructuring activities, our industry and our business strategy. Statements that contain words such as “will”, “should”, “anticipate”, “believe”, “expect”, “intend”, “estimate”, “hope” or similar expressions, are forward-looking statements. These forward-looking statements are based on the current expectations of PCA. Because forward-looking statements involve inherent risks and uncertainties, the plans, actions and actual results of PCA could differ materially. Among the factors that could cause plans, actions and results to differ materially from PCA’s current expectations include the following: the impact of general economic conditions; conditions in the paper and packaging industries, including competition, product demand and product pricing; fluctuations in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; the possibility of unplanned outages or interruptions at our principal facilities; and legislative or regulatory requirements, particularly concerning environmental matters, as well as those identified under Item 1A. Risk Factors in PCA’s Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and available at the SEC’s website at “www.sec.gov”. CONTACT: Barbara Sessions Packaging Corporation of America INVESTOR RELATIONS: (877) 454-2509 PCA’s Website: www.packagingcorp.com Conference Call Information :
Packaging Corporation of America’s 3rd Quarter 2026 Earnings Conference Call WHAT: Conference ID: Packaging Corporation of America WHEN: Thursday, October 22, 2026 at 9:00am Eastern Time ────────────────────────────────────────────────────────────────────────────── PRE-REGISTRATION: https://dpregister.com/sreg/10205357/102fc34e0c7 OR CALL-IN NUMBER: -833) 816-1102 (U.S.); (866) 605-3852 (Canada) or (412) 317-0684 (International Dial in by 8:45am Eastern Time WEBCAST INFO: www.packagingcorp.com; REBROADCAST DATES: October 22, 2026 through November 5, 2026 REBROADCAST NUMBERS: -855) 669-9658 (U.S. and Canada); (412) 317-0088 (International Passcode: 8981933
Packaging Corporation of America Consolidated Earnings Results Unaudited (dollars in millions, except per-share data)
(1) The three and nine months ended September 30, 2026 include the following: a. $6.2 million and $23.1 million, respectively, of charges consisting of closure costs related to corrugated products facilities and the write-off of expenditures related to sustainability and renewable energy projects. The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate. b. $3.0 million and $9.8 million, respectively, of charges for acquisition and integration costs related to recent acquisitions. The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate. c. $3.0 million of charges related to fire damage at a corrugated products facility. The costs were recorded in “Other expense, net.” d. $0.3 million and $60.0 million, respectively, of charges related to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, Washington containerboard mill. The costs were recorded in “Cost of sales” and “Other expense, net”, as appropriate. 1 The three and nine months ended September 30, 2025 include the following:
$1.3 million of charges and $17.5 million of income, respectively, related to the closure of certain corrugated products facilities. For the three months ended September 30, 2025, the charges were partially offset by a gain on an asset disposal related to a closed corrugated products facility. For the nine months ended September 30, 2025, the charges were completely offset by gains from the sales of closed corrugated products facilities during the second quarter of 2025. These items were recorded in “Cost of sales” and “Other expense, net”, as appropriate.
$25.0 million and $26.6 million, respectively, of charges for acquisition and integration costs related to the announced Greif, Inc. acquisition, which were recorded in “Cost of sales” and “Other expense, net”, as appropriate. 2 Packaging Corporation of America Segment Information Unaudited (dollars in millions)
____________ (1) Income (loss) from operations excluding special items, segment operating income (loss) excluding special items, earnings before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion (EBITDA), segment EBITDA, EBITDA excluding special items, and segment EBITDA excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our segments and our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. The tables included in "Reconciliation of Non- GAAP Financial Measures" on the following pages reconcile the non-GAAP measures with the most directly comparable GAAP measures. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. 3 Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions)
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. 4 Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) Net Income Excluding Special Items and EPS Excluding Special Items (1)
____________ (1) Net income excluding special items and earnings per share excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and their performance. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. (2) Pre- tax special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded and this rate is adjusted for each subsequent quarter to be consistent with the estimated annual effective tax rate, in accordance with ASC 270, Interim Reporting , and ASC 740-270, Income Taxes – Intra Period Tax Allocation . For all periods presented, income taxes on pre-tax special items represent the current amount of tax. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1. 5 Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) EBITDA and EBITDA Excluding Special Items (1) EBITDA represents income before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items:
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. 6 Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) The following table reconciles segment operating income (loss) to segment EBITDA and segment EBITDA excluding special items:
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP financial measures. 7
Full text with the tables
Exhibit 99.1 PACKAGING CORPORATION OF AMERICA REPORTS THIRD QUARTER 2026 RESULTS
Lake Forest, IL, October 21, 2026 – Packaging Corporation of America (NYSE: PKG)
today reported third quarter 2026 net income of $262 million, or $2.93 per
share, and net income of $272 million, or $3.04 per share, excluding special
items. Third quarter net sales were $2.6 billion in 2026 and $2.3 billion in
2025.
Diluted
earnings per
share
attributable
to Packaging
Corporation of
America
shareholders
Three Months
Ended
September 30,
2026 2025 Change
Reported $ 2.93 $ 2.51 $ 0.42
Diluted EPS
Special Items 0.11 0.22 (0.11 )
Expense (1)
Diluted EPS
excluding $ 3.04 $ 2.73 $ 0.31
Special Items
(2)
(1) For
descriptions
and amounts of
our
special items,
see the
schedules with
this release.
(2) Diluted EPS
excluding
Special Items
is a non-GAAP
financial
measure. For
information
regarding our
use of
non-GAAP
financial
measures and
descriptions
and amounts of
our special
items, see the
schedules with
this
release.
Reported earnings in the third quarter of 2026 include special items primarily
for facility closure costs, acquisition and integration-related costs, the
impact of a fire at a corrugated products facility, and restructuring charges
relating to the Wallula, WA containerboard mill. Reported earnings in the third
quarter of 2025 included special items for costs and charges related to the
Greif containerboard business acquisition and closures of corrugated products
facilities. Excluding special items, the $.31 per share increase in third
quarter 2026 earnings compared to the third quarter of 2025 resulted from $.24
higher earnings from the acquired Greif operations and $.07 higher earnings in
the legacy business. The acquired Greif operations generated earnings of $.13 in
the third quarter of 2026 compared to a loss of ($.11) in the third quarter of
2025. The higher earnings in the legacy business were driven by favorable price
and mix in the Packaging segment $.79, favorable production and sales volume in
the Packaging segment, including the benefit of a higher volume of
containerboard supplied by the legacy mills to the acquired Greif operations
$.12, favorable price and mix in the Paper segment $.05 and a lower share count
$.02. These items were partially offset by higher labor and operating expense
($.28), higher freight expense ($.26), higher corporate and other expense
($.13), higher fiber costs ($.12), higher depreciation and amortization expense
($.06), higher maintenance outage expense in the Paper segment ($.04), lower
volume in the Paper segment ($.01), and higher interest expense, excluding Greif
acquisition indebtedness ($.01). Excluding the impact of special items, earnings
were $.13 above third quarter guidance of $2.91 per share primarily due to
favorable price and mix in the Packaging segment and favorable earnings from the
acquired Greif operations, partially offset by higher labor and operating costs
and unfavorable corrugated products sales volume.
Financial information by segment is summarized below and in the schedules with
this release.
(dollars in millions)
Three Months Ended
Segment operating September 30,
income (loss) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Packaging $ 397.8 $ 327.5
Paper 29.0 35.6
Corporate and Other (41.5 ) (38.6 )
$ 385.3 $ 324.5
Segment operating
income (loss)
excluding special items
(1)
Packaging $ 407.7 $ 347.9
Paper 29.0 35.6
Corporate and Other (38.9 ) (32.7 )
$ 397.8 $ 350.8
EBITDA excluding
special items (1)
Packaging $ 577.7 $ 491.8
Paper 33.6 40.1
Corporate and Other (34.1 ) (28.5 )
$ 577.2 $ 503.4
(1) Segment operating
income (loss)
excluding special items
and EBITDA
excluding special items
are non-GAAP
financial measures. We
provide
information regarding
our use of
non-GAAP financial
measures and
reconciliations of
historical non-GAAP
financial measures
presented in this
press release to the
most comparable
measure reported in
accordance with GAAP
in the schedules to
this press release.
Total corrugated products shipments were up 10.6% per day and in total compared
to the third quarter of 2025. In the legacy packaging business, corrugated
products shipments were down 0.5% per day and in total compared to the third
quarter of 2025, with the same number of shipping days in each period.
Containerboard production was 1,489,000 tons, and containerboard inventory was
up 34,000 tons compared to the second quarter of 2026 and down 29,000 tons
compared to the third quarter of 2025. In the Paper segment, sales volume was
down 2.5% from the third quarter of 2025. Commenting on reported results, Mark
W. Kowlzan, Chairman and CEO, said, “We executed very well across all aspects of
our operations, resulting in very strong earnings performance for the quarter
despite continued cost headwinds from freight, recycled fiber and chemicals and
some weakness in agricultural end markets in our corrugated business. Our mills
ran at full capacity during the quarter, and we are meaningfully realizing
production benefits from projects at our Jackson mill as well as improved
operating performance at the acquired Greif mills. We managed to build
sufficient inventory to put us in position to efficiently supply our corrugated
operations in the fourth quarter and help us continue to mitigate escalating
freight costs. Our white paper operations turned in another excellent quarter,
with higher than expected sales volumes, strong price realization and safe and
successful completion of the maintenance outage at the International Falls
mill.” Mr. Kowlzan added, “Looking ahead as we move from the third quarter into
the fourth quarter, we expect solid corrugated products demand with some
seasonal improvement. Shipments per day are expected to be at or around last
year’s fourth quarter level with two fewer shipping days than the third quarter
and total shipments are expected to be higher than the third quarter. Prices for
containerboard and corrugated products are expected to improve as we continue to
implement earlier price increases, but corrugated products mix will be
seasonally weaker with higher e-commerce volumes. Containerboard production will
be lower with maintenance outages at three of our mills, and mill maintenance
outage expenses, including the impact on production volume from fourth quarter
outages, will be significantly higher in the fourth quarter. We expect
seasonally lower volume and slightly higher prices in the Paper segment. We
expect freight costs to increase with diesel fuel prices increasing above third
quarter levels. We also expect costs for recycled fiber to continue to increase
as well as higher wood fiber costs due to winter yields and mill mix. Costs for
chemicals and energy will increase due to higher prices and higher seasonal
energy usage. Considering these items, we expect fourth quarter earnings of
$2.81 per share, excluding special items.”
We present our earnings expectation for the upcoming quarter excluding special
items as special items are difficult to predict and quantify and may reflect the
effect of future events. We currently expect to incur acquisition and
integration related costs and costs related to the closure of corrugated
products facilities during the fourth quarter; however, additional special items
may arise due to fourth quarter events.
PCA is the third largest producer of containerboard products and a leading
producer of uncoated freesheet paper in North America. PCA operates ten mills
and 90 corrugated products plants and related facilities.
Some of the statements in this press release are forward-looking statements.
Forward-looking statements include statements about our future earnings and
financial condition, expected benefits from acquisitions and restructuring
activities, our industry and our business strategy. Statements that contain
words such as “will”, “should”, “anticipate”, “believe”, “expect”, “intend”,
“estimate”, “hope” or similar expressions, are forward-looking statements. These
forward-looking statements are based on the current expectations of PCA. Because
forward-looking statements involve inherent risks and uncertainties, the plans,
actions and actual results of PCA could differ materially. Among the factors
that could cause plans, actions and results to differ materially from PCA’s
current expectations include the following: the impact of general economic
conditions; conditions in the paper and packaging industries, including
competition, product demand and product pricing; fluctuations in wood fiber and
recycled fiber costs; fluctuations in purchased energy costs; the possibility of
unplanned outages or interruptions at our principal facilities; and legislative
or regulatory requirements, particularly concerning environmental matters, as
well as those identified under Item 1A. Risk Factors in PCA’s Annual Report on
Form 10-K for the year ended December 31, 2025, and in subsequent quarterly
reports on Form 10-Q, filed with the Securities and Exchange Commission and
available at the SEC’s website at “www.sec.gov”.
CONTACT: Barbara Sessions Packaging Corporation of America INVESTOR RELATIONS:
(877) 454-2509 PCA’s Website: www.packagingcorp.com Conference Call Information
:
Packaging Corporation of America’s 3rd Quarter 2026
Earnings Conference Call
WHAT: Conference ID: Packaging Corporation of America
WHEN: Thursday, October 22, 2026 at 9:00am Eastern Time
──────────────────────────────────────────────────────────────────────────────
PRE-REGISTRATION: https://dpregister.com/sreg/10205357/102fc34e0c7
OR
CALL-IN NUMBER: -833) 816-1102 (U.S.); (866) 605-3852 (Canada) or
(412) 317-0684 (International
Dial in by 8:45am Eastern Time
WEBCAST INFO: www.packagingcorp.com;
REBROADCAST DATES: October 22, 2026 through November 5, 2026
REBROADCAST NUMBERS: -855) 669-9658 (U.S. and Canada); (412) 317-0088
(International
Passcode: 8981933
Packaging Corporation of America Consolidated Earnings Results Unaudited
(dollars in millions, except per-share data)
Thr… Nine
Mon… Mon…
End… Sep… End… Se…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 2,6… $ 2,… $ 7,… $ 6,…
sa…
Co…
of (1,… ) -1 (1… ) -2 (5… ) -1 (5… ) -2
sa…
Gr… 603… 50… 1,… 1,…
pr…
Se…
ge…
and (18… ) (1… ) (5… ) (4… )
ad…
ex…
Ot…
ex… (35… ) -1 (2… ) -2 (9… ) -1 (3… ) -2
net
In…
fr… 385… 32… 92… 93…
op…
No…
pe… 1.2 — 3.5 —
in…
In…
ex… (32… ) (1… ) (9… ) (4… )
net
In…
be… 354… 30… 83… 89…
ta…
Pr…
for (91… ) (7… ) (2… ) (2… )
in…
ta…
Net $ 262… $ 22… $ 62… $ 67…
in…
Ea…
per
sh…
Ba… $ 2.94 $ 2.… $ 7.… $ 7.…
Di… $ 2.93 $ 2.… $ 6.… $ 7.…
Computation of
diluted earnings
per
share under the
two class method:
──────────────────────────────────────────────────────────────────────────────
Net income $ 262.3 $ 226.9 $ 625.3 $ 672.3
Less: Distributed
and undistributed
income available (1.5 ) (1.5 ) (3.7 ) (4.5 )
to participating
securities
Net income
attributable to $ 260.8 $ 225.4 $ 621.6 $ 667.8
PCA
shareholders
Diluted weighted
average shares 89.0 89.7 89.1 89.7
outstanding
Diluted earnings $ 2.93 $ 2.51 $ 6.98 $ 7.45
per share
Supplemental financial
information:
──────────────────────────────────────────────────────────────────────────────
Capital spending $ 247.3 $ 192.1 $ 617.9 $ 509.9
Cash, cash equivalents, and
marketable $ 761.8 $ 806.4 $ 761.8 $ 806.4
debt securities
(1) The three and nine months ended September 30, 2026 include the following: a.
$6.2 million and $23.1 million, respectively, of charges consisting of closure
costs related to corrugated products facilities and the write-off of
expenditures related to sustainability and renewable energy projects. The costs
were recorded in “Cost of sales” and “Other expense, net”, as appropriate. b.
$3.0 million and $9.8 million, respectively, of charges for acquisition and
integration costs related to recent acquisitions. The costs were recorded in
“Cost of sales” and “Other expense, net”, as appropriate. c. $3.0 million of
charges related to fire damage at a corrugated products facility. The costs were
recorded in “Other expense, net.” d. $0.3 million and $60.0 million,
respectively, of charges related to the announced discontinuation of the No. 2
machine and kraft pulping facilities at the Wallula, Washington containerboard
mill. The costs were recorded in “Cost of sales” and “Other expense, net”, as
appropriate.
1
The three and nine months ended September 30, 2025 include the following:
$1.3 million of charges and $17.5 million of income, respectively, related to
the closure of certain corrugated products facilities. For the three months
ended September 30, 2025, the charges were partially offset by a gain on an
asset disposal related to a closed corrugated products facility. For the nine
months ended September 30, 2025, the charges were completely offset by gains
from the sales of closed corrugated products facilities during the second
quarter of 2025. These items were recorded in “Cost of sales” and “Other
expense, net”, as appropriate.
$25.0 million and $26.6 million, respectively, of charges for acquisition and
integration costs related to the announced Greif, Inc. acquisition, which were
recorded in “Cost of sales” and “Other expense, net”, as appropriate.
2
Packaging Corporation of America Segment Information Unaudited (dollars in
millions)
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
Seg… 30, 30,
sal… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Pac… $ 2,41… $ 2,12… $ 6,91… $ 6,10…
Pap… 163.2 161.2 480.4 461.2
Cor…
and 24.5 24.1 65.0 60.1
Oth…
$ 2,60… $ 2,31… $ 7,45… $ 6,62…
Seg…
ope…
inc…
(lo…
Pac… $ 397.8 $ 327.5 $ 971.2 $ 952.0
Pap… 29.0 35.6 96.2 96.9
Cor…
and (41.5 ) (38.6 ) (139… ) (110… )
Oth…
Inc…
from 385.3 324.5 927.7 938.5
ope…
Non…
pen… 1.2 — 3.5 —
inc…
Int…
exp… (32.3 ) (19.3 ) (98.3 ) (45.2 )
net
Inc…
bef… $ 354.2 $ 305.2 $ 832.9 $ 893.3
tax…
Seg…
ope…
inc…
(lo…
exc…
spe…
ite…
(1)
Pac… $ 407.7 $ 347.9 $ 1,05… $ 953.6
Pap… 29.0 35.6 96.2 96.9
Cor…
and (38.9 ) (32.7 ) (124… ) (102… )
Oth…
$ 397.8 $ 350.8 $ 1,02… $ 947.6
EBI…
exc…
spe…
ite…
(1)
Pac… $ 577.7 $ 491.8 $ 1,54… $ 1,35…
Pap… 33.6 40.1 110.4 110.7
Cor…
and (34.1 ) (28.5 ) (110… ) (89.4 )
Oth…
$ 577.2 $ 503.4 $ 1,54… $ 1,37…
____________ (1) Income (loss) from operations excluding special items, segment
operating income (loss) excluding special items, earnings before non-operating
pension income, interest, income taxes, and depreciation, amortization, and
depletion (EBITDA), segment EBITDA, EBITDA excluding special items, and segment
EBITDA excluding special items are non-GAAP financial measures. Management
excludes special items as it believes these items are not necessarily reflective
of the ongoing results of operations of our business. We present these measures
because they provide a means to evaluate the performance of our segments and our
company on an ongoing basis using the same measures that are used by our
management, because these measures assist in providing a meaningful comparison
between periods presented and because these measures are frequently used by
investors and other interested parties in the evaluation of companies and the
performance of their segments. The tables included in "Reconciliation of Non-
GAAP Financial Measures" on the following pages reconcile the non-GAAP measures
with the most directly comparable GAAP measures. Any analysis of non-GAAP
financial measures should be done only in conjunction with results presented in
accordance with GAAP. The non-GAAP measures are not intended to be substitutes
for GAAP financial measures and should not be used as such.
3
Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures
Unaudited (dollars in millions)
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
30, 30,
Pac… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Seg…
ope… $ 397.8 $ 327.5 $ 971.2 $ 952.0
inc…
Fac…
clo…
and 5.9 1.3 17.1 (17.5 )
oth…
cos…
(in…
Acq…
and 0.7 19.1 0.7 19.1
int…
cos…
Cor…
pro… 3.0 — 3.0 —
fac…
fire
Wal…
mill 0.3 — 60.0 —
res…
Seg…
ope…
inc…
exc… $ 407.7 $ 347.9 $ 1,05… $ 953.6
spe…
ite…
(1)
Pap…
Seg…
ope… $ 29.0 $ 35.6 $ 96.2 $ 96.9
inc…
Seg…
ope…
inc…
exc… $ 29.0 $ 35.6 $ 96.2 $ 96.9
spe…
ite…
(1)
Cor…
and
Oth…
Seg…
ope… $ (41.5 ) $ (38.6 ) $ (139… ) $ (110… )
loss
Acq…
and 2.3 5.9 9.1 7.5
int…
cos…
Fac…
clo…
and 0.3 — 6.0 —
oth…
cos…
Seg…
ope…
loss
exc… $ (38.9 ) $ (32.7 ) $ (124… ) $ (102… )
spe…
ite…
(1)
Inc…
from $ 385.3 $ 324.5 $ 927.7 $ 938.5
ope…
Inc…
from
ope…
exc… $ 397.8 $ 350.8 $ 1,02… $ 947.6
spe…
ite…
(1)
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP
financial measures.
4
Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures
Unaudited (dollars in millions) Net Income Excluding Special Items and EPS
Excluding Special Items (1)
…
…
…
…
…
… …
… …
… … … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … ) $ … $ … $ … $ … ) $ … $ …
… … ) … … … … ) … …
… … ) … … … … ) … …
… … ) … … — — — —
… … ) … — — — — —
… … ) … … … … ) … …
$ … $ … ) $ … $ … $ … $ … ) $ … $ …
…
…
…
…
…
… …
… … … … … … … …
… … … … … … … …
… …
$ … $ … ) $ … $ … $ … $ … ) $ … $ …
… … ) … … … ) … … ) …
… … ) … … … … ) … …
… … ) … … — — — —
… … ) … … — — — —
… … ) … … … … ) … …
$ … $ … ) $ … $ … $ … $ … ) $ … $ …
____________ (1) Net income excluding special items and earnings per share
excluding special items are non-GAAP financial measures. Management excludes
special items as it believes these items are not necessarily reflective of the
ongoing results of operations of our business. We present these measures because
they provide a means to evaluate the performance of our company on an ongoing
basis using the same measures that are used by our management, because these
measures assist in providing a meaningful comparison between periods presented
and because these measures are frequently used by investors and other interested
parties in the evaluation of companies and their performance. Any analysis of
non-GAAP financial measures should be done only in conjunction with results
presented in accordance with GAAP. The non-GAAP measures are not intended to be
substitutes for GAAP financial measures and should not be used as such. (2) Pre-
tax special items are tax-effected at a combined federal and state income tax
rate in effect for the period the special items were recorded and this rate is
adjusted for each subsequent quarter to be consistent with the estimated annual
effective tax rate, in accordance with ASC 270, Interim Reporting , and ASC
740-270, Income Taxes – Intra Period Tax Allocation . For all periods presented,
income taxes on pre-tax special items represent the current amount of tax. For
more information related to these items, see the footnotes to the Consolidated
Earnings Results on page 1.
5
Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures
Unaudited (dollars in millions) EBITDA and EBITDA Excluding Special Items (1)
EBITDA represents income before non-operating pension income, interest, income
taxes, and depreciation, amortization, and depletion. The following table
reconciles net income to EBITDA and EBITDA excluding special items:
Three Nine
Months Months
Ended Sept… Ended Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 262.3 $ 226.9 $ 625.3 $ 672.3
inc…
Non…
pen… (1.2 ) — (3.5 ) —
inc…
Int…
exp… 32.3 19.3 98.3 45.2
net
Pro…
for 91.9 78.3 207.6 221.0
inc…
tax…
Dep…
amo… 181.3 152.6 582.8 431.2
and
dep…
EBI… $ 566.6 $ 477.1 $ 1,51… $ 1,369…
(1)
Spe…
ite…
Fac…
clo…
and 5.0 1.3 16.4 (21.0 )
oth…
cos…
(in…
Acq…
and 2.3 25.0 9.1 26.6
int…
cos…
Cor…
pro… 3.0 — 3.0 —
fac…
fire
Wal…
mill 0.3 — 9.3 —
res…
EBI…
exc…
spe… $ 577.2 $ 503.4 $ 1,54… $ 1,375…
ite…
(1)
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP
financial measures.
6
Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures
Unaudited (dollars in millions) The following table reconciles segment operating
income (loss) to segment EBITDA and segment EBITDA excluding special items:
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
30, 30,
Pac… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Seg…
ope… $ 397.8 $ 327.5 $ 971.2 $ 952.0
inc…
Dep…
amo… 171.9 143.9 554.1 403.9
and
dep…
EBI… 569.7 471.4 1,52… 1,35…
(1)
Fac…
clo…
and 4.7 1.3 10.4 (21.0 )
oth…
cos…
(in…
Cor…
pro… 3.0 — 3.0 —
fac…
fire
Wal…
mill 0.3 — 9.3 —
res…
Acq…
and — 19.1 — 19.1
int…
cos…
EBI…
exc…
spe… $ 577.7 $ 491.8 $ 1,54… $ 1,35…
ite…
(1)
Pap…
Seg…
ope… $ 29.0 $ 35.6 $ 96.2 $ 96.9
inc…
Dep…
amo… 4.6 4.5 14.2 13.8
and
dep…
EBI… 33.6 40.1 110.4 110.7
(1)
EBI…
exc…
spe… $ 33.6 $ 40.1 $ 110.4 $ 110.7
ite…
(1)
Cor…
and
Oth…
Seg…
ope… $ (41.5 ) $ (38.6 ) $ (139… ) $ (110… )
loss
Dep…
amo… 4.8 4.2 14.5 13.5
and
dep…
EBI… (36.7 ) (34.4 ) (125… ) (96.9 )
(1)
Acq…
and 2.3 5.9 9.1 7.5
int…
cos…
Fac…
clo…
and 0.3 — 6.0 —
oth…
cos…
EBI…
exc…
spe… $ (34.1 ) $ (28.5 ) $ (110… ) $ (89.4 )
ite…
(1)
EBI…
exc…
spe… $ 577.2 $ 503.4 $ 1,54… $ 1,37…
ite…
(1)
____________ (1) See footnote (1) on page 3, for a discussion of non-GAAP
financial measures.
7