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PKG Earnings Dip Despite Sales Growth
24 Jul
Summary
- Packaging Corp's Q2 2026 adjusted earnings declined year-over-year.
- Sales increased to $2.5 billion, with EBITDA up to $486 million.
- Acquired Greif business contributed positively to earnings.
Packaging Corporation of America (PKG) experienced a year-over-year decrease in adjusted earnings for the second quarter of 2026. This occurred even as net sales climbed to $2.5 billion, up from $2.2 billion in the prior year's second quarter. Total company EBITDA, excluding special items, also saw an increase, rising to $486 million from $451 million.
Despite these revenue and EBITDA gains, net income per share declined to $2.35 from $2.48 in the same period last year. Chairman and CEO Mark Kowlzan attributed this to special items, primarily facility closure costs, restructuring charges, and acquisition expenses related to the Greif containerboard business. These factors reduced earnings by $0.20 per share.
The acquired Greif business positively contributed $0.14 per share to earnings, partially offsetting a $0.27 per share decline in the legacy business. The legacy segment faced headwinds from increased freight, corporate expenses, higher labor and operating costs, and rising fiber costs. However, these were partially mitigated by higher production volumes, improved paper pricing, and lower maintenance expenses.
