AI Takeaway
PKG delivered 7.2% revenue growth to $8.99B in FY2025, driven by strong operating cash flow of $1.56B, though net income declined 3.9% to $774.1M amid higher costs and a significant $1.50B increase in long-term debt tied to major capital investments.
Revenue
$8.99B
++7.23% YoY
EPS (Basic)
$8.61
-4.01% YoY
Gross Margin
21.0%
-0.25% YoY
Operating Income
$1.11B
++0.52% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
PKG grew total revenue by 7.2% year-over-year from $8.38B to $8.99B in FY2025, reflecting improved demand conditions and pricing in its packaging operations. This top-line expansion outpaced the prior year's base and signals continued market share or volume gains.
Source: Source: 10-K Income Statement, Financial Data
Operating cash flow rose sharply from $1.19B to $1.56B, a 30.8% increase, reflecting improved working capital management and strong underlying earnings quality. This robust cash generation supports the company's ability to fund capital expenditures and service its expanded debt load.
Source: Source: 10-K Cash Flow Statement, Financial Data
Investing cash outflows ballooned to -$2.57B from -$278M in the prior year, an 826% increase, indicating a major capital expenditure cycle or acquisition activity. To fund this, long-term debt rose 60.2% from $2.49B to $3.99B, materially increasing the company's financial leverage.
Source: Source: 10-K Balance Sheet & Cash Flow Statement, Financial Data
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Upgrade to unlockLong-term debt surged 60.2% to $3.99B in FY2025, significantly increasing PKG's financial leverage. Higher interest expense is already compressing net income despite operating income growth of 0.5%, and any deterioration in operating cash flows could strain debt service capacity.
Source: Source: 10-K Balance Sheet & Cash Flow Statement, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.32 versus the $2.43 analyst consensus — a -4.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.99B | $8.38B | +7.23% |
Cost of Revenue | $7.1B | $6.6B | +7.57% |
Gross Profit | $1.89B | $1.78B | +5.97% |
Operating Income | $1.11B | $1.1B | +0.52% |
Net Income | $774.1M | $805.1M | -3.85% |
EPS (Basic) | $8.61 | $8.97 | -4.01% |
EPS (Diluted) | $8.58 | $8.93 | -3.92% |
SG&A Expense | $634.2M | $610.3M | +3.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $10.73B | $8.83B | +21.42% |
Current Assets | $3.21B | $3.23B | -0.60% |
Current Liabilities | $1.02B | $1B | +1.35% |
Stockholders' Equity | $4.6B | $4.4B | +4.41% |
Cash & Equivalents | $529M | $685M | -22.77% |
Long-Term Debt | $3.99B | $2.49B | +60.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.56B | $1.19B | +30.75% |
Investing Cash Flow | $-2.57B | $-277.8M | -826.17% |
Financing Cash Flow | $859.4M | $-876.4M | +198.06% |
Share Buybacks | $153M | $0 | — |
D&A | $652.8M | $525.6M | +24.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 21.0% | 21.3% | -0.25% |
Operating Margin | 12.3% | 13.1% | -0.82% |
Net Margin | 8.6% | — | — |
ROE | 16.8% | — | — |
ROA | 7.2% | — | — |
Current Ratio | $3.166 | — | — |
Other companies in Paper & Plastic Packaging Products & Materials
PKG's revenue grew 7.2% year-over-year to $8.99B in FY2025, up from $8.38B in the prior year. This growth reflects improved demand and/or pricing conditions in the packaging industry.
PKG's net income declined 3.9% to $774.1M in FY2025 even as revenue rose 7.2%, primarily because costs grew faster than revenue and higher interest expense from a 60.2% surge in long-term debt (to $3.99B) weighed on the bottom line. EPS (diluted) fell from $8.93 to $8.58 as a result.
PKG's financial health is solid at the liquidity level, with a current ratio of 3.17 and operating cash flow of $1.56B, but leverage has increased materially with long-term debt rising to $3.99B. The company is in a heavy capital investment cycle, with investing outflows of -$2.57B, which should be monitored for return on investment.
PKG's long-term debt jumped 60.2% from $2.49B to $3.99B in FY2025, coinciding with a dramatic increase in investing cash outflows to -$2.57B from just -$278M in the prior year. This suggests the company undertook a major capital expenditure program or acquisition, funded largely through new debt issuance.
The key takeaways from PKG's FY2025 results are: revenue grew a healthy 7.2% to $8.99B, operating cash flow surged 30.8% to $1.56B, but net income fell 3.9% to $774.1M due to cost pressures and higher interest expense. The company made a transformative capital investment, growing total assets 21.4% to $10.73B while significantly increasing leverage.