Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Packaging Corp of America’s fiscal second quarter was shaped by the integration of the recently acquired Greif containerboard business, which boosted sales volumes but also introduced headwinds from higher freight costs and acquisition-related expenses. Management attributed the earnings decline to unfavorable price and mix in Packaging, alongside a sharp rise in interest expense due to acquisition financing and lower cash balances. While reported net income fell 20%, adjusted earnings per share excluding special items was $2.35, as the acquired operations contributed $0.14 per share. The company announced two containerboard price increases that are expected to improve mix in the second half, though costs for freight and recycled fiber remain elevated.
Revenue
$2.49B
+14.67% YoY
EPS (Diluted)
$2.15
-19.48% YoY
Gross Margin
20.6%
-1.7 pts YoY
Operating Income
$291.2M
-12.74% YoY
Source: SEC XBRL
Packaging Corp of America (PKG) reported Q2 FY2026 revenue of $2.49B, up 14.7% year over year. Operating margin was 11.7%, down 3.7 points from 15.4% a year earlier. PKG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.35 | 2.34 | Beat +0.5% |
| Mar 2026 | 2.40 | 2.15 | Beat +11.4% |
| Dec 2025 | 2.32 | 2.43 | Miss -4.5% |
| Sep 2025 | 2.73 | 2.84 | Miss -3.8% |
Adjusted (non-GAAP) EPS of $2.35 versus the $2.34 analyst consensus — a +0.5% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.15.
3 reported segments · SEC XBRL
Segment revenue totals $2.49B, which is the $2.49B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as operating income, the measure PKG itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
On September 2, 2025, PCA acquired the containerboard business of Greif, Inc. for $1.8 billion in cash, adding two mills with approximately 800,000 tons of capacity and eight sheet feeder and corrugated plants. The operating results are included in the Packaging segment from the acquisition date.
Source: 10-Q Item 2 MD&A
Packaging segment EBITDA excluding special items increased $35.7 million to $488.6 million in Q2 FY2026, driven by contribution from the acquired business and higher sales and production volume, partially offset by higher freight and logistics expenses.
Source: 10-Q Item 2 MD&A
Freight rates increased significantly during the second quarter primarily as a result of higher diesel fuel prices, and recycled fiber prices have increased throughout the first half of the year, pressuring margins.
Source: 10-Q Item 2 MD&A
PCA notified customers of two containerboard and corrugated product price increases during the first half of the year. The majority of the first increase is expected to be realized in Q3, while the second increase will be split between Q3 and Q4, with reported containerboard prices rising a net $50 per ton in June 2026.
Source: 10-Q Item 2 MD&A
Management expects third quarter earnings to be higher than the second quarter of 2026, excluding special items, driven by continued Packaging segment price and mix improvement, higher mill production, and lower maintenance outage expenses, although freight and fiber costs are expected to remain elevated.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Long-term debt increased 60.3% to $3.97 billion following the Greif acquisition, raising interest expense by $20.2 million in Q2 FY2026 and reducing financial flexibility. PCA must manage higher debt service obligations and refinancing needs, which could become challenging if earnings decline or credit markets tighten.
Source: 10-Q Balance Sheet (XBRL)
The integration of Greif’s containerboard business, including two mills and eight plants, poses operational and cultural challenges. Acquisition and integration-related costs have been recorded, and any difficulties in achieving expected synergies or operational efficiencies could adversely affect profitability.
Source: 10-Q Item 2 MD&A
Significant increases in freight, diesel fuel, and recycled fiber prices have pressured margins. If these input costs continue to rise or remain elevated, further margin compression could occur, especially if PCA is unable to fully pass them through to customers.
Source: 10-Q Item 2 MD&A
Corrugated product demand is closely tied to industrial production and consumer goods shipments, which are cyclical. North American industry-wide corrugated shipments rose only 0.9% in Q2 FY2026, and any economic downturn could reduce demand and pricing for PCA’s products.
Source: 10-Q Item 2 MD&A
The containerboard and UFS paper markets are competitive, and PCA’s ability to implement announced price increases depends on industry supply-demand dynamics. Export markets are particularly vulnerable, with containerboard export shipments down 27.3% in Q2 FY2026, which could limit pricing power.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.49 $B | 2.17 $B | +14.67% |
Cost of Revenue $B | 1.98 $B | 1.69 $B | +17.12% |
Gross Profit $M | 512.50 $M | 483.00 $M | +6.11% |
Operating Income $M | 291.20 $M | 333.70 $M | -12.74% |
Net Income $M | 192.10 $M | 241.50 $M | -20.46% |
EPS (Basic) $ | 2.16 $ | 2.68 $ | -19.40% |
EPS (Diluted) $ | 2.15 $ | 2.67 $ | -19.48% |
SG&A Expense $M | 179.30 $M | 153.20 $M | +17.04% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
PKG (Packaging Corporation of America) reported Q1 2026 revenue of $2.37B (+10.6% YoY), but profitability declined sharply with net income falling 16.1% to $170.9M as cost pressures and higher SG&A outpaced top-line growth, while long-term debt surged 60.3% to $3.97B.
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.
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