PACKAGING CORP OF AMERICA is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
PKG grew Q1 2026 revenue by 10.6% YoY to $2.37B (from $2.14B), suggesting meaningful volume or pricing gains in its packaging operations. However, cost of revenue rose faster at 13.6% YoY to $1.91B, indicating that input cost inflation or mix shift pressured profitability despite the top-line improvement.
Gross margin contracted approximately 2.1 percentage points YoY to 19.1% (from 21.2%), operating margin fell 2.5 percentage points to 10.6% (from 13.1%), and net margin declined to 7.2%. The combination of higher cost of revenue and an 11.7% increase in SG&A ($180.3M vs. $161.4M) squeezed earnings at every level of the income statement.
Long-term debt jumped 60.3% YoY to $3.97B from $2.47B, while total assets expanded 20.2% to $10.78B. This substantial leverage increase, combined with a 63.2% surge in D&A to $225.2M, strongly suggests PKG completed a significant acquisition or major capital investment during or just prior to Q1 2026.
Revenue
$2.37B
++10.59% YoY
EPS (Basic)
$1.92
-15.42% YoY
Gross Margin
19.1%
-2.11% YoY
Operating Income
$251.3M
-10.35% YoY
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