Packaging Corporation of America (PKG) Q3 2026 Earnings Call: Pricing, Greif Synergies and Q4 Guidance
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Packaging Corporation of America Q3 2026 Earnings Call Summary
Key Takeaways
- Packaging Corporation of America (NYSE: PKG) reported Q3 2026 net sales of $2.6 billion, compared with $2.3 billion in Q3 2025. Adjusted EPS increased by $0.31 year over year to $3.04.
- Adjusted EBITDA rose to $577 million from $503 million. Packaging segment adjusted EBITDA reached $578 million, with margin expanding to 23.9% from 23.1%.
- The acquired Greif business contributed $0.13 per share, versus an $0.11 loss in the first month of ownership a year earlier. Acquisition synergies are now running at an annualized $40 million to $50 million, above the prior $30 million target.
- PCA has substantially realized the first net $50 price increase and about half of the second $50 increase. Management expects most of the separate $70 increase to be realized in Q1 2027.
- Management guided Q4 2026 adjusted EPS to $2.81. Further pricing realization and solid corrugated demand are expected to be offset by heavier mill outages and higher freight, fiber, chemical and energy costs.
- Q3 operating cash flow was $472 million and free cash flow was $225 million after $247 million of capital expenditures.
Key Financial Data
| Metric | Q3 2026 | Q3 2025 | Commentary |
|---|---|---|---|
| Net sales | $2.6 billion | $2.3 billion | Growth included the acquired Greif operations and stronger pricing |
| Net income | $262 million | — | Reported EPS was $2.93 |
| Adjusted net income | $272 million | $247 million | Excludes special items |
| Adjusted EPS | $3.04 | $2.73 | Increased by $0.31 per share |
| Adjusted EBITDA | $577 million | $503 million | Company total |
| Packaging adjusted EBITDA | $578 million | $492 million | Margin increased to 23.9% from 23.1% |
| Paper adjusted EBITDA | $34 million | $40 million | Margin declined to 20.6% from 24.9%, reflecting outage timing |
| Operating cash flow | $472 million | — | Q3 2026 |
| Capital expenditures | $247 million | — | Q3 2026 |
| Free cash flow | $225 million | — | After capital expenditures |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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