PKG · Packaging Corporation of America

0001193125-26-213675

Summary

Q1 2026 delivered strong revenue growth of 10.6% to $2.4B, fueled by the Greif acquisition, but profitability declined as higher operating costs, freight, and logistics expenses more than offset pricing and volume gains.

Key takeaways

Revenue rose 10.6% to $2.4B from $2.1B in Q1 2025, reflecting acquisition-driven expansion.
Operating income fell 10.3% to $251.3M from $280.3M, pressured by elevated costs partially offset by higher prices and mix.
Net income decreased 16.1% to $170.9M from $203.8M, impacted by higher interest expense from Greif financing.
Diluted EPS declined 15.5% to $1.91 from $2.26 amid profitability pressures.
Operating cash flow was $329.3M, down slightly from $339.1M, supporting $164.7M in capital expenditures up from $148.1M.

Full analysis

Operating income totaled $251.3 million, down 10.3% from $280.3 million, yielding an operating margin of 10.6%. These pressures were compounded by higher depreciation, labor, and corporate expenses. Net income fell to $170.9 million from $203.8 million, a 16.1% drop, with diluted EPS at $1.91 versus $2.26. The increase in interest expense, net, was primarily due to higher interest costs from financing the Greif acquisition and lower interest income from reduced cash balances and rates.