Packaging Corp (PKG) Q1 2026 Earnings Transcript

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Thu, April 23, 2026 astatine 10:07 AM CDT 38 min read

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Thursday, April 23, 2026 astatine 9 a.m. ET

• Chairman and Chief Executive Officer — Mark W. Kowlzan

• President — Thomas A. Hassfurther

• Chief Financial Officer — Kent A. Pflederer

Mark W. Kowlzan: Thanks, Jamie, and bully morning, everyone. Thank you each for participating successful Packaging Corporation of America's archetypal 4th 2026 net merchandise league call. Again, I americium Mark W. Kowlzan, Chairman and Chief Executive Officer of Packaging Corporation of America. With maine connected the telephone contiguous are Thomas A. Hassfurther, President, and Kent A. Pflederer, our Chief Financial Officer. As usual, I volition statesman the telephone with an overview of the archetypal 4th results and past I volition crook the telephone implicit to Thomas A. Hassfurther and Kent A. Pflederer, who volition supply further details. I volition past wrapper things up, and we volition beryllium gladsome to instrumentality questions after.

Yesterday, we reported archetypal 4th nett income of $171 million, oregon $1.91 per share. Excluding peculiar items, archetypal 4th 2026 nett income was $215 million, oregon $2.40 per share, compared to archetypal 4th 2025 nett income of $208 million, oregon $2.31 per share. First 4th nett income were $2.4 cardinal successful 2026 and $2.1 cardinal successful 2025. Total institution EBITDA for the archetypal quarter, excluding peculiar items, was $486 cardinal successful 2026 and $421 cardinal successful 2025. First 4th nett income included peculiar items disbursal of $0.49 per share, chiefly the Wallula Mill restructuring charges, arsenic good arsenic costs relating to the acquisition and integration of the Greif containerboard concern and costs related to the closure of corrugated products facilities.

Details of the peculiar items for 2026 and 2025 were included successful the schedules that accompanied the net property release. Excluding the peculiar items, our net accrued by $0.09 per stock compared to 2025. This summation was driven chiefly by higher prices and premix successful the bequest Packaging conception $0.17, little fibre costs successful the bequest Packaging concern $0.11, little attraction outage expenses $0.09, little labour and operating costs successful the bequest Packaging concern $0.08, higher prices and premix successful the Paper conception $0.02, favorable measurement successful the Paper conception $0.01, a little taxation complaint $0.01, and little stock number $0.01.

These items were partially offset by higher freight costs $0.13, little accumulation and income measurement successful the bequest Packaging concern $0.11, higher depreciation disbursal successful the bequest Packaging concern $0.05, higher labour and operating costs successful the Paper conception $0.03, and higher firm and different expenses $0.03. Also, the acquired Greif operations, including involvement connected acquisition indebtedness, generated a nonaccomplishment of $0.06 during the archetypal quarter, chiefly arsenic a effect of little measurement and higher costs owed to the January tempest that affected the Riverville mill and the corrugated operations, arsenic good arsenic higher-than-forecast freight and recycled fibre costs and unfavorable mix.