Packaging (NYSE: PKG) Corp. of America lifts sales while Q4 EPS outlook falls

What happened

Packaging Corporation of America (NYSE: PKG) reported third-quarter 2026 net income of $262 million, or $2.93 per share, on October 21, 2026. Net sales were $2.6 billion, up from $2.3 billion in the third quarter of 2025.

Excluding special items, net income was $272 million, or $3.04 per share. That was $0.13 above the company's third-quarter guidance of $2.91 per share. The company said reported earnings included special items tied mainly to facility closure costs, acquisition and integration costs, a fire at a corrugated products facility and Wallula mill restructuring charges.

Key numbers

Metric	Latest	Change	Source
Net sales	$2.6 billion	from $2.3 billion, + $288.3 million	Third-quarter 2026 earnings press release
Net income	$262.3 million	from $226.9 million, + $35.4 million	Third-quarter 2026 earnings press release
Diluted EPS	$2.93 per share	from $2.51 per share, + $0.42 per share	Third-quarter 2026 earnings press release
Diluted EPS excluding special items	$3.04 per share	from $2.73 per share, + $0.31 per share	Third-quarter 2026 earnings press release
Packaging segment operating income	$397.8 million	from $327.5 million, + $70.3 million	Third-quarter 2026 earnings press release
Fourth-quarter EPS outlook	$2.81 per share		Third-quarter 2026 earnings press release

Read more: Packaging Corporation of America (PKG) stock analysis and investment case

Why it matters

OptimistFi's case is that PKG works if North American containerboard scale keeps corrugated packaging pricing rational and turns cyclical demand into cash. This quarter helps that argument because Packaging segment operating income rose to $397.8 million from $327.5 million.

The company said the gain came from better price and mix, plus higher production and sales volume. That included more containerboard supplied by legacy mills to acquired Greif operations. Packaging segment EBITDA excluding special items rose to $577.7 million from $491.8 million, and total corrugated products shipments rose 10.6% per day and in total.

Containerboard production was 1,489,000 tons, and containerboard inventory rose 34,000 tons from the second quarter and fell 29,000 tons from a year earlier. Paper segment operating income fell to $29.0 million from $35.6 million, and Paper sales volume declined 2.5% from a year earlier.

Fourth-quarter earnings are expected to be $2.81 per share excluding special items. That is $0.23 below third-quarter EPS excluding special items and a 7.6% decline. The filing says fourth-quarter costs should rise for freight, recycled fiber, wood fiber, chemicals and energy, and mill maintenance outage expenses will be significantly higher.

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What's next

Packaging Corporation of America holds its third-quarter 2026 earnings conference call on Thursday, October 22, 2026 at 9:00am Eastern Time. That is the next scheduled update on packaging pricing, shipments and costs for the fourth quarter. A steadier read on demand and costs would strengthen the case. Weaker fourth-quarter costs or volume would leave it mixed.

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