Packaging Corp of America's Q3 sales edge past estimates, driven by improved pricing

Packaging of America

22/10/2025 22:21

Overview

Packaging Corp Q3 2025 net sales of $2.3 bln just beat analyst expectations

Adjusted EPS for Q3 2025 missed analyst estimates, impacted by Greif acquisition costs

Company's earnings growth driven by improved pricing and mix in Packaging segment

Outlook

Company expects Q4 earnings of $2.40 per share, excluding special items

Company anticipates higher export containerboard sales in Q4 compared to Q3

Company foresees higher maintenance expenses impacting Q4 results

Result Drivers

GREIF ACQUISITION IMPACT - Acquisition of Greif containerboard business resulted in higher costs and lower initial earnings, affecting overall results

PACKAGING SEGMENT PRICING - Improved pricing and mix in the Packaging segment drove earnings growth

LOWER FIBER COSTS - Reduction in fiber costs contributed positively to earnings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
* Slight Beat
$2.31 bln
$2.30 bln (7 Analysts)
Q3 Adjusted EPS
Miss
$2.73
$2.81 (7 Analysts)
Q3 EPS
$2.51


*Applies to a deviation of less than 1%; not applicable for per-share numbers

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the paper packaging peer group is "buy"

Wall Street's median 12-month price target for Packaging Corp of America is $222.00, about 6.2% above its October 21 closing price of $208.13

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBwX8XBYa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)