Packaging Corp of America beats Q1 profit estimates as demand improves

Packaging of America

22/04/2026 22:06

Overview

US packaging producer's Q1 sales rose yr/yr but missed analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company cites favorable prices, lower fiber costs, and improved mix as drivers of earnings

Outlook

Packaging Corp expects Q2 EPS of $2.33, excluding special items

Company sees strong Packaging segment demand and higher corrugated volume in Q2

Company expects higher prices for containerboard, corrugated, and paper products in Q2

Result Drivers

FAVORABLE PRICES AND MIX - Co said higher prices and improved mix in legacy packaging and paper segments contributed to earnings growth

LOWER FIBER AND OPERATING COSTS - Lower fiber cost and reduced labor and operating expenses in the legacy packaging business supported results

HIGHER FREIGHT COSTS AND GREIF LOSS - Higher freight costs and a loss from the acquired Greif operations offset some gains, with Greif loss attributed to lower volume and higher costs from a winter storm

Company press release: ID:nBw7GSXkra

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$2.37 bln
$2.42 bln (8 Analysts)
Q1 Adjusted EPS
Beat
$2.40
$2.13 (8 Analysts)
Q1 EPS
$1.91


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "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 $225.00, about 9.6% above its April 22 closing price of $205.24

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

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