Packaging Corp Q4 revenue, adjusted EPS miss estimates on lower production and sales volume in legacy packaging business

Packaging of America

27/01/2026 22:32

Overview

Containerboard producer's Q4 revenue and adjusted EPS missed analyst expectations

Company faced lower production and sales volume in legacy packaging business

Company repurchased 760,000 shares during the quarter

Outlook

Company expects first-quarter earnings of $2.20 per share excluding special items

Packaging Corp anticipates higher domestic containerboard prices in Q1

Company forecasts slightly lower Paper segment volume and prices in Q1

Result Drivers

LOWER VOLUME - Co attributed lower Q4 earnings to decreased production and sales volume in legacy packaging and paper segments

GREIF INTEGRATION - Losses from acquired Greif business due to outages at Massillon mill

PRICING AND MIX - Higher prices and improved product mix in packaging and paper segments partially offset negative impacts

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$2.36 bln
$2.44 bln (8 Analysts)
Q4 Adjusted EPS
Miss
$2.32
$2.41 (7 Analysts)
Q4 EPS
$1.13


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 $233.00, about 4.2% above its January 27 closing price of $223.62

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw44txSya

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.)