- Packaging Corporation of America (PKG, Financial) reported Q1 2025 net income of $204 million, or $2.26 per share, improving by $0.63 from Q1 2024.
- Net sales reached $2.1 billion, setting a new first-quarter revenue record, up from $2.0 billion in the previous year.
- Q2 2025 earnings are projected at $2.41 per share, driven by improved domestic prices and anticipated maintenance outages.
Packaging Corporation of America (PKG) has announced its first quarter 2025 financial results, highlighting a net income of $204 million, equivalent to $2.26 per share. Excluding special items, net income was slightly higher at $208 million, or $2.31 per share. This marks a $0.59 increase compared to the $1.72 per share earned in Q1 2024, showcasing the company's financial improvement over the year.
The company's net sales for Q1 2025 increased to $2.1 billion, up from $2.0 billion in the previous first quarter. This sets a new record for first-quarter revenues, attributed to higher prices, an improved mix in the packaging segment, and an increase in total corrugated products shipments by 2.5%.
Mark W. Kowlzan, Chairman and CEO of PKG, emphasized the successful execution of price increases in the Packaging segment, despite some mid-quarter demand uncertainties. Containerboard production for the quarter reached 1,250,000 tons, while containerboard inventory rose by 75,000 tons compared to Q1 2024.
Looking forward, PKG anticipates Q2 2025 earnings of $2.41 per share. The forecast considers continued domestic price improvements and planned maintenance outages, which are expected to impact operating costs. While box shipments are expected to improve, the company is preparing for potential cost increases due to tariff uncertainties and increased rail contract rates at several mills.
