PKG · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

PACKAGING CORP OF AMERICA · 2026-08-07 · Importance 54 · Surprise 40 · From source text

Second-quarter income from operations decreased 12.7% to $291 million from $334 million, while six-month operating income declined 11.6% to $543 million from $614 million. Packaging second-quarter operating income fell $33 million to $313 million because of $15 million of special-item expense, higher freight, unfavorable price and mix, and higher fixed, maintenance, depreciation, fiber, labor, and operating costs; excluding special items, Packaging operating income increased $6 million. Paper operating income increased $8 million to $34 million in the second quarter and $6 million to $67 million for the first six months, driven mainly by lower maintenance-outage expense, higher volume, and improved prices and mix. Consolidated EBITDA excluding special items increased 13.5% to $486 million in the second quarter and 11.4% to $971 million in the first six months, supported by the Greif acquisition and higher volumes.

Key facts

• Consolidated EBITDA was $944.0 million for the six months ended June 30, 2026 compared to $892.6 million for the six months ended June 30, 2025; consolidated EBITDA excluding special items was $971.2 million in 2026 and $871.8 million in 2025. source
• Packaging EBITDA was $955.7 million for the six months ended June 30, 2026 compared to $884.5 million for the six months ended June 30, 2025; Packaging EBITDA excluding special items was $970.4 million in 2026 and $862.1 million in 2025. source
• Packaging segment EBITDA excluding special items was $489 million in the second quarter of 2026 compared to $453 million in the second quarter of 2025. source
• Consolidated EBITDA was $467.5 million in Q2 2026 and $474.4 million in Q2 2025; consolidated EBITDA excluding special items was $485.7 million in Q2 2026 and $450.8 million in Q2 2025. source
• Packaging EBITDA was $479.5 million in Q2 2026 and $478.1 million in Q2 2025; Packaging EBITDA excluding special items was $488.6 million in Q2 2026 and $452.9 million in Q2 2025. source
• Net income included $18 million of expense for special items in the second quarter of 2026, primarily related to facility closure costs, Wallula mill restructuring activities, and acquisition and integration-related costs, compared to $17 million of income for special items in 2025. source
• The decrease in earnings was driven by lower earnings in the legacy business of ($0.27) per share, partially offset by $0.14 per share of earnings from the acquired Greif containerboard business. source
• Other income (expense), net totaled $(42.0) million for the three months ended June 30, 2026 compared to $3.9 million for the three months ended June 30, 2025. source

Impact estimates