PKG · 10-Q · 2026Q3 · Full report

Interest Expense Increase

PACKAGING CORP OF AMERICA · 2026-11-05 · Importance 63 · Surprise 64 · In source text

Net interest expense increased $53 million to $98.3 million in the first nine months of 2026 from $45.2 million in the same period of 2025. In the third quarter, interest expense increased $13 million to $32.3 million from $19.3 million. PCA attributed the increase primarily to financing for the Greif acquisition and lower interest income resulting from lower interest rates on reduced cash balances. Approximately 75% of PCA’s debt carried fixed interest rates at September 30, 2026; a one-percentage-point increase on variable-rate debt would add approximately $10 million of annual interest expense.

Key facts

• PCA’s interest rates on approximately 75% of its debt are fixed; a 1% increase in variable-debt interest rates would raise annual interest expense and reduce income before taxes by approximately $10 million. source
• PCA’s interest expense, net increased $53 million in the first nine months of 2026 versus the same period in 2025, primarily from Greif Acquisition financing and lower interest income on lower cash balances. source
• PCA’s interest expense, net increased $13 million in third-quarter 2026 versus the prior-year quarter, primarily from Greif Acquisition financing and lower interest income on lower cash balances. source

Impact estimates