Packaging Corporation of America Q1 FY2026 earnings call

Mark Kowlzan began by overviewing first quarter results, noting net income, net sales, and EBITDA changes. Thomas Hassfurther discussed corrugated operations, including shipment growth and price/mix. Kent Pflederer talked about cash flow, CapEx, and tax rates. Management also mentioned outage schedules and cost considerations.

Packaging business: Excluding special items, first quarter 2026 EBITDA was $482 million with sales of $2.2 billion, margin 22%. Paper segment: Excluding special items, first quarter 2026 EBITDA was $38 million with sales of $160 million, margin 23.6%.

Expect second quarter earnings of $2.33 per share excluding special items. Forecasted CapEx and DD&A for the year. Anticipated improvement in packaging segment demand and paper business performance with price increases.

Weather impacts on operations, integration risks with the Greif acquisition, and fluctuations in raw material costs such as freight and fiber.

Q: Talk about bookings and billings into April.

A: Legacy bookings up 4.5%, no pre-buy.

Q: Why was Greif a loss?

A: Impacted by January storm, mix issues.

Q: What to offset costs?

A: Optimize mill system and operate efficiently.

Q: Greif synergy upside?

A: On track for $30 million run rate by year end.

Q: D&A guidance?

A: $700 million guidance with $0.03 increase 1Q to 2Q.

Q: Demand in April?

A: Strong, food and beverage performing well.

Q: Price hike timing?

A: Benefit starts in May, majority in Q3.

Q: Gas turbine projects?

A: Board approved for Jackson, Riverville; scoping third for DeRidder.

Q: Industry demand?

A: No forward discussion on industry demand, but legacy running well.