Packaging Corp (PKG) Misses Q4 Revenue Estimates, EPS Falls Short

Packaging Corporation of America (NYSE: PKG) reported Q4 CY2025 revenue of $2.36 billion, missing analyst expectations despite a 10.1% year-over-year increase. Non-GAAP earnings of $2.32 per share fell 3.9% below consensus estimates. The stock declined 2.2% to $218.76 following the announcement. CEO Mark Kowlzan noted corrugated shipments were slightly below 2024 record levels, though demand improved through the quarter. The company repurchased 760,000 shares at an average $201 per share. Operating margin declined 7 percentage points year-over-year to 7.1%, reflecting increased operational expenses. Analysts project 13% revenue growth and 12.2% EPS growth over the next 12 months. The company's five-year sales CAGR stands at 6.2%, with recent two-year growth at 7.3%.