PKG Q2 Earnings: Price Gains Offset Volume Declines Amid Greif Acquisition Talks

Packaging Corporation of America (PKG) reported Q2 CY2025 revenue of $2.17 billion, a 4.6% YoY increase, but missed analyst estimates. Non-GAAP profit of $2.48 per share beat estimates by 1.5%. Sales volumes fell 6.7% YoY, but higher pricing and operational efficiency helped offset the decline. The company expects a gradual recovery in corrugated shipments and a boost from the pending Greif acquisition.

Packaging Corporation of America (PKG), a leading provider of corrugated packaging solutions, recently reported its financial results for the second quarter of 2025. The company's revenue increased by 4.6% year-on-year (YoY) to $2.17 billion, falling short of Wall Street's expectations. Despite the revenue miss, PKG's non-GAAP profit per share of $2.48 beat analysts' consensus estimates by 1.5% [1].

The company's operational performance was highlighted by Mark W. Kowlzan, Chairman and CEO, who expressed satisfaction with the quarter's earnings and cash flows. The operational margin improved to 15.4%, up from 13.3% in the same quarter last year, indicating efficient expense management [1].

Sales volumes, however, declined by 6.7% YoY, marking a significant drop from the 15.2% growth seen in the same quarter last year. The company attributed this decline to cautious ordering patterns from customers and the ongoing implementation of price increases. Nevertheless, the higher pricing in both the Packaging and Paper segments helped offset the volume decline [1].

Looking ahead, PKG expects a gradual recovery in corrugated shipments and anticipates a boost from the pending acquisition of Greif, a leading provider of industrial packaging solutions. The acquisition is expected to enhance the company's market position and drive future growth [1].

Key Takeaways:
- Revenue increased by 4.6% YoY to $2.17 billion, missing analyst estimates.
- Non-GAAP profit per share of $2.48 beat analysts' consensus estimates by 1.5%.
- Sales volumes fell by 6.7% YoY, but higher pricing and operational efficiency offset the decline.
- The company expects a gradual recovery in corrugated shipments and a boost from the pending Greif acquisition.

References:
[1] https://www.indexbox.io/blog/packaging-corporation-of-america-q2-2025-financial-results-overview/
[2] https://stockstory.org/us/stocks/nyse/pkg/news/earnings-call/pkg-q2-deep-dive-price-gains-offset-volume-weakness-amid-pending-greif-acquisition