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Did Packaging Corporation Of America beat or miss consensus estimates last quarter?

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- **Record Cash Flow**: Q3 2025 free cash flow of $277M, highest on record. 
- **Greif Synergies**: $60M annual run rate target, with $20M+ impact in 2026. 
- **Energy Independence**: 3 new gas turbines to make mills electricity-independent by 2027. 
- **Packaging Growth**: Packaging EBITDA margin expands to 23.1% vs 22.2% YoY. 
- **Inventory Reduction**: Greif corrugated inventory to decline ~15,000 tons over next 2 quarters.

**【CEO Opening Remarks】**
- Reported Q3 2025 net income of $227 million ($2.51 per share), with adjusted EPS of $2.73, up 3% YoY. 
- Acquired Greif Containerboard business on September 2, contributing 1 month of results ($0.11 EPS impact). 
- Excluding special items, EPS increased $0.19 YoY due to higher prices/mix (+$0.73 Packaging, +$0.16 fiber costs) and lower maintenance outage expenses. 
- Q3 2025 Packaging EBITDA margin improved to 23.1% vs 22.2% YoY, driven by cost control and operational efficiency.

**【President (Thomas Hassfurther) - Packaging Segment】
- Corrugated shipments down 1.1% YoY (legacy business -2.7% per day), but acquired Greif plants added 3.7% per day volume. 
- Packaging EBITDA margin expanded to 23.1% vs 22.2% YoY, with strong price/mix (+$0.72 per share). 
- Greif corrugated plants performed well in September, with inventory reduction underway. 
- Beef and building materials end markets remain challenging, offset by strength in other segments.

**【CFO (Kent Pflederer) Financial Highlights】
- Record Q3 cash flow: $469M operating cash, $277M free cash flow. 
- Revised 2025 CapEx to $800M (from $840-870M), including $870M of acquired PP&E. 
- Annualized D&A for Greif assets: $130M vs prior $870M run rate. 
- 2026 maintenance outage costs: $0.45 legacy PCA, $0.02 Greif. 
- 2025 EPS guidance: $2.40Q4 (excl. special items), reflecting lower volume/mix and higher costs.

**【Q&A Highlights】
- **Greif Integration**: 100+ PCA personnel embedded in acquired mills, with immediate efficiency gains (Massillon machine uptime 97.2% in September). 
- **Synergy Target**: $60M annual run rate by 2027, with $20M+ impact in 2026. 
- **Energy Projects**: 3 new gas turbine installations to make mills electricity-independent by 2027, with 1.5-year payback. 
- **Inventory Management**: Greif corrugated inventory to be reduced by ~15,000 tons over next 2 quarters. 
- **CapEx Outlook**: ~$800M annualized, with focus on converting lines and energy efficiency. 
- **End Market Trends**: Beef (herd at 70-year low) and housing starts remain headwinds, but other segments stable.

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