Revenue growth reached 10.6% in 2026Q1, yet gross margins contracted to 19.1% from a 23.1% peak in 2024Q3, reflecting significant pressure from rising input costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 9.22B | 8.99B | 8.38B | 7.8B | 8.48B | 7.73B | 6.66B | 6.96B | 7.01B | 6.44B | 5.78B | 5.74B | 5.85B | 3.67B | 2.84B | 2.62B | 2.44B | 2.15B | 2.36B | 2.32B | 2.19B | 1.99B | 1.89B | 1.74B | 1.74B | 1.79B | 1.92B | 1.32B | 1.57B |
| Revenue Growth % | 7.86% | 7.23% | 7.45% | -7.97% | 9.67% | 16.1% | -4.4% | -0.72% | 8.84% | 11.52% | 0.65% | -1.89% | 59.68% | 28.88% | 8.54% | 7.58% | 13.41% | -9.02% | 1.92% | 5.9% | 9.7% | 5.48% | 8.91% | -0.02% | -3.02% | -6.86% | 45.89% | -16.15% | - |
| Cost of Goods Sold | 7.33B | 7.1B | 6.6B | 6.1B | 6.39B | 5.86B | 5.27B | 5.32B | 5.37B | 4.97B | 4.5B | 4.53B | 4.62B | 2.8B | 2.21B | 2.08B | 1.9B | 1.72B | 1.87B | 1.79B | 1.74B | 1.69B | 1.59B | 1.44B | 1.41B | 1.37B | 1.27B | 916.4M | 1.19B |
| COGS % of Revenue | - | 78.98% | 78.73% | 78.23% | 75.34% | 75.77% | 79.18% | 76.39% | 76.54% | 77.18% | 77.92% | 78.96% | 78.99% | 76.33% | 77.68% | 79.31% | 78.15% | 80.14% | 79.18% | 77.35% | 79.7% | 84.61% | 84.25% | 82.84% | 81.3% | 76.65% | 66.3% | 69.57% | 76.04% |
| Gross Profit | 1.89B | 1.89B | 1.78B | 1.7B | 2.09B | 1.87B | 1.39B | 1.64B | 1.65B | 1.47B | 1.28B | 1.21B | 1.23B | 867.5M | 634.7M | 542.02M | 532.2M | 426.58M | 491.36M | 524.65M | 443.88M | 306.81M | 297.71M | 297.87M | 324.63M | 417.94M | 647.69M | 400.9M | 376.4M |
| Gross Margin % | 20.48% | 21.02% | 21.27% | 21.77% | 24.66% | 24.23% | 20.82% | 23.61% | 23.46% | 22.82% | 22.08% | 21.04% | 21.01% | 23.67% | 22.32% | 20.69% | 21.85% | 19.86% | 20.82% | 22.65% | 20.3% | 15.39% | 15.75% | 17.16% | 18.7% | 23.35% | 33.7% | 30.43% | 23.96% |
| Gross Profit Growth % | - | 5.97% | 4.96% | -18.74% | 11.62% | 35.11% | -15.68% | -0.08% | 11.86% | 15.26% | 5.64% | -1.75% | 41.73% | 36.68% | 17.1% | 1.85% | 24.76% | -13.18% | -6.35% | 18.2% | 44.67% | 3.06% | -0.05% | -8.25% | -22.32% | -35.47% | 61.56% | 6.51% | - |
| Operating Expenses | 674.7M | 634.2M | 681.8M | 623.8M | 669.9M | 589.7M | 544.7M | 590.3M | 577.6M | 538.3M | 492.8M | 458M | 526.8M | 385.6M | 197.1M | 269.27M | 346.82M | 74.12M | 249.55M | 231.2M | 217.95M | 190.69M | 157.22M | 201.01M | 179.35M | 164.18M | 302.86M | 219.8M | 267.1M |
| OpEx % of Revenue | - | 7.06% | 8.13% | 7.99% | 7.9% | 7.63% | 8.18% | 8.48% | 8.23% | 8.35% | 8.53% | 7.98% | 9% | 10.52% | 6.93% | 10.28% | 14.24% | 3.45% | 10.57% | 9.98% | 9.97% | 9.56% | 8.32% | 11.58% | 10.33% | 9.17% | 15.76% | 16.69% | 17% |
| Selling, General & Admin | 653.1M | 634.2M | 610.3M | 580.9M | 608.6M | 562.3M | 524.1M | 557.6M | 536.4M | 519.9M | 468.5M | 451.3M | 469.5M | 326.6M | 280.8M | 258.55M | 240.59M | 228.03M | 234.29M | 225.69M | 209.42M | 194.04M | 180.82M | 173.86M | 171.29M | 164.18M | 154.64M | 107.6M | 172.1M |
| SG&A % of Revenue | - | 7.06% | 7.28% | 7.45% | 7.18% | 7.27% | 7.87% | 8.01% | 7.65% | 8.07% | 8.11% | 7.86% | 8.02% | 8.91% | 9.87% | 9.87% | 9.88% | 10.62% | 9.93% | 9.74% | 9.58% | 9.73% | 9.57% | 10.02% | 9.87% | 9.17% | 8.05% | 8.17% | 10.95% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 14.5M | 15.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | 0.19% | 0.23% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 71.5M | 42.9M | 61.3M | 12.9M | 5.1M | 32.7M | 41.2M | 18.4M | 24.3M | 6.7M | 57.3M | 59M | -83.7M | 10.72M | 106.23M | -153.9M | 15.26M | -2.09M | 1.63M | -3.36M | -29.7M | 27.15M | 8.07M | 0 | 148.22M | 112.2M | 95M |
| Operating Income | 1.21B | 1.26B | 1.1B | 1.08B | 1.42B | 1.28B | 841.6M | 1.05B | 1.07B | 932.5M | 783.3M | 750M | 702.7M | 481.9M | 437.6M | 272.75M | 185.38M | 352.45M | 241.81M | 293.45M | 225.93M | 116.13M | 140.49M | 96.86M | 145.28M | 253.76M | 344.84M | 181.1M | 109.3M |
| Operating Margin % | 13.16% | 13.97% | 13.14% | 13.78% | 16.76% | 16.6% | 12.64% | 15.13% | 15.22% | 14.47% | 13.55% | 13.06% | 12.01% | 13.15% | 15.39% | 10.41% | 7.61% | 16.41% | 10.24% | 12.67% | 10.33% | 5.82% | 7.43% | 5.58% | 8.37% | 14.18% | 17.94% | 13.75% | 6.96% |
| Operating Income Growth % | - | 13.99% | 2.44% | -24.33% | 10.71% | 52.48% | -20.13% | -1.31% | 14.5% | 19.05% | 4.44% | 6.73% | 45.82% | 10.12% | 60.44% | 47.13% | -47.4% | 45.76% | -17.6% | 29.89% | 94.55% | -17.34% | 45.05% | -33.33% | -42.75% | -26.41% | 90.41% | 65.69% | - |
| EBITDA | 1.95B | 1.91B | 1.63B | 1.59B | 1.88B | 1.7B | 1.25B | 1.44B | 1.48B | 1.32B | 1.14B | 1.11B | 1.08B | 699.8M | 613M | 435.59M | 341.68M | 503.67M | 389.58M | 441.54M | 378.34M | 274.48M | 300.08M | 255.68M | 298.69M | 400.13M | 493.05M | 293.3M | 204.3M |
| EBITDA Margin % | 21.19% | 21.23% | 19.41% | 20.41% | 22.15% | 22% | 18.8% | 20.69% | 21.08% | 20.54% | 19.75% | 19.27% | 18.53% | 19.09% | 21.55% | 16.62% | 14.03% | 23.45% | 16.5% | 19.06% | 17.3% | 13.77% | 15.88% | 14.73% | 17.21% | 22.35% | 25.65% | 22.27% | 13% |
| EBITDA Growth % | 13.49% | 17.29% | 2.14% | -15.16% | 10.39% | 35.9% | -13.16% | -2.53% | 11.69% | 16% | 3.15% | 2.05% | 54.94% | 14.16% | 40.73% | 27.48% | -32.16% | 29.29% | -11.77% | 16.71% | 37.84% | -8.53% | 17.37% | -14.4% | -25.35% | -18.85% | 68.11% | 43.56% | - |
| D&A (Non-Cash Add-back) | 740M | 652.8M | 525.6M | 517.7M | 456.8M | 417.5M | 409.9M | 387.5M | 410.9M | 391.4M | 358M | 356.5M | 381.6M | 217.9M | 175.4M | 162.84M | 156.3M | 151.22M | 147.77M | 148.09M | 152.41M | 158.35M | 159.59M | 158.82M | 153.41M | 146.37M | 148.22M | 112.2M | 95M |
| EBIT | 1.12B | 1.11B | 1.11B | 1.07B | 1.44B | 1.26B | 726.2M | 1.05B | 1.07B | 931.2M | 783.3M | 750M | 702.7M | 481.9M | 437.6M | 272.75M | 185.38M | 184.02M | 241.81M | 293.45M | 225.93M | 116.13M | 140.49M | 96.86M | 145.28M | 253.76M | 344.84M | 181.1M | 109.3M |
| Net Interest Income | -98.8M | -79.1M | -41.4M | -53.3M | -70.4M | -152.4M | -93.5M | -128.8M | -95.1M | -102.6M | -94.8M | -85.5M | -88.4M | -58.3M | -62.9M | -29.25M | -32.28M | -35.48M | -31.67M | -25.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 5.2M | 9.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 98.8M | 79.1M | 41.4M | 53.3M | 70.4M | 152.4M | 93.5M | 128.8M | 95.1M | 102.6M | 91.8M | 85.5M | 88.4M | 58.27M | 62.9M | 29.25M | 32.28M | 35.58M | 36.87M | 35.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -232.8M | -227.6M | -36.9M | -61M | -55.9M | -174.6M | -208.9M | -136.7M | -97.2M | -103.9M | -94.8M | -85.5M | -88.4M | -58.3M | -62.9M | -29.25M | -32.28M | -35.48M | -31.67M | -25.58M | -31.2M | -28.09M | -29.58M | -121.73M | -67.67M | -78.33M | -57.69M | -96.5M | 9.6M |
| Pretax Income | 980.2M | 1.03B | 1.06B | 1.01B | 1.36B | 1.11B | 632.7M | 917M | 970.5M | 828.6M | 688.5M | 664.5M | 614.3M | 423.6M | 374.7M | 243.5M | 153.1M | 316.97M | 210.14M | 267.87M | 194.72M | 88.03M | 110.92M | -24.87M | 77.61M | 175.43M | 287.15M | 84.6M | 118.9M |
| Pretax Margin % | 10.64% | 11.43% | 12.7% | 13% | 16.1% | 14.34% | 9.5% | 13.17% | 13.84% | 12.86% | 11.91% | 11.57% | 10.5% | 11.56% | 13.18% | 9.29% | 6.29% | 14.76% | 8.9% | 11.57% | 8.9% | 4.42% | 5.87% | -1.43% | 4.47% | 9.8% | 14.94% | 6.42% | 7.57% |
| Income Tax | 239.1M | 253.7M | 259.3M | 248.9M | 335M | 267.6M | 171.7M | 220.6M | 232.5M | 160M | 238.9M | 227.7M | 221.7M | -17.73M | 216.7M | 85.5M | -52.3M | 51.08M | 74.53M | 97.8M | 69.69M | 35.4M | 42.19M | -10.52M | 29.43M | 67.91M | 114.19M | 37.2M | 47.5M |
| Effective Tax Rate % | 24.39% | 24.68% | 24.36% | 24.54% | 24.55% | 24.14% | 27.14% | 24.06% | 23.96% | 19.31% | 34.7% | 34.27% | 36.09% | -4.19% | 57.83% | 35.11% | -34.16% | 16.11% | 35.47% | 36.51% | 35.79% | 40.21% | 38.03% | 42.28% | 37.92% | 38.71% | 39.77% | 43.97% | 39.95% |
| Net Income | 740.4M | 768.9M | 805.1M | 765.2M | 1.03B | 841.1M | 461M | 696.4M | 738M | 668.6M | 449.6M | 436.8M | 392.6M | 441.3M | 160.2M | 158.03M | 205.44M | 265.89M | 135.61M | 170.07M | 125.03M | 52.6M | 68.73M | -14.36M | 48.18M | 106.42M | 161.9M | 40.5M | 71.4M |
| Net Margin % | 8.03% | 8.55% | 9.6% | 9.81% | 12.15% | 10.88% | 6.92% | 10% | 10.52% | 10.37% | 7.78% | 7.61% | 6.71% | 12.04% | 5.63% | 6.03% | 8.43% | 12.38% | 5.74% | 7.34% | 5.72% | 2.64% | 3.64% | -0.83% | 2.78% | 5.95% | 8.42% | 3.07% | 4.54% |
| Net Income Growth % | -14.1% | -4.5% | 5.21% | -25.69% | 22.43% | 82.45% | -33.8% | -5.64% | 10.38% | 48.71% | 2.93% | 11.26% | -11.04% | 175.47% | 1.38% | -23.08% | -22.74% | 96.07% | -20.26% | 36.02% | 137.69% | -23.46% | 578.69% | -129.8% | -54.73% | -34.27% | 299.76% | -43.28% | - |
| Net Income (Continuing) | 741.1M | 774.1M | 805.1M | 765.2M | 1.03B | 841.1M | 461M | 696.4M | 738M | 668.6M | 449.6M | 436.8M | 392.6M | 441.3M | 160.2M | 158.03M | 205.44M | 265.89M | 135.61M | 170.07M | 125.03M | 52.6M | 68.73M | -14.36M | 48.18M | 107.52M | 172.96M | 47.4M | 71.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.31 | 8.58 | 8.93 | 8.48 | 11.02 | 8.83 | 4.85 | 7.35 | 7.86 | 7.07 | 4.75 | 4.47 | 3.99 | 4.52 | 1.68 | 1.57 | 2.00 | 2.60 | 1.31 | 1.61 | 1.20 | 0.49 | 0.64 | -0.14 | 0.45 | 0.98 | 1.33 | 0.32 | 0.76 |
| EPS Growth % | -13.93% | -3.92% | 5.31% | -23.05% | 24.8% | 82.06% | -34.01% | -6.49% | 11.17% | 48.84% | 6.26% | 12.03% | -11.73% | 169.05% | 7.01% | -21.5% | -23.08% | 98.47% | -18.63% | 34.17% | 144.9% | -23.44% | 557.14% | -131.11% | -54.08% | -26.32% | 315.63% | -57.89% | - |
| EPS (Basic) | - | 8.61 | 8.97 | 8.52 | 11.07 | 8.87 | 4.86 | 7.37 | 7.88 | 7.09 | 4.76 | 4.47 | 3.99 | 4.57 | 1.70 | 1.59 | 2.02 | 2.62 | 1.32 | 1.63 | 1.21 | 0.49 | 0.65 | -0.14 | 0.46 | 1.00 | 1.37 | 0.34 | 0.76 |
| Diluted Shares Outstanding | 89.1M | 89.6M | 89.5M | 89.5M | 92.7M | 94.5M | 94.4M | 94.1M | 93.9M | 93.7M | 93.7M | 97.72M | 98.4M | 97.55M | 97.5M | 100.4M | 102.6M | 102.36M | 103.59M | 105.46M | 104.48M | 108.1M | 107.57M | 104.63M | 107.21M | 108.8M | 104.89M | 97.5M | 94.6M |
| Basic Shares Outstanding | 88.44M | 90.04M | 89.1M | 89.1M | 92.3M | 94.1M | 94.1M | 93.8M | 93.64M | 93.51M | 93.53M | 96.6M | 97M | 96.58M | 96.4M | 99.3M | 101.7M | 101.58M | 102.75M | 104.48M | 103.6M | 107.33M | 106.36M | 104.63M | 105.05M | 106.28M | 104.57M | 92.11M | 94.6M |
| Dividend Payout Ratio | - | 58.47% | 55.74% | 58.66% | 40.81% | 45.16% | 64.99% | 42.89% | 36.33% | 35.54% | 48.06% | 45.97% | 40.09% | 24.73% | 73.56% | 48.1% | 30.08% | 28.92% | 92.22% | 61.77% | 84.02% | 184.14% | 42.62% | - | - | - | - | - | - |
Input Cost Volatility Exposure
According to the latest quarterly income statements, PKG achieved a 10.6% year-over-year revenue growth in 2026Q1, signaling a resilient top-line trajectory that appears to be successfully navigating the broader industry's post-pandemic destocking cycle through consistent demand for its core corrugated packaging and specialty paper products.
The consistent revenue expansion suggests that the company's focus on independent customers provides a buffer against the cyclicality typically seen in larger, commodity-focused packaging firms. Investors should monitor whether this growth is driven by volume recovery or if it remains heavily reliant on pricing actions that may face resistance in a softening industrial environment.
As reported in recent financial filings, PKG's gross margin contracted to 19.1% in 2026Q1 from a peak of 23.1% in 2024Q3, indicating that rising fiber and energy costs are beginning to exert downward pressure on the company's ability to maintain historical profitability levels during periods of market fluctuation.
The erosion of gross margins suggests that the company's pricing power may be lagging behind the rapid escalation of input costs, particularly in the volatile Old Corrugated Containers (OCC) market. This trend warrants further investigation into whether the company can successfully implement further price increases to protect its bottom line without sacrificing market share.
Based on the provided income statement data, operating income fell to $272.6 million in 2026Q1, representing an 11.5% operating margin, which suggests that SG&A expenses are not scaling as efficiently as they did during the higher-margin periods observed throughout the 2024 fiscal year.
The decline in operating leverage implies that fixed costs associated with mill operations are becoming more burdensome as revenue growth fails to outpace the rising cost base. Analysts should evaluate whether management's current expense discipline is sufficient to offset the impact of scheduled maintenance outages that frequently distort quarterly operating performance.
As evidenced by the significant 53.9% drop in EPS during 2025Q4, PKG's bottom-line performance appears highly sensitive to non-operating items and quarterly accounting adjustments, which complicates the assessment of the company's true underlying earnings power relative to its reported net income of $170.9 million in 2026Q1.
The fluctuation in EPS, coupled with variable stock-based compensation expenses, suggests that investors should focus on normalized earnings metrics to strip away the noise of lumpy maintenance costs. The current earnings profile may indicate that the company is in a transition phase where legacy paper assets are creating drag on the more profitable packaging segment.
While the company maintains a strong market position, the recent contraction in net margins to 7.2% in 2026Q1 suggests that the competitive moat provided by vertical integration may be insufficient to fully insulate the firm from structural declines in the communication paper market and rising logistics costs.
Short-term observers may argue that the company's reliance on domestic industrial production leaves it overly exposed to a potential slowdown in US manufacturing. If the current margin compression persists, it may indicate that the company's service-oriented strategy is reaching a saturation point where further price premiums are no longer sustainable.
Quick answers to the most common questions about buying PKG stock.
For fiscal year 2025, Packaging Corporation of America (PKG) reported total revenue of $8.99B. This represents a 472.2% increase compared to $1.57B in 1998.
Packaging Corporation of America (PKG) is profitable, generating $768.9M in net income for the fiscal year ending 2025 with a net profit margin of 8.6%.
Packaging Corporation of America (PKG) reported an operating income of $1.26B, resulting in an operating profit margin of 14.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Packaging Corporation of America (PKG) generated $1.89B in gross profit for the year, representing a gross profit margin of 21.0%. This demonstrates the company's core pricing power and production efficiency.