$PKG · PACKAGING CORP OF AMERICA
PCA's 10-Q for Q3 FY2026 (ended September 30, 2026) shows net sales up 12.5% to $2.602B, net income of $262.3M, and diluted EPS of $2.93 (adjusted $3.04). Gross margin was 23.2% and operating margin 14.8%. Growth was driven by the Greif acquisition ($175M volume in the quarter) and higher prices/mix, partially offset by lower legacy volume. Management guided Q4 earnings lower than Q3 excluding special items, citing higher freight, recycled fiber, wood fiber, chemical and energy costs.
- Net sales rose 12.5% to $2.602B in Q3 FY2026, up from $2.313B a year earlier.
- Net income was $262.3M, up from $226.9M; diluted EPS $2.93 vs $2.51.
- Packaging segment sales rose 13.4% to $2.414B, including $175M from acquired Greif operations.
- Nine-month net income fell to $625.3M from $672.3M, with interest expense up $53.1M.
- Dividend raised to $1.50 per share declared, up from $1.25 a year ago.
Shares fell 4.48% to $247.57 in the regular session, and are down 1.11% since filing, reflecting the Q4 guidance cut outweighing the Q3 beat.
A solid Q3 beat is overshadowed by explicit Q4 guidance for lower earnings, signaling margin pressure from rising input costs.
The Greif containerboard acquisition (completed September 2, 2025 for $1.8B) continues to drive PCA's top-line growth, while input-cost inflation pressures margins across the containerboard sector.
Rising input costs (diesel freight, recycled fiber, wood fiber, chemicals, energy) are expected to compress Q4 earnings. Wallula mill restructuring added $60.0M of expenses in the nine months, part of $188.0M total pre-tax charges.