Packaging Corporation of America (PCA) reported Q1 2026 net income of $171 million. Q1 2026 net sales were $2.4 billion, compared to $2.1 billion in the same period last year. Reported earnings included special items primarily for restructuring of the Wallula, Washington containerboard mill, acquisition and integration-related costs, and closure costs related to corrugated products facilities.
In the legacy packaging business, total corrugated products shipments increased by 1.2% and shipments per day increased by 2.8% compared to the Q1 2025, with one fewer shipping day in 2026. Including the acquired Greif business, total corrugated products shipments increased by 19.9% and shipments per day increased by 21.8%.
Containerboard production was 1,398,000 tons. Containerboard inventory decreased by 39,000 tons compared to the Q4 2025 but increased by 48,000 tons compared to the Q1 2025, primarily due to the acquisition. In the Paper segment, sales volume increased by 2.7% from the Q1 2025.
The company's containerboard mills performed well in terms of production and efficiency, which helped mitigate the effects of higher freight, recycled fiber and other input costs as well as weather challenges.
Looking ahead to the Q2 2026, PCA expects demand in the Packaging segment to remain strong with corrugated volume increasing due to an additional shipping day and seasonal improvement. Prices for containerboard and corrugated products are expected to move higher with the implementation of previously announced price increases and improved corrugated mix. Packaging mill production is expected to be slightly higher with production improvements offsetting maintenance outages, though outage expenses will be higher. In the Paper segment, the company expects flat volume and higher prices as it continues to operate at full capacity and implement paper price increases. Costs for freight, fiber and chemicals are expected to increase, while energy costs are expected to be seasonally lower. Considering these items, PCA expects Q2 earnings of $2.33 per share, excluding special items.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates ten mills and 91 corrugated products plants and related facilities.
