Overview

* Packaging Corp Q3 2025 net sales of $2.3 bln just beat analyst expectations

* Adjusted EPS for Q3 2025 missed analyst estimates, impacted by Greif acquisition costs

* Company's earnings growth driven by improved pricing and mix in Packaging segment

Outlook

* Company expects Q4 earnings of $2.40 per share, excluding special items

* Company anticipates higher export containerboard sales in Q4 compared to Q3

* Company foresees higher maintenance expenses impacting Q4 results

Result Drivers

* GREIF ACQUISITION IMPACT - Acquisition of Greif containerboard business resulted in higher costs and lower initial earnings, affecting overall results

* PACKAGING SEGMENT PRICING - Improved pricing and mix in the Packaging segment drove earnings growth

* LOWER FIBER COSTS - Reduction in fiber costs contributed positively to earnings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales * Slight $2.31 $2.30

Beat bln bln (7

Analysts

)

Q3 Miss $2.73 $2.81 (7

Adjusted Analysts

EPS )

Q3 EPS $2.51

*Applies to a deviation of less than 1%; not applicable for per-share numbers

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the paper packaging peer group is "buy"

* Wall Street's median 12-month price target for Packaging Corp of America ( PKG ) is $222.00, about 6.2% above its October 21 closing price of $208.13

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)