Packaging Corp Reports Mixed Q4 Results, Projects Lower Q1 EPS

Packaging Corporation of America reported a fourth-quarter profit of $221.1 million, or $2.45 per share, which was below analysts' expectations of $2.53 due to impacts from facility closures and slower demand in its paper segment. Despite an 11% increase in revenue to $2.15 billion, the company's guidance for the first quarter of 2025 projected earnings of $2.21 per share, falling short of the anticipated $2.28. CEO Mark Kowlzan noted strong demand for packaging products but acknowledged expected declines in paper segment volume due to seasonal factors and rising costs. The company remains optimistic about setting new records in its corrugated products segment despite challenges posed by inflation and maintenance outages. Overall, while sales volumes increased, the company is navigating through higher operating costs across various segments. As a result, shares fell 4.2% in extended trading following the announcement.