Packaging Corp posts higher quarterly profit on strong pricing power, operational efficiency

Published: 2026-04-22 19:05:17 ET PKG

Published on 04/22/2026 at 07:05 pm EDT - Modified on 04/22/2026 at 07:09 pm EDT

April 22 (Reuters) - Packaging Corp of America reported higher quarterly profit on Wednesday, helped by price increases in its paper and packaging segments and lower operating costs.

The packaging business has remained resilient, supported by steady demand for corrugated boxes used in food, beverage and consumer staples shipments, even as discretionary spending stays uneven.

Improved efficiency following earlier capacity additions has also helped Packaging Corp keep profitability stable despite uneven demand.

The Illinois-based company supplies paper and packaging products to customers in the food and beverage, paper products and the retail trade industries.

Sales in the packaging segment rose 11.1% to $2.19 billion.

CEO Mark Kowlzan said that demand in the segment is expected to stay strong in the second quarter, with corrugated volumes rising due to an extra shipping day and seasonal improvement.

"Prices for containerboard and corrugated products will move higher with the implementation of our previously announced price increases and improved corrugated mix," he added.

The company's first-quarter adjusted profit came in at $2.40 per share, compared with $2.31 apiece from a year earlier. Analysts on average expected $2.13, according to data compiled by LSEG.

Total revenue for the quarter ended March 31 was $2.37 billion, below analysts' expectations of $2.42 billion.

(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Vijay Kishore)