Packaging Corporation of America (PKG)

PKG's stock has been influenced by several key events over the past six months. In Q4 2024, PKG reported net income of $221 million, or $2.45 per share, with net sales of $2.1 billion, while in Q1 2025, the company achieved a new first-quarter revenue record with net sales of $2.1 billion and net income of $204 million, or $2.26 per share. Analyst ratings have also shifted, with Seaport Global upgrading PKG to Buy, Wells Fargo downgrading it to Equal-Weight, UBS initiating coverage with a Neutral recommendation, and Jefferies downgrading it to Hold. Packaging Corporation of America announced an agreement to acquire Greif's containerboard business for $1.8 billion in cash, including two containerboard mills and eight sheet feeder and corrugated plants.

Demand for Packaging Corporation of America's products exhibits some seasonality, particularly within its Paper segment, which typically experiences seasonal slowness in the fourth quarter. Operating costs, including energy expenses, are also subject to seasonal increases. The Packaging segment generally experiences strong demand throughout the year, with corrugated shipments often strengthening. External factors such as hurricane damage to agricultural crops can impact total shipments for the corrugated business. The company also manages its containerboard inventory levels, sometimes aiming to build inventory ahead of busy periods or scheduled mill outages.

Packaging Corporation of America (PKG) specializes in containerboard, corrugated packaging, and uncoated freesheet paper, operating in the Industrials sector, specifically in the Containers/Packaging and Paper Packaging industries. The company's core business revolves around its Packaging and Paper segments, with an annual production capacity of 5.7 million tons of containerboard and 348,000 tons of corrugated products as of 2023.

Packaging Corporation of America's operations are primarily in the United States, with eight mills and 86 corrugated products plants and related facilities. The company has an extensive network that includes containerboard mills, white paper mills, converting facilities, creative design centers, fulfillment centers, packaging and supply centers, training and resource centers, and a technical center. In 2009, PKG expanded its global reach by opening a design center and project-management facility in Hong Kong, operating as Packaging Corporation of Asia Limited.

Packaging Corporation of America maintains a strong reputation in the packaging sector, bolstered by its commitment to sustainability and operational excellence. The company focuses on reducing its environmental footprint through initiatives such as using recycled materials, minimizing waste, and conserving energy. PKG's sustainability efforts are recognized by its "Low Risk" ESG rating from Sustainalytics and its high DitchCarbon score. The company aims for a 60% reduction in total emissions across all scopes by 2040 and net-zero carbon emissions by 2050.

Packaging Corporation of America has significant institutional ownership, with 89.58% held by institutional shareholders. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., and State Street Corp. Individual insider ownership stands at 83.10%, with notable individual and insider owners including Madison Dearborn Partners LLC, Thomas S. Souleles, PCA Holdings LLC, and Samuel M. Mencoff.