By Kelly Cloonan

Packaging Corp. logged lower profit in its latest quarter as higher costs offset sales growth.

The cardboard-box maker on Tuesday posted a profit of $101.8 million, or $1.13 a share, compared with $221.1 million, or $2.45 a share, a year earlier.

Adjusted earnings per share were $2.32, below estimates of $2.41 a share according to analysts polled by FactSet.

Excluding special items, the decrease in earnings was driven by a number of factors including lower production and sales volume in the company's legacy packaging business and higher operating costs and maintenance outage expense.

Revenue rose to $2.36 billion from $2.15 billion, missing analyst estimates of $2.44 billion.

In the company's packaging unit, total shipments and shipments per day fell 1.7%. Including the company's acquired containerboard business from Greif, shipments per day were up 17%. In its paper unit, sales volume rose 1% year-over-year.

Results for the quarter missed Packaging Corp.'s own guidance due to unfavorable trends in December, including for volume and mix in its legacy corrugated business and for production and sales volume in its acquired business from Greif, the company said.

However, the company's order book strengthened as the fourth quarter progressed, and demand has improved significantly so far in January, Chief Executive Mark Kowlzan said.

For the first quarter, the company expects higher per-day volume in its legacy corrugated products plants compared to last year and continued strength in its acquired corrugated operations due to improved demand, though its packaging segment has been seasonally slower, Kowlzan said.

As a result, the company projects earnings of $2.20 per share, compared with analyst estimates of $2.19 a share.

Kowlzan also noted the company is assessing the effects of a recent winter storm that caused some of its plants to be down earlier in the week and could hurt shipments and operating and transportation costs.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

January 27, 2026 18:00 ET (23:00 GMT)

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