Detailed financial statements for Packaging Corporation of America (PKG): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Packaging Corporation of America (PCA) is a U.S.-based enterprise specializing in the production and sale of containerboard and corrugated packaging materials. Its operations are organized into two primary divisions: Packaging and Paper. The Packaging division offers an extensive array of containerboard and corrugated solutions.
Analysis Summary
Packaging Corporation of America reported revenue of $8.99B in the most recent fiscal year, growing at a 5-year CAGR of 6.2%. Net income reached $768.9M, with a 10.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 20.5%, operating margin 13.3%, net margin 7.4%. Free cash flow grew at 3.6% CAGR over 5 years.
At $256.82 (closing price, October 30, 2026), PKG trades at a P/E of 31.63 and an ROE of 15.62%. Market capitalisation stands at $22.9B, placing it among large-cap names.
Balance sheet quality for PKG: current ratio of 3.2, net debt of $3.76B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $728.6M represents 95% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.78B | $6.44B | $7.01B | $6.96B | $6.66B | $7.73B | $8.48B | $7.80B | $8.38B | $8.99B |
| Cost of Revenue | $4.50B | $4.97B | $5.37B | $5.32B | $5.27B | $5.86B | $6.39B | $6.10B | $6.60B | $7.10B |
| Gross Profit | $1.28B | $1.47B | $1.65B | $1.64B | $1.39B | $1.87B | $2.09B | $1.70B | $1.78B | $1.89B |
| Research & Development | 0 | 0 | 0 | 0 | $15.5M | $14.5M | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $468.5M | $519.9M | $536.4M | $557.6M | $524.1M | $562.3M | $608.6M | $580.9M | $610.3M | $634.2M |
| Operating Expenses | $492.8M | $538.3M | $577.6M | $590.3M | $544.7M | $589.7M | $669.9M | $623.8M | $681.8M | $634.2M |
| Operating Income | $783.3M | $932.5M | $1.07B | $1.05B | $841.6M | $1.28B | $1.42B | $1.08B | $1.10B | $1.26B |
| EBITDA | $1.14B | $1.32B | $1.48B | $1.43B | $1.14B | $1.68B | $1.89B | $1.59B | $1.63B | $1.76B |
| Interest Expense | $91.8M | $102.6M | $95.1M | $128.8M | $93.5M | $152.4M | $70.4M | $53.3M | $41.4M | $79.1M |
| Pre-tax Income | $688.5M | $828.6M | $970.5M | $917.0M | $632.7M | $1.11B | $1.36B | $1.01B | $1.06B | $1.03B |
| Income Tax | $238.9M | $160.0M | $232.5M | $220.6M | $171.7M | $267.6M | $335.0M | $248.9M | $259.3M | $253.7M |
| Net Income | $449.6M | $668.6M | $738.0M | $696.4M | $461.0M | $841.1M | $1.03B | $765.2M | $805.1M | $768.9M |
| EPS | $4.76 | $7.09 | $7.88 | $7.37 | $4.86 | $8.87 | $11.07 | $8.52 | $8.97 | $8.58 |
| EPS (Diluted) | $4.75 | $7.07 | $7.86 | $7.35 | $4.85 | $8.83 | $11.02 | $8.48 | $8.93 | $8.58 |
| Shares Outstanding (Diluted) | 93.7 M | 93.7 M | 93.9 M | 94.1 M | 94.4 M | 94.5 M | 92.7 M | 89.5 M | 89.5 M | 89.6 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $2.36B | $2.37B | $2.49B | $2.60B |
| Gross Profit | $447.5M | $452.9M | $512.5M | $603.9M |
| Operating Income | $282.2M | $272.6M | $333.2M | $421.2M |
| EBITDA | $390.0M | $477.6M | $468.6M | $602.5M |
| Net Income | $101.1M | $170.9M | $192.1M | $262.3M |
| EPS | $1.13 | $1.92 | $2.16 | $2.94 |
| EPS (Diluted) | $1.13 | $1.91 | $2.15 | $2.93 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $239.3M | $216.9M | $361.5M | $679.5M | $974.6M | $618.7M | $320.0M | $648.0M | $685.0M | $529.0M |
| Short-term Investments | 0 | 0 | 0 | $87.9M | $105.6M | $86.1M | $85.2M | $493.5M | $102.0M | $71.8M |
| Receivables | $703.1M | $900.2M | $918.6M | $872.1M | $837.5M | $1.08B | $1.07B | $1.04B | $1.15B | $1.28B |
| Inventory | $723.6M | $762.5M | $795.6M | $794.1M | $787.9M | $902.5M | $977.3M | $1.01B | $1.12B | $1.24B |
| Total Current Assets | $1.70B | $1.92B | $2.12B | $2.48B | $2.75B | $2.73B | $2.51B | $3.25B | $3.23B | $3.21B |
| Property, Plant & Equipment | $2.90B | $2.92B | $3.11B | $3.39B | $3.43B | $3.77B | $4.20B | $4.14B | $4.32B | $5.36B |
| Goodwill | $737.9M | $883.2M | $917.3M | $918.7M | $863.5M | $923.5M | $922.4M | $922.4M | $922.4M | $1.37B |
| Intangible Assets | $367.1M | $410.0M | $378.2M | $338.8M | $295.9M | $308.4M | $267.9M | $229.6M | $191.9M | $602.3M |
| Total Assets | $5.78B | $6.20B | $6.57B | $7.24B | $7.43B | $7.84B | $8.00B | $8.68B | $8.83B | $10.92B |
| Accounts Payable | $323.8M | $402.9M | $382.2M | $351.9M | $387.0M | $452.4M | $410.4M | $402.4M | $430.3M | $421.0M |
| Short-term Debt | $25.8M | $150.0M | 0 | 0 | 0 | 0 | 0 | $399.6M | 0 | $102.1M |
| Total Current Liabilities | $625.4M | $832.7M | $693.6M | $723.8M | $782.6M | $884.8M | $875.5M | $1.27B | $1.00B | $1.02B |
| Long-term Debt | $2.62B | $2.48B | $2.48B | $2.48B | $2.48B | $2.47B | $2.47B | $2.47B | $2.47B | $3.97B |
| Total Liabilities | $4.02B | $4.01B | $3.90B | $4.16B | $4.19B | $4.23B | $4.34B | $4.68B | $4.43B | $6.33B |
| Retained Earnings | $1.45B | $1.87B | $2.32B | $2.70B | $2.84B | $3.10B | $3.19B | $3.45B | $3.78B | $3.93B |
| Total Equity | $1.76B | $2.18B | $2.67B | $3.07B | $3.25B | $3.61B | $3.67B | $4.00B | $4.40B | $4.60B |
| Total Debt | $2.67B | $2.65B | $2.50B | $2.73B | $2.74B | $2.73B | $2.79B | $3.17B | $2.77B | $4.36B |
| Net Debt | $2.43B | $2.43B | $2.14B | $1.97B | $1.66B | $2.03B | $2.39B | $2.03B | $1.98B | $3.76B |
| Working Capital | $1.07B | $1.08B | $1.42B | $1.75B | $1.97B | $1.85B | $1.63B | $1.99B | $2.23B | $2.20B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $634.0M | $529.0M | $397.1M | $442.8M |
| Total Assets | $10.98B | $10.92B | $10.78B | $11.02B |
| Total Liabilities | $6.22B | $6.33B | $6.19B | $6.35B |
| Total Equity | $4.76B | $4.60B | $4.59B | $4.66B |
| Total Debt | $4.36B | $4.36B | $4.37B | $4.40B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $449.6M | $668.6M | $738.0M | $696.4M | $461.0M | $841.1M | $1.03B | $765.2M | $805.1M | $768.9M |
| Depreciation & Amortization | $358.0M | $391.4M | $410.9M | $387.5M | $409.9M | $417.5M | $456.8M | $517.7M | $525.6M | $652.8M |
| Stock-based Compensation | $19.7M | $20.6M | $23.5M | $30.4M | $30.0M | $35.5M | $35.6M | $40.0M | $48.8M | $45.2M |
| Change in Working Capital | -$800,000 | -$146.1M | -$52.9M | $9.3M | $77.8M | -$287.4M | -$85.1M | -$6.8M | -$210.6M | -$54.7M |
| Operating Cash Flow | $801.2M | $856.1M | $1.18B | $1.21B | $1.03B | $1.09B | $1.50B | $1.32B | $1.19B | $1.56B |
| Capital Expenditure | -$274.3M | -$343.0M | -$551.4M | -$399.5M | -$421.2M | -$605.1M | -$824.2M | -$469.7M | -$669.7M | -$828.9M |
| Acquisitions | -$485.4M | -$273.8M | -$56.3M | $4.1M | $4.6M | -$194.9M | $2.2M | 0 | $1.3M | -$1.80B |
| Stock Repurchased | -$111.5M | -$10.8M | -$7.9M | -$8.2M | -$10.5M | -$205.9M | -$538.0M | -$57.2M | -$25.7M | -$153.0M |
| Dividends Paid | -$216.1M | -$237.6M | -$268.1M | -$298.7M | -$299.6M | -$379.8M | -$420.3M | -$448.9M | -$448.8M | -$449.6M |
| Free Cash Flow | $526.9M | $513.1M | $628.7M | $807.9M | $611.6M | $489.0M | $670.8M | $845.4M | $521.5M | $728.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $472.2M | $446.6M | $329.3M | $376.0M |
| Capital Expenditure | -$192.1M | -$319.0M | -$164.7M | -$205.9M |
| Free Cash Flow | $280.1M | $127.6M | $164.6M | $170.1M |
| Dividends Paid | -$112.4M | -$112.5M | -$111.9M | -$111.3M |
| Stock-based Compensation | $8.5M | $8.6M | 0 | $17.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +11.5% | +8.8% | -0.7% | -4.4% | +16.1% | +9.7% | -8.0% | +7.4% | +7.2% | |
| Net Income Growth (YoY) | +48.7% | +10.4% | -5.6% | -33.8% | +82.5% | +22.4% | -25.7% | +5.2% | -4.5% | |
| EPS Growth (YoY) | +48.9% | +11.1% | -6.5% | -34.1% | +82.5% | +24.8% | -23.0% | +5.3% | -4.3% | |
| Shares Change (YoY) | +0.0% | +0.2% | +0.2% | +0.3% | +0.1% | -1.9% | -3.5% | +0.0% | +0.1% | |
| FCF Growth (YoY) | -2.6% | +22.5% | +28.5% | -24.3% | -20.0% | +37.2% | +26.0% | -38.3% | +39.7% | |
| Gross Margin | 22.1% | 22.8% | 23.5% | 23.6% | 20.8% | 24.2% | 24.7% | 21.8% | 21.3% | 21.0% |
| Operating Margin | 13.6% | 14.5% | 15.2% | 15.1% | 12.6% | 16.6% | 16.8% | 13.8% | 13.1% | 14.0% |
| EBITDA Margin | 19.7% | 20.5% | 21.0% | 20.6% | 17.1% | 21.7% | 22.3% | 20.3% | 19.5% | 19.6% |
| Net Margin | 7.8% | 10.4% | 10.5% | 10.0% | 6.9% | 10.9% | 12.1% | 9.8% | 9.6% | 8.6% |
| FCF Margin | 9.1% | 8.0% | 9.0% | 11.6% | 9.2% | 6.3% | 7.9% | 10.8% | 6.2% | 8.1% |
| Effective Tax Rate | 34.7% | 19.3% | 24.0% | 24.1% | 27.1% | 24.1% | 24.5% | 24.5% | 24.4% | 24.7% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $5.62 | $5.48 | $6.70 | $8.59 | $6.48 | $5.17 | $7.24 | $9.45 | $5.83 | $8.13 |
| Dividends Per Share | $2.31 | $2.54 | $2.86 | $3.17 | $3.17 | $4.02 | $4.53 | $5.02 | $5.01 | $5.02 |
| Shares Outstanding (Basic) | 93.5 M | 93.5 M | 93.6 M | 93.8 M | 94.1 M | 94.1 M | 92.3 M | 89.1 M | 89.1 M | 89.6 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 15.62% |
| Return on Invested Capital | 9.88% |
| Return on Assets | 6.59% |
| Gross Margin | 20.53% |
| Operating Margin | 13.33% |
| Net Margin | 7.39% |
Financial Health
| Debt / Equity | 0.94 |
| Current Ratio | 2.94 |
| Piotroski F-Score | 3 |
| Altman Z-Score | 3.70 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 17.82 | 17.00 | 10.59 | 15.20 | 28.38 | 15.35 | 11.55 | 19.12 | 25.10 | 24.04 |
| P/B | 4.51 | 5.16 | 2.92 | 3.42 | 4.00 | 3.55 | 3.22 | 3.63 | 4.55 | 4.02 |
| P/S | 1.37 | 1.75 | 1.11 | 1.51 | 1.95 | 1.66 | 1.39 | 1.86 | 2.39 | 2.06 |
| Gross Margin | 22.1% | 22.8% | 23.5% | 23.6% | 20.8% | 24.2% | 24.7% | 21.8% | 21.3% | 21.0% |
| Operating Margin | 13.6% | 14.5% | 15.2% | 15.1% | 12.6% | 16.6% | 16.8% | 13.8% | 13.1% | 14.0% |
| Net Margin | 7.8% | 10.4% | 10.5% | 10.0% | 6.9% | 10.9% | 12.1% | 9.8% | 9.6% | 8.6% |
Related companies: IP · AMCR · CCK · SON · GEF · GPK
Explore sector: Consumer Cyclical · Packaging & Containers
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