Packaging Corporation of America (PCA) presented its financial performance and strategic initiatives at the Jefferies Global Industrials Conference on September 10, 2026. The company reported a market capitalization of $20.1 billion and a 10.3% revenue growth over the last twelve months, with a return on equity of 15%. PCA's stock price was noted at $234.40, trading above InvestingPro's fair value estimate.
PCA's CEO, Mark Kowlzan, emphasized the company's tight supply situation, stating that all nine containerboard mills are operating at full capacity. He noted that the cost to enter the market has significantly increased, with the construction of a mini-mill estimated to cost well over $1 billion today, compared to roughly $400 million ten years ago. Kowlzan also highlighted the company's strategic acquisitions, including the Greif acquisition completed on September 2, 2023, which has boosted production and improved mill uptime.
The Greif acquisition has significantly enhanced PCA's production capabilities. Combined annual production increased from about 650,000 tons to over 800,000 tons, with mill uptime improving from the mid-80% range to the mid-to-high 90% range. The company has also invested $6.5 billion in capital projects since 2017, with a new box plant in Ohio costing $275 million. PCA operates approximately 95 box plants following the Greif acquisition and has shut down about 30 box plants over the past 16 to 17 years.
PCA's earnings guidance for the third quarter indicates tracking to meet or exceed July earnings. The fourth-quarter earnings sequential impact from outages is estimated to be about $0.30 to $0.35 higher, compared to about $0.45 last year. The Greif synergy target of $30 million is tracking ahead of schedule. The company's corporate technology and engineering organization employs about 200 people, further supporting its operational efficiency and growth strategy.
