Packaging Corp of America

Packaging Corporation of America reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31 and the company's guidance of $2.33. Sales increased 14.7% to $2.49 billion, surpassing the consensus estimate of $2.40 billion, driven by record quarterly corrugated products shipments that rose 24.3% from the prior-year quarter. The company expects third-quarter 2026 adjusted earnings of $2.91 per share, assuming continued strong packaging demand and benefits from previously announced price increases. Shares have added about 6.7% since the last earnings report, outperforming the S&P 500, though estimates have trended downward in the past month and the stock carries a Zacks Rank #3 (Hold).

Packaging Corporation of America reported Q2 results that matched revenue expectations but fell short on EPS and guidance, while setting an all-time quarterly record for total corrugated shipments. The company noted that corrugated price increases are starting to appear in results, though higher freight and recycled fiber costs were present. Strong volumes and operational performance helped offset those cost pressures. The stock has seen firm momentum, with a 30-day share price return of 11.36% and a year-to-date return of 20.67%.

JPMorgan upgraded International Paper to Overweight from Neutral, citing an improving U.S. linerboard pricing cycle and tightening supply-demand dynamics that are likely to lift earnings across the corrugated packaging sector. The brokerage raised its price target on International Paper to $61 from $51, while increasing its London-listed target to 4,600 pence from 3,200 pence, and maintained Overweight ratings on Smurfit WestRock and Packaging Corp. of America, lifting their price targets to $71 from $65 and $312 from $271 respectively. The upgrade follows reports that Packaging Corp. of America plans to implement a $140-per-ton U.S. kraftliner price increase from September 1, though JPMorgan expects only $50 per ton to be realized in its base case, which would still represent the strongest quarterly price-cost progression in a decade. Assuming a $50-per-ton price increase, the brokerage raised its 2027 EBITDA forecasts by 5% for Smurfit WestRock, 11% for Packaging Corp. of America, and 12% for International Paper, noting that International Paper offers roughly 43% upside to its current share price under its revised assumptions.

Packaging Corporation of America shares gained 9.1% after the company reported record corrugated shipments and announced a US$140-per-ton containerboard price increase. Second-quarter 2026 sales rose to US$2,489.9 million, while net income eased to US$192.1 million, with earnings per share lower than a year earlier despite stronger volumes and contributions from the Greif containerboard acquisition. Management described the containerboard market as tight and signaled confidence by raising the annualized dividend to US$6.00 per share. The price hike is seen as a key near-term catalyst, though higher costs and demand uncertainty remain risks to profit realization.