• The 'Intel Inside' of packaging – they make the essential boxes that protect almost every product you buy.
• Like an 'Amazon Web Services' for physical goods – providing the essential packaging infrastructure (boxes) for the entire supply chain.
• The Goodyear or Michelin of the packaging world, providing the essential containers that every product needs to move safely through the supply chain.

• Containerboard: Primary material used to manufacture corrugated packaging, produced in various grades and weights.
• Corrugated Packaging: Custom-designed boxes, displays, and other protective packaging solutions made from corrugated fiberboard.
• Saturated Kraft: Specialty papers used in applications requiring durability and moisture resistance, such as industrial packaging.
• White Top Liner: High-quality containerboard with a bright white surface, ideal for vibrant graphics and branding on packaging.
• Digital Printing: Advanced printing services for corrugated packaging, enabling high-resolution graphics, personalization, and faster production cycles.

Major Customers of Packaging Corporation of America (NYSE: PKG)

Packaging Corporation of America (PKG) operates primarily within a business-to-business (B2B) model, manufacturing and selling containerboard and corrugated packaging products to other companies. Due to the highly diversified nature of its customer base across numerous end-use markets, PKG typically does not disclose specific individual "major customers" that account for a significant portion (e.g., 10% or more) of its net sales in its public filings. Its customer base is broad and fragmented.

PKG serves a vast array of companies across various industries that require packaging for their products. These customer companies operate in sectors such as:

• Food and Beverage: Manufacturers, processors, and distributors of various food products (e.g., produce, baked goods, meat, dairy), beverages, and agricultural goods.
• Consumer Products: Companies producing and selling a wide range of household goods, personal care items, paper products, and other consumer durables and non-durables.
• Industrial Products: Businesses in sectors like manufacturing, automotive, electronics, chemicals, and construction that require packaging for parts, components, and finished goods.
• E-commerce and Retail: Companies involved in online sales and traditional retail, needing packaging for shipping, display, and product protection.

While specific customer names are not publicly identified as "major customers," PKG's products are essential components of the supply chains for countless businesses, ranging from large multinational corporations to small local enterprises across these diverse industries.

Mark W. Kowlzan, Chairman & CEO

Mark W. Kowlzan has served as Chairman of Packaging Corporation of America since January 2016 and as Chief Executive Officer and a director since July 2010. He joined PCA in 1996. From 1998 through June 2010, Mr. Kowlzan led the company’s containerboard mill system, initially as Vice President and General Manager and subsequently as Senior Vice President – Containerboard. He also served as manager of the Counce linerboard mill. Before joining Tenneco Packaging (which later became PCA), Mr. Kowlzan spent 15 years at International Paper Company, holding various operational and managerial positions within its mill organization.

Kent A. Pflederer, Executive Vice President and Chief Financial Officer

Kent A. Pflederer became Executive Vice President and Chief Financial Officer of PCA effective May 1, 2025. He previously served as General Counsel and Secretary since joining PCA in 2007. Prior to his tenure at PCA, Mr. Pflederer was Senior Counsel, Corporate and Securities at Hospira, Inc. from 2004 to 2007. He also worked in the corporate and securities practice at Mayer Brown LLP from 1996 to 2004, specializing in capital markets transactions and mergers and acquisitions. Mr. Pflederer also served in the tax practice at Price Waterhouse from 1991 to 1993 and passed the CPA exam in 1993.

Thomas A. Hassfurther, President

Thomas A. Hassfurther was named President of PCA on February 26, 2025. He has been with the company since 1977. Before his appointment as President, he served as Executive Vice President — Corrugated Products since September 2009. Mr. Hassfurther held various senior-level management and sales positions at PCA and Tenneco Packaging, including Senior Vice President — Sales and Marketing, Corrugated Products from February 2005 to September 2009. He also served as chairman of the Fibre Box Association for two terms.

Charles J. Carter, Executive Vice President — Mill Operations

Charles J. Carter serves as Executive Vice President — Mill Operations for Packaging Corporation of America.

D. Ray Shirley, Executive Vice President — Corrugated Products

D. Ray Shirley was named Executive Vice President, Corrugated Products, effective with management changes announced February 26, 2025. In this role, he reports to Tom Hassfurther and is responsible for the day-to-day management of the corrugated products business, while also continuing to oversee PCA's engineering and technology organization. He previously served as Senior Vice President, Corporate Engineering and Process Technology since 2019. Mr. Shirley has been with PCA since 1996, holding various business and operational roles across the company's containerboard and corrugated products system.

Key Risks to Packaging Corporation of America (PKG)

Packaging Corporation of America (PKG) faces several key risks that could impact its business operations and financial performance. These risks primarily stem from fluctuating input costs, competitive market dynamics, and evolving environmental regulations.

1. Fluctuations in Raw Material Prices and Operating Costs: PKG is highly susceptible to volatility in the costs of its primary raw materials, particularly fiber (wood and recycled fiber), which represents the largest manufacturing cost for containerboard. The company's profitability and margins are also significantly affected by rising operating costs, including energy prices and rail transportation rates.
2. Competitive Pressure and Economic Sensitivity: The packaging industry is intensely competitive, with numerous domestic and international players. PKG's performance is closely tied to economic conditions and demand fluctuations in the containerboard and corrugated packaging markets. Weak consumer spending and general economic downturns can lead to reduced demand for PKG's products, impacting its financial results. The company's substantial reliance on the North American market also makes it vulnerable to regional economic shifts.
3. Environmental Regulations and Sustainability Demands: PKG faces increasing challenges from evolving government regulations concerning environmental sustainability and a growing market demand for eco-friendly packaging solutions. Non-compliance with environmental regulations can result in fines and reputational damage, such as a past incident involving air permit violations. The company's historical reliance on virgin fiber could become a weakness as the industry increasingly shifts towards more sustainable and recycled alternatives.

The emerging shift towards reusable packaging systems, particularly in e-commerce and last-mile delivery, poses a clear threat. As major retailers and logistics companies increasingly invest in and implement closed-loop systems for consumer goods and shipping containers, the long-term demand for single-use corrugated packaging, PKG's primary product, could decline.

Packaging Corporation of America (NYSE: PKG) operates primarily in North America, manufacturing and supplying containerboard, corrugated packaging products, and uncoated freesheet. The company also produces specialty packaging solutions.

The addressable markets for Packaging Corporation of America's main products are sized as follows:

• Corrugated Packaging Products:
  • The global corrugated packaging market was valued at approximately USD 311.66 billion in 2024 and is projected to reach around USD 477.33 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.36% from 2025 to 2034.
  • The U.S. corrugated carton market is projected to reach an estimated value of USD 41.43 billion by 2032.
• Containerboard:
  • The global containerboard market was valued at USD 150.9 billion in 2024 and is estimated to grow at a 2.9% CAGR from 2025 to 2034. Another estimate values the global containerboard market at USD 158.49 billion in 2024, projected to grow to USD 209.51 billion by 2034 at a 2.83% CAGR.
  • The North America containerboard market held a share of 26% of the global market in 2024 and is identified as the fastest-growing region.
  • The U.S. containerboard market is projected to grow significantly, reaching USD 41.1 billion by 2034.
• Uncoated Freesheet:
  • The global uncoated paper market was valued at approximately USD 70 billion in 2023 and is projected to reach around USD 90 billion by 2032 at a CAGR of 2.8%.
  • The Americas uncoated freesheet market demand is forecasted to reach 7.74 million metric tons in 2026, declining at a CAGR of 1.2% for the period of 2022-2026.
• Specialty Packaging:
  • The global specialty packaging market was valued at USD 5.42 billion in 2023 and is projected to reach a market size of USD 8.72 billion by the end of 2030, growing at a CAGR of 7%.
  • The United States protective packaging market value reached USD 7.80 billion in 2024.

Packaging Corporation of America (NYSE: PKG) is expected to experience future revenue growth over the next two to three years driven by several key factors:

• Increased Volumes in the Packaging Segment: Strong and steady demand for corrugated products and containerboard is a significant driver, contributing to higher shipment volumes in the Packaging segment. This segment consistently represents the major portion of PKG's total revenue.

• Favorable Pricing and Mix in Packaging and Paper Segments: Packaging Corporation of America has successfully implemented and realized price increases across both its Packaging and Paper segments. These strategic price adjustments, along with a favorable product mix, are expected to continue boosting revenue.

• Strategic Acquisitions and Expanded Production Capacity: The company's strategic acquisition of Greif's containerboard business is a key driver, as it significantly expands PKG's production capacity and enhances its market position. This expansion is anticipated to lead to future growth through increased capabilities and potential synergies.

• Growth in the Paper Segment: Despite occasional fluctuations, the Paper segment contributes to revenue growth through increased sales volumes and the implementation of price increases for various paper grades.

Share Repurchases

• Packaging Corporation of America has actively repurchased shares, with total reported buybacks amounting to approximately $686.39 million from Q1 2021 through Q2 2025.
• Significant repurchases occurred in 2022, totaling approximately $537.9 million.
• In 2023, share repurchases contributed to a lower share count, positively impacting earnings per share.

Outbound Investments

• In the second quarter of 2025, Packaging Corporation of America had costs relating to the pending acquisition of Greif's containerboard business, which was categorized as a special item.

Capital Expenditures

• Capital expenditures for Packaging Corporation of America over the last several years include $605.1 million in 2021, $824.2 million in 2022 (peaking in this period), $469.7 million in 2023, and $669.7 million in 2024.
• The latest twelve months ending June 30, 2025, show capital expenditures of $665.8 million.
• A primary focus of capital expenditures included the conversion of paper machines to produce containerboard, such as the No. 3 machine to linerboard and the No. 1 machine to corrugating medium, along with ongoing environmental capital expenditures (e.g., $14 million in 2023).