Filing Flows › Packaging Corp of America (PKG) › Q1 2025
Packaging Corp of America (PKG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Packaging Corp of America (PKG) reported revenue of $2.1B for the first quarter 2025 (Q1 2025), +8% from a year earlier and -0.2% from the quarter before. Operating margin was 13.1%, net earnings $204M (9.5% of revenue).
Packaging Corp of America, Q1 2025: revenue $2.1B (+8% year over year), operating margin 13.1%, net earnings $204M, operating cash flow $339M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.1B | -0.2% | +8% |
| Gross profit | $455M | -3% | +23% |
| Operating profit | $280M | -7% | +43% |
| Net earnings | $204M | -8% | +39% |
| Operating cash flow | $339M | +4% | +30% |
| Free cash flow | $191M | +54% | +4% |
What changed
Revenue was $2.1B in Q1 2025, up 8% year over year and roughly flat from the previous quarter. Packaging was the largest line at 92% of revenue. Packaging added $0.17B year over year (up 10%), 107% of the total change. Paper declined 6%.
Gross margin was 21.2%, up 2.5 points from a year earlier. Operating profit was $0.28B, a 13.1% margin (up 3.2 points year over year). Of the extra revenue versus a year earlier, 52% reached operating profit, above the 10% margin then. Operating expenses grew 0% against revenue growth of 8%. Net earnings were $0.20B, up 39% year over year. The effective tax rate was 23.8%.
Operating cash flow was $0.34B (up 30% year over year), 166% of net earnings. Non-cash charges added back $0.14B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items used $0.02B. Capital expenditures of $0.15B left free cash flow of $0.19B.
Questions
What was Packaging Corp of America's revenue in the first quarter 2025?
Packaging Corp of America (PKG) reported revenue of $2.1B for the first quarter 2025 (Q1 2025), +8% from a year earlier and -0.2% from the quarter before.
Was Packaging Corp of America profitable in the first quarter 2025?
Operating profit was $280M (13.1% of revenue) and net earnings $204M.