Packaging Corporation of America reported third-quarter 2026 net income of USD 262.3m (USD 2.93 per share), up from USD 226.9m, on revenue up 12.5% to USD 2.60bn. Chairman and CEO Mark Kowlzan said its mills ran at full capacity, helped by projects at the Jackson mill and better performance at the acquired Greif mills, despite cost headwinds from freight, recycled fibre and chemicals. The company guided to adjusted fourth-quarter earnings of USD 2.81 per share.
Why this mattersFull mill run rates and the acquired Greif mills lifted PCA's volumes 18.6%, with operating margin held at 14.8% despite freight, recycled fibre and chemical cost inflation.
- Net income rose to USD 262.3m (USD 2.93 per share) from USD 226.9m (USD 2.51) a year earlier
- Revenue rose 12.5% to USD 2.60bn, in line with analyst expectations
- Adjusted EPS was USD 3.04, against a FactSet consensus of USD 2.93
- Mills ran at full capacity, with benefits from Jackson mill projects and improved operations at the acquired Greif mills
- Kowlzan cited freight, recycled fibre and chemical cost headwinds and weakness in agricultural end markets for corrugated
- Guidance for adjusted Q4 EPS is USD 2.81, against a consensus of USD 2.77
- Acquired Greif business added USD 0.24 to adjusted EPS, versus a USD 0.11 per-share loss a year earlier; legacy packaging business added USD 0.07
- Total containerboard shipments up 10.6%, while legacy packaging shipments fell 0.5%
- Packaging segment operating income rose to $397.8m from $327.5m a year earlier
- Paper segment operating income fell to $29.0m from $35.6m
- Containerboard production totalled 1.489m tons, with corrugated products shipments up 10.6% year on year including acquired operations
- Maintenance outages are scheduled at three mills in the fourth quarter
Greif has secured validation from the Science Based Targets initiative for its greenhouse gas reduction goals, confirmed 13 October 2026, after committing to set such targets in April 2026. Using fiscal 2024 as a baseline, the company targets a 30% cut in absolute Scope 1 and 2 emissions and a 17.5% cut in Scope 3 emissions by fiscal 2030, rising to a 90% cut across all three scopes by fiscal 2050. Greif is now preparing a decarbonisation plan, due by the end of its fiscal second quarter.
Why this mattersSBTi-validated targets give Greif a verified decarbonisation benchmark as industrial packaging customers increasingly demand supplier emissions data.
- SBTi validated Greif's emissions targets on 13 October 2026
- Greif committed to set SBTi targets in April 2026
- Target: 30% absolute Scope 1 and 2 reduction by fiscal 2030, baseline fiscal 2024
- Target: 17.5% absolute Scope 3 reduction by fiscal 2030
- Target: 90% reduction across Scope 1, 2 and 3 by fiscal 2050
- Decarbonisation plan due by end of fiscal second quarter
Pixelle Specialty Solutions has sold its carbonless sheets business, including the ExcelOne brand, to Nekoosa under a definitive agreement announced on 4 October 2026. Pixelle said the move follows a review of where to focus resources for long-term growth; Nekoosa takes on the business and its existing customers. Financial terms were not disclosed.
Why this mattersPixelle's exit consolidates carbonless sheet supply around a single specialist and redirects the group's resources to its other speciality paper grades.
- Pixelle Specialty Solutions sold its carbonless sheets business to Nekoosa.
- The deal includes the ExcelOne brand.
- The transaction is limited to the carbonless sheet business only.
- Announced 4 October 2026.
- Financial terms were not disclosed.
- Pixelle will close its Fremont, Ohio carbonless-paper mill around 1 December 2026, cutting 61 jobs.
- The buyer of Pixelle's carbonless-paper business plans to move production to a plant in Wisconsin.
- Pixelle filed a WARN notice with the Ohio Department of Job and Family Services dated 2 October 2026.
- The largest affected job group at the Fremont plant is 14 slitter operators, followed by six maintenance workers.
Packaging Corporation of America will permanently close its Baltimore Street plant in Middletown, Ohio, affecting all 91 employees, under a WARN notice filed with the state and the city. Most staff finish on 1 December 2026 and the site is to be vacant by the end of the year, with the work consolidated into larger operations including a newly opened PCA plant elsewhere in Ohio. A separate WARN notice covers a Gas City, Indiana plant and its 78 workers in the week of 26 October.
Why this mattersThree converting closures in 2026 by the third-largest US containerboard producer point to consolidation of volume into newer, larger plants.
- PCA will permanently close its Baltimore Street plant in Middletown, Ohio, affecting all 91 employees
- Most employees finish on 1 December 2026; the plant is expected to be vacant by the end of the year
- The company says the work will be consolidated into larger and more efficient operations, including a newly opened plant elsewhere in Ohio
- A separate WARN notice covers the permanent closure of a Gas City, Indiana plant and its 78 workers in the week of 26 October
- Media reports earlier in 2026 said PCA planned to close a Richmond, Virginia converting operation affecting 110 employees
- Hourly production and maintenance staff are represented by USW Local No. 1676
- The consolidation plant is in Newark, Ohio, cost USD 275m and covers 550,000 square feet.
- The Newark plant started operating ahead of schedule in early summer 2026.
- PCA has invested more than USD 5.2bn in its paper mill and box plant network over the past decade.
- New c.51,000 sq m converting plant in Newark, Ohio started operations in July 2026, ahead of schedule.
- PCA closed its Richmond, Virginia integrated plant from June 2026, after idling the No. 2 paper machine and kraft pulp production at its Wallula, Washington mill from February 2026.
- PCA has invested more than USD 5.2bn in paper mills and box plants over the past decade, including integrating assets from its September 2025 acquisition of Greif's containerboard business.
US District Judge Mary M. Rowland denied on 4 September 2026 the joint motion to dismiss and the separate motions by Packaging Corporation of America and Pratt Industries in the containerboard price-fixing class action brought in July 2025 by Artuso Pastry in the Northern District of Illinois. The 49-page decision found six of seven alleged lockstep or near-lockstep price increases sufficient to show parallel conduct, lifting the stay on discovery. Defendants must answer by 29 September 2026 and file a joint status report with discovery dates the following week.
Why this mattersThe case moves to discovery, exposing containerboard producers to damages claims and scrutiny of a market the plaintiff says five players now control with at least 85% share.
- Judge Mary M. Rowland denied the joint and the individual dismissal motions in a 49-page decision on 4 September 2026 in the Northern District of Illinois.
- Defendants must answer the complaint by 29 September 2026 and file a joint status report with discovery dates the following week.
- The case, Artuso Pastry Foods Corp. v. Packaging Corp. of America et al, was filed in July 2025 and alleges seven rounds of parallel price increases from November 2020 raising prices by about 30%.
- The court found six of the seven alleged coordinated increases plausible, including a USD 50-per-ton rise implemented on the same day after two and a half years without an industry increase.
- Ten defendants remain, including PCA, Pratt Industries, International Paper, Georgia-Pacific, Greif, Smurfit Kappa, WestRock and three Cascades entities.
- Graphic Packaging International and Smurfit Westrock were dismissed late last year, cutting defendants to 10 from 12; the court gave no reasons.
S&P Global Ratings raised Packaging Corporation of America's long-term issuer rating to BBB+ from BBB on 16 September 2026, citing leverage held below 2.0x despite the debt-funded acquisition of Greif's containerboard business earlier in 2026. The agency also cited three containerboard price increases implemented in 2026, most recently USD 140 per ton effective 1 September, as supportive of the credit profile. The company will hold a call on third-quarter results, the first full quarter reflecting all three price rises, on 22 October 2026.
Why this mattersA one-notch upgrade despite a large debt-funded acquisition signals rating agencies' tolerance for containerboard consolidation leverage, a reference point for peers.
- S&P Global Ratings upgraded Packaging Corporation of America's long-term issuer rating to BBB+ from BBB on 16 September 2026.
- Leverage has stayed below 2.0x even after the 2026 acquisition of Greif's containerboard business.
- Three containerboard price increases were implemented in 2026: USD 50, USD 70 and USD 140 per ton, the last effective 1 September 2026.
- Q2 2026 net sales were USD 2.08bn, up 6.7% year on year from about USD 1.95bn, reflecting the first full quarter of Greif containerboard assets.
- Q2 2026 adjusted EBITDA margin rose to 20.5% from 18.9% a year earlier.
- A conference call on Q3 2026 results is scheduled for 22 October 2026.
Greif is exiting its coated recycled paperboard business and will close its paperboard mill in Austell, Georgia, removing about 120,000 tons of annual production capacity. The company expects the mill to cease operations by the end of 2026, with about 90 job losses, as part of a strategy to concentrate on businesses where it holds a leading market position.
Why this mattersRemoving 120,000 tons of annual capacity tightens North American recycled paperboard supply and confirms Greif's retreat to segments where it holds leading positions.
- Greif will close its coated recycled paperboard mill in Austell, Georgia
- The mill removes about 120,000 tons of annual production capacity
- Operations are expected to cease by the end of 2026
- The closure will result in about 90 job losses
- The mill also produced uncoated recycled paperboard and gypsum facing and backing paper grades
- Greif will serve affected uncoated recycled paperboard customers via its broader North American mill network
- The Sweetwater mill in Austell, Georgia has now ceased operations
- Affected employees are receiving severance and career support
- Greif has confirmed its full exit from the coated recycled paperboard market
- The Austell, Georgia mill is named the Sweetwater mill
- Gaylord Benner, Senior Vice President and General Manager of Sustainable Fiber Solutions at Greif, commented on the closure
- Greif cites the plant's limited network integration and cost position as reasons for the closure
- Greif will offer severance and transition support to the around 90 affected employees
Greif has acquired Envaplast, an Alicante-based manufacturer of industrial plastic containers for the agrochemical sector, for USD 61.7m (EUR 53.4m). Envaplast, founded in 1984 and owned by the Lledo Villaplana family, generated EUR 22.13m revenue and EUR 8.24m EBITDA in 2025, and will join Greif's Customized Polymer Solutions division without a merger process. CEO Joan Oriola Lledo will remain in charge as Greif seeks to expand its small plastic packaging footprint in the region.
Why this mattersThe deal extends Greif's small-container polymer platform into Spain's agrochemical packaging niche, adding a specialised bolt-on to its industrial packaging portfolio.
- Greif paid USD 61.7m (EUR 53.4m) for Envaplast, per its US SEC filing.
- Envaplast recorded 2025 revenue of EUR 22.13m and EBITDA of EUR 8.24m, with net profit over EUR 6m.
- Envaplast employs around 35 workers at its Benimarfull (Alicante) site and was founded in 1984.
- Envaplast joins Greif's Customized Polymer Solutions division without merging with existing Spanish units.
- Greif already operates a container plant in San Roque (Cadiz) and a steel drum plant in Martorell (Barcelona).
- CEO Joan Oriola Lledo will continue leading Envaplast; advisory firm Efe&Ene advised on the transaction.
Greif reported Q3 2026 adjusted EPS of EUR 1.39, ahead of consensus of EUR 0.95, on revenue of EUR 1.00bn, up 2.72% year on year. Management raised full-year adjusted EBITDA guidance to USD 615m-635m and flagged further bolt-on acquisitions, having already agreed to buy Spanish polymer container maker Envaplast. The company also reported it reached a USD 90m run-rate cost-optimisation milestone ahead of schedule, targeting USD 120m by the end of the next fiscal year.
Why this mattersA guidance raise alongside continued deleveraging gives Greif room for further bolt-on M&A, a signal peers may read as a resumption of consolidation in speciality plastics packaging.
- Q3 2026 adjusted EPS was EUR 1.39, beating consensus of EUR 0.95
- Q3 2026 revenue was EUR 1.00bn, up 2.72% year on year
- Full-year adjusted EBITDA guidance raised to USD 615m-635m, implying 10%-13% year-on-year growth
- Greif reached a USD 90m run-rate cost-optimisation milestone ahead of schedule, targeting USD 120m by the end of the next fiscal year
- Management said further bolt-on acquisitions are expected, targeting EBITDA margins above 18% and free cash flow conversion above 50%
- The results disclosure referenced Greif's recently agreed acquisition of Spanish polymer container maker Envaplast
