1) Financial Results Overview
- Q3 2026 net income was $262 million or $2.93 per share, up from $247 million or $2.73 per share in Q3 2025.
- Excluding special items, net income was $272 million or $3.40 per share.
- Net sales increased to $2.6 billion from $2.3 billion YoY.
- EBITDA, excluding special items, rose to $577 million from $503 million YoY.
- Special items included costs related to facility closures and a fire incident, impacting earnings by $0.11 per share.

2) Segment Performance
- Packaging Segment:
- Q3 EBITDA was $578 million with sales of $2.4 billion, yielding a margin of 23.9%, up from 23.1% YoY.
- Containerboard production reached 1.489 million tons, with legacy mills producing 1.28 million tons.
- Paper Segment:
- Q3 EBITDA was $34 million with sales of $163 million, resulting in a margin of 20.6%, down from 24.9% YoY.
- Sales volume was 0.9% above Q2 2026 but 2.5% below Q3 2025.

3) Operational Challenges and Cost Pressures
- Increased costs were noted in labor, freight, recycled fiber, and maintenance, totaling $0.28 per share impact on earnings.
- The company faced operational disruptions due to a fire at the Palmyra facility and annual maintenance outages at three containerboard mills.
- Despite these challenges, operational performance improved significantly compared to Q2 2026.

4) Guidance and Future Outlook
- Q4 2026 earnings are expected to be around $2.81 per share, excluding special items.
- Anticipated solid demand for corrugated products, with seasonal improvements expected.
- Price realization from previous increases is expected to continue into Q1 2027, with a split of the $70 increase between Q4 and Q1.
- The company is focused on capitalizing on synergies from the Greif acquisition, with a run rate of $40 million to $50 million in synergies, exceeding previous expectations.

5) Investor Considerations
- The earnings call did not provide specific guidance for 2027 CapEx or detailed projections beyond Q1 2027.
- There was a focus on ongoing operational improvements and capital projects, but no new major initiatives were disclosed.

Bottom line: Packaging Corporation of America demonstrated strong financial growth in Q3 2026, driven by improved pricing and operational efficiencies, despite facing cost pressures and operational challenges. The outlook for Q4 remains positive, with expectations for continued demand and price realization, positioning the company favorably for future growth.