PCA posts earnings growth on improved pricing, Metsä Group swings to US$31M operating loss amid market headwinds

USA – Packaging Corporation of America (PCA) has reported third-quarter 2025 net income of US$246.7 million, or US$2.73 per share, excluding special items, up from US$238.8 million, or US$2.65 per share, in the same period last year.

Including one-time items tied to acquisitions and facility closures, earnings were US$2.51 per share, slightly below last year’s level.

Net sales climbed to US$2.31 billion, compared with US$2.18 billion in 2024, driven by stronger prices and product mix in both the packaging and paper segments.

Higher operating and freight costs, increased depreciation, and lower production volumes partly offset gains.

The packaging segment, PCA’s largest business, saw a 6% rise in sales to US$2.13 billion, bolstered by contributions from the newly acquired Greif containerboard business.

Corrugated product shipments rose 5.3% including acquisitions but slipped 1.1% in legacy operations. Segment operating income increased to US$347.9 million, up from US$321.6 million a year earlier.

PCA Chairman and CEO Mark W. Kowlzan said the company expects “higher per-day corrugated shipments” in Q4 but warned of seasonally lower prices and higher maintenance costs, particularly due to a planned outage at its DeRidder mill. PCA anticipates Q4 earnings per share of US$2.40.

The company, the third-largest containerboard producer in North America, operates ten mills and 93 corrugated products plants, serving key markets including food, e-commerce, and industrial packaging.

Metsä Group swings to US$31M operating loss amid market headwinds

Meanwhile, Metsä Group reported a comparable operating loss of €27 million (US$31 million) for the first nine months of 2025, reversing a €170 million (US$197.32m) profit a year earlier, as global demand softness and tariffs battered its pulp and paperboard operations.

While net sales rose to €4.51 billion (US$5.23bn) from €4.27 billion (US$4.96bn), profitability fell to -0.6% of sales.

Weak pulp demand in China and Europe, where prices dropped 7% and 5% respectively, led to production curtailments at the Joutseno mill.

Paperboard deliveries also fell, particularly in the U.S., where tariffs introduced in August dampened orders from the company’s key export markets.

The wood products division posted a €6 million loss (US$6.96m), while Metsä Tissue was a rare bright spot, improving its result to €21 million (US$24.37m) on stronger demand and cost savings.

To mitigate losses, Metsä launched a €300 million (US$348.21m) cost-cutting program, including 800 planned job reductions, mostly in Finland, as it braces for continued volatility in pulp and paperboard markets.

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