Winners And Losers Of Q4: Packaging Corporation of America (NYSE:PKG) Vs The Rest Of The Industrial Packaging Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Packaging Corporation of America (NYSE:PKG) and the rest of the industrial packaging stocks fared in Q4.

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

The 8 industrial packaging stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.2%.

While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.

Weakest Q4: Packaging Corporation of America (NYSE:PKG)

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Packaging Corporation of America reported revenues of $2.36 billion, up 10.1% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “Corrugated shipments during the quarter were slightly down from record 2024 levels, and our results reflected a seasonally less rich mix with strong e-commerce volume through the holiday season and continued inventory management from other customers. Our order book strengthened as the fourth quarter progressed and we’ve seen significantly improved demand throughout our customer base so far in January. We made tremendous progress on the integration of the Greif business and have no planned outages at the acquired mills during the first half of the year. Our paper business performed well, with higher year-over-year volumes, strong price realization and exceptional customer service. We repurchased 760,000 shares during the quarter at an average price of $201 per share. On the whole, we had a very strong year with growth in our earnings excluding special items and operating cash flows, driven by the tremendous efforts of our employees and the benefits of our capital investments across our business and we are well positioned for continued profitable growth.”

Packaging Corporation of America delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 2% since reporting and currently trades at $219.10.

Read our full report on Packaging Corporation of America here, it’s free.

Best Q4: Sealed Air (NYSE:SEE)

Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.

Sealed Air reported revenues of $1.40 billion, up 2.1% year on year, outperforming analysts’ expectations by 3.8%. The business had a very strong quarter with an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ adjusted operating income estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $41.99.

Is now the time to buy Sealed Air? Access our full analysis of the earnings results here, it’s free.

International Paper (NYSE:IP)

Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

International Paper reported revenues of $6.01 billion, up 31.1% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 4.5% since the results and currently trades at $39.64.

Read our full analysis of International Paper’s results here.

Ball (NYSE:BALL)

Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Ball reported revenues of $3.35 billion, up 16.2% year on year. This result beat analysts’ expectations by 7.3%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and a narrow beat of analysts’ EBITDA estimates.

Ball achieved the biggest analyst estimates beat among its peers. The stock is up 10.2% since reporting and currently trades at $62.47.

Read our full, actionable report on Ball here, it’s free.

Silgan Holdings (NYSE:SLGN)

Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

Silgan Holdings reported revenues of $1.47 billion, up 4.1% year on year. This print surpassed analysts’ expectations by 0.6%. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 1.5% since reporting and currently trades at $44.41.

Read our full, actionable report on Silgan Holdings here, it’s free.

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