Packaging Corporation of America (PCA) reported strong financial performance for the third quarter and the first nine months of 2024, with significant increases in net sales and net income compared to the same periods in 2023.

For the third quarter of 2024, PCA achieved net sales of $2,182.4 million, a 12.7% increase from $1,936.0 million in Q3 2023. This growth was primarily driven by the Packaging segment, which saw sales rise by 14.1% to $2,008.7 million, attributed to higher volumes and increased prices. Gross profit for the quarter also improved, reaching $505.2 million, up from $412.7 million in the prior year. Net income for Q3 2024 was $238.1 million, compared to $183.2 million in Q3 2023, reflecting a 30% increase. Earnings per diluted share rose to $2.64 from $2.03.

For the nine months ended September 30, 2024, PCA reported net sales of $6,237.2 million, a 6.4% increase from $5,864.5 million in the same period of 2023. Net income for this period was $584.0 million, up from $576.0 million, with earnings per diluted share increasing to $6.48 from $6.38. The Packaging segment's net sales for the nine months rose by 6.7% to $5,715.3 million, driven by higher containerboard and corrugated products volumes.

PCA's operating income for Q3 2024 was $327.1 million, an increase from $258.6 million in Q3 2023. The company reported a consolidated EBITDA of $459.8 million for the quarter, up from $387.9 million in the previous year. The Packaging segment's EBITDA also saw a significant rise, reaching $444.8 million compared to $374.3 million in Q3 2023.

In terms of strategic developments, PCA recorded charges related to the closure of corrugated products facilities and the discontinuation of UFS paper grades production, amounting to $0.9 million and $9.7 million, respectively, for the nine months ended September 30, 2024. The company also accrued $127.7 million related to the DeRidder Mill incident, which includes compensatory damages and interest, while maintaining a receivable for insurance recovery of the same amount.

As of September 30, 2024, PCA's total assets increased to $8,753.8 million from $8,681.1 million at the end of 2023. Cash and cash equivalents rose to $676.6 million, up from $648.0 million. The company’s total stockholders' equity also increased to $4,263.6 million from $3,997.3 million at the end of 2023.

Overall, PCA's financial results reflect a robust performance driven by strong demand in the Packaging segment, effective cost management, and strategic operational adjustments.