Packaging Corporation of America stock research
FY2025 Q2
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Jun 30, 2025
The decrease in gross margin was driven by cost of revenue growing faster than revenue. Gross profit improved compared with both the prior quarter and the same quarter last year, supported by higher revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
The decrease in gross margin was driven by cost of revenue growing faster than revenue. Gross profit improved compared with both the prior quarter and the same quarter last year, supported by higher revenue.
- Cost of revenue increased from both the immediately preceding quarter and the same quarter one year earlier, while revenue also rose, leading to a higher gross profit but a slightly lower gross margin.
- Compared with the prior quarter, gross margin weakened. Versus the same quarter one year ago, gross margin was roughly stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.2%
Gross profit
$483.0M
Revenue
$2.2B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $2.2B | $505.2M | $1.7B | 23.1% |
| Dec 31, 2024 | $2.1B | $469.7M | $1.7B | 21.9% |
| Mar 31, 2025 | $2.1B | $454.7M | $1.7B | 21.2% |
| Jun 30, 2025 | $2.2B | $483.0M | $1.7B | 22.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.0 pts
Year-over-year change
Jun 30, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue increased from both the immediately preceding quarter and the same quarter one year earlier, while revenue also rose, leading to a higher gross profit but a slightly lower gross margin.
Compared with the prior quarter, gross margin weakened. Versus the same quarter one year ago, gross margin was roughly stable.
Monitor the trend in cost of revenue relative to revenue, as it has a direct impact on gross margin.