Packaging Corporation of America stock research
FY2025 Q3
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly higher than the prior quarter but nearly unchanged from a year ago. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened relative to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly higher than the prior quarter but nearly unchanged from a year ago. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened relative to both periods.
- The gross margin declined from the prior quarter and from the same quarter a year earlier, driven by a proportionally larger increase in cost of revenue relative to revenue. Revenue growth was outpaced by cost growth, compressing the margin.
- Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was essentially stable, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.8%
Gross profit
$504.3M
Revenue
$2.3B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $2.3B | $504.3M | $1.8B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.4 pts
Year-over-year change
Sep 30, 2024
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter and from the same quarter a year earlier, driven by a proportionally larger increase in cost of revenue relative to revenue. Revenue growth was outpaced by cost growth, compressing the margin.
Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was essentially stable, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin compression.