Packaging Corporation of America stock research
FY2025 Q4
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter and was slightly lower than the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter and was slightly lower than the same quarter last year.
- The gross margin weakened sequentially as cost of revenue increased at a faster pace than revenue. Compared to the same quarter last year, the margin was slightly lower despite higher revenue, indicating that cost growth outpaced revenue growth over the longer term.
- Sequentially, revenue was higher but gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, both revenue and gross profit were higher, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.9%
Gross profit
$447.5M
Revenue
$2.4B
Cost of revenue
$1.9B
Quarter-over-quarter change
-2.9 pts
Year-over-year change
-3.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $2.4B | $447.5M | $1.9B | 18.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.9 pts
Year-over-year change
Dec 31, 2024
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as cost of revenue increased at a faster pace than revenue. Compared to the same quarter last year, the margin was slightly lower despite higher revenue, indicating that cost growth outpaced revenue growth over the longer term.
Sequentially, revenue was higher but gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, both revenue and gross profit were higher, but gross margin was slightly lower.
Monitor the relationship between cost of revenue and revenue trends, as cost growth has outpaced revenue growth in both comparisons.