Packaging Corp. of America (PKG) risk factors, FY2024 10-K

Packaging Corp. of America's FY2024 10-K, filed Feb 27, 2025, lists 19 risk factors in 2 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
192 groups
Section length
4k wordsItem 1A

Packaging Corp. of America's biggest risks in the FY2024 10-K

  • Manufacturing costs and product pricing are exposed to fiber, fuel, chemical, inflation, and industry-cycle volatility.
  • Operations depend on mills, converting facilities, transportation providers, information systems, and unionized labor.
  • PCA faces substantial environmental compliance, debt-service, cybersecurity, and workforce risks.

The risks most specific to Packaging Corp. of America

  • Risks Related to our Operations, Business and Industry

    Industry Cyclicality – Changes in the prices of our products could materially affect our financial condition, results of operations, and liquidity

    Commodity packaging and paper prices, sales volumes, and margins can shift with macroeconomic conditions and industry capacity.

  • Risks Related to our Operations, Business and Industry

    Cost of Fiber – An increase in the cost of fiber could increase our manufacturing costs and lower our earnings

    Fiber costs and availability can worsen because of fuel costs, weather, logging conditions, geography, and regulatory activity.

  • Risks Related to our Operations, Business and Industry

    Cost of Purchased Fuels and Chemicals – An increase in the cost of purchased fuels and chemicals could lead to higher manufacturing costs, resulting in reduced earnings

    Volatile prices for natural gas, oil, bark, and chemicals can raise manufacturing costs and reduce earnings.

  • Risks Related to our Operations, Business and Industry

    Customer Concentration – We rely on certain large customers

    Losing large packaging or paper customers, or failing to renew competitively bid business, could reduce segment sales and profitability.

  • Risks Related to our Operations, Business and Industry

    Transportation Costs – Reduced truck and rail availability could lead to higher costs or poorer service, resulting in lower earnings, and harm our ability to distribute our products

    Truck shortages and rail interruptions could increase distribution costs, delay shipments, and impair customer service.

  • Risks Related to our Operations, Business and Industry

    Material Disruption of Operations – A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, reduce our sales, and/or negatively affect our results of operations and financial condition

    Unexpected outages, power failures, equipment breakdowns, or information-system failures at mills and other facilities could interrupt production.

  • Risks Related to our Operations, Business and Industry

    Cybersecurity – Risks related to security breaches of company, customer, employee, and vendor information, as well as the technology that manages our operations and other business processes, could adversely affect our business

    Cyberattacks or breaches could compromise company, customer, employee, or vendor information and disrupt manufacturing and business systems.

  • Risks Related to our Operations, Business and Industry

    Environmental Matters – PCA may incur significant environmental liabilities with respect to both past and future operations

    Environmental laws covering air, water, waste, and contaminated sites could produce significant cleanup costs, fines, or regulatory action.

  • Risks Related to our Operations, Business and Industry

    Labor Relations – If we experience strikes or other work stoppages, our business will be harmed

    Strikes or failed negotiations with the highly unionized workforce could stop operations and harm the business.

  • Financial Risks

    Debt obligations – Our debt service obligations may reduce our operating flexibility

    PCA's $2.5 billion of fixed-rate debt could constrain flexibility, while additional borrowing may increase leverage and debt-service demands.

All 19 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Forward Looking Statements

Risks Related to our Operations, Business and Industry

  1. 02General Economic Conditions – A deterioration in general economic conditions may harm our business, results of operations, cash flows, and financial position
  2. 03Industry Cyclicality – Changes in the prices of our products could materially affect our financial condition, results of operations, and liquidity
  3. 04Competition – The intensity of competition in the industries in which we operate could result in downward pressure on pricing and volume, which could lower earnings and operating cash flows
  4. 05Cost of Fiber – An increase in the cost of fiber could increase our manufacturing costs and lower our earnings
  5. 06Cost of Purchased Fuels and Chemicals – An increase in the cost of purchased fuels and chemicals could lead to higher manufacturing costs, resulting in reduced earnings
  6. 07Customer Concentration – We rely on certain large customers
  7. 08Transportation Costs – Reduced truck and rail availability could lead to higher costs or poorer service, resulting in lower earnings, and harm our ability to distribute our products
  8. 09Material Disruption of Operations – A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, reduce our sales, and/or negatively affect our results of operations and financial condition
  9. 10Extreme Weather Events – Our facilities are susceptible to extreme weather events, which could disrupt our business
  10. 11ESG – We may not achieve or make satisfactory progress on our goals and targets to reduce emissions and satisfy other ESG metrics
  11. 12Reliance on Personnel – We may fail to attract and retain qualified personnel, including key management personnel
  12. 13Cybersecurity – Risks related to security breaches of company, customer, employee, and vendor information, as well as the technology that manages our operations and other business processes, could adversely affect our business
  13. 14Environmental Matters – PCA may incur significant environmental liabilities with respect to both past and future operations
  14. 15Labor Relations – If we experience strikes or other work stoppages, our business will be harmed

Financial Risks

  1. 16Inflation and Other General Cost Increases – We may not be able to offset higher costs
  2. 17Debt obligations – Our debt service obligations may reduce our operating flexibility
  3. 18Pension Plans – Our pension plans may require additional funding
  4. 19Market Price of our Common Stock - The market price of our common stock may be volatile, which could cause the value of the stock to decline

Other Packaging Corp. of America 10-Ks

  • FY2025 10-K risk factors
    20 risks1 new4 reworded

    Debt increased to $4.0 billion, including $1.0 billion at floating rates, increasing interest-rate exposure and reducing flexibility.

    Filed Feb 26, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.