Packaging Corp. of America (PKG) risk factors, FY2025 10-K

Packaging Corp. of America's FY2025 10-K, filed Feb 26, 2026, lists 20 risk factors in 2 groups. Against the prior year's 19: 1 new, 4 substantially reworded.

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Risk factors listed
202 groups
New this year
1vs 19 last year
Dropped
0since the prior 10-K
Substantially reworded
4of those kept
Section length
4k wordsItem 1A

What the changes say

  • Debt increased to $4.0 billion, including $1.0 billion at floating rates, increasing interest-rate exposure and reducing flexibility.
  • The Greif containerboard acquisition creates integration, transition-services, systems, cost, delay, and management-attention risks.
  • Recycled-fiber exposure expanded to eight mills and 1.15 million tons purchased in 2025.
  • Company costs rose to $7.7 billion, making a 1% cost increase worth $77 million.

What changed since the prior 10-K

New

  • NewRisks Related to our Operations, Business and Industry

    Acquisition Integration – The business may underperform relative to our expectations, and we may not be able to successfully integrate the business into our existing business

    Integrating Greif’s acquired containerboard business may cause underperformance, delays, higher costs, management distraction, or difficulty replacing Seller-provided transition services.

Reworded

  • 43% rewrittenRisks Related to our Operations, Business and Industry

    ESG – We may not achieve or make satisfactory progress on our goals and targets to reduce emissions and satisfy other ESG metrics

    The risk now emphasizes evolving and inconsistent mandatory or voluntary reporting, third-party data, and differing ESG scoring methodologies rather than missed company-set emissions goals.

  • 36% rewrittenRisks 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

    Recycled fiber is now purchased at eight containerboard mills instead of six, and 2025 purchases increased to approximately 1,150,000 tons from 1,040,000 tons.

  • 31% rewrittenFinancial Risks

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

    Debt increased from $2.5 billion to $4.0 billion, the undrawn revolver from $323 million to $573 million, and $1.0 billion now carries floating rates.

  • 29% rewrittenFinancial Risks

    Inflation and Other General Cost Increases – We may not be able to offset higher costs

    Total costs increased from $7.2 billion to $7.7 billion, cash costs from $6.6 billion to $7.0 billion, and the estimated 1% impact from $72 million to $77 million.

All 20 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 earnings36% rewritten
  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 metrics43% rewritten
  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
  15. 16Acquisition Integration – The business may underperform relative to our expectations, and we may not be able to successfully integrate the business into our existing businessNew

Financial Risks

  1. 17Inflation and Other General Cost Increases – We may not be able to offset higher costs29% rewritten
  2. 18Debt obligations – Our debt service obligations may reduce our operating flexibility31% rewritten
  3. 19Pension Plans – Our pension plans may require additional funding
  4. 20Market 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

  • FY2024 10-K risk factors
    19 risks

    Manufacturing costs and product pricing are exposed to fiber, fuel, chemical, inflation, and industry-cycle volatility.

    Filed Feb 27, 2025

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.