PACKAGING CORP OF AMERICA Q4 FY2024 earnings call

• Fourth quarter 2024 net income $221 million ($2.45 per share), excluding special items $222 million ($2.47 per share). Net sales fourth quarter 2024 record $1 billion, full year 2024 net sales $8.4 billion. • Packaging segment had strong demand, corrugated plants and mills set records. Paper segment margin matched 2023. • Capital spending program delivering operational benefits and minimizing inflation impact. • Announced price increases for linerboard and medium effective Jan 1, 2025.

Packaging Segment: Fourth quarter 2024 EBITDA excluding special items was $426 million with sales of almost $2 billion, margin 22%; full year 2024 EBITDA excluding special items $6 billion, sales $7.7 billion, margin 21%. Paper Segment: Fourth quarter 2024 EBITDA excluding special items was $39 million with sales $152 million, margin 26%; full year 2024 EBITDA excluding special items $154 million, sales $625 million, margin 25%.

• First quarter 2025 earnings expected $2.21. • 2025 CapEx range $840M - $870M. • 2025 book effective tax rate 25%. • Planned mill outages in 2025 expected to total $1.18, impact per quarter: Q1 $0.23, Q2 $0.32, Q3 $0.18, Q4 $0.45 per share.

• RISI Pulp and Paper Week publication inaccuracies in reporting containerboard prices. • Weather impact on volume and costs. • Inflation across cost structure affecting operating costs.

Q: Talk about bookings and billings to start the quarter and inefficiencies from volume increase.

A: Bookings and billings up 8% in Jan. Volume increase causes some inefficiencies but employees handling it.

Q: Sequential move from 4Q to 1Q cost factors and pricing.

A: Cost movements include mill mix, weather, timing items. Pricing on linerboard and medium set with customers, moving away from RISI tie.

Q: Operating rate and capacity addition at Counce and Valdosta.

A: Running hard, flexibility in optimizing system, projects at Counce and Valdosta in next couple years.

Q: Sequential numbers on corrugated price realization and export.

A: Some movement due to price increases, mix changes, inventory and export volume.

Q: CapEx guide and box plant projects.

A: CapEx range $840M - $870M, big box plant projects like Ohio, Glendale, reconfigurations, immediate benefits from new plants.