Packaging Corp of America (PKG) saw its stock plummet 5.21% in pre-market trading on Wednesday after the company reported weaker-than-expected fourth-quarter earnings results. The containerboard and corrugated packaging manufacturer missed analyst estimates for both earnings per share (EPS) and revenue.

For Q4 2024, PKG reported a net income of $221 million or $2.45 per share, falling short of the consensus EPS estimate of $2.54. Revenue came in at $2.1 billion, below the forecasted $2.13 billion. Despite higher shipments and prices across its Packaging and Paper segments, the company's profitability was impacted by rising operating costs, scheduled maintenance expenses, higher depreciation, and elevated freight and logistics expenses.

While the company achieved a 9.1% year-over-year increase in corrugated product shipments in the Packaging segment and a 5% sales volume growth in the Paper segment, these gains were offset by cost pressures. CEO Mark W. Kowlzan acknowledged the strong demand but highlighted the need to manage costs and improve product mix to sustain profitability. Looking ahead, PKG expects continued robust packaging demand but anticipates some seasonal slowdown, underscoring the importance of operational adjustments to navigate challenges and capitalize on growth opportunities.