Smurfit Westrock Reports First Quarter 2026 Results
Key Terms
Adjusted EBITDA1 financial
Adjusted EBITDA Margin1 financial
Adjusted Basic EPS 1 financial
non-GAAP financial measures financial
Key Points:
-
Net Sales of
$7,712 million -
Net Income of
, with a Net Income Margin of$63 million 0.8% -
Adjusted EBITDA1 of
, with an Adjusted EBITDA Margin1 of$1,076 million 14.0% -
Net Cash Provided by Operating Activities of
$204 million -
Quarterly dividend of
per ordinary share$0.4523
Smurfit Westrock plc’s performance for the three months ended March 31, 2026 and 2025 (in millions, except margins and per share data):
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Net Sales |
$ |
7,712 |
$ |
7,656 |
|
Net Income |
$ |
63 |
$ |
382 |
|
Net Income Margin |
|
|
|
|
|
Adjusted EBITDA1 |
$ |
1,076 |
$ |
1,252 |
|
Adjusted EBITDA Margin1 |
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
204 |
$ |
235 |
|
Basic EPS |
$ |
0.12 |
$ |
0.74 |
|
Adjusted Basic EPS1 |
$ |
0.33 |
$ |
0.68 |
|
Tony Smurfit, President and CEO, commented:
“Against the backdrop of continued macro uncertainty we have delivered a solid first quarter performance, generating an Adjusted EBITDA1 of
“Our Net Income and Adjusted EBITDA1 for the first quarter were negatively impacted by
“Our North American business represents our largest value creation opportunity. Demand across all paper grades improved progressively during the quarter. Reflecting this, containerboard pricing increased by a net
“Our EMEA & APAC business continues to significantly outperform our peers with continued growth during the quarter with an improving demand profile and customer wins. Containerboard prices increased during March and April, primarily as a result of increased energy costs and better demand. Our corrugated business will be implementing this containerboard increase with the usual time-lag, which we expect to happen in the second half of the year. As part of our continued asset optimization program, we have entered into consultations at one of our
“Our Latin American business delivered another strong performance in the quarter with an Adjusted EBITDA margin of approximately
“Our recently announced Medium-Term Plan targets an accelerated path to growth to 2030 and beyond through strong operational performance and disciplined capital allocation. We are focused on unlocking the full potential of
Dividend
Smurfit Westrock plc announced today that its Board approved a quarterly dividend of
Review of LSE Listing
Smurfit Westrock is undertaking a review of its listing on the London Stock Exchange (“LSE”). The outcome of the review may result in Smurfit Westrock delisting from the LSE. Smurfit Westrock’s primary listing on the New York Stock Exchange is not within the scope of the review.
It is anticipated that this review will be completed during May 2026 and an update will be provided to shareholders on conclusion of the review.
|
|
1 Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Basic EPS are non-GAAP measures. See the “Non-GAAP Financial Measures and Reconciliations” below for discussion and reconciliation of these measures to the most comparable GAAP measures. |
|
2 Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled Adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net income). |
|
Earnings Call
Management will host an earnings conference call today at 7:30 AM ET / 12:30 PM BST to discuss Smurfit Westrock’s financial results. The conference call will be accessible through a live webcast. Interested investors and other individuals can access the webcast, earnings release, and earnings presentation via the Company’s website at www.smurfitwestrock.com. The webcast will be available at https://investors.smurfitwestrock.com/overview and a replay of the webcast will be available on the website shortly after the call.
Forward Looking Statements
This press release includes certain “forward-looking statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business and financial, of Smurfit Westrock, the expected benefits of the completed combination of Smurfit Kappa Group plc and WestRock Company (the “Combination”) (including, but not limited to, synergies, as well as our scale, geographic reach and product portfolio), our medium-term plan, demand outlook, operating environment and the impact of announced closures and additional economic downtime and any other statements regarding the Company's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events, outlook or performance. Statements that are not historical facts, including statements about the beliefs and expectations of the management of the Company, are forward-looking statements. Words such as “may”, “will”, “could”, “should”, “would”, “anticipate”, “intend”, “estimate”, “project”, “plan”, “believe”, “expect”, “target”, “prospects”, “potential”, “commit”, “forecasts”, “aims”, “considered”, “likely” and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from the current expectations of the Company depending upon a number of factors affecting its business, including risks associated with the integration and performance of the Company following the Combination. Important factors that could cause actual results to differ materially from plans, estimates or expectations include: our ability to deliver on our medium-term plan; changes in demand environment; our ability to deliver on our closure plan and associated efforts; our future cash payments associated with these initiatives; potential future cost savings associated with such initiatives; the amount of charges and the timing of such charges or actions described herein; potential future impairment charges; accuracy of assumptions associated with the charges; economic, competitive and market conditions generally, including macroeconomic uncertainty, customer inventory rebalancing, the impact of inflation and increases in energy, raw materials, shipping, labor and capital equipment costs; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency (including the implementation of tariffs by the US federal government and reciprocal tariffs and other protectionist or retaliatory measures governments in
About Smurfit Westrock
Smurfit Westrock is a leading provider of paper-based packaging solutions in the world, with approximately 97,000 employees across 40 countries.
Condensed Consolidated Statements of Operations (Unaudited) (in millions, except per share data) |
|||||
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Net sales |
$ |
7,712 |
$ |
7,656 |
|
Cost of goods sold |
|
(6,444) |
|
(6,079) |
|
Gross profit |
|
1,268 |
|
1,577 |
|
Selling, general and administrative expenses |
|
(961) |
|
(973) |
|
Impairment and restructuring costs |
|
(54) |
|
(15) |
|
Transaction and integration-related expenses associated with the Combination |
|
- |
|
(36) |
|
Operating profit |
|
253 |
|
553 |
|
Interest expense, net |
|
(166) |
|
(167) |
|
Pension and other postretirement non-service income, net |
|
8 |
|
9 |
|
Other expense, net |
|
(11) |
|
(5) |
|
Income before income taxes |
|
84 |
|
390 |
|
Income tax expense |
|
(21) |
|
(8) |
|
Net income |
|
63 |
|
382 |
|
Net income attributable to noncontrolling interests |
|
2 |
|
2 |
|
Net income attributable to common shareholders |
$ |
65 |
$ |
384 |
|
|
|
|
|
|
|
Basic earnings per share attributable to common shareholders |
$ |
0.12 |
$ |
0.74 |
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shareholders |
$ |
0.12 |
$ |
0.73 |
|
Segment Information
We report our financial results of operations in the following three reportable segments:
-
North America , which includes operations in theU.S. ,Canada andMexico . -
Europe , theMiddle East andAfrica (“MEA”) andAsia-Pacific (“APAC”). -
Latin America (“LATAM”), which includes operations inCentral America and theCaribbean ,Argentina ,Brazil ,Chile ,Colombia ,Ecuador andPeru .
Segment profitability is measured based on Adjusted EBITDA, defined as income before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income, net, share-based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business.
Financial information by segment is summarized below (in millions, except margins). |
|
||||
|
|||||
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Net sales (unaffiliated customers) |
|
|
|
|
|
|
$ |
4,407 |
$ |
4,578 |
|
|
|
2,765 |
|
2,576 |
|
LATAM |
|
540 |
|
502 |
|
Total |
$ |
7,712 |
$ |
7,656 |
|
|
|
|
|
|
|
Add net sales (intersegment) |
|
|
|
|
|
|
$ |
95 |
$ |
91 |
|
|
|
6 |
|
6 |
|
LATAM |
|
- |
|
11 |
|
Total |
$ |
101 |
$ |
108 |
|
|
|
|
|
|
|
Net sales (aggregate) |
|
|
|
|
|
|
$ |
4,502 |
$ |
4,669 |
|
|
|
2,771 |
|
2,582 |
|
LATAM |
|
540 |
|
513 |
|
Total |
$ |
7,813 |
$ |
7,764 |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
$ |
597 |
$ |
785 |
|
|
|
421 |
|
389 |
|
LATAM |
|
109 |
|
115 |
|
Total |
$ |
1,127 |
$ |
1,289 |
|
|
|
|
|
|
|
Adjusted EBITDA Margin1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATAM |
|
|
|
|
|
|
|
||||
1 Adjusted EBITDA / Net sales (aggregate) |
|||||
Condensed Consolidated Balance Sheets (Unaudited) (in millions, except share and per share data) |
|
|
|||
|
|
||||
|
|
March 31, 2026 |
|
December 31, 2025 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents (amounts related to consolidated variable interest |
|
|
|||
entities of |
|
|
|||
2025, respectively) |
$ | 674 |
$ |
892 |
|
Accounts receivable, net (amounts related to consolidated variable interest |
|
|
|
|
|
entities of |
|
|
|||
December 31, 2025, respectively) |
4,644 |
4,268 |
|||
Inventories |
|
3,583 |
|
3,693 |
|
Other current assets |
|
1,651 |
|
1,586 |
|
Total current assets |
|
10,552 |
|
10,439 |
|
Property, plant and equipment, net |
|
22,900 |
|
23,232 |
|
Goodwill |
|
7,186 |
|
7,218 |
|
Intangibles, net |
|
1,036 |
|
1,059 |
|
Prepaid pension asset |
|
642 |
|
616 |
|
Other non-current assets (amounts related to consolidated variable interest |
|
|
|
|
|
entities of |
|
|
|||
December 31, 2025, respectively) |
|
2,854 |
|
2,593 |
|
Total assets |
$ |
45,170 |
$ |
45,157 |
|
Liabilities and Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
3,344 |
$ |
3,597 |
|
Accrued expenses |
|
636 |
|
601 |
|
Accrued compensation and benefits |
|
832 |
|
997 |
|
Current portion of debt |
|
980 |
|
346 |
|
Other current liabilities |
|
1,522 |
|
1,523 |
|
Total current liabilities |
|
7,314 |
|
7,064 |
|
Non-current debt due after one year (amounts related to consolidated variable |
|
|
|
|
|
interest entities of |
|
|
|||
December 31, 2025, respectively) |
|
13,275 |
|
13,427 |
|
Deferred tax liabilities |
|
3,410 |
|
3,297 |
|
Pension liabilities and other postretirement benefits, net of current portion |
|
686 |
|
697 |
|
Other non-current liabilities (amounts related to consolidated variable interest |
|
|
|
|
|
entities of |
|
|
|||
December 31, 2025, respectively) |
|
2,402 |
|
2,318 |
|
Total liabilities |
|
27,087 |
|
26,803 |
|
Equity: |
|
|
|
|
|
Preferred stock, |
|
|
|||
shares outstanding |
|
- |
|
- |
|
Common stock, |
|
|
|||
524,457,866 and 522,310,486 shares outstanding at March 31, 2026 and |
|
|
|||
December 31, 2025, respectively |
1 |
|
1 |
||
Treasury stock, at cost; 706,129 and 1,449,320 common stock at March 31, |
|
|
|
|
|
2026 and December 31, 2025, respectively |
|
(34) |
|
(64) |
|
Capital in excess of par value |
|
16,095 |
|
16,083 |
|
Accumulated other comprehensive loss |
|
(401) |
|
(348) |
|
Retained earnings |
|
2,397 |
|
2,655 |
|
Total shareholders’ equity |
|
18,058 |
|
18,327 |
|
Noncontrolling interests |
|
25 |
|
27 |
|
Total equity |
|
18,083 |
|
18,354 |
|
Total liabilities and equity |
$ |
45,170 |
$ |
45,157 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) |
|||||
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Operating activities: |
|
|
|
|
|
Net income |
$ |
63 |
$ |
382 |
|
Adjustments to reconcile consolidated net income to net cash provided by |
|
|
|
|
|
operating activities: |
|||||
Depreciation, depletion and amortization |
|
728 |
|
603 |
|
Impairment of assets |
|
35 |
|
- |
|
Cash surrender value increase in excess of premiums paid |
|
(4) |
|
(5) |
|
Share-based compensation expense |
|
28 |
|
43 |
|
Deferred income tax benefit |
|
(36) |
|
(29) |
|
Pension and other postretirement funding more than cost |
|
(27) |
|
(23) |
|
Other |
|
(3) |
|
1 |
|
Change in operating assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
Accounts receivable |
|
(398) |
|
(342) |
|
Inventories |
|
101 |
|
(62) |
|
Other assets |
|
(48) |
|
(47) |
|
Accounts payable |
|
(44) |
|
(117) |
|
Income taxes |
|
(48) |
|
(70) |
|
Accrued liabilities and other |
|
(143) |
|
(99) |
|
Net cash provided by operating activities |
|
204 |
|
235 |
|
Investing activities: |
|
|
|
|
|
Capital expenditures |
|
(624) |
|
(477) |
|
Cash paid for purchase of businesses, net of cash acquired |
|
(18) |
|
(4) |
|
Proceeds from corporate owed life insurance |
|
3 |
|
- |
|
Proceeds from sale of property, plant and equipment |
|
9 |
|
- |
|
Other |
|
3 |
|
5 |
|
Net cash used for investing activities |
|
(627) |
|
(476) |
|
Financing activities: |
|
|
|
|
|
Additions to debt |
|
48 |
|
295 |
|
Repayments of debt |
|
(29) |
|
(65) |
|
Debt issuance costs |
|
(3) |
|
(5) |
|
Changes in commercial paper, net |
|
507 |
|
246 |
|
Other debt additions (repayments), net |
|
5 |
|
(16) |
|
Repayments of finance lease liabilities |
|
(14) |
|
(16) |
|
Proceeds from re-issuance of shares from treasury stock |
|
14 |
|
- |
|
Tax paid in connection with shares withheld from employees |
|
(83) |
|
(64) |
|
Cash dividends paid to shareholders |
|
(237) |
|
(225) |
|
Other |
|
1 |
|
1 |
|
Net cash provided by financing activities |
|
209 |
|
151 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(4) |
|
32 |
|
Decrease in cash and cash equivalents |
|
(218) |
|
(58) |
|
Cash and cash equivalents at beginning of period |
|
892 |
|
855 |
|
Cash and cash equivalents at end of period |
$ |
674 |
$ |
797 |
|
Non-GAAP Financial Measures and Reconciliations
Smurfit Westrock reports its financial results in accordance with accounting principles generally accepted in
Definitions
Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA” and “Adjusted EBITDA Margin” to evaluate its overall performance. The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net income before income tax expense, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income, net, share‑based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business.
Management believes Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock’s management, Board of Directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance relative to other periods because it adjusts out non‑recurring items that management believes are not indicative of the ongoing results of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales.
Smurfit Westrock uses the non-GAAP financial measure “Adjusted Basic EPS”. Management believes this measure provides Smurfit Westrock’s management, Board of Directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance because it excludes impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. Smurfit Westrock and its Board of Directors use this information when making financial, operating and planning decisions and when evaluating Smurfit Westrock’s performance relative to other periods. Smurfit Westrock believes that the most directly comparable GAAP measure to Adjusted Basic EPS is Basic earnings per share attributable to common shareholders (referred to as “Basic EPS”).
Reconciliations to Most Comparable GAAP Measure
Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for the periods indicated (in millions, except margins).
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Net income |
$ |
63 |
$ |
382 |
|
Income tax expense |
|
21 |
|
8 |
|
Depreciation, depletion and amortization |
|
728 |
|
603 |
|
Impairment and restructuring costs |
|
54 |
|
15 |
|
Transaction and integration-related expenses associated with the |
|
|
|
||
Combination |
- |
|
36 |
||
Interest expense, net |
|
166 |
|
167 |
|
Pension and other postretirement non-service income, net |
|
(8) |
|
(9) |
|
Share-based compensation expense |
|
28 |
|
43 |
|
Other expense, net |
|
11 |
|
5 |
|
Other adjustments |
|
13 |
|
2 |
|
Adjusted EBITDA |
$ |
1,076 |
$ |
1,252 |
|
|
|
|
|
|
|
Net Sales |
$ |
7,712 |
$ |
7,656 |
|
Net Income Margin1 |
|
|
|
|
|
Adjusted EBITDA Margin2 |
|
|
|
|
|
1 Net Income / Net Sales |
|||||
2 Adjusted EBITDA / Net Sales |
|||||
Set forth below is a reconciliation of the non-GAAP financial measure Adjusted Basic EPS to Basic EPS, the most directly comparable GAAP measure for the periods indicated.
|
|
Three months ended March 31, |
|||
|
|
2026 |
|
2025 |
|
Basic EPS |
$ |
0.12 |
$ |
0.74 |
|
Impairment and restructuring costs |
|
0.10 |
|
0.03 |
|
Accelerated depreciation related to machine closures |
|
0.13 |
|
- |
|
Transaction and integration-related expenses associated with the |
|
|
|
||
Combination |
|
- |
|
0.07 |
|
Other adjustments |
|
0.03 |
|
- |
|
Income tax on above items |
|
(0.05) |
|
(0.16) |
|
Adjusted Basic EPS |
$ |
0.33 |
$ |
0.68 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430761965/en/
Ciarán Potts
Smurfit Westrock
T: +353 1 202 71 27
E: ir@smurfitwestrock.com
FTI Consulting
T: +353 1 765 0800
E: smurfitwestrock@fticonsulting.com
Source: Smurfit Westrock plc