Smurfit Westrock Reports Third Quarter
October 28, 2026 –Smurfit Westrock plc (NYSE: SW) today announced the financial results for the third quarter ended September 30, 2026.
Smurfit Westrock plc’s performance for the three months ended September 30, 2026 and 2025 (in millions, except margins and per share data):
Tony Smurfit, President and CEO, commented: “Set against unprecedented cost inflation and somewhat weaker than anticipated converting volumes, our third quarter performance of Adjusted EBITDA of $1,205 million with an Adjusted EBITDA Margin of 14.8% represents a resilient performance. Across all our regions we continue to make good progress in implementing our owner operator model and developing our innovative packaging approach for our customers. We have also implemented significant pricing initiatives across most paper grades and we expect these should more than offset input costs as these increases are passed through.
“Our North American business continues to make good progress. The region reported Adjusted EBITDA of $760 million and an Adjusted EBITDA margin of 15.6% for the third quarter. We remain sold out in all containerboard grades, and most consumer grades, and our converting businesses in both business areas continue to improve. Our focus on quality and service, as well as investment in productivity and efficiency, is winning customers and has established a strong foundation for future performance. In both Corrugated and Consumer, we continue to see a reduction in loss makers and are optimizing our businesses to improve returns. Most importantly, I am particularly impressed with the expertise and commitment of our people that are leading the change towards a customer centric, performance-led culture.
“Our EMEA & APAC business continues to outperform in a market that is heavily impacted by rising energy costs. The region reported Adjusted EBITDA of $379 million and an Adjusted EBITDA margin of 13.4% for the third quarter. Containerboard price increases to offset costs have been implemented and are being passed on with the normal time lag. Our EMEA & APAC business is increasingly seen as the partner of choice due to our unrivalled product portfolio and our leadership and investment in innovation, sustainability, quality and service.
“In our Latin American region, during the third quarter, we announced our agreement to acquire the containerboard assets of CMPC in Chile. This acquisition further strengthens our leadership presence in Latin America as the only pan regional supplier, where we continue to see many opportunities for development. For the quarter, the region reported Adjusted EBITDA of $126 million and an Adjusted EBITDA margin of 21.4%. 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. 1 "For full year 2026, we now estimate our Adjusted EBITDA2 to be approximately $4.7 billion. This expected outcome primarily reflects the continued and unprecedented cost inflation we are experiencing. For example, for the full year 2026 we expect to absorb approximately $700 million of additional freight and energy costs alone, significantly more than anticipated. We have, and are, implementing price increases to more than offset these costs, the full benefits of which we expect to realize into 2027. Against what has been a challenging operating environment I am very proud of the efforts of all our people who have set the foundation for continued progress into 2027 and beyond.”
Smurfit Westrock plc announced today that its Board approved a quarterly dividend of $0.4523 per share on its ordinary shares. The quarterly dividend of $0.4523 per ordinary share is payable on December 10, 2026 to shareholders of record at the close of business on November 13, 2026.
Management will host an earnings conference call today at 7:30 AM ET / 11:30 AM GMT 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.
This press release includes certain “forward-looking statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) 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 (re-registered as Smurfit Kappa Group Limited) (“Smurfit Kappa”) and WestRock Company (“WestRock”) (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 unprecedented inflation and energy prices, announced closures and additional economic downtime, our ability to increase prices to offset elevated costs and pass through such increases and any other statements regarding Smurfit Westrock'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 Smurfit Westrock, 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; our ability to increase prices to offset elevated costs and pass through such increases; 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 U.S. federal government and reciprocal tariffs and other protectionist or retaliatory measures governments in Europe, Asia, and other countries have taken or may take in response); the impact of prolonged or recurring U.S. federal government shutdowns and any resulting volatility in the capital markets or interruptions in the Company’s access to capital; the impact of public health crises, such as pandemics and epidemics and any related company or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets; reduced supply of raw materials, energy and transportation, including from supply chain disruptions and labor shortages; developments related to pricing cycles and volumes; intense competition; the ability of the Company to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake or other weather-event, terrorist attack, war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man- made events, including the ability to function remotely during long-term disruptions; the Company's ability to respond to changing customer preferences and to protect intellectual property; the amount and timing of the Company's capital
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). 2 expenditures; risks related to international sales and operations; failures in the Company's quality control measures and systems resulting in faulty or contaminated products; cybersecurity risks, including threats to the confidentiality, integrity and availability of data in the Company's systems; works stoppages and other labor disputes; the Company’s ability to establish and maintain effective internal controls over financial reporting in accordance with the Sarbanes Oxley Act of 2002, as amended, and remediate any weaknesses in controls and processes; the Company's ability to retain or hire key personnel; risks related to sustainability matters, including climate change and scarce resources, as well as the Company's ability to comply with changing environmental laws and regulations; the Company's ability to successfully implement strategic transformation initiatives; results and impacts of acquisitions by the Company, including delays or failure to complete pending transactions, the incurrence of significant transaction costs, adverse market reactions, and regulatory or legal challenges; the Company's significant levels of indebtedness; the impact of the Combination on the Company's credit ratings; the potential impairment of assets and goodwill; the availability of sufficient cash to distribute dividends to the Company's shareholders in line with current expectations; the scope, costs, timing and impact of any restructuring of operations and corporate and tax structure; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions in Ireland, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent Irish, U.S. or other administrations; legal proceedings instituted against the Company; actions by third parties, including government agencies; the Company's ability to promptly and effectively integrate Smurfit Kappa's and WestRock's businesses; the Company's ability to achieve the synergies and value creation contemplated by the Combination; the Company's ability to meet expectations regarding the accounting and tax treatments of the Combination, including the risk that the Internal Revenue Service may assert that the Company should be treated as a U.S. corporation or be subject to certain unfavorable U.S. federal income tax rules under Section 7874 of the Internal Revenue Code of 1986, as amended, as a result of the Combination; other factors such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as changes in the political, social and regulatory framework in which the Company's group operates or in economic or technological trends or conditions, and other risk factors included in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company’s forward- looking statements speak only as of the date of this press release or as of the date they are made. Neither the Company nor any of its associates or directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any such forward-looking statements will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations, the Company is under no obligation, and the Company expressly disclaims any intention or obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Smurfit Westrock is a leading provider of paper-based packaging solutions in the world, with approximately 96,000 employees across 40 countries.
Ciarán Potts FTI Consulting Smurfit Westrock T: +353 1 202 71 27 T: +353 1 765 0800 E: ir@smurfitwestrock.com E: smurfitwestrock@fticonsulting.com
We report our financial results of operations in the following three reportable segments:
ii. Europe, the Middle East and Africa (“MEA” and together with Europe, “EMEA”) and Asia-Pacific (“APAC”).
Latin America (“LATAM”), which includes operations in Central America iii. and the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru.
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).
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents (amounts related to consolidated variable interest entities of $ 723 $ 892 $1 million and $3 million at September 30, 2026 and December 31, 2025, respectively) Accounts receivable, net (amounts related to consolidated variable interest entities of $858 million and 4,946 4,268 $876 million at September 30, 2026 and December 31, 2025, respectively) Inventories 3,768 3,693 Other current assets 1,697 1,586 Total current assets 11,134 10,439 Property, plant and 22,467 23,232 equipment, net Goodwill 7,153 7,218 Intangibles, net 991 1,059 Prepaid pension asset 712 616 Other non-current assets (amounts related to consolidated variable interest entities of $398 million and 2,688 2,593 $393 million at September 30, 2026 and December 31, 2025, respectively) Total assets $ 45,145 $ 45,157 Liabilities and Equity Current liabilities: Accounts payable $ 3,521 $ 3,597 Accrued expenses 712 601 Accrued compensation 900 997 and benefits Current portion of 842 346 debt Other current 1,569 1,523 liabilities Total current 7,544 7,064 liabilities Non-current debt due after one year (amounts related to consolidated variable interest entities of $365 13,207 13,427 million and $376 million at September 30, 2026 and December 31, 2025, respectively) Deferred tax 3,321 3,297 liabilities Pension liabilities and other postretirement 668 697 benefits, net of current portion Other non-current liabilities (amounts related to consolidated variable interest entities of $336 million and 2,391 2,318 $335 million at September 30, 2026 and December 31, 2025, respectively) Total liabilities 27,131 26,803 Equity: Preferred stock, $0.001 par value; 500,000,000 shares — — authorized; 10,000 shares outstanding Common stock, $0.001 par value; 9,500,000,000 shares authorized; 524,526,075 and 522,310,486 shares 1 1 outstanding at September 30, 2026 and December 31, 2025, respectively Treasury stock, at cost; 706,129 and 1,449,320 common stock at September (34 ) (64 ) 30, 2026, and December 31, 2025, respectively Capital in excess of 16,152 16,083 par value Accumulated other (364 ) (348 ) comprehensive loss Retained earnings 2,238 2,655 Total shareholders’ 17,993 18,327 equity Noncontrolling 21 27 interests Total equity 18,014 18,354 Total liabilities and $ 45,145 $ 45,157 equity
Smurfit Westrock reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide Smurfit Westrock’s Board of Directors, investors, potential investors, securities analysts and others with additional meaningful financial information that should be considered when assessing its ongoing performance. Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative for, the GAAP results. The non-GAAP financial measures we present may differ from similarly captioned measures presented by other companies. Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “Adjusted Basic Earnings Per Share” (referred to as “Adjusted Basic EPS”). We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
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”). 8 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).
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.
Full text with the tables
Exhibit 99.1
www.smurfitwestrock.com
Smurfit Westrock Reports Third Quarter
2026 Results
October 28, 2026 –Smurfit Westrock plc (NYSE:
SW) today announced the financial results for the third quarter ended September
30, 2026.
Key Points:
• Net Sales of $8,161 million
• Net Income of $219 million, with a Net Income Margin of 2.7%
• Adjusted EBITDA1 of $1,205 million, with an Adjusted EBITDA Margin1 of
14.8%
• Net Cash Provided by Operating Activities of $874 million
• Quarterly dividend of $0.4523 per ordinary share
Smurfit Westrock plc’s performance for the three months
ended September 30, 2026 and 2025 (in millions, except margins and per share
data):
Three months ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net Sales $ 8,161 $ 8,003
Net Income $ 219 $ 245
Net Income Margin 2.7 % 3.1 %
Adjusted EBITDA1 $ 1,205 $ 1,302
Adjusted EBITDA Margin1 14.8 % 16.3 %
Net Cash Provided by
Operating $ 874 $ 1,133
Activities
Basic EPS $ 0.42 $ 0.47
Adjusted Basic EPS1 $ 0.45 $ 0.58
Tony Smurfit, President and CEO, commented:
“Set against unprecedented cost inflation and somewhat
weaker than anticipated converting volumes, our third quarter performance of
Adjusted EBITDA of $1,205 million with an Adjusted
EBITDA Margin of 14.8% represents a resilient performance. Across all our
regions we continue to make good progress in implementing
our owner operator model and developing our innovative packaging approach for
our customers. We have also implemented significant pricing
initiatives across most paper grades and we expect these should more than offset
input costs as these increases are passed through.
“Our North American business continues to make good
progress. The region reported Adjusted EBITDA of $760 million and an Adjusted
EBITDA margin of 15.6% for the third quarter. We remain
sold out in all containerboard grades, and most consumer grades, and our
converting businesses in both business areas continue to improve.
Our focus on quality and service, as well as investment in productivity and
efficiency, is winning customers and has established a strong
foundation for future performance. In both Corrugated and Consumer, we continue
to see a reduction in loss makers and are optimizing our
businesses to improve returns. Most importantly, I am particularly impressed
with the expertise and commitment of our people that are
leading the change towards a customer centric, performance-led culture.
“Our EMEA & APAC business continues to outperform
in a market that is heavily impacted by rising energy costs. The region reported
Adjusted EBITDA of $379 million and an Adjusted EBITDA
margin of 13.4% for the third quarter. Containerboard price increases to offset
costs have been implemented and are being passed on with
the normal time lag. Our EMEA & APAC business is increasingly seen as the
partner of choice due to our unrivalled product portfolio
and our leadership and investment in innovation, sustainability, quality and
service.
“In our Latin American region, during the third quarter,
we announced our agreement to acquire the containerboard assets of CMPC in
Chile. This acquisition further strengthens our leadership
presence in Latin America as the only pan regional supplier, where we continue
to see many opportunities for development. For the quarter,
the region reported Adjusted EBITDA of $126 million and an Adjusted EBITDA
margin of 21.4%.
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.
1
"For full year 2026,
we now estimate our Adjusted EBITDA2 to be approximately $4.7 billion. This
expected
outcome primarily reflects the continued and unprecedented cost inflation we are
experiencing. For example, for the full year 2026 we
expect to absorb approximately $700 million of additional freight and energy
costs alone, significantly more than anticipated. We have,
and are, implementing price increases to more than offset these costs, the full
benefits of which we expect to realize into 2027. Against
what has been a challenging operating environment I am very proud of the efforts
of all our people who have set the foundation for continued
progress into 2027 and beyond.”
Dividend
Smurfit Westrock plc announced today that its Board approved a quarterly
dividend of $0.4523 per share on its ordinary shares. The quarterly dividend of
$0.4523 per ordinary share is payable on December 10,
2026 to shareholders of record at the close of business on November 13, 2026.
Earnings Call
Management will host an earnings conference call today at
7:30 AM ET / 11:30 AM GMT 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 (the “Securities Act”),
and Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) 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 (re-registered as Smurfit Kappa Group
Limited) (“Smurfit Kappa”) and WestRock Company
(“WestRock”) (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 unprecedented inflation and energy
prices, announced closures and additional economic downtime, our ability to
increase prices to offset elevated costs and pass through
such increases and any other statements regarding Smurfit Westrock'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 Smurfit Westrock, 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; our
ability to increase prices to offset elevated costs and pass
through such increases; 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 U.S. federal government and reciprocal
tariffs and other protectionist or retaliatory measures governments
in Europe, Asia, and other countries have taken or may take in response); the
impact of prolonged or recurring U.S. federal government
shutdowns and any resulting volatility in the capital markets or interruptions
in the Company’s access to capital; the impact of
public health crises, such as pandemics and epidemics and any related company or
governmental policies and actions to protect the health
and safety of individuals or governmental policies or actions to maintain the
functioning of national or global economies and markets;
reduced supply of raw materials, energy and transportation, including from
supply chain disruptions and labor shortages; developments
related to pricing cycles and volumes; intense competition; the ability of the
Company to successfully recover from a disaster or other
business continuity problem due to a hurricane, flood, earthquake or other
weather-event, terrorist attack, war, pandemic, security breach,
cyber-attack, power loss, telecommunications failure or other natural or man-
made events, including the ability to function remotely during
long-term disruptions; the Company's ability to respond to changing customer
preferences and to protect intellectual property; the amount
and timing of the Company's capital
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).
2
expenditures; risks related to international sales and operations;
failures in the Company's quality control measures and systems resulting in
faulty or contaminated products; cybersecurity risks, including
threats to the confidentiality, integrity and availability of data in the
Company's systems; works stoppages and other labor disputes;
the Company’s ability to establish and maintain effective internal controls over
financial reporting in accordance with the Sarbanes
Oxley Act of 2002, as amended, and remediate any weaknesses in controls and
processes; the Company's ability to retain or hire key personnel;
risks related to sustainability matters, including climate change and scarce
resources, as well as the Company's ability to comply with
changing environmental laws and regulations; the Company's ability to
successfully implement strategic transformation initiatives; results
and impacts of acquisitions by the Company, including delays or failure to
complete pending transactions, the incurrence of significant
transaction costs, adverse market reactions, and regulatory or legal challenges;
the Company's significant levels of indebtedness; the
impact of the Combination on the Company's credit ratings; the potential
impairment of assets and goodwill; the availability of sufficient
cash to distribute dividends to the Company's shareholders in line with current
expectations; the scope, costs, timing and impact of any
restructuring of operations and corporate and tax structure; evolving legal,
regulatory and tax regimes; changes in economic, financial,
political and regulatory conditions in Ireland, the United States and elsewhere,
and other factors that contribute to uncertainty and
volatility, natural and man-made disasters, civil unrest, geopolitical
uncertainty, and conditions that may result from legislative, regulatory,
trade and policy changes associated with the current or subsequent Irish, U.S.
or other administrations; legal proceedings instituted
against the Company; actions by third parties, including government agencies;
the Company's ability to promptly and effectively integrate
Smurfit Kappa's and WestRock's businesses; the Company's ability to achieve the
synergies and value creation contemplated by the Combination;
the Company's ability to meet expectations regarding the accounting and tax
treatments of the Combination, including the risk that the
Internal Revenue Service may assert that the Company should be treated as a U.S.
corporation or be subject to certain unfavorable U.S.
federal income tax rules under Section 7874 of the Internal Revenue Code of
1986, as amended, as a result of the Combination; other factors
such as future market conditions, currency fluctuations, the behavior of other
market participants, the actions of regulators and other
factors such as changes in the political, social and regulatory framework in
which the Company's group operates or in economic or technological
trends or conditions, and other risk factors included in the Company’s filings
with the Securities and Exchange Commission, including
the Company’s most recent Annual Report on Form 10-K. The Company’s forward-
looking statements speak only as of the date of
this press release or as of the date they are made. Neither the Company nor any
of its associates or directors, officers or advisers provides
any representation, assurance or guarantee that the occurrence of the events
expressed or implied in any such forward-looking statements
will actually occur. You are cautioned not to place undue reliance on these
forward-looking statements. Other than in accordance with
its legal or regulatory obligations, the Company is under no obligation, and the
Company expressly disclaims any intention or obligation,
to update or revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
About Smurfit Westrock
Smurfit Westrock is a leading provider of paper-based packaging
solutions in the world, with approximately 96,000 employees across 40 countries.
Contact
Ciarán Potts FTI Consulting
Smurfit Westrock
T: +353 1 202 71 27 T: +353 1 765 0800
E: ir@smurfitwestrock.com E: smurfitwestrock@fticonsulting.com
3
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
Three Nine
mont… mont…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 8,161 $ 8,003 $ 23,9… $ 23,5…
sal…
Cost
of (6,7… ) (6,4… ) (19,… ) (18,… )
goo…
sold
Gro… 1,440 1,569 4,107 4,661
pro…
Sel…
gen…
and (927 ) (963 ) (2,8… ) (2,8… )
adm…
exp…
Imp…
and (26 ) (65 ) (199 ) (360 )
res…
cos…
Tra…
and
int…
exp… — (15 ) (1 ) (72 )
ass…
with
the
Com…
Ope… 487 526 1,049 1,330
pro…
Int…
exp… (174 ) (177 ) (519 ) (526 )
net
Pen…
and
oth…
pos… 8 8 26 24
non…
inc…
net
Oth…
exp… (7 ) (21 ) (30 ) (44 )
net
Inc…
bef… 314 336 526 784
inc…
tax…
Inc…
tax (95 ) (91 ) (156 ) (183 )
exp…
Net 219 245 370 601
inc…
Net
loss
att… 3 1 6 1
to
non…
int…
Net
inc…
att… $ 222 $ 246 $ 376 $ 602
to
com…
sha…
Bas…
ear…
per
sha… $ 0.42 $ 0.47 $ 0.72 $ 1.15
att…
to
com…
sha…
Dil…
ear…
per
sha… $ 0.42 $ 0.47 $ 0.71 $ 1.14
att…
to
com…
sha…
4
Segment Information
We report our financial results of operations in the following three
reportable segments:
i. North America, which includes operations in the U.S., Canada and Mexico.
ii. Europe, the Middle East and Africa (“MEA” and together with Europe,
“EMEA”) and Asia-Pacific (“APAC”).
Latin America (“LATAM”), which includes operations in Central America
iii. and the Caribbean,
Argentina, Brazil, Chile, Colombia, Ecuador and Peru.
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 Nine
mont… mon…
Net ended end…
sal… Sept… Sep…
(un… 30, 30,
cus… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Nor… $ 4,750 $ 4,639 $ 13,8… $ 13,…
Ame…
Eur…
MEA 2,824 2,819 8,405 8,1…
and
APAC
LAT… 587 545 1,686 1,5…
Tot… $ 8,161 $ 8,003 $ 23,9… $ 23,…
Add
net
sal…
(in…
Nor… $ 109 $ 82 $ 291 $ 276
Ame…
Eur…
MEA 12 12 28 23
and
APAC
LAT… 1 — 1 14
Tot… $ 122 $ 94 $ 320 $ 313
Net
sal…
(ag…
Nor… $ 4,859 $ 4,721 $ 14,1… $ 14,…
Ame…
Eur…
MEA 2,836 2,831 8,433 8,1…
and
APAC
LAT… 588 545 1,687 1,5…
Tot… $ 8,283 $ 8,097 $ 24,2… $ 23,…
Adj…
EBI…
Nor… $ 760 $ 810 $ 2,061 $ 2,3…
Ame…
Eur…
MEA 379 419 1,180 1,1…
and
APAC
LAT… 126 116 359 354
Tot… $ 1,265 $ 1,345 $ 3,600 $ 3,8…
Adj…
EBI…
Mar…
Nor… 15.6 % 17.2 % 14.6 % 16.6 %
Ame…
Eur…
MEA 13.4 % 14.8 % 14.0 % 14.4 %
and
APAC
LAT… 21.4 % 21.3 % 21.3 % 22.5 %
3 Adjusted EBITDA
/ Net sales (aggregate)
5
Condensed Consolidated Balance Sheets (Unaudited)
(in millions, except share and per share data)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash
equivalents (amounts
related to
consolidated variable
interest entities of $ 723 $ 892
$1 million and $3
million at September
30, 2026 and
December 31, 2025,
respectively)
Accounts receivable,
net (amounts
related to
consolidated variable
interest entities of
$858 million and 4,946 4,268
$876 million at
September 30, 2026
and
December 31, 2025,
respectively)
Inventories 3,768 3,693
Other current assets 1,697 1,586
Total current assets 11,134 10,439
Property, plant and 22,467 23,232
equipment, net
Goodwill 7,153 7,218
Intangibles, net 991 1,059
Prepaid pension asset 712 616
Other non-current
assets (amounts
related to
consolidated variable
interest entities of
$398 million and 2,688 2,593
$393 million at
September 30, 2026
and
December 31, 2025,
respectively)
Total assets $ 45,145 $ 45,157
Liabilities and
Equity
Current liabilities:
Accounts payable $ 3,521 $ 3,597
Accrued expenses 712 601
Accrued compensation 900 997
and benefits
Current portion of 842 346
debt
Other current 1,569 1,523
liabilities
Total current 7,544 7,064
liabilities
Non-current debt due
after one year
(amounts related to
consolidated
variable interest
entities of $365 13,207 13,427
million and $376
million at September
30, 2026 and December
31, 2025,
respectively)
Deferred tax 3,321 3,297
liabilities
Pension liabilities
and other
postretirement 668 697
benefits, net of
current
portion
Other non-current
liabilities (amounts
related to
consolidated variable
interest entities of
$336 million and 2,391 2,318
$335 million at
September 30, 2026
and
December 31, 2025,
respectively)
Total liabilities 27,131 26,803
Equity:
Preferred stock,
$0.001 par value;
500,000,000 shares — —
authorized; 10,000
shares outstanding
Common stock, $0.001
par value;
9,500,000,000 shares
authorized;
524,526,075 and
522,310,486 shares 1 1
outstanding at
September 30, 2026
and
December 31, 2025,
respectively
Treasury stock, at
cost; 706,129 and
1,449,320 common
stock at September (34 ) (64 )
30,
2026, and December
31, 2025,
respectively
Capital in excess of 16,152 16,083
par value
Accumulated other (364 ) (348 )
comprehensive loss
Retained earnings 2,238 2,655
Total shareholders’ 17,993 18,327
equity
Noncontrolling 21 27
interests
Total equity 18,014 18,354
Total liabilities and $ 45,145 $ 45,157
equity
6
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Nine
Three mont…
mont… ended
ended Sept…
Ope… Sept… 30,
act… 30, 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 219 $ 245 $ 370 $ 601
inc…
Adj…
to
rec…
con…
net
inc…
to
net
cash
pro…
by
ope…
act…
Dep…
dep… 678 659 2,084 1,8…
and
amo…
Imp…
of 1 58 108 242
ass…
Cash
sur…
val…
inc…
in (6 ) (14 ) (31 ) (34 )
exc…
of
pre…
paid
Sha…
com… 21 35 76 114
exp…
Def…
inc…
tax 14 (12 ) (91 ) (139 )
exp…
(be…
Pen…
and
oth…
pos… (26 ) (24 ) (85 ) (83 )
fun…
more
than
cost
Oth… 2 15 1 21
Cha…
in
ope…
ass…
and
lia…
net
of
acq…
and
div…
Acc… (45 ) 185 (711 ) (249 )
rec…
Inv… (173 ) (4 ) (100 ) (59 )
Oth… (5 ) 28 19 (19 )
ass…
Acc… 68 (107 ) 163 (142 )
pay…
Inc… 20 (1 ) (29 ) 8
tax…
Acc…
lia… 106 70 69 61
and
oth…
Net
cash
pro… 874 1,133 1,843 2,1…
by
ope…
act…
Inv…
act…
Cap… (514 ) (610 ) (1,6… ) (1,… )
exp…
Cash
paid
for
pur…
of (1 ) — (20 ) (5 )
bus…
net
of
cash
acq…
Pro…
from
cor… 19 17 30 20
own…
life
ins…
Pro…
from
sale
of 20 15 39 15
pro…
pla…
and
equ…
Oth… (3 ) 10 — 15
Net
cash
used (479 ) (568 ) (1,5… ) (1,… )
for
inv…
act…
Fin…
act…
Add…
to 2 12 50 510
debt
Rep…
of (3 ) (25 ) (51 ) (146 )
debt
Debt
iss… (1 ) (2 ) (5 ) (8 )
cos…
Cha…
in
com… (83 ) (227 ) 363 (245 )
pap…
net
Oth…
debt
(re… (10 ) 2 10 (16 )
add…
net
Rep…
of
fin… (11 ) (6 ) (38 ) (29 )
lea…
lia…
Pro…
from
re-…
of — — 14 —
sha…
from
tre…
sto…
Tax
paid
in
con…
with 13 (1 ) (72 ) (68 )
sha…
wit…
from
emp…
Cash
div…
paid (238 ) (225 ) (712 ) (675 )
to
sha…
Oth… — 2 1 3
Net
cash
used (331 ) (470 ) (440 ) (674 )
for
fin…
act…
Eff…
of
exc…
rate
cha… (18 ) (22 ) (18 ) 37
on
cash
and
cash
equ…
Inc…
(de…
in
cash 46 73 (169 ) (4 )
and
cash
equ…
Cash
and
cash
equ… 677 778 892 855
at
beg…
of
per…
Cash
and
cash
equ… $ 723 $ 851 $ 723 $ 851
at
end
of
per…
7
Non-GAAP Financial Measures and Reconciliations
Smurfit Westrock reports its financial
results in accordance with accounting principles generally accepted in the
United States ("GAAP"). However, management believes
certain non-GAAP financial measures provide Smurfit Westrock’s Board of
Directors, investors, potential investors, securities analysts
and others with additional meaningful financial information that should be
considered when assessing its ongoing performance. Smurfit
Westrock management also uses these non-GAAP financial measures in making
financial, operating and planning decisions, and in evaluating
company performance. Non-GAAP financial measures are not intended to be
considered in isolation of or as a substitute for, or superior
to, financial information prepared and presented in accordance with GAAP and
should be viewed in addition to, and not as an alternative
for, the GAAP results. The non-GAAP financial measures we present may differ
from similarly captioned measures presented by other companies.
Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA”,
“Adjusted EBITDA Margin” and “Adjusted
Basic Earnings Per Share” (referred to as “Adjusted Basic EPS”). We discuss
below details of the non-GAAP financial
measures presented by us and provide reconciliations of these non-GAAP financial
measures to the most directly comparable financial measures
calculated in accordance with GAAP.
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”).
8
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 Nine
mont… mont…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 219 $ 245 $ 370 $ 601
inc…
Inc…
tax 95 91 156 183
exp…
Dep…
dep… 678 659 2,084 1,875
and
amo…
Imp…
and 26 65 199 360
res…
cos…
Tra…
and
int…
exp… — 15 1 72
ass…
with
the
Com…
Int…
exp… 174 177 519 526
net
Pen…
and
oth…
pos… (8 ) (8 ) (26 ) (24 )
non…
inc…
net
Sha…
com… 21 35 76 114
exp…
Oth…
exp… 7 21 30 44
net
Oth… (7 ) 2 12 16
adj…
Adj… $ 1,205 $ 1,302 $ 3,421 $ 3,767
EBI…
Net $ 8,161 $ 8,003 $ 23,9… $ 23,5…
Sal…
Net
Inc… 2.7 % 3.1 % 1.5 % 2.5 %
Mar…
Adj…
EBI… 14.8 % 16.3 % 14.3 % 16.0 %
Mar…
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 Nine
mont… mont…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Bas… $ 0.42 $ 0.47 $ 0.72 $ 1.15
EPS
Imp…
and 0.05 0.13 0.37 0.69
res…
cos…
Acc…
dep…
rel… 0.01 — 0.15 —
to
mac…
clo…
Tra…
and
int…
exp… — 0.03 — 0.14
ass…
with
the
Com…
Oth… (0.02 ) — 0.03 0.03
adj…
Inc… (0.01 ) (0.05 ) (0.13 ) (0.30 )
tax
Adj…
Bas… $ 0.45 $ 0.58 $ 1.14 $ 1.71
EPS
4 Net Income / Net
Sales
5 Adjusted EBITDA
/ Net Sales
9