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Smurfit Westrock Plc SW reported earnings of 58 cents per share in third-quarter 2025, missing the Zacks Consensus Estimate of 68 cents by 14.7%. The company reported earnings of 53 cents in the year-ago quarter.
Smurfit Westrock was created through the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. The combined company has been reporting unified results since the third quarter of 2024. However, the year-ago quarter results excluded the financial results of legacy WestRock for the first five days of July as the combination closed on July 5, 2024.
Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC Quote
Smurfit Westrock’s net sales in the third quarter of 2025 were $8 billion, which beat the Zacks Consensus Estimate of $7.98 billion. The year-ago quarter’s sales were $7.67 billion.
The reported cost of sales was $6.43 billion in the third quarter of 2025, up 1.8% year over year. The gross profit increased 16% year over year to $1.57 billion. The gross margin was 19.6% compared with 17.6% in the year-ago quarter.
Selling, general and administrative expenses were down 4.7% year over year to $960 million. Operating profit was $526 million, marking a significant improvement from $55 million reported in the year-ago quarter.
The adjusted EBITDA was $1.3 billion compared with $1.26 billion in the year-ago quarter. The adjusted EBITDA margin was 16.3% compared with 16.5% in the year-ago quarter.
The company operates under three reportable segments.
Europe, MEA & APAC: This segment includes operations in Europe, the Middle East and Africa, and the Asia Pacific. Sales for the segment were $2.82 billion, up 6.5% year over year. The segment’s adjusted EBITDA was up 2% year over year to $419 million.
North America: This segment includes operations in the United States, Canada and Mexico. Sales for the North America segment were $4.6 billion, a 2% increase from the year-ago quarter. The segment’s adjusted EBITDA rose 4% to $810 million from the year-ago quarter’s $780 million.
LATAM: This segment includes operations in Central America and the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. Sales for this segment were $545 million, up 10% year over year. The segment’s adjusted EBITDA was $116 million, in line with the year-ago quarter.
SW had cash and cash equivalents of $851 million at the end of the third quarter of 2025 compared with $855 million as of the end of 2024.
Net cash provided by operating activities was $1,133 million compared with $320 million in the year-ago quarter. The company announced a quarterly dividend of 43.08 cents per share. It will be paid out on Dec. 18, 2025, to shareholders of record at the close of business on Nov. 14, 2025.
Smurfit Westrock expects adjusted EBITDA in 2025 to be $4.9-$5.1 billion, lower than the earlier projection of $5-$5.2 billion. This reflects additional economic downtime in the fourth quarter to optimize its system.
The company had reported 2024 adjusted EBITDA of $4.7 billion.
Shares of the company have fallen 26.5% in the past year compared with the industry’s 16.7% decline.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rayonier Advanced Materials RYAM is set to release third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for the bottom line is pegged at a loss of seven cents per share. The company posted a loss of 12 cents per share in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $376 million, indicating a 6.1% decline from the prior-year reported figure.
Packaging Corporation of America PKG posted adjusted earnings per share of $2.73 in the third quarter of 2025, missing the Zacks Consensus Estimate of $2.83 by 4%.
The bottom line, however, increased 3% year over year, supported by higher prices and mix in both the segments, along with lower fiber costs and maintenance outage expense. Packaging Corp.’s sales in the third quarter grew 6% year over year to $2.3 billion. The top line beat the Zacks Consensus Estimate of $2.26 billion.
International Paper Company IP has reported third-quarter 2025 adjusted loss of 43 cents per share, which missed the Zacks Consensus Estimate for earnings of 53 cents. This includes $675 million of accelerated depreciation associated with mill closures and 80/20 strategic actions.
The adjusted loss for the quarter compares unfavorably with the company’s restated adjusted earnings of 33 cents per share for the year-ago quarter. Net sales were $6.22 billion in the quarter under review, up 56.4% from the year-ago quarter, driven by the acquisition of DS Smith. The top line missed the Zacks Consensus Estimate of $6.89 billion.
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This article originally published on Zacks Investment Research (zacks.com).
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