Smurfit Westrock Falls Short of Earnings & Sales Estimates in Q4

Smurfit Westrock Plc SW has reported earnings of 34 cents per share in fourth-quarter 2025, missing the Zacks Consensus Estimate of 46 cents. The company had registered earnings of 47 cents in the year-ago quarter.

Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. Results for Smurfit Westrock are being reported from the third quarter of 2024 as a unified company.

Smurfit Westrock’s Q4 Sales Inch Up Y/Y

The company’s net sales rose 0.5% year over year to $7.58 billion. The top line lagged the Zacks Consensus Estimate of $7.67 billion.

The reported cost of sales increased 1.7% to $6.2 billion from the year-ago period. The gross profit fell 4.2% year over year to $1.38 billion. The adjusted EBITDA was $1.17 billion, up 0.5% from the year-ago quarter. The adjusted EBITDA margin was 15.5%, flat year over year.

SW’s Q4 Segmental Performances

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 Europe, MEA and APAC segment were $2.69 billion, up 7.1% year over year. The segment’s adjusted EBITDA was up 18.1% year over year at $438 million.

North America: This segment includes operations in the United States, Canada and Mexico. Sales for the North America segment were $4.35 billion, a decrease from the year-ago period’s $4.52 billion. The segment’s adjusted EBITDA fell to $651 million from the year-ago quarter’s $710 million.

LATAM: This segment includes operations in Central America and the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. Sales for this segment were $537 million, up 6.3% year over year. The segment’s adjusted EBITDA increased 8.3% year over year at $131 million.

Smurfit Westrock’s Cash Position & Balance Sheet Updates

SW had cash and cash equivalents (including restricted cash) of $892 million at the end of 2025 compared with $855 million as of the end of 2024.

Net cash provided by operating activities was $1.19 billion compared with $0.78 billion in the year-ago quarter. At the end of Dec. 31, 2025, the adjusted free cash flow was $679 million compared with $257 million in the year-ago period. 

The company had previously announced a quarterly dividend of 45.23 cents per share.

SW’s 2025 Performance

SW has reported adjusted earnings of $2.05 per share in 2025, which missed the Zacks Consensus Estimate of earnings of $2.20. Smurfit Westrock had posted earnings of $2.34 in the year-ago quarter.

The company’s net sales improved 47.7% year over year to $31.12 billion. The top line lagged the Zacks Consensus Estimate of $31.26 billion. 

The company reported 2025 adjusted EBITDA of $4.93 billion, which came within its guidance.

Smurfit Westrock Stock’s Price Performance

Shares of the company have lost 11.3% in the past year compared with the industry’s 3.6% decline.

SW’s Q1 & 2026 Adjusted EBITDA Guidance

The company expects adjusted EBITDA of $5-$5.3 billion for 2026. For the first quarter, SW anticipates adjusted EBITDA of $1.1-$1.2 billion.

Smurfit Westrock’s Zacks Rank

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.

SW’s Peer Performance

International Paper Company IP reported a fourth-quarter 2025 adjusted loss of 8 cents per share, which missed the Zacks Consensus Estimate for earnings of 28 cents.

International Paper’s sales were $6 billion in the quarter under review, up 53% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $5.88 billion.

Packaging Corporation of America PKG posted adjusted earnings per share of $2.32 in the fourth quarter of 2025, which missed the Zacks Consensus Estimate of $2.41. The bottom line came below Packaging Corp’s guidance and fell 6% year over year. PKG’s sales in the fourth quarter rose 10.1% year over year to $2.36 billion. The top line missed the Zacks Consensus Estimate of $2.42 billion.

Paper & Related Product Stock Awaiting Results

Rayonier Advanced Materials RYAM is expected to release fourth-quarter 2025 results in the first week of March. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 9 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 $365.5 million, indicating a 13.4% decline from the prior-year reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research