Smurfit Westrock (SW) Q1 2025 earnings summary

Executive summary

• Net sales reached $7.656 billion in Q1 2025, with adjusted EBITDA of $1.252 billion and a 16.4% margin, reflecting robust growth from the Smurfit Kappa–WestRock combination and synergy realization.

• North America showed significant structural improvement and margin gains, EMEA & APAC remained resilient, and LATAM delivered robust results, all supported by ongoing integration and cost actions.

• Synergy program is on track, with $80 million delivered in Q1 and a $400 million run-rate expected by end of 2025.

• Announced closures of over 500,000 tons of paper capacity and several converting facilities in the US, Germany, Mexico, and the Netherlands to optimize the asset base.

• Investments in new converting plants and cost take-out projects are underway across all regions.

Financial highlights

• Q1 2025 net sales: $7.656 billion; adjusted EBITDA: $1.252 billion; adjusted EBITDA margin: 16.4%.

• Net income: $382 million; net income margin: 5.0%; diluted EPS: $0.73.

• Gross profit: $1.577 billion; operating profit: $553 million.

• Segment net sales: North America $4.7B, EMEA & APAC $2.6B, LATAM $0.5B.

• Adjusted EBITDA up from $475 million in Q1 2024, with margin improvement year-over-year.

Outlook and guidance

• Q2 2025 adjusted EBITDA expected at approximately $1.2 billion; full-year 2025 guidance for adjusted EBITDA between $5.0 billion and $5.2 billion.

• Additional $100 million of economic downtime expected in Q2, primarily a one-off event.

• Capital expenditure for 2025 projected at $2.2–$2.4 billion.

• Board approved a quarterly dividend of $0.4308 per share, payable June 18, 2025.

• Demand outlook remains uncertain, with focus on profitability and synergy capture.