Smurfit Westrock (SW) Q1 2025 earnings summary

Executive summary

• Net sales reached $7.656 billion for Q1 2025, with adjusted EBITDA of $1.252 billion and a margin of 16.4%, reflecting double-digit growth year-over-year and robust operations across all regions.

• Strong operational and cultural integration post-combination with WestRock, with synergy program on track for $400 million run-rate by end of 2025 and $80 million recognized in Q1.

• Announced closures of over 500,000 tons of paper capacity and several converting facilities in the U.S., Germany, Mexico, and the Netherlands, with total rationalizations nearing 600,000 tons.

• Investments in new converting plants and cost take-out projects across all regions, including a biomass boiler in Colombia and Bag-in-Box expansion.

• Net income attributable to common shareholders was $382 million, with a net income margin of 5.0%.

Financial highlights

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

• Net income: $382 million; diluted EPS: $0.73; gross profit: $1.577 billion.

• Segment net sales: North America $4.7 billion, EMEA & APAC $2.6 billion, LATAM $500 million.

• Adjusted EBITDA: North America $785 million (16.8% margin), EMEA & APAC $389 million (15.1% margin), LATAM $115 million (22.5% margin).

• Net cash provided by operating activities was $235 million; capital expenditures were $477 million.

Outlook and guidance

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

• Additional $100 million downtime cost expected in Q2 versus Q1; downtime is a Q2-specific issue.

• CapEx for 2025 projected at $2.2–$2.4 billion; 2026 CapEx remains flexible with no major projects planned.

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

• Demand outlook remains uncertain, but management expects continued margin strength and further synergy realization.