Smurfit Westrock (SW) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached $7,712 million, up slightly year-over-year, driven by positive foreign currency impact but offset by lower volumes.

• Adjusted EBITDA was $1,076 million with a 14.0% margin, down from $1,252 million and 16.4% margin year-over-year.

• Net income dropped sharply to $63 million, mainly due to higher costs, economic downtime, adverse weather, and increased impairment and restructuring charges.

• Over 600 new corrugated customers were onboarded in North America, and a corrugated box plant was acquired in Ecuador, strengthening LATAM presence.

• Launched a medium-term plan targeting 7% CAGR in adjusted EBITDA and margin expansion of over 300 basis points by 2030.

Financial highlights

• Net sales: $7,712 million; Adjusted EBITDA: $1,076 million; Adjusted EBITDA margin: 14.0%.

• Net income: $63 million; Net income margin: 0.8%; Basic EPS: $0.12; Adjusted Basic EPS: $0.33.

• Gross profit: $1,268 million; Operating profit: $253 million.

• Aggregate net sales by region: North America $4,502 million, EMEA & APAC $2,771 million, LATAM $540 million.

• Cash and cash equivalents at quarter-end: $674 million; total assets: $45,170 million; total liabilities: $27,087 million.

Outlook and guidance

• Q2 2026 Adjusted EBITDA expected between $1.1 billion and $1.2 billion.

• Full-year 2026 Adjusted EBITDA reaffirmed at $5.0–$5.3 billion.

• By 2030, aim for $7 billion Adjusted EBITDA, 19% group margin, and $14 billion discretionary free cash flow.

• Management expects volume growth in the second half of the year, assuming current industry conditions persist.

• Capital expenditure for 2026 projected at $2.4–$2.5 billion.