Smurfit Westrock (SW) Q2 2025 earnings summary

Executive summary

• Net sales reached $7,940 million for Q2 2025, with adjusted EBITDA of $1,213 million and a margin of 15.3%, reflecting strong regional performance and synergy realization.

• Net loss attributable to common shareholders was $26 million for Q2 2025, primarily due to $280 million in restructuring and closure costs.

• North America showed significant operational improvement, Latin America achieved strong margins, and EMEA/APAC remained resilient despite challenges.

• Integration of Smurfit Kappa and WestRock is progressing well, with substantial synergy benefits realized and at least $400 million in synergies identified.

• Quarterly dividend of $0.4308 per share approved, payable September 18, 2025; Fitch upgraded long-term issuer rating to BBB+ with stable outlook.

Financial highlights

• Q2 2025 net sales were $7,940 million, adjusted EBITDA was $1,213 million, and adjusted free cash flow was $387 million.

• North America: Net sales $4,755 million, adjusted EBITDA $752 million, margin 15.8%.

• EMEA & APAC: Net sales $2,778 million, adjusted EBITDA $372 million, margin 13.4%.

• LATAM: Net sales $518 million, adjusted EBITDA $123 million, margin 23.7%.

• Net cash provided by operating activities for the first half of 2025 was $1,064 million; capital expenditures for the same period totaled $999 million.

Outlook and guidance

• Q3 2025 adjusted EBITDA expected at approximately $1.3 billion; full-year 2025 guidance remains $5.0–$5.2 billion.

• On track to deliver $400 million in full-year synergy run-rate by end of 2025, with an additional $400 million in identified opportunities.

• Flat volumes expected in H2 versus H1, with cost relief from energy, labor, and recovered fiber.

• CapEx guidance for 2026 to be provided in February; near-term CapEx at $2.2–$2.4 billion per year.

• Management believes available liquidity of $5,522 million and strong cash flows will meet capital requirements for the next 12 months and beyond.