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Smurfit Westrock plc: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Key takeaways

  • Net sales up, net income down: Net sales were $7,712 million against $7,656 million. Net income was $63 million, a 0.8% margin, against $382 million and 5.0%. Basic EPS was $0.12 against $0.74; diluted EPS $0.12 against $0.73. Source
  • Adjusted EBITDA margin fell to 14.0%: Adjusted EBITDA was $1,076 million, a 14.0% margin, against $1,252 million and 16.4%. Adjusted basic EPS was $0.33 against $0.68 a year earlier. Source
  • North America margin fell to 13.3%: North America Adjusted EBITDA was $597 million, a 13.3% margin, against $785 million and 16.8%. Segment net sales were $4,407 million against $4,578 million. Source
  • EMEA and APAC Adjusted EBITDA rose: Europe, MEA and APAC Adjusted EBITDA was $421 million, a 15.2% margin, against $389 million and 15.1%. Net sales were $2,765 million against $2,576 million. Source
  • Containerboard prices rose twice: Containerboard pricing rose by a net $20 per ton in the quarter, and a further $30 per ton was implemented in April. Source
  • Demand improved through the quarter: Management said demand across all paper grades improved progressively during the quarter. Source
  • Capital expenditure rose to $624 million: Capital expenditures were $624 million against $477 million. Cash and cash equivalents fell to $674 million from $892 million at December 31, 2025. Source
  • Medium-Term Plan targets growth to 2030: The company said its recently announced Medium-Term Plan targets an accelerated path to growth to 2030 and beyond, across North America, EMEA and APAC, and LATAM. Source
  • Quarterly dividend of $0.4523 approved: The Board approved a quarterly dividend of $0.4523 per ordinary share, the same amount as the previously announced dividend. Source

“Against the backdrop of continued macro uncertainty we have delivered a solid first quarter performance”

Tony Smurfit, President and CEO

Guidance

AreaPeriodFigureAgainst last quarter
Adjusted EBITDA Sourcesecond quarter of 2026$1.1 billion to $1.2 billionNew
Adjusted EBITDA Sourcefull year 2026$5.0 billion to $5.3 billionKept

What changed from last quarter

  • New guidance: A second-quarter Adjusted EBITDA range of $1.1 billion to $1.2 billion was added. The February release had given only a first-quarter range. Source
  • Guidance kept: The full-year Adjusted EBITDA range of $5.0 billion to $5.3 billion was re-affirmed rather than revised. Source
  • New: Consultations opened at one UK mill with about 200 thousand tonnes of containerboard capacity, under the asset optimization program. Four converting facilities in the UK and Netherlands are also in consultation. Source
  • New: A corrugated box plant in Ecuador was added, which management said expands its geographic reach and increases global paper integration. Source
  • New: The company is reviewing its listing on the London Stock Exchange. The New York Stock Exchange primary listing is outside the review. Source

Quarter results

  • Net sales up, net income down: Net sales were $7,712 million against $7,656 million. Net income was $63 million, a 0.8% margin, against $382 million and 5.0%. Basic EPS was $0.12 against $0.74; diluted EPS $0.12 against $0.73. Source
  • Adjusted EBITDA margin fell to 14.0%: Adjusted EBITDA was $1,076 million, a 14.0% margin, against $1,252 million and 16.4%. Adjusted basic EPS was $0.33 against $0.68 a year earlier. Source
  • Operating cash flow was $204 million: Net cash provided by operating activities was $204 million against $235 million a year earlier. Source

Segment performance

  • North America margin fell to 13.3%: North America Adjusted EBITDA was $597 million, a 13.3% margin, against $785 million and 16.8%. Segment net sales were $4,407 million against $4,578 million. Source
  • EMEA and APAC Adjusted EBITDA rose: Europe, MEA and APAC Adjusted EBITDA was $421 million, a 15.2% margin, against $389 million and 15.1%. Net sales were $2,765 million against $2,576 million. Source
  • LATAM margin about 20%: LATAM Adjusted EBITDA was $109 million, a 20.2% margin, against $115 million and 22.5%. Net sales were $540 million against $502 million. Source

“We are focused on unlocking the full potential of North America”

Tony Smurfit, President and CEO

Pricing and demand

  • Containerboard prices rose twice: Containerboard pricing rose by a net $20 per ton in the quarter, and a further $30 per ton was implemented in April. Source
  • Demand improved through the quarter: Management said demand across all paper grades improved progressively during the quarter. Source
  • Substrate-agnostic offering gaining adoption: Management said consumer and paperboard customers are adopting its substrate-agnostic offering. Source

Costs and depreciation

  • Depreciation rose to $728 million: Depreciation, depletion and amortization was $728 million against $603 million a year earlier. Accelerated depreciation tied to machine closures was $0.13 per share of Basic EPS. Source
  • Impairment and restructuring costs rose: Impairment and restructuring costs were $54 million against $15 million. Impairment of assets in the cash flow statement was $35 million. Source
  • Gross profit fell on higher cost of sales: Cost of goods sold was $6,444 million against $6,079 million, and gross profit was $1,268 million against $1,577 million. Operating profit was $253 million against $553 million. Source

“Corrugated box volumes were in line with our expectations and reflect the continued evolution of our business mix and our approach to delivering value for customers”

Tony Smurfit, President and CEO

Capital and cash

  • Capital expenditure rose to $624 million: Capital expenditures were $624 million against $477 million. Cash and cash equivalents fell to $674 million from $892 million at December 31, 2025. Source
  • Current debt rose to $980 million: Current portion of debt rose to $980 million from $346 million. Non-current debt was $13,275 million against $13,427 million at December 31, 2025. Source
  • Comprehensive loss and retained earnings: Accumulated other comprehensive loss was $401 million against $348 million. Retained earnings fell to $2,397 million from $2,655 million. Source

Strategy and footprint

  • Medium-Term Plan targets growth to 2030: The company said its recently announced Medium-Term Plan targets an accelerated path to growth to 2030 and beyond, across North America, EMEA and APAC, and LATAM. Source
  • Pan-regional Latin America position: Management described its pan-regional offering and market positions in Latin America as underpinning its competitive advantage in the region. Source
  • Innovation event drew 200 customers: The company hosted over 200 customers at its European Innovation Event, showing sustainable packaging design and AI-enabled capabilities. Source

Shareholder returns

  • Quarterly dividend of $0.4523 approved: The Board approved a quarterly dividend of $0.4523 per ordinary share, the same amount as the previously announced dividend. Source
  • Cash dividends paid rose: Cash dividends paid were $237 million against $225 million a year earlier. Net cash provided by financing activities was $209 million against $151 million. Source
  • Shares outstanding increased: Common shares outstanding were 524,457,866 at March 31, 2026, against 522,310,486 at December 31, 2025. Source

Coming up, as management said on 30 April 2026

  • Listing review to conclude in May: Management said the review of the London listing is expected to be completed during May 2026, with an update to shareholders afterwards. Source
  • Dividend payable June 10: The $0.4523 dividend is payable June 10, 2026, to holders of record at the close of business on May 15, 2026. Source
  • Containerboard increase flows through in second half: The corrugated business will implement the containerboard increase with the usual time-lag, which management expects in the second half of the year. Source
  • Second-half volume growth expected: Management expects volume growth in the second half, citing customer actions and a generally better operating environment. Source

Figures management reported

FigureReported
New corrugated customers onboarded in the quarter Sourceover 600

Risks management discussed

  • Operational: Adverse weather events, primarily in North America, reduced net income and Adjusted EBITDA by $65 million in the quarter. Source
  • External: Higher energy costs in March and April were cited by management as a driver of the containerboard price increases. Source
  • Regulatory: The London listing review could result in delisting from the London Stock Exchange. The New York Stock Exchange primary listing is not in scope. Source

Earlier plans management reported on

  • Not stated: The prior release set a first-quarter Adjusted EBITDA range. The current release does not state whether it was met.
  • Ahead: The prior release said the committed synergy target of $400 million was exceeded.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.