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Smurfit Westrock Falls Short of Earnings & Revenue Estimates in Q1
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Key Takeaways
SW Q1 earnings fell 51.5% y/y and missed estimates; revenues rose 0.7% but lagged forecasts.
North America saw revenues drop 3.6% and EBITDA fall 23.9%, hurt by lower corrugated volumes.
Europe and LATAM posted revenue growth, while SW reaffirmed its full-year 2026 EBITDA outlook of $5-$5.3B.
Smurfit Westrock Plc (SW - Free Report) has posted adjusted earnings of 33 cents per share for the first quarter of 2026, down 51.5% from the year-ago period. The figure missed the Zacks Consensus Estimate of 36 cents.
Net revenues of $7.71 billion inched up 0.7% year over year but missed the consensus estimate of $7.76 billion.
Smurfit Westrock PLC Price, Consensus and EPS Surprise
Smurfit Westrock reported operating profit of $253 million, down 54.2% year over year. The company’s cost of sales [SM1.1]increased 6% to $6.4 billion from the year-ago period. The gross profit fell 19.6% year over year to $1.3 billion.
Adjusted EBITDA declined to $1.08 billion from $1.25 billion a year ago, and the adjusted EBITDA margin contracted to 14% from 16.4%. Adverse weather events were a meaningful drag on quarterly net income and adjusted EBITDA, centered in the North American business.
Smurfit Westrock’s Q1 Segmental Performance
In North America, net revenues totaled $4.5 billion, down 3.6% year over year. While adjusted EBITDA was down 23.9% year over year to $597 million. Corrugated volumes were down 7.4% on a days-adjusted basis, underscoring the near-term pressure on the region that remains the company’s largest value creation opportunity.
Europe, MEA & APAC segment delivered net revenues of $2.8 billion, which marked an increase from $2.6 billion in the year-ago quarter. The segment’s adjusted EBITDA came in at $421 million, up 8.2% year over year. Corrugated volumes increased 0.3% on a days-adjusted basis, supported by solid order books in converting operations and increased demand for containerboard, alongside implemented containerboard price increases across Europe.
Net revenues of the LATAM segment were $0.5 billion, marking a year-over-year increase of 5.3%, aided by good volume growth in key markets. The adjusted EBITDA came in at $106 million compared with $115 million in the first quarter of 2025.
The company also highlighted an acquisition in Ecuador that expands geographic reach and strengthens global paper integration.
SW Cash Position & Balance Sheet Updates
Cash and cash equivalents ended the quarter at $674 million, down from $892 million at the start of the period. Net cash provided by operating activities was $204 million in the quarter compared with the prior-year quarter’s $235 million.
The company previously announced a quarterly dividend of 45.23 cents per share.
Smurfit Westrock Reaffirms 2026 Adjusted EBITDA Outlook
For the second quarter of 2026, SW expects adjusted EBITDA of $1.1-$1.2 billion. For 2026, the company reaffirmed its adjusted EBITDA outlook of $5-$5.3 billion, expecting a stronger and better industry operating environment.
The company also provided key planning items for 2026, including a capital expenditure of $2.4-$2.5 billion, depreciation and amortization of $2.6 billion, cash interest of $0.7 billion and cash taxes of $0.5 billion, with an effective tax rate near 29%.
SW Stock’s Price Performance
Shares of the company have lost 1.6% in the past year compared with the industry’s 8.5% decline. During this time, the Basic Materials sector has jumped 43.2%, whereas the S&P 500 has grown 34.1%.
International Paper Company (IP - Free Report) reported a first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate for earnings of 18 cents.
International Paper’s revenues were $5.97 billion in the quarter under review, up 1.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $6.04 billion.
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The reported figure beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Packaging Corp’s revenues rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%.
Paper & Related Product Stock Awaiting Results
Rayonier Advanced Materials (RYAM - Free Report) is expected to release first-quarter 2026 results on May 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 62 cents per share. The company posted a loss of 49 cents in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $297.5 million, indicating a 16% decline from the prior-year reported figure.
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Smurfit Westrock Falls Short of Earnings & Revenue Estimates in Q1
Key Takeaways
Smurfit Westrock Plc (SW - Free Report) has posted adjusted earnings of 33 cents per share for the first quarter of 2026, down 51.5% from the year-ago period. The figure missed the Zacks Consensus Estimate of 36 cents.
Net revenues of $7.71 billion inched up 0.7% year over year but missed the consensus estimate of $7.76 billion.
Smurfit Westrock PLC Price, Consensus and EPS Surprise
Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC Quote
SW’s Gross Profit Slips in Q1
Smurfit Westrock reported operating profit of $253 million, down 54.2% year over year. The company’s cost of sales [SM1.1]increased 6% to $6.4 billion from the year-ago period. The gross profit fell 19.6% year over year to $1.3 billion.
Adjusted EBITDA declined to $1.08 billion from $1.25 billion a year ago, and the adjusted EBITDA margin contracted to 14% from 16.4%. Adverse weather events were a meaningful drag on quarterly net income and adjusted EBITDA, centered in the North American business.
Smurfit Westrock’s Q1 Segmental Performance
In North America, net revenues totaled $4.5 billion, down 3.6% year over year. While adjusted EBITDA was down 23.9% year over year to $597 million. Corrugated volumes were down 7.4% on a days-adjusted basis, underscoring the near-term pressure on the region that remains the company’s largest value creation opportunity.
Europe, MEA & APAC segment delivered net revenues of $2.8 billion, which marked an increase from $2.6 billion in the year-ago quarter. The segment’s adjusted EBITDA came in at $421 million, up 8.2% year over year. Corrugated volumes increased 0.3% on a days-adjusted basis, supported by solid order books in converting operations and increased demand for containerboard, alongside implemented containerboard price increases across Europe.
Net revenues of the LATAM segment were $0.5 billion, marking a year-over-year increase of 5.3%, aided by good volume growth in key markets. The adjusted EBITDA came in at $106 million compared with $115 million in the first quarter of 2025.
The company also highlighted an acquisition in Ecuador that expands geographic reach and strengthens global paper integration.
SW Cash Position & Balance Sheet Updates
Cash and cash equivalents ended the quarter at $674 million, down from $892 million at the start of the period. Net cash provided by operating activities was $204 million in the quarter compared with the prior-year quarter’s $235 million.
The company previously announced a quarterly dividend of 45.23 cents per share.
Smurfit Westrock Reaffirms 2026 Adjusted EBITDA Outlook
For the second quarter of 2026, SW expects adjusted EBITDA of $1.1-$1.2 billion. For 2026, the company reaffirmed its adjusted EBITDA outlook of $5-$5.3 billion, expecting a stronger and better industry operating environment.
The company also provided key planning items for 2026, including a capital expenditure of $2.4-$2.5 billion, depreciation and amortization of $2.6 billion, cash interest of $0.7 billion and cash taxes of $0.5 billion, with an effective tax rate near 29%.
SW Stock’s Price Performance
Shares of the company have lost 1.6% in the past year compared with the industry’s 8.5% decline. During this time, the Basic Materials sector has jumped 43.2%, whereas the S&P 500 has grown 34.1%.
Image Source: Zacks Investment Research
Smurfit Westrock’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SW’s Peer Performance
International Paper Company (IP - Free Report) reported a first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate for earnings of 18 cents.
International Paper’s revenues were $5.97 billion in the quarter under review, up 1.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $6.04 billion.
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The reported figure beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Packaging Corp’s revenues rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%.
Paper & Related Product Stock Awaiting Results
Rayonier Advanced Materials (RYAM - Free Report) is expected to release first-quarter 2026 results on May 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 62 cents per share. The company posted a loss of 49 cents in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $297.5 million, indicating a 16% decline from the prior-year reported figure.