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Is Smurfit Westrock Set to Gain From Its Recent Portfolio Actions?
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Key Takeaways
Smurfit Westrock agreed to acquire CMPC's Chilean packaging business for $420M.
The deal adds paper capacity and supply channels while expanding Smurfit Westrock's regional footprint.
Smurfit Westrock targets $7B in adjusted EBITDA and $14B in free cash flow by 2030.
Smurfit Westrock Plc (SW - Free Report) inked a deal to acquire the Chilean Containerboard and Corrugated business of Empresas CMPC S.A. (“CMPC”) to establish its position in Chile. The CMPC business aligns well with Smurfit Westrock’s existing footprint, providing a solid platform to grow alongside its customer base in Latin America.
The CMPC deal is set for a consideration of $420 million, representing a post-synergy transaction multiple of less than six times adjusted EBITDA. CMPC’s well-invested paper machine in Santiago, which produces around 250,000 tons per year, is expected to boost SW’s regional paper system. This will help Smurfit Westrock to integrate recycled paper into its operations in Argentina, Peru and Ecuador, while opening a dedicated supply channel to move Brazilian and North American kraftliner into its newly acquired corrugated assets in Chile.
Smurfit Westrock is focused on comprehensive asset optimization and business improvement initiatives. In sync with that, Smurfit Westrock closed 600,000 tons of high-cost or inefficient capacity in 2025. During the first half of 2026, the company implemented further facility and asset rationalizations, including a U.K. mill closure and plans to close eight additional converting facilities across Europe and North America. These actions remain part of a multi-year effort to lower costs, improve asset utilization and strengthen returns.
The company expects $7 billion of adjusted EBITDA by 2030, around 7% annual EBITDA growth from 2026 to 2030. The adjusted EBITDA margin is expected to increase 300 basis points from 2026 to 2030. The company also expects $14 billion in cumulative discretionary free cash flow in the time period. The company’s recent portfolio actions are likely to aid the upside in the coming years.
Portfolio Actions of Smurfit Westrock’s Peers
Packaging Corporation of America (PKG - Free Report) completed the acquisition of the containerboard business of Greif, Inc. (GEF) in September 2025 for $1.8 billion in cash. The acquired business from Greif included two containerboard mills with approximately 800,000 tons of production capacity, and eight sheet feeder and corrugated plants located across the United States, expanding Packaging Corp’s recycled capacity and customer reach.
The acquired operations contributed 14 cents per share to Packaging Corp’s second-quarter 2026 results, driven by higher volumes and better mill performance. The Greif business remains on track to reach a $30-million synergy run-rate by the end of 2026.
International Paper Company (IP - Free Report) has simplified its portfolio around sustainable packaging through the DS Smith combination in January 2025, and the Global Cellulose Fibers sale in January 2026.
International Paper generated $1.1 billion in net proceeds from the Global Cellulose Fibers sale, which the company used $660 million to reduce debt in the first quarter of 2026. In the second quarter of 2026, International Paper completed the $368-million NORPAC acquisition and acquired the Dover, DE converting facility. Dover adds an established customer base in an attractive East Coast region.
SW’s Price Performance, Valuations & Estimates
Shares of the company have gained 7.5% in the past year against the industry’s 5.1% decline. In comparison, the broader Zacks Industrial Products sector has returned 19.8% and the S&P 500 has rallied 16.8%.
Image Source: Zacks Investment Research
Smurfit Westrock is trading at a forward 12-month price/earnings of 14.70X, a discount compared with the industry’s 12.42X.
Image Source: Zacks Investment Research
The consensus estimate for 2026 earnings suggests a year-over-year decline of 3.4%. The same for 2027 indicates growth of 81.5%. The Zacks Consensus Estimate for 2026 sales implies 3.6% growth. The same for fiscal 2027 suggests growth of 5.2%.
EPS estimates for 2026 have moved north while 2027 have moved south over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Is Smurfit Westrock Set to Gain From Its Recent Portfolio Actions?
Key Takeaways
Smurfit Westrock Plc (SW - Free Report) inked a deal to acquire the Chilean Containerboard and Corrugated business of Empresas CMPC S.A. (“CMPC”) to establish its position in Chile. The CMPC business aligns well with Smurfit Westrock’s existing footprint, providing a solid platform to grow alongside its customer base in Latin America.
The CMPC deal is set for a consideration of $420 million, representing a post-synergy transaction multiple of less than six times adjusted EBITDA. CMPC’s well-invested paper machine in Santiago, which produces around 250,000 tons per year, is expected to boost SW’s regional paper system. This will help Smurfit Westrock to integrate recycled paper into its operations in Argentina, Peru and Ecuador, while opening a dedicated supply channel to move Brazilian and North American kraftliner into its newly acquired corrugated assets in Chile.
Smurfit Westrock is focused on comprehensive asset optimization and business improvement initiatives. In sync with that, Smurfit Westrock closed 600,000 tons of high-cost or inefficient capacity in 2025. During the first half of 2026, the company implemented further facility and asset rationalizations, including a U.K. mill closure and plans to close eight additional converting facilities across Europe and North America. These actions remain part of a multi-year effort to lower costs, improve asset utilization and strengthen returns.
The company expects $7 billion of adjusted EBITDA by 2030, around 7% annual EBITDA growth from 2026 to 2030. The adjusted EBITDA margin is expected to increase 300 basis points from 2026 to 2030. The company also expects $14 billion in cumulative discretionary free cash flow in the time period. The company’s recent portfolio actions are likely to aid the upside in the coming years.
Portfolio Actions of Smurfit Westrock’s Peers
Packaging Corporation of America (PKG - Free Report) completed the acquisition of the containerboard business of Greif, Inc. (GEF) in September 2025 for $1.8 billion in cash. The acquired business from Greif included two containerboard mills with approximately 800,000 tons of production capacity, and eight sheet feeder and corrugated plants located across the United States, expanding Packaging Corp’s recycled capacity and customer reach.
The acquired operations contributed 14 cents per share to Packaging Corp’s second-quarter 2026 results, driven by higher volumes and better mill performance. The Greif business remains on track to reach a $30-million synergy run-rate by the end of 2026.
International Paper Company (IP - Free Report) has simplified its portfolio around sustainable packaging through the DS Smith combination in January 2025, and the Global Cellulose Fibers sale in January 2026.
International Paper generated $1.1 billion in net proceeds from the Global Cellulose Fibers sale, which the company used $660 million to reduce debt in the first quarter of 2026. In the second quarter of 2026, International Paper completed the $368-million NORPAC acquisition and acquired the Dover, DE converting facility. Dover adds an established customer base in an attractive East Coast region.
SW’s Price Performance, Valuations & Estimates
Shares of the company have gained 7.5% in the past year against the industry’s 5.1% decline. In comparison, the broader Zacks Industrial Products sector has returned 19.8% and the S&P 500 has rallied 16.8%.
Smurfit Westrock is trading at a forward 12-month price/earnings of 14.70X, a discount compared with the industry’s 12.42X.
The consensus estimate for 2026 earnings suggests a year-over-year decline of 3.4%. The same for 2027 indicates growth of 81.5%. The Zacks Consensus Estimate for 2026 sales implies 3.6% growth. The same for fiscal 2027 suggests growth of 5.2%.
EPS estimates for 2026 have moved north while 2027 have moved south over the past 60 days.
Smurfit Westrock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.