Packaging provider Smurfit Westrock Q1 net income drops, hurt by weather costs

Smurfit WestRock

30/04/2026 11:46

Overview

Global packaging provider's Q1 net sales rose slightly yr/yr, but net income declined

Adjusted EBITDA fell from prior year, impacted by $65 mln in adverse weather costs

Company to review potential delisting from London Stock Exchange; NYSE listing unaffected

Outlook

Smurfit Westrock expects Q2 Adjusted EBITDA between $1.1 bln and $1.2 bln

Company re-affirms full-year Adjusted EBITDA guidance of $5.0 bln to $5.3 bln

Company expects volume growth in second half of yr amid improved demand conditions

Result Drivers

ADVERSE WEATHER - Co said Q1 net income and Adjusted EBITDA were negatively impacted by $65 mln due to adverse weather events, primarily in North America

NORTH AMERICA - Demand across all paper grades improved, containerboard pricing increased, but regional margin declined; over 600 new corrugated customers onboarded

EMEA & APAC OUTPERFORMANCE - Segment continued to outperform peers, with growth, improving demand, and customer wins; containerboard prices increased due to higher energy costs and better demand

Company press release: ID:nBw6SDzjQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Sales
$7.71 bln
Q1 EPS
$0.12
Q1 Net Income
$63 mln
Q1 Adjusted EBITDA
$1.08 bln
Q1 Basic EPS
$0.12
Q1 Gross Profit
$1.27 bln
Q1 Operating Income
$253 mln
Q1 Pretax Profit
$84 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the paper packaging peer group is "buy"

Wall Street's median 12-month price target for Smurfit WestRock PLC is GBp4,202.94, about 42.4% above its April 29 closing price of GBp2,952.00

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)