REG-Smurfit Westrock plc Smurfit Westrock Reports Third Quarter 2025 Results
29/10/2025 10:30
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Smurfit Westrock Reports Third Quarter 2025 Results
Smurfit Westrock plc (NYSE: SW, LSE: SWR) today announced the financial
results for the third quarter ended September 30, 2025.
Key points:
* Net Sales of $8,003 million
* Net Income of $245 million, with a Net Income Margin of 3.1%
* Adjusted EBITDA(1) of $1,302 million, with an Adjusted EBITDA Margin(1) of
16.3%
* Net Cash Provided by Operating Activities of $1,133 million
* Adjusted Free Cash Flow(1) of $579 million
* Quarterly dividend of $0.4308 per ordinary share
Smurfit Westrock plc’s performance for the three months ended September 30,
2025 and 2024 (in millions, except margins and per share data):
September 30,
2025 2024(2)
Net Sales $ 8,003 $ 7,671
Net Income (Loss) $ 245 $ (150)
Net Income (Loss) Margin 3.1% (2.0%)
Adjusted EBITDA(1) $ 1,302 $ 1,265
Adjusted EBITDA Margin(1) 16.3% 16.5%
Net Cash Provided by Operating Activities $ 1,133 $ 320
Adjusted Free Cash Flow(1) $ 579 $ 118
Basic EPS $ 0.47 $ (0.30)
Adjusted Basic EPS(1) $ 0.58 $ 0.53
Tony Smurfit, President and CEO, commented:
“I am pleased to report that for the third quarter, we delivered in-line
with our Adjusted EBITDA guidance. This performance was driven by the
continued operational and commercial improvements in our North American
business and our strong positions in EMEA and APAC and Latin America.
“We are reporting Net Income of $245 million and Adjusted EBITDA(1) of
$1,302 million, with an Adjusted EBITDA Margin(1) of 16.3% and a strong Net
Cash Provided by Operating Activities of $1,133 million.
“The operational and commercial improvement in our North American business
is increasingly evident, with an Adjusted EBITDA of $810 million and an
Adjusted EBITDA margin of 17.2% for the quarter. The North American mill
system demonstrated a strong operational performance in the quarter. Our
corrugated operations continue to focus on value over volume and exiting
uneconomic business. This approach, together with our focus on delivering
innovation, quality and service for our customer base, has delivered a strong
improvement in returns. Our consumer business also continues to improve as a
result of already implemented restructurings, utilizing the full breadth of
our paper portfolio and a unique and innovative product offering.
“We believe we are one of the market leaders in EMEA and APAC, where we have
once again demonstrated good returns despite a difficult market backdrop to
deliver Adjusted EBITDA of $419 million with an Adjusted EBITDA margin of
14.8%. As a result of our integrated model, our mill system continues to run
close to full utilization. While the backdrop from a paper supply perspective
remains challenging, our value-added proposition in our packaging business is
reflected in the resilience of our margin despite the softer demand
environment. We believe the EMEA and APAC region is well positioned to benefit
from improved demand, supported by a well invested asset base and strong
market positions.
“Our Latin American operations delivered Adjusted EBITDA of $116 million for
the quarter, with an Adjusted EBITDA margin of 21.3%, reflecting continued
operational improvement and our strong market positions. The slightly lower
margin quarter-on-quarter is primarily a result of a one-time operational
issue which has now been resolved. Latin America remains a compelling growth
region, both organically and inorganically.
“The year to date has been characterized by a challenging demand backdrop
and as a result we expect to take additional economic downtime in the fourth
quarter to optimize our system. As a result, we now expect to deliver full
year Adjusted EBITDA(3) in a $4.9 to $5.1 billion range. Our 2026 capital
spend is expected to be in a $2.4 to $2.5 billion range. This level of spend
allows us to continue optimizing our asset base, accelerating cost take-out
and capitalizing high-growth areas.
“Our third quarter results reflect the significant progress we have made
since the creation of Smurfit Westrock some 16 months ago. The steps we have
taken, and continue to take, are building a better business and as we end 2025
and enter 2026 we are a much stronger Company, increasingly excited about our
future prospects.”
Dividend
Smurfit Westrock plc announced today that its Board approved a quarterly
dividend of $0.4308 per share on its ordinary shares. The quarterly dividend
of $0.4308 per ordinary share is payable on December 18, 2025 to shareholders
of record at the close of business on November 14, 2025.
The default payment currency is U.S. Dollar for shareholders who hold their
ordinary shares through a Depository Trust Company participant. It is also
U.S. Dollar for shareholders holding their ordinary shares in registered form,
unless a currency election has been registered with the Company’s Transfer
Agent, Computershare Trust Company N.A. by 5:00 p.m. (New York) / 10:00 p.m.
(Dublin) on November 13, 2025.
The default payment currency for shareholders holding their ordinary shares in
the form of Depository Interests is U.S. Dollar. Such shareholders can elect
to receive the dividend in Pounds Sterling or Euro by providing their
instructions to the Company’s Depositary Interest provider, Computershare
Investor Services plc, by 12:00 p.m. (New York) / 5:00 p.m. (Dublin) on
November 26, 2025.
Earnings Call
Management will host an earnings conference call today at 7:30 AM ET / 11:30
AM GMT to discuss Smurfit Westrock’s financial results. The conference call
will be accessible through a live webcast. Interested investors and other
individuals can access the webcast, earnings release, and earnings
presentation via the Company’s website at www.smurfitwestrock.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smurfitwestrock.com&esheet=54346983&newsitemid=20251029964533&lan=en-US&anchor=www.smurfitwestrock.com&index=1&md5=334735d30dae7b7a51df92b48f3e7198)
. The webcast will be available at
https://investors.smurfitwestrock.com/overview
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.smurfitwestrock.com%2Foverview&esheet=54346983&newsitemid=20251029964533&lan=en-US&anchor=https%3A%2F%2Finvestors.smurfitwestrock.com%2Foverview&index=2&md5=d6b8bd57673ee113dd0284ef2ce4df50)
and a replay of the webcast will be available on the website shortly after the
call.
Forward Looking Statements
This press release includes certain “forward-looking statements”
(including within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended)
regarding, among other things, the plans, strategies, outcomes, outlooks, and
prospects, both business and financial, of Smurfit Westrock, the expected
benefits of the completed combination of Smurfit Kappa Group plc and WestRock
Company (the “Combination”), including, but not limited to, synergies as
well as our scale, geographic reach and product portfolio, demand outlook,
impact of announced closures, additional economic downtime and any other
statements regarding the Company's future expectations, beliefs, plans,
objectives, results of operations, financial condition and cash flows, or
future events, outlook or performance. Statements that are not historical
facts, including statements about the beliefs and expectations of the
management of the Company, are forward-looking statements. Words such as
“may”, “will”, “could”, “should”, “would”,
“anticipate”, “intend”, “estimate”, “project”, “plan”,
“believe”, “expect”, “target”, “prospects”, “potential”,
“commit”, “forecasts”, “aims”, “considered”, “likely” and
variations of these words and similar future or conditional expressions are
intended to identify forward-looking statements but are not the exclusive
means of identifying such statements. While the Company believes these
expectations, assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known and unknown
risks and uncertainties, many of which are beyond the control of the Company.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend upon future circumstances that may or
may not occur. Actual results may differ materially from the current
expectations of the Company depending upon a number of factors affecting its
business, including risks associated with the integration and performance of
the Company following the Combination. Important factors that could cause
actual results to differ materially from plans, estimates or expectations
include: changes in demand environment, our ability to deliver on our closure
plan and associated efforts; our future cash payments associated with these
initiatives; potential future cost savings associated with such initiatives;
the amount of charges and the timing of such charges or actions described
herein; potential future impairment charges; accuracy of assumptions
associated with the charges; economic, competitive and market conditions
generally, including macroeconomic uncertainty, customer inventory
rebalancing, the impact of inflation and increases in energy, raw materials,
shipping, labor and capital equipment costs; geo-economic fragmentation and
protectionism such as tariffs, trade wars or similar governmental actions
affecting the flows of goods, services or currency (including the
implementation of tariffs by the US federal government and reciprocal tariffs
and other protectionist or retaliatory measures governments in Europe, Asia,
and other countries have taken or may take in response); the impact of
prolonged or recurring U.S. federal government shutdowns and any resulting
volatility in the capital markets or interruptions in the Company’s access
to capital; the impact of public health crises, such as pandemics and
epidemics and any related company or governmental policies and actions to
protect the health and safety of individuals or governmental policies or
actions to maintain the functioning of national or global economies and
markets; reduced supply of raw materials, energy and transportation, including
from supply chain disruptions and labor shortages; developments related to
pricing cycles and volumes; intense competition; the ability of the Company to
successfully recover from a disaster or other business continuity problem due
to a hurricane, flood, earthquake, terrorist attack, war, pandemic, security
breach, cyber-attack, power loss, telecommunications failure or other natural
or man-made events, including the ability to function remotely during
long-term disruptions; the Company's ability to respond to changing customer
preferences and to protect intellectual property; the amount and timing of the
Company's capital expenditures; risks related to international sales and
operations; failures in the Company's quality control measures and systems
resulting in faulty or contaminated products; cybersecurity risks, including
threats to the confidentiality, integrity and availability of data in the
Company's systems; works stoppages and other labor disputes; the Company’s
ability to establish and maintain effective internal controls over financial
reporting in accordance with the Sarbanes Oxley Act of 2002, as amended, and
remediate any weaknesses in controls and processes; the Company's ability to
retain or hire key personnel; risks related to sustainability matters,
including climate change and scarce resources, as well as the Company's
ability to comply with changing environmental laws and regulations; the
Company's ability to successfully implement strategic transformation
initiatives; results and impacts of acquisitions by the Company; the Company's
significant levels of indebtedness; the impact of the Combination on the
Company's credit ratings; the potential impairment of assets and goodwill; the
availability of sufficient cash to distribute dividends to the Company's
shareholders in line with current expectations; the scope, costs, timing and
impact of any restructuring of operations and corporate and tax structure;
evolving legal, regulatory and tax regimes; changes in economic, financial,
political and regulatory conditions in Ireland, the United Kingdom, the United
States and elsewhere, and other factors that contribute to uncertainty and
volatility, natural and man-made disasters, civil unrest, geopolitical
uncertainty, and conditions that may result from legislative, regulatory,
trade and policy changes associated with the current or subsequent Irish, US
or UK administrations; legal proceedings instituted against the Company;
actions by third parties, including government agencies; the Company's ability
to promptly and effectively integrate Smurfit Kappa's and WestRock's
businesses; the Company's ability to achieve the synergies and value creation
contemplated by the Combination; the Company's ability to meet expectations
regarding the accounting and tax treatments of the Combination, including the
risk that the Internal Revenue Service may assert that the Company should be
treated as a US corporation or be subject to certain unfavorable US federal
income tax rules under Section 7874 of the Internal Revenue Code of 1986, as
amended, as a result of the Combination; other factors such as future market
conditions, currency fluctuations, the behavior of other market participants,
the actions of regulators and other factors such as changes in the political,
social and regulatory framework in which the Company's group operates or in
economic or technological trends or conditions, and other risk factors
included in the Company's filings with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2024. Neither the Company nor any of its associates or directors,
officers or advisers provides any representation, assurance or guarantee that
the occurrence of the events expressed or implied in any such forward-looking
statements will actually occur. You are cautioned not to place undue reliance
on these forward-looking statements. Other than in accordance with its legal
or regulatory obligations (including under the UK Listing Rules, the
Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation and
other applicable regulations), the Company is under no obligation, and the
Company expressly disclaims any intention or obligation, to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
___________________________________
(1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and
Adjusted Basic EPS are non-GAAP measures. See the “Non-GAAP Financial
Measures and Reconciliations” below for discussion and reconciliation of
these measures to the most comparable GAAP measures.
(2) All results reported for the three months ended September 30, 2024 do not
include the financial results of legacy WestRock Company (''WestRock'') for
the first five days of July due to the closing of the combination between
Smurfit Kappa Group plc and WestRock Company on July 5, 2024.
(3) Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled
Adjusted EBITDA outlook to the most comparable GAAP outlook because it is not
possible to do so without unreasonable efforts due to the uncertainty and
potential variability of reconciling items, which are dependent on future
events and often outside of management’s control and which could be
significant. Because such items cannot be reasonably predicted with the level
of precision required, we are unable to provide an outlook for the comparable
GAAP measure (net income).
About Smurfit Westrock
Smurfit Westrock is a leading provider of paper-based packaging solutions in
the world, with approximately 100,000 employees across 40 countries.
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Net sales $ 8,003 $ 7,671 $ 23,599 $ 13,570
Cost of goods sold (6,434) (6,321) (18,938) (10,817)
Gross profit 1,569 1,350 4,661 2,753
Selling, general and administrative expenses (963) (1,007) (2,899) (1,776)
Impairment and restructuring costs (65) (21) (360) (21)
Transaction and integration-related expenses associated with the Combination (15) (267) (72) (350)
Operating profit 526 55 1,330 606
Pension and other postretirement non-service income (expense), net 8 8 24 (31)
Interest expense, net (177) (167) (526) (225)
Other expense, net (21) (13) (44) (13)
Income (loss) before income taxes 336 (117) 784 337
Income tax expense (91) (33) (183) (164)
Net income (loss) 245 (150) 601 173
Net loss attributable to noncontrolling interests 1 - 1 -
Net income (loss) attributable to common shareholders $ 246 $ (150) $ 602 $ 173
Basic earnings (loss) per share attributable to common shareholders $ 0.47 $ (0.30) $ 1.15 $ 0.51
Diluted earnings (loss) per share attributable to common shareholders $ 0.47 $ (0.30) $ 1.14 $ 0.50
Segment Information
We report our financial results of operations in the following three
reportable segments:
1. North America, which includes operations in the U.S., Canada and Mexico.
2. Europe, the Middle East and Africa (“MEA” and together with Europe,
“EMEA” ) and Asia-Pacific (“APAC”).
3. Latin America (“LATAM”), which includes operations in Central America and
Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru.
Segment profitability is measured based on Adjusted EBITDA, defined as income
(loss) before income taxes, unallocated corporate costs, depreciation,
depletion and amortization, interest expense, net, pension and other
postretirement non-service income (expense), net, share-based compensation
expense, other expense, net, impairment and restructuring costs, transaction
and integration-related expenses associated with the Combination, amortization
of fair value step up on inventory and other specific items that management
believes are not indicative of the ongoing operating results of the business.
Financial information by segment is summarized below (in millions, except
margins).
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Net sales (aggregate)
North America $ 4,721 $ 4,649 $ 14,145 $ 5,499
Europe, MEA and APAC 2,831 2,651 8,191 7,056
LATAM 545 506 1,576 1,187
Total $ 8,097 $ 7,806 $ 23,912 $ 13,742
Less net sales (intersegment)
North America $ 82 $ 118 $ 276 $ 119
Europe, MEA and APAC 12 5 23 13
LATAM - 12 14 40
Total $ 94 $ 135 $ 313 $ 172
Net sales (unaffiliated customers)
North America $ 4,639 $ 4,531 $ 13,869 $ 5,380
Europe, MEA and APAC 2,819 2,646 8,168 7,043
LATAM 545 494 1,562 1,147
Total $ 8,003 $ 7,671 $ 23,599 $ 13,570
Segment Adjusted EBITDA
North America $ 810 $ 780 $ 2,347 $ 900
Europe, MEA and APAC 419 411 1,180 1,158
LATAM 116 116 354 257
Total $ 1,345 $ 1,307 $ 3,881 $ 2,315
Adjusted EBITDA Margin
(Adjusted EBITDA/Net sales (aggregate))
North America 17.2% 16.8% 16.6% 16.4%
Europe, MEA and APAC 14.8% 15.5% 14.4% 16.4%
LATAM 21.3% 23.1% 22.5% 21.6%
Condensed Consolidated Balance Sheets (Unaudited)
(in millions, except share data)
September 30, December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents (amounts related to consolidated variable interest $ 851 $ 855
entities of $4 million and $2 million at September 30, 2025 and December 31,
2024, respectively)
Accounts receivable, net (amounts related to consolidated variable interest 4,668 4,117
entities of $882 million and $767 million at September 30, 2025 and December
31, 2024, respectively)
Inventories 3,781 3,550
Other current assets 1,583 1,533
Total current assets 10,883 10,055
Property, plant and equipment, net 23,050 22,675
Goodwill 7,213 6,822
Intangibles, net 1,075 1,117
Prepaid pension asset 698 635
Other non-current assets (amounts related to consolidated variable interest 2,650 2,455
entities of $393 million and $389 million at September 30, 2025 and December
31, 2024, respectively)
Total assets $ 45,569 $ 43,759
Liabilities and Equity
Current liabilities:
Accounts payable $ 3,257 $ 3,290
Accrued compensation and benefits 973 882
Current portion of debt 798 1,053
Other current liabilities 2,317 2,108
Total current liabilities 7,345 7,333
Non-current debt due after one year (amounts related to consolidated variable 13,313 12,542
interest entities of $295 million and $8 million at September 30, 2025 and
December 31, 2024, respectively)
Deferred tax liabilities 3,455 3,600
Pension liabilities and other postretirement benefits, net of current portion 737 706
Other non-current liabilities (amounts related to consolidated variable 2,260 2,191
interest entities of $334 million and $335 million at September 30, 2025 and
December 31, 2024, respectively)
Total liabilities 27,110 26,372
Equity:
Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 - -
shares outstanding
Common stock; $0.001 par value; 9,500,000,000 shares authorized; 522,171,580 1 1
and 520,444,261 shares outstanding at September 30, 2025 and December 31,
2024, respectively
Deferred shares; €1 par value; 25,000 shares authorized; Nil and 25,000 - -
shares outstanding at September 30, 2025 and December 31, 2024, respectively
Treasury stock; at cost; 1,449,658 and 2,037,589 common stock at September 30, (65) (93)
2025 and December 31, 2024, respectively
Capital in excess of par value 16,057 15,948
Accumulated other comprehensive loss (347) (1,446)
Retained earnings 2,787 2,950
Total shareholders’ equity 18,433 17,360
Noncontrolling interests 26 27
Total equity 18,459 17,387
Total liabilities and equity $ 45,569 $ 43,759
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Operating activities:
Net income (loss) $ 245 $ (150) $ 601 $ 173
Adjustments to reconcile consolidated net income (loss) to net cash provided
by operating activities:
Depreciation, depletion and amortization 659 564 1,875 872
Impairment charges 58 2 242 2
Cash surrender value increase in excess of premiums paid (14) (14) (34) (14)
Share-based compensation expense 35 123 114 154
Deferred income tax benefit (12) (89) (139) (99)
Pension and other postretirement funding more than cost (24) (26) (83) (30)
Other 15 15 21 14
Change in operating assets and liabilities, net of acquisitions and
divestitures:
Accounts receivable 185 (186) (249) (422)
Inventories (4) 140 (59) 120
Other assets 28 74 (19) (31)
Accounts payable (107) (214) (142) (226)
Income taxes (1) (29) 8 34
Accrued liabilities and other 70 110 61 155
Net cash provided by operating activities 1,133 320 2,197 702
Investing activities:
Capital expenditures (610) (512) (1,609) (897)
Cash paid for purchase of businesses, net of cash acquired - (688) (5) (716)
Proceeds from corporate owed life insurance 17 2 20 2
Proceeds from sale of property, plant and equipment 15 12 15 15
Other 10 1 15 1
Net cash used for investing activities (568) (1,185) (1,564) (1,595)
Financing activities:
Additions to debt 12 315 510 3,127
Repayments of debt (25) (1,607) (146) (1,640)
Debt issuance costs (2) (15) (8) (44)
Changes in commercial paper, net (227) (33) (245) (33)
Other debt additions (repayments), net 2 17 (16) 13
Repayments of finance lease liabilities (6) (11) (29) (12)
Tax paid in connection with shares withheld from employees (1) (21) (68) (21)
Purchases of treasury stock - - - (27)
Cash dividends paid to shareholders (225) (158) (675) (493)
Other 2 - 3 (1)
Net cash (used for) provided by financing activities (470) (1,513) (674) 869
Effect of exchange rate changes on cash and cash equivalents (22) 4 37 (25)
Increase (decrease) in cash and cash equivalents 73 (2,374) (4) (49)
Cash and cash equivalents at beginning of period 778 3,325 855 1,000
Cash and cash equivalents at end of period $ 851 $ 951 $ 851 $ 951
Non-GAAP Financial Measures and Reconciliations
Smurfit Westrock reports its financial results in accordance with accounting
principles generally accepted in the United States ("GAAP"). However,
management believes certain non-GAAP financial measures provide Smurfit
Westrock’s Board of directors, investors, potential investors, securities
analysts and others with additional meaningful financial information that
should be considered when assessing its ongoing performance. Smurfit Westrock
management also uses these non-GAAP financial measures in making financial,
operating and planning decisions, and in evaluating company performance.
Non-GAAP financial measures are not intended to be considered in isolation of
or as a substitute for, or superior to, financial information prepared and
presented in accordance with GAAP and should be viewed in addition to, and not
as an alternative for, the GAAP results. The non‑GAAP financial measures we
present may differ from similarly captioned measures presented by other
companies. Smurfit Westrock uses the non-GAAP financial measures “Adjusted
EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Free Cash Flow” and
“Adjusted Basic Earnings Per Share” (referred to as “Adjusted Basic
EPS”). We discuss below details of the non-GAAP financial measures presented
by us and provide reconciliations of these non‑GAAP financial measures to
the most directly comparable financial measures calculated in accordance with
GAAP.
Definitions
Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA”
and “Adjusted EBITDA Margin” to evaluate its overall performance. The
composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit
Westrock defines Adjusted EBITDA as net income (loss) before income tax
expense, depreciation, depletion and amortization, interest expense, net,
pension and other postretirement non-service income (expense), net,
share‑based compensation expense, other expense, net, impairment and
restructuring costs, transaction and integration-related expenses associated
with the Combination, amortization of fair value step up on inventory and
other specific items that management believes are not indicative of the
ongoing operating results of the business.
Management believes Adjusted EBITDA and Adjusted EBITDA Margin measures
provide Smurfit Westrock’s management, Board of directors, investors,
potential investors, securities analysts and others with useful information to
evaluate Smurfit Westrock’s performance relative to other periods because it
adjusts out non‑recurring items that management believes are not indicative
of the ongoing results of the business. Adjusted EBITDA Margin is calculated
as Adjusted EBITDA divided by Net Sales.
Smurfit Westrock uses the non-GAAP financial measure “Adjusted Free Cash
Flow”. Smurfit Westrock defines Adjusted Free Cash Flow as net cash provided
by operating activities as adjusted for capital expenditures and to exclude
certain costs not reflective of underlying ongoing operations. Management
utilizes this measure in connection with managing Smurfit Westrock’s
business and believes that Adjusted Free Cash Flow is useful to investors as a
liquidity measure because it measures the amount of cash generated that is
available, after reinvesting in the business, to maintain a strong balance
sheet, pay dividends, repurchase stock, service debt and make investments for
future growth. It should not be inferred that the entire free cash flow amount
is available for discretionary expenditures. By adjusting for certain items
that are not indicative of Smurfit Westrock’s underlying operational
performance, Smurfit Westrock believes that Adjusted Free Cash Flow also
enables investors to perform meaningful comparisons between past and present
periods.
Smurfit Westrock uses the non-GAAP financial measure “Adjusted Basic EPS”.
Management believes this measure provides Smurfit Westrock’s management,
Board of directors, investors, potential investors, securities analysts and
others with useful information to evaluate Smurfit Westrock’s performance
because it excludes, impairment and restructuring costs, transaction and
integration-related expenses associated with the Combination, amortization of
fair value step up on inventory and other specific items that management
believes are not indicative of the ongoing operating results of the business.
Smurfit Westrock and its Board of directors use this information when making
financial, operating and planning decisions and when evaluating Smurfit
Westrock’s performance relative to other periods. Smurfit Westrock believes
that the most directly comparable GAAP measure to Adjusted Basic EPS is Basic
earnings (loss) per share attributable to common shareholders (referred to as
“Basic EPS”).
Reconciliations to Most Comparable GAAP Measure
Set forth below is a reconciliation of the non-GAAP financial measures
Adjusted EBITDA and Adjusted EBITDA Margin to Net Income (Loss) and Net Income
(Loss) Margin, the most directly comparable GAAP measures, for the periods
indicated (in millions, except margins).
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Net income (loss) $ 245 $ (150) $ 601 $ 173
Income tax expense 91 33 183 164
Depreciation, depletion and amortization 659 564 1,875 872
Impairment and restructuring costs 65 21 360 21
Transaction and integration-related expenses associated with the Combination 15 267 72 350
Amortization of fair value step up on inventory - 227 - 227
Interest expense, net 177 167 526 225
Pension and other postretirement non-service (income) expense, net (8) (8) (24) 31
Share-based compensation expense 35 123 114 154
Other expense, net 21 13 44 13
Other adjustments 2 8 16 (10)
Adjusted EBITDA $ 1,302 $ 1,265 $ 3,767 $ 2,220
Net Sales $ 8,003 $ 7,671 $ 23,599 $ 13,570
Net Income (Loss) Margin 3.1% (2.0%) 2.5% 1.3%
(Net Income (Loss)/Net Sales)
Adjusted EBITDA Margin 16.3% 16.5% 16.0% 16.4%
(Adjusted EBITDA/Net Sales)
Set forth below is a reconciliation of the non-GAAP financial measure Adjusted
Free Cash Flow to Net cash provided by operating activities, the most directly
comparable GAAP measure, for the periods indicated (in millions).
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Net cash provided by operating activities $ 1,133 $ 320 $ 2,197 $ 702
Capital expenditures (610) (512) (1,609) (897)
Free Cash Flow $ 523 $ (192) $ 588 $ (195)
Adjustments:
Transaction and integration costs 23 307 120 364
Restructuring costs 62 45 174 45
Tax on above items (29) (42) (60) (42)
Adjusted Free Cash Flow $ 579 $ 118 $ 822 $ 172
Set forth below is a reconciliation of the non-GAAP financial measure Adjusted
Basic EPS to Basic EPS, the most directly comparable GAAP measure for the
periods indicated.
Three months ended Nine months ended
September 30,
September 30,
2025 2024 2025 2024
Basic EPS $ 0.47 $ (0.30) $ 1.15 $ 0.51
Impairment and restructuring costs 0.13 0.04 0.69 0.06
Transaction and integration-related expenses associated with the Combination 0.03 0.52 0.14 1.03
Amortization of fair value step up on inventory - 0.45 - 0.66
Loss on debt extinguishment and deferred debt issue costs amortized - 0.01 - 0.01
Other adjustments - 0.02 0.03 (0.03)
Income tax on above items (0.05) (0.21) (0.30) (0.31)
Adjusted Basic EPS $ 0.58 $ 0.53 $ 1.71 $ 1.93
Ciarán Potts
Smurfit Westrock
T: +353 1 202 71 27
E: ir@smurfitwestrock.com (mailto:ir@smurfitwestrock.com)
FTI Consulting
T: +353 1 765 0800
E: smurfitwestrock@fticonsulting.com
(mailto:smurfitwestrock@fticonsulting.com)
View source version on businesswire.com:
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