Smurfit Westrock Reports Second Quarter 2026 Results as Paper Demand Remains Strong, Reaffirms Full-Year EBITDA Outlook

Smurfit Westrock plc (NYSE: SW) reported its financial results for the second quarter ended June 30, 2026, posting net sales of $8.031 billion, net income of $88 million, adjusted EBITDA of $1.140 billion, and operating cash flow of $765 million. The company also announced a quarterly dividend of $0.4523 per ordinary share.

Second-quarter net sales increased to $8.031 billion from $7.940 billion in the same period of 2025. Net income improved to $88 million, compared with a net loss of $26 million a year earlier, resulting in a net income margin of 1.1% versus a negative 0.3% in the prior-year period. Adjusted EBITDA was $1.140 billion, compared with $1.213 billion in the second quarter of 2025, while adjusted EBITDA margin was 14.2% versus 15.3%. Basic earnings per share were $0.17, and adjusted basic EPS was $0.35.

President and Chief Executive Officer Tony Smurfit said the company delivered a strong quarter despite significantly higher input costs, particularly freight, which were mitigated through operational actions. He noted that demand for paper remained strong throughout the quarter and said the company expects to recover input cost inflation during the second half of 2026.

Smurfit said the company has undergone significant cultural and operational changes since the formation of Smurfit Westrock two years ago and is pursuing an accelerated growth strategy through its Medium-Term Plan. According to the company, North America continued to make operational and commercial progress through implementation of its owner-operator model, pricing initiatives across paper grades, and improving performance in converting operations. The company said its mill system entered the third quarter operating at generally full capacity with strong order books and improving converting demand.

The Europe, Middle East, Africa and Asia-Pacific (EMEA/APAC) region continued to outperform, supported by productivity improvements, customer service and innovation, according to the company. Smurfit said rising input costs in the region are being recovered with the customary pricing lag. Meanwhile, the Latin America business delivered another strong performance, benefiting from established market positions and investment programmes, with the company identifying additional opportunities through both internal investment and acquisitions.

During the quarter, Smurfit Westrock hosted more than 200 global customers at its flagship packaging innovation event and said it continued to receive awards for innovation, sustainability and customer service across multiple regions. The company also continued network optimisation, including a mill closure in the UK and plans to close an additional eight converting facilities across Europe and North America.

Looking ahead, the company said it expects third-quarter adjusted EBITDA of approximately $1.3 billion and reaffirmed its full-year adjusted EBITDA guidance in the range of $4.9 billion to $5.1 billion, citing encouraging market conditions and improvements across the business despite continued elevated freight and other input costs.

The Board approved a quarterly dividend of $0.4523 per ordinary share, payable on September 10, 2026, to shareholders of record at the close of business on August 14, 2026.

For the first six months of 2026, Smurfit Westrock reported net sales of $15.743 billion, net income of $151 million, adjusted EBITDA of $2.216 billion, operating cash flow of $969 million, and adjusted basic EPS of $0.69.

Segment performance showed:

• North America: Net sales of $4.656 billion and adjusted EBITDA of $704 million.

• EMEA/APAC: Net sales of $2.816 billion and adjusted EBITDA of $380 million.

• Latin America: Net sales of $559 million and adjusted EBITDA of $124 million.

As of June 30, 2026, Smurfit Westrock reported total assets of $45.201 billion, total liabilities of $27.141 billion, total shareholders' equity of $18.036 billion, cash and cash equivalents of $677 million, and property, plant and equipment valued at $22.672 billion.

The company stated that management will host an earnings conference call and webcast on July 29, 2026, to discuss the quarterly results. It also reiterated that its financial outlook remains subject to market conditions and other risks described in its forward-looking statements. Smurfit Westrock, headquartered in Ireland, is a global provider of paper-based packaging solutions employing approximately 96,000 people across 40 countries.