Smurfit Westrock Reports Third Quarter 2026 Results

Smurfit Westrock today reported its financial results for the third quarter ended September 30, 2026, highlighting progress across its regional operations while continuing to navigate significant inflationary pressures on freight, energy and raw material costs.

The Company reported third-quarter net sales of $8.161 billion and Adjusted EBITDA of $1.205 billion, representing an Adjusted EBITDA margin of 14.8%. Net income for the quarter was $219 million.

For the first nine months of 2026, net sales were $23.904 billion, Adjusted EBITDA was $3.421 billion and net income was $370 million.

Third Quarter Financial Highlights

• Net sales: $8.161 billion, compared with $8.003 billion in the third quarter of 2025.

• Adjusted EBITDA: $1.205 billion, compared with $1.302 billion in the prior-year quarter.

• Adjusted EBITDA margin: 14.8%, compared with 16.3% in the third quarter of 2025.

• Net income: $219 million, compared with $245 million in the prior-year quarter.

Net sales increased approximately 2.0% year over year, while Adjusted EBITDA declined approximately 7.5%. The Company’s results reflect the impact of higher operating costs, including freight and energy, alongside the effects of pricing, volumes and foreign exchange.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See the Company's financial reconciliations for further details.

Regional Operating Performance

North America

North America generated aggregate net sales of approximately $4.9 billion and Adjusted EBITDA of $760 million, with an Adjusted EBITDA margin of 15.6%.

The Company reported continued operational progress in the region. Its containerboard mill system remained sold out, as did most consumer grades. Linerboard price increases were implemented in September.

Inflation in freight and raw material costs continued to create near-term margin pressure. Corrugated volumes declined 3.4% on a days-adjusted basis. The Company also reported continued progress in its owner-operator model and ongoing opportunities to improve converting operations in Mexico and agricultural volumes.

Europe, Middle East and Africa, and Asia Pacific (EMEA & APAC)

EMEA & APAC delivered aggregate net sales of approximately $2.8 billion and Adjusted EBITDA of $379 million, representing a margin of 13.4%.

European containerboard pricing strengthened again in September. The Company's mill system remained full, while corrugated operations recorded year-over-year volume growth of 0.4%.

The Company continued to focus on product quality and operational performance. Containerboard price increases are expected to be fully recovered in the first half of 2027.

Latin America

Latin America generated aggregate net sales of approximately $0.6 billion and Adjusted EBITDA of $126 million, delivering an Adjusted EBITDA margin of 21.4%—the highest among the Company's reported regions.

Corrugated volumes declined 1.8% on a days-adjusted basis. The Company reported that the ramp-up of its biomass boiler in Cali, Colombia, was progressing as expected.

The planned CMPC acquisition is expected to strengthen Smurfit Westrock's presence in Chile, enhance its customer proposition and deepen regional paper integration.

2026 Outlook

Smurfit Westrock expects full-year 2026 Adjusted EBITDA of approximately $4.7 billion, including approximately $1.3 billion in the fourth quarter.

The Company's additional 2026 outlook includes:

• Capital expenditure: Approximately $2.3 billion.

• Cash interest: Approximately $0.7 billion.

• Cash taxes: Approximately $0.5 billion.

• Effective tax rate: Approximately 29%.

• Depreciation, depletion and amortization: Approximately $2.6 billion.

The Company expects significant cost inflation to remain a key operating consideration. Estimated increases in freight and energy costs for full-year 2026, compared with 2025, are approximately $350 million each.

For the fourth quarter of 2026, compared with the fourth quarter of 2025, the Company estimates freight cost increases of approximately $130 million and energy cost increases of approximately $230 million.

The Company’s outlook reflects management's current expectations and is subject to operating conditions, market developments and other risks and uncertainties. The Adjusted EBITDA outlook has not been reconciled to its most directly comparable GAAP measure because certain reconciling items cannot be reasonably predicted without unreasonable effort.

Building a Stronger Foundation for 2027

Smurfit Westrock continues to focus on operational execution, pricing actions, cost management and improvements in efficiency across its global operations.

While unprecedented cost inflation has affected performance in 2026, the Company believes its ongoing actions are helping mitigate these pressures and establish a stronger foundation for 2027.

Priorities include capturing the benefits of pricing actions, improving converting operations, maintaining quality standards, strengthening customer relationships and pursuing opportunities to enhance operating efficiency.