Smurfit Westrock posts robust Q1 with $7.66 billion in sales

Published 01/05/2025, 11:34
Smurfit Westrock posts robust Q1 with $7.66 billion in sales

DUBLIN - Smurfit Westrock plc (NYSE:SW, LSE: SWR), a global leader in paper-based packaging solutions, reported its first quarter financial results for 2025, announcing net sales of $7.656 billion, a significant increase from $2.930 billion in the same period last year. The company’s net income for the quarter ended March 31, 2025, stood at $382 million, yielding a net income margin of 5.0%. Adjusted EBITDA reached $1.252 billion with a margin of 16.4%, in line with the company’s guidance.

The company’s performance reflects strong results across all segments, particularly in North America. The integration of Smurfit Kappa Group (LON:SWR) plc and WestRock (NYSE:WRK) Company, which was completed on July 5, 2024, has been cited as a key driver of the improved results. The synergy program is on track to deliver $400 million, with approximately $350 million expected in the current year.

President and CEO Tony Smurfit stated, "This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year."

Smurfit Westrock has also announced the closure of over 500,000 tons of paper capacity in North America, along with the closure of two converting facilities in the region and the initiation of consultations to close two converting facilities in EMEA & APAC. Conversely, the company has invested in new state-of-the-art converting plants in Washington and Wisconsin and a Bag-in-Box facility in South Carolina.

The company anticipates additional economic downtime in the second quarter, estimated to cost around $100 million. However, the outlook for the second quarter Adjusted EBITDA is approximately $1.2 billion, with a full-year projection between $5.0 billion and $5.2 billion.

In addition, a quarterly dividend of $0.4308 per ordinary share has been declared, payable on June 18, 2025, to shareholders of record as of May 16, 2025.

The reported financial results are based on a press release statement and reflect the ongoing strategic efforts of Smurfit Westrock to optimize its operations and maintain its leadership position in the packaging industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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