Smurfit Westrock — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the three months ended September 30, 2026, were $8,161 million, compared to $8,003 million in the same period in 2025.
• Net income was $219 million (2.7% margin) for the quarter, down from $245 million (3.1% margin) in 2025.
• Adjusted EBITDA was $1,205 million (14.8% margin) for the quarter, compared to $1,302 million (16.3% margin) in 2025.
• Net cash provided by operating activities was $874 million for the quarter, down from $1,133 million in 2025.
• For the nine months ended September 30, 2026, net sales were $23,904 million versus $23,599 million in 2025; net income was $370 million versus $601 million; and Adjusted EBITDA was $3,421 million versus $3,767 million.
• Basic EPS was $0.42 for the quarter (down from $0.47 in 2025); Adjusted Basic EPS was $0.45 (down from $0.58 in 2025).
• Total debt increased, with the current portion rising to $842 million at September 30, 2026, from $346 million at December 31, 2025, and non-current debt at $13,207 million.

Guidance and Future Outlook:

• Full-year 2026 Adjusted EBITDA is estimated at approximately $4.7 billion.
• Management expects to absorb approximately $700 million in additional freight and energy costs for the full year 2026.
• Price increases implemented to offset costs are expected to be fully realized in 2027.
• The company anticipates continued progress into 2027 and beyond following a challenging operating environment.

Business Segments and Product Lines:

• North America: Reported Adjusted EBITDA of $760 million (15.6% margin) for the quarter, down from $810 million (17.2% margin) in 2025. Net sales were $4,750 million. The region remains sold out in all containerboard grades and most consumer grades.
• EMEA & APAC: Reported Adjusted EBITDA of $379 million (13.4% margin) for the quarter, down from $419 million (14.8% margin) in 2025. Net sales were $2,824 million. Containerboard price increases have been implemented to offset rising energy costs.
• Latin America: Reported Adjusted EBITDA of $126 million (21.4% margin) for the quarter, up from $116 million (21.3% margin) in 2025. Net sales were $587 million.
• The company announced an agreement to acquire containerboard assets of CMPC in Chile during the third quarter.
• The owner-operator model is being implemented across all regions, and innovative packaging approaches are being developed for customers.

Market and Competitive Landscape:

• The market is heavily impacted by unprecedented cost inflation, specifically in freight and energy.
• The company is implementing significant pricing initiatives across most paper grades to offset input costs.
• The EMEA & APAC region is increasingly viewed as the partner of choice due to its product portfolio and leadership in innovation, sustainability, quality, and service.
• Latin America presents opportunities for development, with the company positioning itself as the only pan-regional supplier following the CMPC acquisition.

Risks and Challenges:

• Unprecedented cost inflation and weaker than anticipated converting volumes impacted performance.
• Risks include the ability to increase prices to offset elevated costs and pass them through, changes in the demand environment, and the impact of inflation on energy, raw materials, shipping, labor, and capital equipment costs.
• Potential risks involve geo-economic fragmentation, tariffs, trade wars, and protectionist measures.
• Integration risks associated with the combination of Smurfit Kappa and WestRock, including the ability to achieve synergies and value creation.
• Risks related to cybersecurity, labor disputes, supply chain disruptions, and regulatory changes.

Management Commentary and Tone:

• Tony Smurfit, President and CEO, described the performance as "resilient" despite cost inflation and volume challenges.
• Management expressed pride in the efforts of employees and the foundation set for future performance.
• The CEO highlighted the expertise and commitment of people leading the change toward a customer-centric, performance-led culture.
• Management noted that the focus on quality, service, and investment in productivity is winning customers and optimizing businesses to reduce loss makers.

Other Key Points:

• The Board approved a quarterly dividend of $0.4523 per ordinary share, payable on December 10, 2026, to shareholders of record on November 13, 2026.
• Cash dividends paid to shareholders were $238 million for the quarter and $712 million for the nine months ended September 30, 2026.
• Capital expenditures were $514 million for the quarter and $1,603 million for the nine months ended September 30, 2026.
• The company has approximately 96,000 employees across 40 countries.
• An earnings conference call was hosted on October 28, 2026, at 7:30 AM ET.