Group 1: Company Overview - Smurfit Westrock Plc, traded on the NYSE under the symbol SW, is a prominent player in the packaging industry focusing on sustainable packaging solutions and operating globally [1] - The company competes with other major packaging firms, striving to maintain its market position through innovation and strategic growth [1] Group 2: Financial Performance - On February 12, 2026, Truist Financial set a price target of $60 for NYSE:SW, suggesting a potential increase of about 17.03% from the stock's price of $51.27 at that time [2] - SW's stock is currently priced at $51.37, showing a daily increase of 2.17%, or $1.09, with fluctuations between $50.12 and $52.65 during the trading day [4] - Over the past year, the stock has seen a high of $55.49 and a low of $32.73, indicating significant volatility [4] Group 3: Market Metrics - SW's market capitalization is approximately $26.82 billion, with a trading volume of 8.79 million shares, highlighting the company's substantial market presence and investor interest [5][6] - The Q4 2025 earnings call likely covered key financial metrics such as earnings and revenue, providing insights into the company's strategic direction [3][6]

Core Insights - Smurfit Westrock Plc reported earnings of 34 cents per share in Q4 2025, missing the Zacks Consensus Estimate of 46 cents, and down from 47 cents in the same quarter last year [1][9] - The company was formed by the merger of Smurfit Kappa and WestRock on July 5, 2024, and results are reported as a unified entity from Q3 2024 [1] Financial Performance - Net sales for Q4 2025 increased by 0.5% year over year to $7.58 billion, but fell short of the Zacks Consensus Estimate of $7.67 billion [2] - Cost of sales rose by 1.7% to $6.2 billion, leading to a gross profit decline of 4.2% to $1.38 billion [2] - Adjusted EBITDA for Q4 was $1.17 billion, up 0.5% year over year, with an adjusted EBITDA margin of 15.5%, remaining flat year over year [2] Segment Performance - Europe, MEA & APAC segment reported sales of $2.69 billion, up 7.1% year over year, with adjusted EBITDA increasing by 18.1% to $438 million [3] - North America segment sales decreased to $4.35 billion from $4.52 billion in the previous year, with adjusted EBITDA falling to $651 million from $710 million [4] - LATAM segment sales rose by 6.3% to $537 million, with adjusted EBITDA increasing by 8.3% to $131 million [5] Cash Position and Balance Sheet - Cash and cash equivalents at the end of 2025 were $892 million, up from $855 million at the end of 2024 [6] - Net cash provided by operating activities was $1.19 billion, compared to $0.78 billion in the same quarter last year [6] - Adjusted free cash flow at the end of 2025 was $679 million, significantly up from $257 million in the prior year [6] Annual Performance - For the full year 2025, adjusted earnings were reported at $2.05 per share, missing the Zacks Consensus Estimate of $2.20, and down from $2.34 in the previous year [8] - Net sales for 2025 improved by 47.7% year over year to $31.12 billion, but also lagged behind the Zacks Consensus Estimate of $31.26 billion [8] - Adjusted EBITDA for 2025 was $4.93 billion, aligning with the company's guidance [10] Future Guidance - The company anticipates adjusted EBITDA of $5-$5.3 billion for 2026 and $1.1-$1.2 billion for Q1 2026 [9][13] Stock Performance - Smurfit Westrock's shares have declined by 11.3% over the past year, compared to a 3.6% decline in the industry [11]

分组1 - Smurfit Westrock reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.46 per share, representing an earnings surprise of -25.28% [1] - The company posted revenues of $7.58 billion for the quarter, missing the Zacks Consensus Estimate by 1.13%, and showing a slight increase from $7.54 billion year-over-year [2] - Over the last four quarters, Smurfit Westrock has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 18.3% since the beginning of the year, outperforming the S&P 500, which gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $7.85 billion, and for the current fiscal year, it is $3.00 on revenues of $31.98 billion [7] - The Zacks Industry Rank for Paper and Related Products is in the bottom 21% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Data and Key Metrics Changes - The company reported an Adjusted EBITDA of $1.172 billion for the fourth quarter and $4.939 billion for the full year, marking the largest outturn by any packaging company globally [5] - The adjusted margin for the quarter was 15.5%, with a similar figure for the year, providing a strong foundation for future success [6] - Adjusted free cash flow for the quarter was $679 million, totaling over $1.5 billion for the year, highlighting a focus on cash generation [5][8] Business Line Data and Key Metrics Changes - North America reported an adjusted EBITDA of $651 million with a margin of 14.7%, showing a modest year-on-year decline [6] - European margins expanded to over 16% with an adjusted EBITDA of $438 million [6] - Latin America demonstrated strong performance with margins exceeding 24% and an adjusted EBITDA of over $130 million [6] Market Data and Key Metrics Changes - North American volumes saw a sharp decline, while European volumes remained stable, and Latin America experienced stronger growth [7] - The company has successfully reduced leverage to 2.6x, moving towards a target of 2x, reflecting improved balance sheet strength [8] Company Strategy and Development Direction - The company is focused on portfolio optimization, including the closure of the SBS machine in La Tuque, Quebec, as part of its strategic initiatives [4] - A medium-term plan has been developed with input from all operating units, aiming for adjusted EBITDA growth to $7 billion by 2030, with a CAGR of 7% [78] - The company emphasizes a commitment to return capital to shareholders, expecting dividends of approximately $5 billion from 2026 to 2030 [79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's performance and future prospects [13] - The outlook for the first quarter of 2026 is an Adjusted EBITDA between $1.1 billion and $1.2 billion, with a full-year expectation of $5 billion to $5.3 billion [15] - Management noted that the year has begun with a generally better industry operating environment, anticipating improved performance in the second half of the year [15] Other Important Information - The company has been recognized by Forbes, Fortune, and Time Magazine as a leader in the industry, reflecting its strong performance and operational excellence [13] - The company has received over 230 awards for quality and service, indicating a commitment to customer satisfaction [14] Q&A Session Questions and Answers Question: Can you talk about the outlook for this year regarding pricing and volume progressions? - Management indicated that they do not manage the business on a week-by-week basis but noted a firming up of order books in late December, with expectations for volumes to return to normalized levels in the latter half of the year [18][19] Question: Where are you in the process of churning lower loss-making contracts? - Management expressed satisfaction with the progress in phasing out underperforming contracts and indicated that most of the bad contracts have been removed, allowing for new opportunities to be pursued [22][26] Question: Can you provide insights on the consumer business performance and expectations for 2026? - The consumer business is performing well, with strong potential for profitability and cash generation, and management highlighted a recent large contract with a major drinks company as a positive development [56][58]

Financial Data and Key Metrics Changes - The company reported an Adjusted EBITDA of $1.172 billion for the fourth quarter and $4.939 billion for the full year, marking the largest outturn by any packaging company globally [5] - Adjusted free cash flow for the quarter was $679 million, totaling over $1.5 billion for the year, highlighting a focus on cash generation [5] - The adjusted margin for the quarter was 15.5%, with a similar figure for the year, providing a strong foundation for future success [6] Business Line Data and Key Metrics Changes - North America reported an adjusted EBITDA of $651 million with a margin of 14.7%, showing a modest year-on-year decline [6] - European margins expanded to over 16% with an adjusted EBITDA of $438 million [6] - Latin America demonstrated strong performance with margins exceeding 24% and an adjusted EBITDA of over $130 million [6] Market Data and Key Metrics Changes - North American volumes saw a sharp decline, while European volumes remained stable, and Latin America experienced stronger growth [7] - The company has successfully reduced leverage to 2.6 times, moving towards a target of 2 times, reflecting improved balance sheet strength [8] Company Strategy and Development Direction - The company is focused on portfolio optimization, including the closure of the SBS machine in La Tuque, Quebec, as part of its strategic initiatives [4] - A medium-term plan has been developed with input from all operating units, aiming for significant profit growth in North America and continued strong performance in EMEA [7][79] - The goal is to achieve an adjusted EBITDA growth to $7 billion by the end of 2030, with a CAGR of 7% and margin expansion of over 300 basis points [79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's performance and future prospects [13] - The outlook for the first quarter of 2026 is an Adjusted EBITDA between $1.1 billion and $1.2 billion, with a full-year expectation of $5 billion to $5.3 billion [15] - The company anticipates a better industry operating environment in the latter half of the year, driven by new business development and improving economic conditions [15] Other Important Information - The company has been recognized by Forbes, Fortune, and Time Magazine as a leader in the industry, reflecting its strong performance and operational excellence [13] - A progressive dividend policy continues, with a 5% increase noted, emphasizing the importance of returning capital to shareholders [8] Q&A Session Summary Question: Can you talk about the pricing outlook and volume expectations for the year? - Management indicated that pricing has not been baked into forecasts, and they expect volumes to normalize in the latter half of the year, influenced by economic stimuli [17][20] Question: What is the status of lower loss-making contracts and the pipeline? - Management expressed satisfaction with the progress in phasing out underperforming contracts and indicated a robust pipeline for new business opportunities [22][25] Question: How will the company manage downtime and asset utilization? - The company reported $220 million in downtime for the year, with optimal asset utilization rates targeted at mid-90s% for North America and above 92% for Europe [69] Question: What are the expectations for the North American consumer business? - The North American consumer business is performing well, with strong potential for profitability and cash generation, supported by recent large contracts [56][58]

Financial Data and Key Metrics Changes - The company reported an Adjusted EBITDA of $1.172 billion for Q4 2025 and $4.939 billion for the full year, marking the largest outturn by any packaging company globally [4] - Adjusted free cash flow for the quarter was $679 million, totaling over $1.5 billion for the year, highlighting a focus on cash generation [4] - The adjusted margin for the quarter was 15.5%, consistent with the annual figure, providing a strong foundation for future success [5] Business Line Data and Key Metrics Changes - North America reported an adjusted EBITDA of $651 million with a margin of 14.7%, showing a modest year-on-year decline [5] - European margins expanded to over 16% with an adjusted EBITDA of $438 million [5] - Latin America demonstrated strong performance with margins exceeding 24% and an adjusted EBITDA of over $130 million [5] Market Data and Key Metrics Changes - North American volumes saw a sharp decline, while European volumes remained stable, and Latin America experienced stronger growth [6] - The company has successfully reduced leverage to 2.6 times, moving towards a target of 2 times, reflecting improved balance sheet strength [7] Company Strategy and Development Direction - The company is focused on portfolio optimization, including the closure of the SBS machine in La Tuque, Quebec, as part of its strategic initiatives [3] - A medium-term plan has been developed with input from all operating units, aiming for adjusted EBITDA growth to $7 billion by 2030, with a CAGR of 7% [78] - The company plans to generate approximately $14 billion in adjusted free cash flow between 2026 and 2030, with a commitment to return capital to shareholders [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, anticipating a generally better industry operating environment and an expected Q1 2026 Adjusted EBITDA between $1.1 billion and $1.2 billion [13] - The company expects to see volume recovery in the latter half of the year, driven by improving economic conditions and customer demand [17][36] - Management highlighted the importance of quality and service in gaining market share, particularly in Europe [35] Other Important Information - The company has been recognized by Forbes, Fortune, and Time Magazine as a leader in the industry, reflecting its strong performance and reputation [11] - The company has achieved over 230 awards for quality and service from customers and suppliers, underscoring its commitment to excellence [12] Q&A Session Summary Question: What is the outlook for pricing and volume progressions? - Management indicated that pricing has not been baked into forecasts, but they expect volumes to normalize in the latter half of the year, influenced by economic stimuli [15][18] Question: Where are you in the process of phasing out lower loss-making contracts? - Management expressed satisfaction with the progress in eliminating underperforming contracts and emphasized the importance of having capacity to sell profitable contracts [20][24] Question: Can you provide insights on the consumer business performance and expectations for 2026? - The consumer business is performing well, with strong potential for profitability and cash generation, and management is optimistic about leveraging relationships to enhance growth [54][56]

Core Viewpoint - Smurfit Westrock Plc is facing ongoing margin pressures due to higher input costs and a challenging demand environment, leading to stock performance fluctuations [2][4]. Group 1: Company Overview - Smurfit Westrock Plc is a global leader in sustainable paper-based packaging, headquartered in Dublin, Ireland, with a market capitalization of $23.01 billion [1]. Group 2: Stock Performance - Over the past 52 weeks, Smurfit Westrock's stock has declined by 14.5%, but it has increased by 18.3% year-to-date (YTD) [2]. - The stock reached a 52-week low of $32.73 in November and has since risen by 39.8% from that level [2]. - In comparison, the S&P 500 Index has gained 14.4% over the past 52 weeks and 1.4% YTD, indicating that Smurfit Westrock has underperformed the broader market over the past year but outperformed year-to-date [3]. Group 3: Operational Changes - The company announced the permanent closure of a paper machine at its La Tuque, Quebec mill, which had an annual production capacity of 127,000 tons for solid bleached sulfate (SBS), due to ongoing scale and cost challenges [4]. - Additionally, the extrusion facility in Pointe-aux-Trembles, Quebec, will also be closed, aligning operations with market realities [4]. Group 4: Financial Performance - For the fourth quarter, Smurfit Westrock reported marginal growth in net sales to $7.58 billion, while adjusted EPS fell by 27.7% year-over-year (YOY) to $0.34 [4]. - Analysts expect the company's profit to increase by 36.4% YOY to $3 per share on a diluted basis for the current fiscal year [4].

2025 Fourth Quarter and Full-Year Results February 11, 2026 Paper | Packaging | Solutions Smurfit Westrock Q4 | 2025 Results | 2 Forward Looking Statements The presentation 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 ...

Financial Performance - Net Sales for Q4 2025 reached $7,580 million, a slight increase from $7,539 million in Q4 2024[2] - Net Income for Q4 2025 was $98 million, down from $146 million in Q4 2024, resulting in a Net Income Margin of 1.3%[2] - Adjusted EBITDA for Q4 2025 was $1,172 million, with an Adjusted EBITDA Margin of 15.5%, consistent with Q4 2024[2] - Gross profit for Q4 2025 was $1,382 million, down from $1,442 million in Q4 2024, with a total gross profit for the year of $6,043 million, compared to $4,195 million in 2024, indicating a significant annual increase of 43.9%[20] - Operating profit for Q4 2025 was $389 million, down from $401 million in Q4 2024, while total operating profit for the year was $1,719 million, compared to $1,007 million in 2024, reflecting a significant annual increase of 70.7%[20] - Net income for Q4 2025 was $98 million, down from $146 million in Q4 2024, with total net income for the year reaching $699 million, compared to $319 million in 2024, representing a year-over-year growth of 118.8%[20] - Basic earnings per share for Q4 2025 were $0.19, down from $0.28 in Q4 2024, while total basic earnings per share for the year were $1.34, compared to $0.83 in 2024, indicating a significant annual increase of 61.5%[20] Cash Flow and Investments - Net Cash Provided by Operating Activities for Q4 2025 was $1,195 million, significantly higher than $781 million in Q4 2024[2] - Adjusted Free Cash Flow for Q4 2025 was $679 million, compared to $257 million in Q4 2024[2] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $3,392 million, compared to $1,483 million in 2024, representing a significant increase[34] - Capital expenditures for the twelve months ended December 31, 2025, totaled $2,192 million, compared to $1,466 million in 2024, reflecting increased investment in growth[34] - The company experienced a net cash used for investing activities of $579 million in Q4 2025, compared to $519 million in Q4 2024[26] - Cash and cash equivalents at the end of Q4 2025 were $892 million, up from $855 million at the end of Q4 2024[26] Future Outlook - For Q1 2026, the company expects Adjusted EBITDA to be between $1.1 billion and $1.2 billion, and for the full year 2026, between $5.0 billion and $5.3 billion[10] Operational Efficiency - The company exceeded its synergy target of $400 million and closed approximately 600,000 tons of high-cost capacity during 2025[4] - The company reduced headcount by over 3,000 while continuing to invest in customer-centric initiatives and operational efficiency[4] Regional Performance - North America segment net sales for Q4 2025 were $4,432 million, a decrease from $4,593 million in Q4 2024, while total net sales for the year were $18,577 million, up from $10,092 million in 2024, showing a substantial annual growth of 84.1%[23] - The Europe, MEA, and APAC segment reported net sales of $2,702 million in Q4 2025, an increase from $2,521 million in Q4 2024, with total annual sales of $10,893 million, compared to $9,577 million in 2024, marking a growth of 13.8%[23] - LATAM segment net sales for Q4 2025 were $537 million, slightly up from $524 million in Q4 2024, with total annual sales of $2,113 million, compared to $1,711 million in 2024, indicating a growth of 23.5%[23] - The LATAM region continues to show significant growth opportunities, supported by completed growth projects[9] Debt and Financial Position - Total debt additions for Q4 2025 amounted to $1,479 million, while debt repayments were $1,695 million, indicating a net cash outflow from financing activities[26] - The company reported impairment and restructuring costs of $25 million for Q4 2025, compared to $34 million in Q4 2024[33] - Total assets as of December 31, 2025, were $45,157 million, an increase from $43,759 million as of December 31, 2024, reflecting a growth of 3.2%[25]

Core Viewpoint - Smurfit Westrock plc is hosting an Investor Update to discuss its Medium-Term Plan, capital allocation priorities, and value creation strategy, led by Group President & CEO Tony Smurfit and senior leadership team members [1] Group 1: Financial Targets and Capital Allocation - The event will outline the company's 2030 financial targets and capital allocation priorities [1]