Smurfit WestRock plc(SW) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter Net Sales reached $7,656 million, a significant increase from$2,930 million in the same period last year[2] - Net Income for the first quarter was $382 million, with a Net Income Margin of 5.0$1,252 million, reflecting an Adjusted EBITDA Margin of 16.4%, slightly up from 16.2% year-over-year[2][10] - Total net sales for the three months ended March 31, 2025, reached $7,764 million, a significant increase from$2,947 million in the same period of 2024, representing a growth of approximately 163%[25] - Adjusted EBITDA for the same period was $1,252 million, compared to$475 million in the prior year, indicating a year-over-year increase of about 164%[34] - The Adjusted EBITDA margin improved slightly to 16.4% in Q1 2025 from 16.2% in Q1 2024, reflecting stable operational efficiency despite rapid sales growth[34] - North America generated net sales of $4,669 million in Q1 2025, a substantial rise from$412 million in Q1 2024, marking an increase of approximately 1035%[25] - Net income for Q1 2025 was $382 million, up from$191 million in Q1 2024, representing a growth of approximately 100%[28] Cash Flow and Investments - Cash and cash equivalents decreased to $797 million as of March 31, 2025, down from$855 million at the end of 2024, indicating a cash outflow during the period[27] - Capital expenditures for the three months ended March 31, 2025, were $477 million, compared to$208 million in the same period of 2024, reflecting increased investment in growth initiatives[28] - The company reported a net cash provided by operating activities of $235 million for Q1 2025, a significant increase from$42 million in Q1 2024[28] - Adjusted Free Cash Flow for Q1 2025 was $(144) million, compared to$(130) million in Q1 2024, indicating ongoing investment needs despite operational cash generation[37] Strategic Initiatives - The synergy program is on track to deliver $400 million, with approximately$350 million expected in the current year[5] - The company has announced the closure of over 500,000 tons of paper capacity in North America and is closing two converting facilities in the region[6] - New state-of-the-art converting plants are being constructed in Washington and Wisconsin, along with a new Bag-in-Box facility in South Carolina[7] Shareholder Returns - A quarterly dividend of $0.4308 per ordinary share has been approved, payable on June 18, 2025[13] Profitability Metrics - The company reported a Gross Profit of$1,577 million for the first quarter, compared to $710 million in the prior year[22] - Basic earnings per share attributable to common shareholders was$0.74, consistent with the previous year[22] Asset Growth - The total assets of the company increased to $44,649 million as of March 31, 2025, compared to$43,759 million at the end of 2024, showing a growth in the asset base[27]