11th Feb 2026 12:29
(Alliance News) - Smurfit WestRock PLC reported higher earnings despite "difficult market conditions" in the fourth quarter and said it expects growth in the new year.
The Dublin-based packaging firm reported net income of USD98 million for the three months to the end of December, down 33% from USD146 million a year prior.
Net sales rose 0.5% to USD7.58 billion from USD7.54 billion, while the net income margin narrowed to 1.3% from 1.9% as cost of goods sold grew 1.7% to USD6.20 billion from USD6.10 billion.
For the quarter, adjusted earnings before interest, tax, depreciation and amortisation was 0.5% higher at USD1.172 billion from USD1.166 billion.
"I am pleased to report a strong fourth quarter performance for Smurfit Westrock set against difficult market conditions," said Chief Executive Officer Tony Smurfit.
For the full year, net income more than doubled to USD699 million in 2025 from USD319 million a year earlier, as net sales advanced 48% to USD31.18 billion from USD21.11 billion in 2024.
The net income margin widened to 2.2% from 1.5%, as basic earnings per share climbed 61% to USD1.34 from USD0.83.
Adjusted Ebitda was 46% higher at USD4.94 billion in 2025 from USD3.39 billion.
"In 2025, we established a strong foundation for Smurfit Westrock. We exceeded our committed synergy target of USD400 million and put in place a series of customer-centric, commercial and operating initiatives," CEO Smurfit added.
"We also reduced loss making businesses and closed approximately 600,000 tons of high-cost or inefficient capacity as we continued to focus on portfolio optimization. During the year, we further reduced headcount by over 3,000, while continuing to invest significantly behind our customers, in our asset base and operating efficiency."
Looking ahead, Smurfit WestRock said it expects to deliver adjusted Ebitda between USD1.1 billion and USD1.2 billion in the first quarter. It expects adjusted Ebitda to rise to between USD5.0 billion and USD5.3 billion in 2026.
The company said fourth quarter performance in the North America region reflects the impact of additional downtime taken to balance its system and actively manage working capital.
For the Europe, Middle East & Africa and Asia Pacific region, Smurfit said it delivered an "outstanding performance".
"We continue to believe that our business within this region is optimally positioned for a strong, future recovery," CEO Smurfit said.
"The performance of our [Latin America] region reflects the strength of our market positions and the benefits of growth projects already completed. [Latin America] continues to be a region of significant growth and opportunity."
Smurfit WestRock also set out a medium-term plan with targets to 2030. It expects adjusted Ebitda of around USD7 billion by 2024, with a compound annual growth rate of adjusted Ebitda of around 7% between 2026 and 2030.
It expects an adjusted Ebitda margin expansion of around 300 basis points over the period. It also expects a cumulative discretionary free cash flow of around USD14 billion by 2030.
The firm said it will maintain a progressive dividend policy with dividends of around USD5 billion during the period to 2030, with capacity for share buybacks from 2027.
"Our strategy is straightforward, disciplined and proven. We are focused on unlocking the full potential of North America, while continuing to outperform in EMEA and APAC and delivering dynamic growth and strong margins in Latin America," CEO Smurfit said.
"Strong operational performance and capital allocation are central to our value creation plan. We will continue to invest in growth while aiming to deliver significant and growing capital return to shareholders, supported by the strength and flexibility of our balance sheet and strong free cash flow generation."
Shares in Smurfit WestRock were up 2.1% at 3,341.00 pence on Wednesday afternoon in London. Shares were marginally higher at USD45.77 during premarket trading in New York.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Smurfit West