Smurfit Westrock reported net sales of $8.03 billion for the second quarter of 2026 as strong paper demand helped offset freight and other cost pressures.
Net sales increased 1.1% from the same period last year. Net income was $88 million, compared with a $26 million loss in the second quarter of 2025, while the net income margin stood at 1.1%.
Adjusted EBITDA totaled $1.14 billion, representing a margin of 14.2%. The company also generated $765 million in net cash from operating activities during the quarter.
Paper demand strengthens
Smurfit Westrock said demand for paper remained strong throughout the quarter, supported by favorable supply-and-demand conditions across most grades. The company expects pricing initiatives to help recover higher input costs during the second half of the year and beyond.
In North America, the group continued implementing operational and commercial improvements across its mill and converting network. Pricing measures have been introduced across most paper grades, while the mill system entered the third quarter operating near capacity with strong order books.
The company said EMEA and APAC continued to outperform, supported by productivity improvements and new business. Latin America also delivered a strong quarter, with Smurfit Westrock identifying further opportunities for internal investment and acquisitions.
Higher freight costs remained a significant headwind, however, and continued inflation contributed to a more cautious full-year outlook.
Further facility closures underway
Smurfit Westrock is continuing to optimize its manufacturing footprint following the recent closure of a mill in the United Kingdom. The company is also in the process of closing eight converting facilities across Europe and North America.
These measures form part of a broader effort to improve operating efficiency and address underperforming assets two years after the combination of Smurfit Kappa and WestRock.
Full-year outlook revised
Smurfit Westrock expects adjusted EBITDA of approximately $1.3 billion in the third quarter. Its full-year forecast now ranges from $4.9 billion to $5.1 billion, compared with an earlier projection of $5 billion to $5.3 billion.
The company anticipates stronger momentum during the second half of 2026 as pricing actions take effect and converting operations improve.
Smurfit Westrock’s board also approved a quarterly dividend of $0.4523 per ordinary share. The dividend will be paid on September 10 to shareholders of record as of August 14.
Smurfit Westrock is a global provider of paper-based packaging, formed in 2024 through the combination of Smurfit Kappa and WestRock. Its operations include corrugated and consumer packaging, containerboard and other paper-based products.
