Smurfit Westrock delivered resilient fourth-quarter performance despite challenging market conditions, posting net sales of $7.58 billion and adjusted EBITDA of $1.17 billion with a steady 15.5% margin.
Net income stood at $98 million for the quarter, down from $146 million a year earlier, while full-year 2025 results showed net sales of $31.18 billion and net income of $699 million. Operating cash flow reached a robust $1.2 billion in Q4, driving adjusted free cash flow to $679 million.
Synergies Exceed Targets as Capacity Is Optimized
The company surpassed its $400 million synergy goal from the merger, while closing 600,000 tons of high-cost capacity and cutting headcount by over 3,000 to sharpen its cost base. These moves supported portfolio optimization and a shift toward value-based selling, particularly in corrugated packaging where new business wins signal improved mix.
President and CEO Tony Smurfit highlighted the "strong foundation" built in 2025, with customer-centric initiatives and operating efficiency gains positioning the company for medium-term growth. North America saw additional downtime to manage working capital, but corrugated gains and consumer packaging innovation set a positive trajectory despite near-term SBS capacity constraints.
Regional Strengths Shine Through
EMEA and APAC delivered outstanding results through integrated platforms and market leadership, well-positioned for recovery. Latin America benefited from strong positions and completed growth projects, marking it as a key opportunity region. Investments in assets, innovation and sustainability underpin a performance-led culture across all segments.
2026 Outlook and Dividend Hike
Smurfit Westrock guided Q1 2026 adjusted EBITDA between $1.1-1.2 billion and full-year $5.0-5.3 billion, citing a better industry environment despite weather disruptions. The board approved a quarterly dividend of $0.4523 per share, up 5%, payable March 18 to shareholders of record February 17.
Smurfit Westrock is a global leader in paper-based packaging solutions, serving customers across North America, Europe, and other international markets. The company designs and manufactures containerboard, corrugated packaging, and paperboard products for a wide range of end uses, with a focus on operational efficiency, innovation, and sustainability.
Source: Smurfit Westrock
