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This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Pricing proved to be a central topic during major fiber companies’ second-quarter earnings calls. Executives frequently cited higher transportation and raw material costs as reasons for significant price hikes from companies including Packaging Corporation of America, Smurfit Westrock and others, which have since prompted some blowback. Containerboard producers also noted signs of improving supply and demand dynamics. Pricing also was a theme for some slightly smaller or international paper and packaging companies. Here’s a roundup of key points from four of their earnings reports. Clearwater Paper’s Q2 shipment volumes were up 8% year over year. The company reduced net debt by $59 million in the quarter. “We are currently sold out across our network,” said CEO Arsen Kitch during a July 28 earnings call. The company posted a loss of $21.5 million for the quarter. The Spokane, Washington-based company recently announced its second $60 per ton price increase of 2026 for all products. Executives expect it will take a couple quarters for that to be recognized in Fastmarkets RISI’s index. However, the prior increase should result in a $50 million to $60 million annual improvement in EBITDA, Kitch explained. About half of the company’s volumes are tied to that pricing index. Regarding the ongoing industry oversupply of solid bleached sulfate, the company is “seeing some meaningful green shoots” in conditions, Kitch said. SBS shipment volumes year-to-date are up 6%. Manufacturers across the industry have reduced SBS production by a collective 300,000 tons since the beginning of the year, and “we're seeing evidence of substitution into SBS from other substrates,” Kitch said. Higher-than-expected transportation costs, mostly driven by the war with Iran, have had an impact. Clearwater intends to continue actions to reduce costs and improve margins. That includes restructuring its mill in Cypress Bend, Arkansas, and reducing the number of employees there by approximately 20%. “This action limits our network production to approximately 1.2 million tons per year, balancing supply with our current demand,” Kitch said. The restructuring is projected to reduce costs by $8 million to $12 million on an annualized basis. In July, Clearwater introduced a new coated recycled paperboard product, Circa, intended for folding carton and beverage carrier applications in the U.S. It complements the SBS portfolio and will enhance the company’s ability to serve customers across more end-use applications, Kitch said. For Finland-based Huhtamaki, which has 18 locations across North America, overall net sales in Q2 were relatively flat year over year at 1 billion euros. But North American net sales decreased by nearly 10% year over year. Adjusted EBITDA was down 2% year over year to 151.7 million euros. The flexible packaging segment was a leader for the company, with a nearly 11% year-over-year increase in net sales. Fiber packaging net sales increased 6.7% year over year. Foodservice dipped 1.3%, reflecting “a still very challenging market” that’s feeling effects from the war with Iran, including through reduced consumer confidence, said CEO Ralf Wunderlich during a July 23 earnings call. Wunderlich noted that the war presented numerous challenges, but Huhtamaki was able to secure raw materials to continue supplying customers. The company also ensured employee safety at its six sites in the Middle East, and all sites have continued to operate. He noted steep increases in energy and logistics costs. Huhtamaki continues work to address “operational issues” in North America, Wunderlich said, mainly coming from starting up expansions in Hammond, Indiana, and Paris, Texas. The company also has cut 140 North American employees in the last year. “Overall, the market in North America isn’t growing a lot,” he said. U.K.-based Mondi, which has 13 locations across North America, offered a look at its first half of the year, showing a 1.7% increase in revenue compared with the first half of 2025. Revenue for the corrugated packaging segment came in at 1.98 billion euros, a 4.4% year-over-year increase, while the flexible packaging segment charted a 1.1% year-over-year decrease to just over 2 billion euros. Underlying EBITDA dropped nearly 33% to 379 million euros, mainly due to margin pressure from lower average selling prices and higher input costs, said CEO Andrew King during a July 30 earnings call. Containerboard volumes were up about 12% and box volumes grew 2%. Executives cited a volatile market environment and higher input costs, including for energy, due to the war. As such, they implemented a series of price increases across all key fiber grades. “Although not sufficient to fully offset the impact of the cost increases in Q2, we do see further benefits from these price increases into the second half,” King said. In light of the prolonged industry downturn, Mondi is implementing optimization measures. This includes closing six converting sites and cutting 580 employees by year’s end. “2026 is a transition year,” said Sylvamo CEO John Sims during an Aug. 7 earnings call. The Memphis, Tennessee-based company launched its “lean transformation” intended to improve operations and results. Sylvamo’s net loss grew to $11 million during Q2 compared with a net loss of $3 million in Q1. Net sales increased 1.3% year over year. Total adjusted EBITDA was $60 million, down almost 27% year over year. When Sylvamo spun off from International Paper in 2021, it agreed to purchase certain products from IP’s Riverdale mill in Selma, Alabama. Last year, the companies altered the agreement to end this May as IP started to convert a machine there to produce containerboard instead of uncoated freesheet. IP confirmed in its Q2 earnings release that the mill conversion is complete. Sylvamo executives discussed impacts from the contract termination, projecting a sales hit in the second half of the year. They estimate that the conversion removed 7% of the North American industry’s annual UCFS supply from the market. Sylvamo continues to implement UCFS price increases across regions and expects to see realization continue through year’s end. Executives anticipate a price and mix benefit of $75 million to $85 million in the second half of the year compared with the first. They also expect improvements in operations and other costs in the back half of the year, despite volume offsets from lost Riverdale supply and from a longer-than-expected outage at its Eastover, South Carolina, mill to complete paper machine investments. The upgrades there will add 60,000 tons of annual UCFS capacity — which won’t completely cover the 90,000 tons lost from the IP contract. Recommended Reading Packaging suppliers share mid-year results and reflections

Image source: The Motley Fool. Wednesday, July 29, 2026 at 6 a.m. ET Group Vice President, Investor Relations - Ciaran Potts Chief Executive Officer - Anthony P. J. Smurfit Executive Vice President and Chief Financial Officer - Ken Bowles Operator: Good day, and thank you for standing by. Welcome to the Smurfit Westrock 2026 Q2 Results Webcast and Conference Call. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Ciaran Potts, Smurfit Westrock Group VP, Investor Relations. Please go ahead. Ciaran Potts: Thank you, Sharon. As a reminder, statements in today's press release and presentation and the comments made by management during this call may be considered forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the earnings release and in our SEC filings as well as those discussed in our investor update presentation on our medium-term plan. The company undertakes no obligation to revise any forward-looking statements. Today's remarks also refer to certain non-GAAP financial measures. Where applicable, reconciliations to the most comparable GAAP measures are included in today's earnings release and in the appendix to the accompanying presentation, which are available at investors.smurfitwestrock.com. In addition, today's remarks include statements about Smurfit Westrock's medium-term financial goals and capital allocation priorities. These goals are aspirational and actual performance may differ, possibly materially, and no guarantees are made that these goals will be met. I'll now hand you over to Tony Smurfit, CEO of Smurfit Westrock. Anthony P. J. Smurfit: Thanks, Ciaran. I'm happy to be joined today by Ken Bowles, our EVP and CFO. Our second quarter results demonstrate the continued progress we have made in Smurfit Westrock with an adjusted EBITDA of $1.14 billion and an adjusted EBITDA margin of 14.2%. This is especially impressive when set against the very significant input costs we have absorbed with only early-stage momentum on price recovery. Cost increases, especially in freight have been a feature of the quarter. And as a result, we have raised containerboard prices. These will be recovered through our converting operations as we progress through this year and into next. Market conditions for practically all paper grades remain as tight as I can remember. Our focus remains on being the most innovative packaging partner, delivering superior quality and service for our customers and the go-to sustainable packaging partner of choice. And as such, we remain committed to improving all aspects of our business. We're also relentless in our approach to cost takeout, which we have again demonstrated through asset optimization with a number of closures in both our North American and EMEA and APAC regions. We have also continued focus on our owner-operator model, which I'm happy to report is showing considerable progress as we develop the new Smurfit Westrock culture. Turning to the regions and, firstly, to North America, where I'm happy to report progress and development across practically all areas. Most importantly, our full team for the future is now in place and delivering both cultural and operational change. Nearly all our paper mill system is fully booked and no commercial downtime is anticipated for the remainder of the year. We have implemented pricing initiatives in both domestic and overseas markets and shortage of supply is the current issue surrounding this business area. In our corrugated box operations, I'm delighted to report continued progress as we adopt our business model. Our number of recurring lossmakers has considerably reduced, and our focus on innovation and customer service is attracting significant new business. Our quality and service metrics continue to improve. For example, year-to-date, our quality metric has improved by over 25%. In our consumer business, we have also made significant progress with new investments coming online, which will improve both productivity and our cost position. Importantly, we have also won new business because of our grade-agnostic approach that we have adopted. In our EMEA and APAC region, I'm very proud of the outperformance this region continues to deliver. The region consistently offers customers the most innovative and sustainable packaging as customers navigate a complex environment. Our recent innovation event attended by over 200 customers demonstrated the depth of knowledge that we offer across all paper-based substrates. In our fully integrated mill system, similar to North America, we're fully booked, and we expect to remain in this position. Our corrugated business remains very solid with a better performance forecast for the second half as we recover input costs with the normal lag period. Our consumer business is now fully integrated, and there are many cross-selling and development opportunities that we're developing across Europe and Asia. Turning to LatAm region. We continue to see a strong performance across most countries in which we operate with 2 larger countries, Brazil and Colombia performing very well. Our approach to innovation across the region is a significant differentiator and our market positions give us opportunities for growth. This region is an attractive region for both internal investment and acquisitions as we look to the future. I'll now turn you over to Ken to take you through some financials. Ken Bowles: Thank you, Tony. Overall, this is a strong second quarter performance for the group. And as a reminder, we've included detailed adjusted EBITDA bridges in the appendix for those who want to understand the quarter in more detail. At a high level, freight costs globally represented a significant headwind, driven largely by higher fuel costs and shipping rates due to the ongoing conflict in the Middle East and higher domestic transportation costs in both Europe and North America. Despite that, our teams across all regions did an excellent job mitigating those cost pressures through operational execution, pricing initiatives and disciplined cost management. In North America, we continue to make significant operational and commercial progress. While corrugated volumes were down 4.8% on a same-day basis or 4.5% on an absolute basis, this was very much in line with our expectations as we continue to execute on our value over volume strategy. Importantly, we are seeing further improvement advance with good order books and a strong pipeline of new corrugated business moving through August and into September. We remain focused on improving the quality of our customer portfolio, winning business where our decentralized operating model provides real value while exiting lower-margin business that does not meet our return requirements. Selling price remained a headwind in the quarter due to a small pass-through impact of weaker containerboard index pricing in February and also coming before higher index pricing was realized in some of our paperboard grades, which came this month. As mentioned, the region also absorbed a substantial portion of the group's freight inflation, yet still delivered a very resilient performance. Our mill system remains generally full, order books are healthy and commercial momentum continues to strengthen. In our EMEA and APAC region, Smurfit Westrock continues to outperform through disciplined commercial execution, strong cost management and an unwavering focus on customer service, quality and innovation. Corrugated volumes were up 1.9% on an absolute basis or 1.5% on a same-day basis. Our mill system operated at full capacity and the integrated nature of our business continues to be a significant source of competitive advantage. Despite ongoing freight and energy cost inflation in the region, which has led to near-term margin compression, the team delivered another strong result, supported by positive volume growth and continued productivity, procurement and footprint optimization initiatives. Latin America again delivered another excellent quarter. Demand remained healthy across our key markets as corrugated volumes continue to grow. The region continues to benefit from its strong market positions and the operational improvements delivered through recent investment programs. As a result, Latin America continues to generate attractive margins and strong returns while also presenting significant opportunities for future growth. Our approach to capital allocation remains unchanged. We have a business with strong cash generation, strong balance sheet and a significant opportunity to create value through disciplined investment and execution. As a team with deep industry experience, we continue to view internally deployed capital as the lowest risk and highest quality use of capital, an approach that remains central to the future success of our business. Fundamentally, that is a returns-focused approach. Our balanced capital expenditure program is focused on improving our asset base, increasing efficiency and supporting growth in attractive markets. As a reminder, the average annual CapEx across our plan is approximately $2.5 billion a year with an average project spend of approximately $4 million and no project of scale in any 1 year. We currently expect to spend between $2.4 billion and $2.5 billion in total CapEx this year, which is well in excess of maintenance capital and in line with our DNA. As we outlined earlier this year, we also see substantial free cash flow generation over the coming years. And I would note that again today, we announced a quarterly dividend of $0.4523 per ordinary share. Underlying all of this is a balance sheet with significant strength and flexibility. As profitability and returns improve, we believe we are well positioned to continue to invest behind growth and cost takeout opportunities while at the same time, increasing returns to shareholders. We are committed to maintaining a strong investment-grade credit rating and are firmly positioned in that space with Baa2 rating and positive outlook from Moody's, BBB with stable outlook from S&P and BBB+ with stable outlook from Fitch. So the message is a simple one: disciplined investment, disciplined capital allocation and a clear focus on creating long-term value for shareholders. Now as we look to the rest of the year, the main change in our full year outlook is indeed the higher freight cost environment. As we discussed, events outside our control have resulted in significantly higher freight costs across the group, and this remains the most significant headwind we face in 2026. While we have implemented pricing initiatives to recover costs, there is naturally a lag before those actions are fully reflected in realized pricing and earnings. As a result, the cost impact has been felt immediately, while the recovery comes through over time. Current energy costs are broadly in line with the assumptions we highlighted previously, while lower economic downtime in the region of EUR 100 million, alongside continued operational execution and significant cost takeout programs across the group are helping to offset some of that freight and other cost pressures. However, as I'm sure you can appreciate, that inflationary cost environment is not showing signs of abatement, and we will continue to evaluate all options available to us as we progress through the remainder of this year. Taking all of that into account, we now expect full year adjusted EBITDA to be in the range of $4.9 billion to $5.1 billion. However, demand remains healthy across practically all paper grades, and we remain confident in the long-term earnings potential of the group. And with that, I'll hand you back to Tony for some concluding remarks. Anthony P. J. Smurfit: Thank you, Ken. When we set out our medium-term plan in February, we presented a program of self-improvement led by operating excellence and disciplined capital allocation. We're also driving a much sharper commercial focus delivering quality, value and innovation for our customers. I'm very happy to report that we continue to make progress towards these objectives. Firstly, the performance-led culture of Smurfit Westrock is accelerating with the right people, with the right skills and the right motivation to meet our objectives. The company is also progressing the transfer of best practice, knowledge and innovation across our regions as we roll out our experience centers to ensure our customers have access to the worldwide knowledge of our over 2,000 designers globally. As a company, we have always been and will always be committed towards having well-invested world-class assets in a capital-efficient way. We know that this is the secret to ensuring to give our shareholders, which include many within Smurfit Westrock longer-term market-leading returns. And I think we're well on our way to this objective. Global paper markets today are as strong as I have seen in my lifetime within this industry. What we've previously characterized as a generally better industry environment is now a significantly stronger and better operating environment. This provides us with a stronger fundamental backdrop to deliver on our medium-term plan. Our mills provide security of supply to our world-class converting operations, which in turn deliver quality, service and innovation for our customers. Smurfit Westrock's converting operations are networked to and connected with our over 30 innovation hubs across the continents and regions. This drives the continuous transfer of knowledge, application and innovation, enabling Smurfit Westrock to provide our customers' future packaging needs today. As we enter the second half of 2026, we have set a strong platform for the recovery of input costs and enhancement of our returns. This is especially true as we look into 2027 as we continue to execute on our strategic plan across all regions and fully implement all pricing initiatives. As we set out in February in a progressive step-by-step manner, we're building a stronger, better and more resilient Smurfit Westrock as we progress towards our medium- and longer-term objectives. I'm very confident in our team. I'm very confident in our offering to the marketplace. I'm very confident in our ability to execute, and I'm very confident in the long-term future of our globally integrated platform that will deliver value for all stakeholders. And with that, thank you for taking the time to listen to us. I will hand it over back to the operator, Sharon, to get questions to us. Operator: And your first question today comes from the line of Gabe Hajde from Wells Fargo. Gabe Hajde: I wanted to ask, Ken, I'm looking at the bridges in North America. And I think year-to-date, I'm just kind of going like I said from the bridges, you're kind of neutral-ish on gross price. I'm curious if you'd help us posit how much tracked price or what you would expect sort of realization from just what's been recognized in RISI in North America? Ken Bowles: I suppose, David, it's probably a slightly more nuanced picture than that given where pricing went. I mean that kind of pricing offset from the recovery would have seen through corrugated pricing in the first last number of months is probably on the paperboard side. If you remember, like SBS came down, which is negatively impacting like the positive sentiment around that kind of pricing column. So we are absolutely beginning to see the benefits of the pricing initiatives through back end of quarter 1 into quarter 2 in corrugated pricing. But just for this particular quarter, given where SBS went here and you look at paperboard grades too, but principally SBS, you're getting a kind of natural negative offset within the total price for the overall group. So I think the simple way to think about it is, yes, progress continues and the recovery happens on the corrugated side, which you'll see more in quarter 3, quarter 4. But for this quarter, you're seeing the impact of paperboard prices lower year-on-year and the impact of that. Anthony P. J. Smurfit: Yes. I think, Gabe, you understand and the same in Europe that there is always a lag period as containerboard prices come in, and that can be depending on the customer, to 1 month to up to 6 months, again, depending on the customer and depending on the region. And so containerboard prices really rose -- actually fell EUR 20 in the first quarter and then came back up by EUR 120 in the second quarter. So the full effect of that is going to be felt in quarter 3 and quarter 4 and any other pricing initiatives will be felt either very late quarter 4 or into quarter 1 of next year. Gabe Hajde: Okay. Just maybe a point of clarification. I think from the disclosures you guys have given us, it's 8.5 million tonnes in North America of total containerboard, okay? And then on the volume cadence, I mean, it seemed like things within 6 weeks tightened up pretty quick. I'm curious from your system perspective, I know you guys have been busy at work, and I think you've mentioned winning over 500 new customers that should be commercializing in the back half. Maybe just a little bit finer point on would you expect, assuming the bottom doesn't fall out in volumes that you should inflect positive at some point in the second half in your own corrugated system? And then any particular markets that you're seeing strength in North America? Anthony P. J. Smurfit: Our expectation, Gabe, is that either in the third or fourth quarter, we will be better in volumes than last year. And certainly, in talking to the folks in North America, we would expect to see positive months coming up in August and maybe even September. So our -- the acquisition of new business has continued the pace during the second quarter. Obviously, it takes a little while to get that in. And then we're starting to lap easier comparisons because all of the large e-commerce customer that we didn't continue with. We're not doing that. So therefore, that will make it a relatively easier comparison as we go into the second half of the year. So I think we're pretty optimistic about either latter part of the third quarter or fourth quarter being able to be positive versus last year. Operator: Our next question today comes from the line of Mike Roxland from Truist Securities. Michael Roxland: Congrats on the progress. Just first question, I just wanted to follow up on what Gabe said. In terms of -- you mentioned good order books in August and as you move through September. Any way to quantify or provide some more color around what that means? Where do our order book stand relative to, let's say, historical norms? Anthony P. J. Smurfit: Yes. I would say -- are you talking about paper or are you talking about corrugated? Michael Roxland: Actually, if you don't mind, Tony, both. Anthony P. J. Smurfit: Okay. Well, as I said to you in my narrative, our paper markets, Mike, are as strong as I've ever seen. We are in -- basically with the exception of one small grade that we produce a little bit of, which is CRB, we're basically sold out in all paper grades. And -- in fact, we -- one of the reasons why if you look into the fourth quarter, we are very late in deliveries on our export orders. So we're in very much catch-up mode in our system as we look through the remainder of this year and even into the first part of next year on all brown paper grades. There are also some things happening on the bag and sack paper markets with relation to e-commerce that are causing those markets to be very tight as well. So when you look at the brown grades, we are really sold out for the foreseeable future, and that obviously is very encouraging. When you look at the, as I say, the consumer grades, our CUK business has been very strong and is sold out and our SBS business as we develop new applications and really target a lot of smaller growth areas, but a lot of smaller things that are adding up to a lot of growth for us. And so we're in our SBS system sold out. And as I say, we've just got some small -- very small open capacity in the small business area for us in CRB, but that's not, as I say, very significant. So -- so paper -- and then that's in the North American market. In the European market, same situation is essentially true. We tightened up over the summer and really all paper grades are sold out until the end of the year. And then in our Latin American business, again, similar scenario in our paper markets, we're short of capacity. So very strong change in the marketplace in the last 6 months in paper. With regard to boxes, it's a little bit more nuanced. Obviously, it depends very much on the markets. And within markets, it depends on regions within markets. So for example, the Californian market isn't as strong as we would have expected it to be because of produce. And you take obviously, in Europe, if you take the Southern European markets, the heat waves there are affecting a little bit agriculture. So there is -- it really -- we could spend a long time talking about the nuances of different markets. But I would say, if you just take it broadly speaking, Latin America is positive in general. I would say that Europe, with the exception of 1 or 2 markets is positive or very positive. And then in North America, depending on the region, is basically flat to slightly positive for us as we look forward. But as I say, a lot of the things that we're doing, Mike, are self-initiatives. We have done a lot of heavy lifting, but we still have a lot of heavy lifting to do. I mean we still have loss-making corrugated box plants, which -- many of which are our own fault, and we will turn those around in time. If I had a magic wand to be able to turn them around, I would. But they do take a little bit of time. And -- but we've made really very, very considerable progress on our corrugated converting operations in North America. And in our consumer businesses, again, we've made very considerable progress in developing those businesses. We need a little bit more price in some of those. But basically, I'm really happy. And then if you turn to Europe, you look at our business, we have a very strong market position across all of the countries. And we've absorbed all the input costs during the first and second quarter of this year. And now we're about to get it back. And clearly, if there are more paper-led initiatives, then the benefit of those will be into 2027 across both -- all 3 regions, actually. Michael Roxland: Got it. That's great color, Tony. Just one quick follow-up. You mentioned having a little bit of slack in CRB. And I think that you mentioned last quarter that you're not making enough return on some of your CRB assets. So does the shift of the business away from CRB to SBS, CUK afford you the ability to improve your CRB asset base? Or alternatively, does it help you evaluate your current CRB footprint? Anthony P. J. Smurfit: Yes. I mean I think we're -- I would say, Mike, as you know us, we continually evaluate our footprint. We've just closed down a long-standing asset in the U.K., which is producing over 200,000 tonnes of recycled board because it came to the end of life, so to speak. And it was either invest or in a suboptimal scenario. But that asset stayed alive for a long period of time. And I would say the CRB business, we continue to evaluate the mill system that we have. And they're all very cash -- or they're mostly all very cash generative and produce decent enough quality into our integrated system. So we're going to continue to work with them. But obviously, we keep them under evaluation as we do all of our assets, and we'll see what the future holds. But clearly, they're earning cash and they're in the marketplace, providing the quality and service that we need, and they're not in any drag on us. So I think, as I say, we want to offer our customers the full suite of products, which is CRB, SBS, CUK. And that approach has worked really well as we've looked at over the last 6 months, giving our customers what they need. And at the end of the day, that approach has worked really well for us. And we've seen some switches out of CRB into SBS at a saving for the customer and also a benefit for us. Ken Bowles: And if you remember, Mike, as well, this time last year, we were closing St. Paul, that CRB mill to kind of optimize and tighten that system anyway internally. Operator: Our next question comes from the line of Philip Ng from Jefferies. Philip Ng: Tony, I apologize, I had some technical issues, I may have missed some of this. I guess, big picture, when you think about North America, and you've always kind of opined on your business being packaging at its core. And certainly, supply-demand is very tight right now, and we're seeing good price momentum. How do you kind of balance that out, right? I mean the industry is taking price and supply/demand is very tight. There's elements in terms of packaging and does this attract more capacity? Like from a philosophy standpoint, how are you thinking about this bigger picture in the longer term? Anthony P. J. Smurfit: Philip, as you know, we are a company committed to profit centers in all aspects of our business. So our box plants have to absorb -- well, first of all, we, as a company, have to absorb all the cost inputs that we're getting. Then we have to pass those cost inputs into our paper system and ultimately into our box system. And each one has to make a return -- each of our systems have to make a return because otherwise, they're not economically viable. And I would look at it like this, if you're an independent box maker and there are plenty out there, there's obviously not as -- it depends on the market you're in. But if you're an independent box maker, you must make a return on the paper price that's in the market. And so the same holds true for our box facilities. If the paper price goes up because of supply/demand or the paper price goes up because it's being forced up because of cost inputs, and we make decent returns in our paper system ultimately. That doesn't mean that we shouldn't make decent returns in our box system because there's an independent market out there that is buying paper at exactly the same prices we are transferring to our box system at, and they have to make a return, too. Otherwise, I can't evaluate where to put capital. And so we have been religious really about how we think about our business. And so our converting operations need to be commercial. What we bring, as you know, Philip, is all of the knowledge of packaging all over the world into our system. And then if we have the owner operator at the packaging plant who's really good at what he does, he brings that into his plant, and then he offers that to his customers, which can be very considerable savings for our customers by packaging differently. And that's what we continue to offer to our customer base globally. And that's what's worked. That's why if you look at our European system, yes, we're in the low period right now because we've absorbed costs. We're starting to push through paper prices. And then ultimately, we get into box prices. And we have effectively -- if everything stood still, we'd have 2 profitable systems offering innovative packaging for our customers. And that's our business model, and that's what's worked for us over 90-plus years. Ken Bowles: Yes. Phil, I think within there, I think I heard that the idea that the latest round of kind of price increases and the price environment might lead to incremental capacity entering the market. I think I sort of go back to that sort of basic point around returns and return on capital because, as you know, on average, the cost of doing anything in North America has increased significantly over the last number of years. So if you do decide to bring capacity into the market, it's going to be at higher cost than you might think and takes time in reality. You don't -- you can't bring in capacity today or tomorrow. It takes 2, 3 years to get towards a meaningful kind of ramp-up phase. So I think, yes, the current price environment could be attractive for people, but I'd equally say that's got to be balanced about the amount of capital that you need to put into the market to kind of achieve a return that's acceptable over the longer term. Philip Ng: That's really helpful color. And it's a perfect segue, guys. I think from a supply-demand pricing on the paper side, clearly, there's industry data we've seen price momentum. I think, Tony, coming in when you guys acquired Westrock out of the gates, the real opportunity was getting a proper return as you kind of alluded just now on the box side and converting side and bottom slicing, your less profitable business. Can you kind of give us some perspective as we look out to '27, where are you in that transition in terms of innings, at least from a baseball analogy in terms of getting your returns margins, pricing on the converting side in a good spot and your mix of customers? Because I think you start flipping perhaps a richer mix as we kind of exit this year. But just give us a little update on where you kind of shake out on that front. Anthony P. J. Smurfit: Yes. I'd actually like to use the baseball analogy. I'd say we're somewhere between first and second base. I think we're not -- we're off first base, and we're heading towards second, and we'll get to second and then we'll be safe on second and then we'll move on to third and then fourth in the next couple of years. I think it's really -- it's amazing to me to see the considerable progress we've made in many of our facilities. I think we're down to -- again, it's a little bit difficult to say how many loss makers we are because of the movements in paper prices. But if you said what's the number of loss makers that we have that we're still worried about, it's probably around 20, of which, for sure, we're going to solve 10 of them. And then the other 5, we'll just have to think -- see how they do over the next period of time, depending on the market, depending on the mix. But so we've come down from 40-plus -- how many? Ken Bowles: Maybe 80. Anthony P. J. Smurfit: 80 loss makers at the beginning, but -- so we're really doing well. But then getting to breakeven is one thing and then going from breakeven to 8% or 9% is another. And so it's a journey. And as I say, somewhere between first and second. But really, I'm really happy with the teams and how they're embracing the new culture and the leadership. But it's not perfect everywhere, obviously. And we continue to bring in new people. And what I'm -- one of the things I'm really happy about is we're continuing to attract real talent into the business, which is the sign of a winning team, not a losing team. Philip Ng: And just from a context standpoint, you could solve for 10, maybe 5 to 10 of those customers are loss-making. What's your total basis? Is it 100? Is it 90? Just want to make -- or 200, I guess, to make sure we understand what part of your business potentially could still be a little more challenged in your product portfolio? Anthony P. J. Smurfit: It's 10 out of 100. Philip Ng: Okay. All right. That's helpful. Anthony P. J. Smurfit: All right. And in Europe, we have 3 or 4 that we look at. And then in consumer, there's 1 or 2. So -- and in Latin America, there's practically none. So that's on the converting side. But that doesn't mean, Philip, that they're all where they need to be, even the ones that are positive, they need to be -- we've got some great box plants, and we've got some not the great box plants. And those not the great box plants need to improve as well. So it's a continual work by the team over there, led by Don and Rick and Nickie. So -- and of course, Laurent. Operator: Your next question comes from the line of George Staphos from Bank of America. George Staphos: Actually, I wanted to pick up on that last line of question from Phil. To the extent that you can comment, when we look at the margin in North America, it was 13.3% in 1Q. It was 14.8% in 2Q. So good progress there. How much of that to the extent you can share was improvement in margin in the North American box system margin? Said differently, if we go back to the baseball discussion, you just rounded first base, you're trying to get to high single digits. Would North American box be somewhere around 3%, 4% margin at the present time? And then I had a quick follow-on. Anthony P. J. Smurfit: Yes. You're entirely right. We've got -- we're around 3%, somewhere between -- on a static basis without paper coming in, we've turned it from being heavily loss-making to small profit -- small EBITDA positive, somewhere in the 3% to 4% range depending on the month. But that obviously will change as we move forward. So yes, you're about right. George Staphos: Okay. And then my follow-on, you might have mentioned it earlier, but I also had some technical difficulties coming in. How much pricing is assumed in your guidance for the year, the $100 per tonne that you've announced, is that -- is any of that in your numbers for 2026? Or is that more of a '27? Ken Bowles: George, Ken here. No, none of that is assumed that $100 is assumed in the '26 number because by the time it gets implemented, works through the indices and everything else, there's not a lot left to '26 to be honest with you. It very much kind of sets a platform foundation for 2027. Operator: Our next question today comes from the line of Hillary Cacanando from Deutsche Bank. Hillary Cacanando: So just going back to the $100 per tonne price increase that was announced yesterday. Why -- I'm just trying to understand why your competitors -- so one of your competitors has announced $140, another one announced $80 per tonne. Could you just help us understand whether the differences in pricing reflect a different view of market conditions or a different customer mix or simply different go-to-market strategy? Anthony P. J. Smurfit: Hillary, obviously, we're not going to talk about what our competitors are doing. We just have to consider what we do. And we have been thinking for the previous couple of weeks that we would be going for an increase and we did at the net level that we thought was correct. But Ken, do you want to say something? Ken Bowles: Yes, Hillary, I think it's -- really it's about an inward look where we see cost inflation in the system, where we see the need to kind of restore margin that we might have given up over that kind of cost inflation, particularly freight across the rest of the year and energy. So really, it's an inward-looking model that takes everything we're doing, balance against cost takeout and all the programs and the capital we've injected that says that broadly where we think we need to be is at that $100 a tonne in terms of output pricing to kind of get us back to where we need to be. Hillary Cacanando: Okay. Got it. And then as a follow-up, obviously, the containerboard market looks like it's getting really tight and the pricing momentum is building, but we also saw a price increase in the SBS market in July. And I think you also announced a price increase effective August. So are those prices in the SBS market driven by more from rising input costs? Or are you seeing underlying SBS market conditions improve as well through higher demand or customer conversion or industry rationalization? Anthony P. J. Smurfit: Yes. The SBS market is much better than it was at this time last year. A lot of it is the work that we've done over the last 18 months in attracting new business into our SBS system is working, and there are some quite exciting new grades that we're bringing into SBS as well as I discussed before, our agnostic approach to grades. So we're able to offer customers SBS instead of CRB or sometimes instead of CUK. But basically, the market is much better. But you do have to remember, Hillary, that the market actually went down at the end of last year. And so this isn't about price increases. This is about price recovery. And I think that we need a price recovery in this grade from when it went down, and we're in a sold-out position. So of course, we've announced increases to reflect that. Operator: Your next question today comes from the line of Mark Weintraub from Seaport Research Partners. Mark Weintraub: First, just one quick clarification on SBS on the increase, I think you sent out July 10. So that was before Pulp and Paper Week had reflected anything, but I assume that is a second increase. I just wanted to confirm that first. Ken Bowles: Yes. Yes, Mark, it is yes. Anthony P. J. Smurfit: So it's not reflected in Pulp and Paper Week yet. So obviously, Mark, given the generally longer lag periods for those grades, it really won't be effective -- assuming that Pulp and Paper puts it in, it really won't be effective until the start of next year into our end customers. Mark Weintraub: Right. And then just second on EMEA and where we are in terms of passing through higher containerboard prices into boxes because where we saw a nice progress in North America 1Q to 2Q. EMEA, we were actually down on the margin because, as you said, the costs hit us first. If we were to kind of hold things static where they are today, but have those prices roll through into boxes, can you give us a flavor as to where the EMEA margin would be coming out, say, towards the end of this year, early next year? Anthony P. J. Smurfit: Obviously, a lot of depends on the cost, Mark. But let me just say that we have announced an EUR 80 a tonne increase to our customers on recycle board over the last couple of days. So we expect to see that implemented as we go through September. And that reflects the higher -- significant higher energy costs and other costs that we've had in the European sphere over the last 2 or 3 months. But maybe I'd just put it into the context that our European business is a tremendously good business with people who've been through this kind of cycle before. And if you look at the last cycle, where we are a better company today than we were then because of their investments, because of our efficiency, our margins were in the 18-plus percent level. And there's no reason why, given a static state that we won't get back to those levels at some future date, whether that's first quarter, second quarter, of next year, I don't know. But clearly, our opportunity is to grow from these relatively low margins that we have, albeit that they are way outperforming the industry from what we've seen that we believe that those are the kind of margins that we can get back to. Mark Weintraub: Perfect. I appreciate that. And just wanted to confirm that we also have the first EUR 100 increase that hasn't really flowed through into boxes yet in Europe very much as well. Is that correct? Anthony P. J. Smurfit: That's correct, yes. I mean our business is always on the way up and way down a lag business. Our box business depends on the customer you have, but very few, but some customers are year-to-year contracts. Some customers are 6 months. We have been shortening contracts to be 3 months. But by the time it gets published and then 3 months, it's really 4 months for most of the larger index customers. And so -- but equally, when the prices move down, especially for a grade that's as volatile as recycled paper, then clearly, you hold on to the margin that you've recovered. And also, it's important to note that when the paper price moves, it's most of the time, not just paper price. There's some inflationary cost driven into that as well. Mark Weintraub: Right. And maybe one just last one. And so up until now, I think the contention has been the price increases in Europe have largely been cost reactive. Is that how we should be interpreting these increases, too? Or is there something -- like in North America, it's certainly supply-demand as well. In Europe, is any of that being introduced into this equation? Or is it still really cost reactive? Anthony P. J. Smurfit: It depends on the grade, but I would say that in recycled paper, it's more related to cost. When it's related to kraftliner, it's related to supply-demand and cost. Mark Weintraub: And did you announce on kraftliner as well or just recycled? Anthony P. J. Smurfit: We did not. Not yet. Operator: Your next question today comes from the line of Detlef Winckelmann from JPMorgan. Detlef Winckelmann: Maybe if I could just start quickly on that 8.5 million tonnes that you've got in North America. My understanding is roughly 1/4 of that won't be exposed to domestic price increases that we've seen in linerboard over the last, call it, year-to-date and potentially another one going forward. How should we be thinking about supply/demand, what's driving prices in that other, call it, 2 million, 2.5 million tonnes that's Mexican/export volumes, please? Anthony P. J. Smurfit: Detlef, as well as that, you have some sack paper in there and you have some bag paper in there. So those are all -- they're all going up as well as the kraftliner and containerboard piece of our business. So one of the things that we have to get out of is some of the export tonnes that we have taken. So we're behind delivering on those. But by the end of this year, hopefully, we'll have finished all of our, let's call it, low-priced tonnage. And we will be applying to the export markets the same metrics that we see in the domestic markets. Obviously, depending on the market, the pricing will be somewhat different. But basically, those tonnes will be going up in a similar manner over the coming 6 months or so. Detlef Winckelmann: Okay. Great. And then maybe if I can do one more. I mean, presumably, going into the next kind of 12, 18 months, your box volumes are hopefully going to grow above market. I mean, I think you mentioned kind of back end of Q3, the whole of Q4 kind of growing above market. Can I then assume that export volumes probably shrink and you use more of that capacity internally, domestically to supply your own box plants and that kind of mix changes going forward? Anthony P. J. Smurfit: Yes, that's 100% true. I mean, obviously, the local domestic price is higher than the export price at this moment in time, but we have to keep evaluating that. But yes, as a fundamental rule, we believe in integration in our own system to ensure that we use our own tonnage within our system. But obviously, the system that we've inherited is much bigger than just that. So we continue to be in the export market and committed to the export market is important because probably some of our export customers are listening to this. We are still committed to the export market. But obviously, we want to make sure that we get paid the correct amount when we deliver into the export market, which will happen going forward. Because as you know, a lot of the supply-demand issues are export and people are pulling away from the export market. So clearly, that creates an opportunity for us at a proper price. Operator: Your next question comes from the line of Anthony Pettinari from Citi. Anthony Pettinari: Tony, I was wondering if you could talk about your internal inventory levels given the mill system is sold out. Is there any tightness or risk there? Do you need to build inventories in any region or grade? And then just as we look at underlying demand for 2Q, did you see any prebuy in 2Q in containerboard or boxboard, given there are some hikes in the market? Anthony P. J. Smurfit: Our inventory levels -- very good question. We sometimes have inventory in the wrong place, and we sometimes have inventory at the wrong grade. We're still very early into this, Anthony. And so our whole logistics system is still under a rate of change. And yes, the answer to your question is we do have some inefficiencies still because our stock levels are not necessarily where we want them to be because we don't necessarily have all the right grades and the grade optimization program that in a couple of years from now will be, I would say, much, much better because clearly, a lot of what we bring to the party is making sure that we have the right SKUs in our system and making sure that the paper mills run the right grades of paper that suit those grades of paper and the box plants convert those grades. So there is still a lot of work to do. And as such, there are some inventory issues that we have to use the wrong papers from time to time. But so far, so good in talking to the team as recently as yesterday, we are managing with some issues, but we are managing. So, so far, so good. With regard to prebuying, I would say that there was very little prebuying. In fact, I would say maybe the opposite. I would say that people did not expect for the market to change so rapidly, and that is why a lot of export orders are unfulfilled still. People were keeping their levels of stock pretty low because they could get paper pretty well when they needed it. And if you remember back to the first quarter, we had a very poor first quarter because of the freezes and all the issues that were happening. And I think it's been a bit of a surprise how quickly the effect of the supply/demand have been felt in the second quarter. And as such, nobody would have been prebuying -- or to any great extent, nobody would be prebuying during the -- prior to that. So no prebuying and some logistical issues because of the tightness of the market, but we're managing through it. Ken Bowles: I think, Anthony as well, just from a general point in total inventory levels across North America, probably still in the range of 2.5 million, 2.6 million tonnes. So I think that would have been about 2.8 million, 2.9 million as we exit the first quarter. So you can see if there are issues, it's coming out of inventories rather than kind of getting down towards low levels of inventory, still fairly well stocked. Anthony P. J. Smurfit: Yes. And I think if I could just add one point, Anthony, to your important question is that logistics is playing a hell of a role at the moment. There are some -- especially in the North American market, there are very significant A costs. I mean, we're expecting cost to be $300 million more than we would have anticipated 3 months ago in North America and Europe. And that's a function not only of the price of diesel and -- but it's also a function of availability of transportation. And that is creating some issues for delivery on time and things like that. So for sure, logistics is an issue, not only on the cost side, but also on the availability side, and that's something that does create some disruption. But as I say, we're managing through it with some cost, which obviously none of us like the $300 million that we didn't expect. But at the end of the day, that's -- it is what it is, and it's the reason why we need further pricing initiatives in our marketplace because we need to recover these and to earn a decent return for our stakeholders. Operator: Your next question comes from the line of Ioannis Masvoulas from Morgan Stanley. Ioannis Masvoulas: Two questions from my side. The first on costs that you already articulated in some detail. So when I look at the update back in April, the energy headwind was around $220 million. You didn't really change that with today's update. But clearly, there's a big ramp-up in the freight costs versus the spring update. How much of that is purely a function of timing effects? How much is your conservative assessment on freight at this point versus April? And if you can give us a sense on the split by region, especially on the freight side? Ken Bowles: Ioannis, it's Ken here. I won't do split freight by region because we don't really break out the regions for quarters like that. But I think it's fair to say at the back end of April, we would have seen freight generally is kind of a headwind of, call it, $50 million year-on-year. And that was at a place, if you think about it where it looked like the Middle East was about to be solved an MOU in place path to piece have been identified and the world seems to be settling down. I think it's interesting, if you look at any of the indices that have come out, you can see a sharp spike towards the back end of May into June. And as we continue to July primarily on freight, and we clearly saw that heavily through May and June. So it was very much a changed environment, which led to a changed outlook on freight which leaves us now in a position where we kind of see freight at about $300 million headwind year-on-year. I don't -- I wouldn't necessarily characterize that as either conservative or not. I think it's our best estimate based on where we see the costs coming in. As Tony said, these are costs that we continue to need to recover given that they seem to remain elevated and not abating. On the energy side, I think back then, we probably would have said about in a range of call it $220 million to probably $250 million. It's probably still there or thereabouts. We've seen European TTF for gas go above EUR 60 again last week, back below EUR 58 to EUR 57 this morning. So still very fluid, but we tend to be helped out through this kind of cost backdrop on energy because of active kind of hedging policy, which we don't use a lot now given the elevated prices, but we continue to have some hedges which come through and help moderate that slightly. But again, as Tony said there, a lot of that is the reason why we've announced an EUR 80 a tonne increase in Europe against the cost backdrop for Europe. So generally, I think where we see the outlook as we've seen it, you think about the simple bridge, it broadly freight from our initial estimate to where we are now. But the price increases that are announced and the ones that were announced this week should help to overcome that cost increase, particularly as we enter 2027 with little impact in '26, more importantly, restore margin as we kind of move through this particular phase. Ioannis Masvoulas: Perfect. That's very useful. And maybe just a second question on the North American corrugated volumes in Q2, which were somewhat weaker than market expectations. I think on the Q1 call, you talked about April was down 4%. And my understanding is that May was at similar levels, which implies a weaker June run rate. Can you talk about what drove that? And I think you have already articulated the messaging on Q3, Q4. So it's more around understanding any specific effects that impacted June? Anthony P. J. Smurfit: To be honest with you, Ioannis, I don't remember what was anything specific. I mean we're talking about small deviations. We -- I would say the thing to try and keep a focus on is that our acquisition of new customers continued apace our movement towards having local level responsibility and local level acquisitions of customers continue the pace. We continue to see wins in the marketplace. We actually continue to see customers who've left us want to come back because our quality and service have improved very significantly in just a year. We're starting to apply the metrics that we have always done in Europe, in North America, and we're seeing very good progress on the operational side. So I think given the progress that we're making and a small deviation in a small region for agriculture that can make that kind of difference. The overall level of progress is what I see is very positive. And I'm sure that Nickie and her team on the sales side are going to deliver significant wins in the near -- in the future to get us back to where we need to be. Operator: This concludes the Q&A session. I will now hand the call back to Tony for any closing remarks. Anthony P. J. Smurfit: Thank you, operator, and thank you all for joining us today. I would say that overall, I'm really happy with how the progress of the integration between Smurfit and Westrock -- Smurfit Kappa and WestRock has gone. I think that the company has now got all the teams in place to make this company one of the great companies of the world. Obviously, we continue to be hit by costs that are nonexpected and a significant cost environment that we are in the process of passing through. And I have full confidence that we will pass those costs through, and we're really setting ourselves up for a better second half and a very good 2027. So thanks for your support. Thanks for your interest, and we look forward to meeting many of you and talking to many of you in the weeks and -- days and weeks ahead. Thank you all. Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Smurfit Westrock Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Smurfit Westrock Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Smurfit Westrock (SW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Smurfit Westrock PLC? Here are five stocks we like better. Q2 adjusted EBITDA was $1.14 billion, with a 14.2% margin, as significantly higher freight costs offset early pricing benefits. Full-year adjusted EBITDA guidance was set at $4.9 billion to $5.1 billion, with freight now expected to create a roughly $300 million year-over-year headwind. Recent containerboard and recycled-board price increases are expected to flow through gradually because of contract and indexation lags, with the latest North American increase viewed primarily as a foundation for 2027 earnings. North American corrugated volumes fell 4.8% on a same-day basis, but operations improved from heavily loss-making to approximately 3%–4% EBITDA margins. Management expects volumes to turn positive late in Q3 or in Q4, supported by stronger order pipelines and new customer wins. 5 Dividend Kings to Buy in July with Irresistible Value and Yield Smurfit Westrock (NYSE:SW) reported second-quarter adjusted EBITDA of $1.14 billion and an adjusted EBITDA margin of 14.2%, as higher freight costs weighed on results and pricing actions had only begun to flow through to customers. Chief Executive Officer Tony Smurfit said the company absorbed “very significant input costs” during the quarter, particularly freight expenses, while price recovery remained in its early stages. The company has raised containerboard prices and expects those increases to be reflected in its converting operations over the remainder of 2026 and into 2027. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Dividend Kings With Income, Stability, and a Possible Catalyst Chief Financial Officer Ken Bowles said the company now expects full-year adjusted EBITDA of $4.9 billion to $5.1 billion. The principal change to its outlook was a higher freight-cost environment, which management attributed to increased fuel costs, shipping rates connected to the Middle East conflict and higher domestic transportation costs in Europe and North America. Bowles said freight is now expected to represent approximately a $300 million year-over-year headwind, compared with an estimate of roughly $50 million at the end of April. Energy costs remained broadly consistent with the company’s previous assumptions, he said, while lower economic downtime of about $100 million and continuing cost-reduction initiatives are helping offset some inflation. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Father's Day Investing: 3 Stocks Built for Long-Term Returns Management said price increases will require time to be reflected in earnings because of contract and index-related lags. Smurfit said the company’s newly announced $100-per-ton North American containerboard increase is not included in its 2026 guidance, describing it instead as a foundation for 2027 results. In Europe, the company recently announced an €80-per-ton increase for recycled board, which it expects to implement through September. Smurfit said recycled-paper pricing actions in Europe are primarily cost-driven, while kraftliner pricing reflects both supply-demand conditions and cost inflation. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company also discussed pricing in solid bleached sulfate, or SBS, where management said market conditions have improved from a year earlier. Smurfit said the company’s SBS system is sold out, supported by new applications and customers switching among grades including SBS, coated unbleached kraft and coated recycled board. A second SBS increase announced in July is not yet reflected in industry publications and is expected to affect end customers mainly beginning next year, management said. North American corrugated volumes declined 4.8% on a same-day basis, or 4.5% on an absolute basis, during the second quarter. Bowles said the decline was in line with expectations as the company continues to prioritize value over volume, exiting lower-margin business while pursuing accounts that fit its decentralized operating model. Management said order books and new-business pipelines have improved heading into August and September. Smurfit said the company expects corrugated volumes to become positive versus the prior year in either the latter part of the third quarter or the fourth quarter, aided by new customer wins and easier comparisons following the exit of a large e-commerce customer. The North American mill system is generally full, with no commercial downtime anticipated for the rest of the year, according to Smurfit. He said the company is sold out across most paper grades, with limited open capacity in coated recycled board. The company is also working through delayed export orders and plans to reassess lower-priced export tonnage as domestic demand remains strong. Smurfit said the North American corrugated converting business has moved from being heavily loss-making to generating EBITDA margins of roughly 3% to 4% on a static basis, before the effect of incoming paper-price changes. He said the company had reduced the number of loss-making operations from more than 80 at the start of its integration efforts to approximately 20, with management expecting to resolve about 10 of those facilities. In EMEA and APAC, corrugated volumes increased 1.9% on an absolute basis and 1.5% on a same-day basis. The mill system operated at full capacity, Bowles said, though freight and energy inflation pressured near-term margins. Smurfit said the region expects stronger second-half performance as input-cost recovery reaches corrugated-box customers. Smurfit said European paper markets are sold out through year-end across most grades. He added that the company’s European operations could return to margins above 18% under a more stable cost environment, though he did not provide a specific timetable for reaching that level. Latin America delivered another strong quarter, supported by healthy demand, corrugated-volume growth and improved operations following recent investments. Smurfit highlighted Brazil and Colombia as particularly strong markets and said the region provides opportunities for both internal investment and acquisitions. The company expects capital expenditures of $2.4 billion to $2.5 billion in 2026, above maintenance spending. Bowles said the company’s medium-term capital program averages approximately $2.5 billion annually, with an average project size of about $4 million. Smurfit Westrock also declared a quarterly dividend of $0.4523 per ordinary share. Bowles said the company remains committed to investment-grade ratings, citing its Baa2 positive outlook from Moody’s, BBB stable outlook from S&P and BBB+ stable outlook from Fitch. Management said its capital-allocation strategy continues to prioritize internally deployed capital, asset improvements, efficiency initiatives and growth investments. Smurfit said the integration of Smurfit Kappa and WestRock continues to progress, with management teams now in place across the business. He said the company is focused on transferring operating practices, innovation and design capabilities across regions as it works to recover elevated costs and improve returns in the second half of 2026 and through 2027. Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Smurfit Westrock Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

International Paper Company IP reported adjusted operating earnings of four cents per share for the second quarter of 2026, down 77.8% year over year. The figure beat the Zacks Consensus Estimate of a loss of four cents by 200%. Elevated planned maintenance outages pressured profitability in the quarter. Including one-time items, the company reported a loss of two cents per share against earnings of 14 cents in the year-ago quarter. Net sales declined 2.2% year over year to $6.00 billion and missed the consensus mark of $6.17 billion by 2.7%. North American box volumes rose 1.7% in the quarter. International Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote Cost of products sold decreased 1.8% year over year to $4.34 billion. Gross profit was down 3.5% year over year to $1.66 billion. The gross margin came in at 27.6% compared with the year-ago quarter’s 28%. Selling and administrative expenses increased 7.4% to $564 million, while distribution expenses rose 1.4% to $523 million. Adjusted EBITDA from continuing operations fell 12.4% year over year to $587 million on expected higher maintenance outage costs. The adjusted EBITDA margin contracted to 9.8% from 10.9%. Adjusted operating income declined 58.6% to $99 million from $239 million in the prior-year quarter. The Packaging Solutions North America segment’s sales were $3.69 billion, down 4.5% year over year but up 1.7% sequentially. Our projection for the segment’s sales was $3.77 billion. The segment’s operating profit declined 26.4% year over year to $204 million. Adjusted EBITDA fell to $425 million from $515 million, while the margin contracted to 12.2% from 13.9%. Higher planned outage costs and lower export volumes outweighed favorable pricing, mix and improved mill performance. Our projection for the segment’s operating income and adjusted EBITDA was $169.7 million and $385.7 million, respectively. Packaging Solutions EMEA sales were $2.29 billion, nearly flat with the prior-year quarter. Our expectation for the segment’s sales was $2.36 billion. The segment reported an operating loss of $80 million compared with a loss of $1 million a year ago. Adjusted EBITDA decreased 6.2% to $182 million, and the adjusted EBITDA margin narrowed to 8% from 8.5%. Higher paper costs within packaging, distribution expenses and weaker volumes offset energy-cost benefits and cost-reduction actions. Our projection for the segment’s operating income and adjusted EBITDA was a loss of $90.1 million and $158.9 million, respectively. Cash provided by operating activities increased to $526 million from $476 million in the year-ago quarter. However, capital expenditures rose to $533 million from $422 million. This led to a free cash flow of a negative $7 million against positive $54 million a year earlier. International Paper expects third-quarter adjusted EBITDA from continuing operations between $780 million and $830 million. The outlook includes an estimated $85 million negative impact from the temporary suspension of operations at the Pine Hill mill for roof repairs.Packaging Solutions North America adjusted EBITDA is projected between $555 million and $585 million, including the Pine Hill impact. Packaging Solutions EMEA adjusted EBITDA is expected between $230 million and $250 million. For 2026, management targets adjusted EBITDA from continuing operations of $3.20-$3.40 billion. The company expects Packaging Solutions North America adjusted EBITDA of $2.35-$2.45 billion and Packaging Solutions EMEA adjusted EBITDA of $900 million-$1 billion. International Paper projects full-year net sales of $24.5-$25.1 billion and free cash flow of $300-$500 million. Capital expenditures are targeted between $2 billion and $2.1 billion, while maintenance outage expenses are forecast at $431 million. The company completed the NORPAC acquisition in June and the acquisition of a converting facility from Delmarva Corrugated Packaging in Dover, DE, in May. It also finished the Riverdale machine conversion, with the ramp-up progressing as expected. Operations at the Waterloo greenfield packaging plant are scheduled to begin in the fourth quarter. In EMEA, International Paper has announced more than $210 million of run-rate savings tied to footprint and headcount actions. The planned separation of the North American and EMEA packaging operations remains on track with the previously announced timeline. The company’s shares have lost 19.4% in the past year compared with the industry’s 8.3% decline. Image Source: Zacks Investment Research IP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, falling 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. Packaging Corp’s sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. Smurfit Westrock Plc SW reported second-quarter 2026 adjusted earnings of 35 cents per share, down 20% year over year. The figure missed the Zacks Consensus Estimate of 42 cents by 16.7%. Higher input costs, particularly freight, pressured profitability. Smurfit Westrock's net sales increased 1.1% year over year to $8.03 billion and surpassed the consensus estimate of $7.99 billion by 0.5%. Rayonier Advanced Materials RYAM is expected to release second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 17 cents per share. The company incurred a loss of 43 cents per share in the year-ago quarter. The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $357.5 million, indicating 5.5% growth from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Paper Company (IP) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Rayonier Advanced Materials Inc. (RYAM) : Free Stock Analysis Report Smurfit Westrock PLC (SW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Smurfit Westrock Plc SW has reported second-quarter 2026 adjusted earnings of 35 cents per share, down 20% year over year. The figure missed the Zacks Consensus Estimate of 42 cents by 16.7%. Higher input costs, particularly freight, pressured profitability.Net sales increased 1.1% year over year to $8.03 billion and surpassed the consensus estimate of $7.99 billion by 0.5%. Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC Quote Smurfit Westrock has reported an operating profit of $309 million, up 23.1% year over year. The company’s cost of sales increased 3.2% to $6.63 billion from the year-ago period. Gross profit fell 7.7% year over year to $1.40 billion.Adjusted EBITDA declined to $1.14 billion from $1.21 billion a year ago, while the adjusted EBITDA margin contracted to 14.2% from 15.3%. In North America, net sales totaled $4.74 billion, moving down marginally from $4.76 billion in the year-ago quarter. Adjusted EBITDA declined 6.4% year over year to $704 million. Corrugated volumes fell 4.8% on a days-adjusted basis, reflecting continued pressure in the region. However, SW noted improving commercial momentum, a supportive pricing backdrop and progress in cost-reduction initiatives.The Europe, MEA & APAC segment delivered net sales of $2.83 billion, up 1.7% from $2.78 billion in the prior-year quarter. The segment’s adjusted EBITDA increased 2.2% year over year to $380 million. Corrugated volumes rose 1.5% on a days-adjusted basis, supported by strengthening containerboard markets, improving corrugated pricing and disciplined cost management.Net sales of the LATAM segment were $559 million, up 7.9% year over year from $518 million. Adjusted EBITDA came in at $124 million compared with $123 million in the second quarter of 2025. Corrugated volumes increased 1% on a days-adjusted basis, aided by healthy demand across the key markets and pricing actions that helped offset inflationary pressures. SW had cash and cash equivalents of $677 million as of June 30, 2026, compared with $892 million at the end of 2025. Net cash provided by operating activities was $765 million compared with $829 million in the year-ago quarter. Capital expenditure totaled $465 million, down from $522 million in the prior-year period.The company announced a quarterly dividend of 45.23 cents per ordinary share, payable Sept. 10, 2026, to shareholders of record as of Aug. 14. For the third quarter of 2026, the company expects adjusted EBITDA of $1.3 billion. Full-year adjusted EBITDA is projected between $4.9 billion and $5.1 billion, with momentum through the second half of 2026.The company expects 2026 freight and energy cost increases of $300 million and $220 million, respectively. Third-quarter year-over-year increases are projected at $80 million for freight and $70 million for energy. Shares of the company have gained 10.1% in the past year against the industry’s 2.5% decline. Image Source: Zacks Investment Research The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, falling 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. Packaging Corp’s sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. International Paper Company IP is expected to release second-quarter 2026 results on July 30. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 4 cents per share. The company posted earnings of 20 cents per share in the year-ago quarter.The consensus estimate for International Paper’s top line is pegged at $6.17 billion, indicating an 8.8% decline from the prior-year reported figure.Rayonier Advanced Materials RYAM is expected to release second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 17 cents per share. The company incurred a loss of 43 cents per share in the year-ago quarter.The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $357.5 million, indicating 5.5% growth from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Smurfit Westrock PLC (SW) : Free Stock Analysis Report International Paper Company (IP) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Rayonier Advanced Materials Inc. (RYAM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted EBITDA: $1.14 billion. Adjusted EBITDA Margin: 14.2%. Corrugated Volumes in North America: Down 4.8% on a same-day basis, 4.5% on an absolute basis. Corrugated Volumes in EMEA and APAC: Up 1.9% on an absolute basis, 1.5% on a same-day basis. Full Year Adjusted EBITDA Outlook: Expected to be in the range of $4.9 billion to $5.1 billion. Capital Expenditure: Expected between $2.4 billion and $2.5 billion for the year. Quarterly Dividend: $0.4523 per ordinary share. Warning! GuruFocus has detected 10 Warning Signs with SW. Is SW fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Smurfit WestRock PLC (NYSE:SW) reported a strong second quarter with an adjusted EBITDA of $1.14 billion and an adjusted EBITDA margin of 14.2%, despite significant input costs. The company has successfully implemented pricing initiatives in both domestic and overseas markets, with a strong pipeline of new business in North America. Smurfit WestRock PLC (NYSE:SW) has made significant progress in its consumer business with new investments improving productivity and cost position. The EMEA and APAC regions continue to outperform with strong cost management and a focus on customer service, quality, and innovation. Latin America delivered an excellent quarter with healthy demand and strong market positions, presenting significant opportunities for future growth. Freight costs globally represented a significant headwind, driven by higher fuel costs and shipping rates, impacting the company's financial performance. Corrugated volumes in North America were down 4.8% on a same-day basis, reflecting challenges in executing the value over volume strategy. Selling prices remained a headwind due to weaker containerboard index pricing and the lag in realizing higher index pricing in some paperboard grades. The company faces ongoing freight and energy cost inflation in the EMEA and APAC regions, leading to near-term margin compression. The higher freight cost environment is expected to be the most significant headwind for Smurfit WestRock PLC (NYSE:SW) in 2026, with a lag in cost recovery impacting earnings. Q: Can you provide insights into the pricing realization in North America and the impact of containerboard prices? A: Kenneth Bowles, CFO: The pricing offset from recovery is seen through corrugated pricing, but paperboard prices, particularly SBS, have negatively impacted the overall pricing sentiment. The benefits of pricing initiatives in corrugated will be more evident in Q3 and Q4. Containerboard prices rose significantly in Q2, and the full effect will be felt in the latter half of the year. Q: What is the outlook for corrugated volumes in North America, and are there any specific markets showing strength? A: Anthony Smurfit, CEO: We expect to see positive volume growth in Q3 or Q4 compared to last year. The acquisition of new business has been strong, and we anticipate positive months in August and September. The North American market is generally flat to slightly positive, with some regional variations. Q: Can you elaborate on the order book status and market conditions for paper and corrugated products? A: Anthony Smurfit, CEO: Our paper markets are as strong as ever, with nearly all grades sold out. The corrugated business is more nuanced, with Latin America and Europe showing positive trends. In North America, the market is flat to slightly positive, with ongoing self-initiatives to improve performance. Q: How are you addressing the challenges with loss-making corrugated box plants in North America? A: Anthony Smurfit, CEO: We've reduced the number of loss-making plants significantly and are focused on turning around the remaining ones. Progress has been made, but it takes time. We're also attracting new talent, which is a positive sign for our ongoing transformation. Q: What is the impact of freight and energy costs on your financial outlook, and how are you addressing these challenges? A: Kenneth Bowles, CFO: Freight costs have increased significantly, representing a $300 million headwind. Energy costs remain elevated but are partially mitigated by our hedging policy. We've announced price increases to recover these costs and restore margins, particularly as we move into 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DUBLIN, July 29, 2026--(BUSINESS WIRE)--Smurfit Westrock plc (NYSE: SW) today announced the financial results for the second quarter ended June 30, 2026. Key Points: Net Sales of $8,031 million Net Income of $88 million, with a Net Income Margin of 1.1% Adjusted EBITDA1 of $1,140 million, with an Adjusted EBITDA Margin1 of 14.2% Net Cash Provided by Operating Activities of $765 million Quarterly dividend of $0.4523 per ordinary share Smurfit Westrock plc’s performance for the three months ended June 30, 2026 and 2025 (in millions, except margins and per share data): Tony Smurfit, President and CEO, commented: "I am pleased to report a strong second quarter performance with Adjusted EBITDA¹ of $1,140 million and an Adjusted EBITDA Margin¹ of 14.2%. The quarter was impacted by significantly higher input costs, particularly freight, which we managed to mitigate through our actions. Positively, demand for paper remained strong throughout the quarter with a generally excellent supply/demand backdrop. As always, we fully expect to recover input cost inflation through the second half of the year and beyond. "In the two years since the formation of Smurfit Westrock, we have driven a significant cultural and operational shift in our business. I have always believed that our strongest differentiators are the commitment and dedication of our people and the strength of our culture. As we target an accelerated path to growth through our Medium-Term Plan, I am excited that we have an excellent team which will realize Smurfit Westrock’s true potential. "Our North American region continues to make significant operational and commercial progress. Our team is progressively implementing our owner operator model and improving operating efficiency. Pricing initiatives have been implemented to recover increased input costs across practically all paper grades, and we are beginning to see the benefits from our commercial approach in our converting businesses. As we begin the third quarter, our mill system is generally running full with strong order books and an improving outlook for our converting operations. "Our EMEA and APAC region continues to outperform. This region is exceptionally well positioned and our actions on improving productivity and providing superior service and innovation for customers is gaining significant new business for us. While certain input costs are continuing to rise, these are being recovered with the customary lag. "Our Latin American region delivered another excellent performance as a result of our strong market positions and continuing benefits from our investment programs. We see significant growth opportunities, and we are well positioned to develop this region through both internal investment and acquisition. "In April we hosted over 200 global customers at our flagship innovation packaging event. I am very proud that we continue to be recognized by customers across all regions with numerous awards received for our approach towards innovation, sustainability and service. We continuously transfer best practice, operating excellence and innovation across markets, regions and continents for the benefit of our customers. "We also continued to optimize our system with a mill closure in the UK and are in the process of closing a further 8 facilities in our converting business in both Europe and the North American region. "Looking ahead, we are very encouraged by the current market back drop and the significant improvements we have made within our business. With input costs remaining elevated, especially freight, we currently expect third quarter Adjusted EBITDA2 to be approximately $1.3 billion and for the full year Adjusted EBITDA2 we expect to be in the range of $4.9 billion to $5.1 billion with good momentum through the latter half of 2026 and beyond. Dividend Smurfit Westrock plc announced today that its Board approved a quarterly dividend of $0.4523 per share on its ordinary shares. The quarterly dividend of $0.4523 per ordinary share is payable on September 10, 2026 to shareholders of record at the close of business on August 14, 2026. Earnings Call Management will host an earnings conference call today at 7:30 AM ET / 12:30 PM BST to discuss Smurfit Westrock’s financial results. The conference call will be accessible through a live webcast. Interested investors and other individuals can access the webcast, earnings release, and earnings presentation via the Company's website at www.smurfitwestrock.com. The webcast will be available at https://investors.smurfitwestrock.com/overview and a replay of the webcast will be available on the website shortly after the call. Forward Looking Statements This press release includes certain "forward-looking statements" (including within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) regarding, among other things, the plans, strategies, outcomes, outlooks and prospects, both business and financial, of Smurfit Westrock, the expected benefits of the completed combination of Smurfit Kappa Group plc (re-registered as Smurfit Kappa Group Limited) ("Smurfit Kappa") and WestRock Company ("WestRock") (the "Combination") (including, but not limited to, synergies, as well as our scale, geographic reach and product portfolio), our medium-term plan, demand outlook, operating environment and the impact of announced closures and additional economic downtime and any other statements regarding Smurfit Westrock's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events, outlook or performance. Statements that are not historical facts, including statements about the beliefs and expectations of the management of Smurfit Westrock, are forward-looking statements. Words such as "may", "will", "could", "should", "would", "anticipate", "intend", "estimate", "project", "plan", "believe", "expect", "target", "prospects", "potential", "commit", "forecasts", "aims", "considered", "likely" and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from the current expectations of the Company depending upon a number of factors affecting its business, including risks associated with the integration and performance of the Company following the Combination. Important factors that could cause actual results to differ materially from plans, estimates or expectations include: our ability to deliver on our medium-term plan; changes in demand environment; our ability to deliver on our closure plan and associated efforts; our future cash payments associated with these initiatives; potential future cost savings associated with such initiatives; the amount of charges and the timing of such charges or actions described herein; potential future impairment charges; accuracy of assumptions associated with the charges; economic, competitive and market conditions generally, including macroeconomic uncertainty, customer inventory rebalancing, the impact of inflation and increases in energy, raw materials, shipping, labor and capital equipment costs; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency (including the implementation of tariffs by the U.S. federal government and reciprocal tariffs and other protectionist or retaliatory measures governments in Europe, Asia, and other countries have taken or may take in response); the impact of prolonged or recurring U.S. federal government shutdowns and any resulting volatility in the capital markets or interruptions in the Company’s access to capital; the impact of public health crises, such as pandemics and epidemics and any related company or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets; reduced supply of raw materials, energy and transportation, including from supply chain disruptions and labor shortages; developments related to pricing cycles and volumes; intense competition; the ability of the Company to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake or other weather-event, terrorist attack, war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made events, including the ability to function remotely during long-term disruptions; the Company's ability to respond to changing customer preferences and to protect intellectual property; the amount and timing of the Company's capital expenditures; risks related to international sales and operations; failures in the Company's quality control measures and systems resulting in faulty or contaminated products; cybersecurity risks, including threats to the confidentiality, integrity and availability of data in the Company's systems; works stoppages and other labor disputes; the Company’s ability to establish and maintain effective internal controls over financial reporting in accordance with the Sarbanes Oxley Act of 2002, as amended, and remediate any weaknesses in controls and processes; the Company's ability to retain or hire key personnel; risks related to sustainability matters, including climate change and scarce resources, as well as the Company's ability to comply with changing environmental laws and regulations; the Company's ability to successfully implement strategic transformation initiatives; results and impacts of acquisitions by the Company; the Company's significant levels of indebtedness; the impact of the Combination on the Company's credit ratings; the potential impairment of assets and goodwill; the availability of sufficient cash to distribute dividends to the Company's shareholders in line with current expectations; the scope, costs, timing and impact of any restructuring of operations and corporate and tax structure; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions in Ireland, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent Irish, U.S. or other administrations; legal proceedings instituted against the Company; actions by third parties, including government agencies; the Company's ability to promptly and effectively integrate Smurfit Kappa's and WestRock's businesses; the Company's ability to achieve the synergies and value creation contemplated by the Combination; the Company's ability to meet expectations regarding the accounting and tax treatments of the Combination, including the risk that the Internal Revenue Service may assert that the Company should be treated as a U.S. corporation or be subject to certain unfavorable U.S. federal income tax rules under Section 7874 of the Internal Revenue Code of 1986, as amended, as a result of the Combination; other factors such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as changes in the political, social and regulatory framework in which the Company's group operates or in economic or technological trends or conditions, and other risk factors included in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made. Neither the Company nor any of its associates or directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any such forward-looking statements will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations, the Company is under no obligation, and the Company expressly disclaims any intention or obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. About Smurfit Westrock Smurfit Westrock is a leading provider of paper-based packaging solutions in the world, with approximately 96,000 employees across 40 countries. Segment Information We report our financial results of operations in the following three reportable segments: North America, which includes operations in the U.S., Canada and Mexico. Europe, the Middle East and Africa ("MEA" and together with Europe, "EMEA") and Asia-Pacific ("APAC"). Latin America ("LATAM"), which includes operations in Central America and the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. Segment profitability is measured based on Adjusted EBITDA, defined as income before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income, net, share-based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. Financial information by segment is summarized below (in millions, except margins). Non-GAAP Financial Measures and Reconciliations Smurfit Westrock reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide Smurfit Westrock’s Board of Directors, investors, potential investors, securities analysts and others with additional meaningful financial information that should be considered when assessing its ongoing performance. Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative for, the GAAP results. The non-GAAP financial measures we present may differ from similarly captioned measures presented by other companies. Smurfit Westrock uses the non-GAAP financial measures "Adjusted EBITDA", "Adjusted EBITDA Margin" and "Adjusted Basic Earnings Per Share" (referred to as "Adjusted Basic EPS"). We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Definitions Smurfit Westrock uses the non-GAAP financial measures "Adjusted EBITDA" and "Adjusted EBITDA Margin" to evaluate its overall performance. The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net income before income tax expense, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income, net, share-based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. Management believes Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock’s management, Board of Directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance relative to other periods because it adjusts out non-recurring items that management believes are not indicative of the ongoing results of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales. Smurfit Westrock uses the non-GAAP financial measure "Adjusted Basic EPS". Management believes this measure provides Smurfit Westrock’s management, Board of Directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance because it excludes impairment and restructuring costs, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. Smurfit Westrock and its Board of Directors use this information when making financial, operating and planning decisions and when evaluating Smurfit Westrock’s performance relative to other periods. Smurfit Westrock believes that the most directly comparable GAAP measure to Adjusted Basic EPS is Basic earnings (loss) per share attributable to common shareholders (referred to as "Basic EPS"). Reconciliations to Most Comparable GAAP Measure Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net Income (Loss) and Net Income (Loss) Margin, the most directly comparable GAAP measures, for the periods indicated (in millions, except margins). Set forth below is a reconciliation of the non-GAAP financial measure Adjusted Basic EPS to Basic EPS, the most directly comparable GAAP measure for the periods indicated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729463103/en/ Contacts Ciarán Potts Smurfit WestrockT: +353 1 202 71 27E: [email protected] FTI Consulting T: +353 1 765 0800E: [email protected]

Smurfit Westrock (SW) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this paper and packaging company would post earnings of $0.36 per share when it actually produced earnings of $0.33, delivering a surprise of -8.33%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Smurfit Westrock, which belongs to the Zacks Paper and Related Products industry, posted revenues of $8.03 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $7.94 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Smurfit Westrock shares have added about 31.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While Smurfit Westrock has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Smurfit Westrock was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.78 on $8.31 billion in revenues for the coming quarter and $2.24 on $32.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Paper and Related Products is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Suzano S.A. Sponsored ADR (SUZ), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -91.6%. The consensus EPS estimate for the quarter has been revised 284.6% higher over the last 30 days to the current level. Suzano S.A. Sponsored ADR's revenues are expected to be $2.32 billion, down 1.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Smurfit Westrock PLC (SW) : Free Stock Analysis Report Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research