Smurfit Westrock trims guidance amid weaker US demand
By Josh White
Date: Wednesday 29 Oct 2025
(Sharecast News) - Smurfit Westrock reported third-quarter results broadly in line with expectations on Wednesday, but cut its full-year profit guidance amid weaker North American demand, sending shares lower.
The Dublin-based packaging group, formed 16 months ago through the merger of Smurfit Kappa and WestRock, posted revenue of $8bn for the three months to September, up slightly from $7.67bn a year earlier.
Net income was $245m, reversing a $150m loss in the prior-year quarter, while adjusted earnings per share rose to 58 cents from 48 cents, but missed consensus estimates of 68 cents.
Adjusted EBITDA came to $1.3bn, representing a 16.3% margin, driven by operational improvements across regions but constrained by muted box demand.
The company said it would take additional economic downtime in the fourth quarter "to optimize its system" as volumes remained soft, particularly in the United States.
It said it now expected full-year adjusted EBITDA between $4.9bn and $5.1bn, compared with its previous forecast of $5bn to $5.2bn.
Chief executive Tony Smurfit described the results as "resilient" given the "challenging demand environment," noting progress in integrating operations since the merger.
"The steps we have taken, and continue to take, are building a better business and as we end 2025 and enter 2026, we are a much stronger company," he said.
Finance chief Ken Bowles added that US demand in categories such as food, confectionery, retail, and e-commerce "still don't seem to be there," prompting the company's decision to slow output.
North America delivered adjusted EBITDA of $810m with a 17.2% margin, reflecting better mill and corrugated operations.
EMEA and Asia Pacific contributed $419m with a 14.8% margin, while Latin America added $116m with a 21.3% margin.
The group generated $1.13bn in operating cash flow and $579m in adjusted free cash flow, and declared a quarterly dividend of 43.08 cents per share, payable 18 December.
Smurfit Westrock said it was still targeting $400m in annual synergy benefits from the merger by the end of the year, alongside comparable gains in operational efficiency.
At 1309 EDT (1709 GMT), shares in Smurfit Westrock were down 10.72% in New York at $38.47.
Reporting by Josh White for Sharecast.com.
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