Core Insights - Sodexo's Fiscal 2025 Universal Registration Document (URD) was filed with the Autorité des marchés financiers (AMF) on October 31, 2025, and is available on both Sodexo's and AMF's websites [1] Company Overview - Founded in 1966 in Marseille by Pierre Bellon, Sodexo is a leader in Food and Services, focusing on enhancing everyday experiences across various sectors such as work, health, education, and leisure [2] - The company is characterized by its independence, family shareholding, and a responsible business model aimed at improving the quality of life for employees and clients while contributing to economic, social, and environmental progress [2] - Sodexo is included in several indices, including CAC Next 20, Bloomberg France 40, CAC SBT 1.5, FTSE 4 Good, and DJSI [2] Key Financial Figures - For Fiscal 2025, Sodexo reported consolidated revenues of €24.1 billion [5] - As of August 31, 2025, the company employed 426,000 people and served 80 million consumers daily across 43 countries [5] - The market capitalization of Sodexo was €8.3 billion as of October 22, 2025 [5] Financial Statements and Reports - The URD includes statutory and consolidated financial statements for Fiscal 2025, auditors' reports, a management report covering corporate governance and sustainability, and information on internal control and risk management [4] - The document also presents resolutions for the Combined Shareholders Meeting scheduled for December 16, 2025, and details on fees paid to Statutory Auditors and the share buyback program [4]

Core Insights - Smurfit Westrock's equity faced a significant decline, with a drop of over 16% week to date following disappointing quarterly earnings [1] Financial Performance - The company reported third-quarter net sales of slightly over $8 billion, marking a 4% year-over-year increase and surpassing the average analyst estimate of $7.89 billion [2] - Smurfit's net income according to GAAP was $245 million, a turnaround from a loss of $150 million in the previous year, while non-GAAP adjusted net income per share rose to $0.58 from $0.53, falling short of the expected $0.72 [3] Market Sentiment - CEO Tony Smurfit indicated that 2025 has been challenging in terms of demand, and the company is taking steps to rationalize its business [4] - Following the earnings release, several analysts lowered their price targets for Smurfit's stock, contributing to negative sentiment, although the adjustments were not drastic [5]

Core Insights - Smurfit Westrock Plc (SW) reported earnings of 58 cents per share in Q3 2025, missing the Zacks Consensus Estimate of 68 cents by 14.7% [1][11] - The company's net sales for Q3 2025 were $8 billion, exceeding the Zacks Consensus Estimate of $7.98 billion, and up from $7.67 billion in the year-ago quarter [3][11] - The adjusted EBITDA for Q3 2025 was $1.3 billion, slightly up from $1.26 billion in the previous year, with an adjusted EBITDA margin of 16.3% compared to 16.5% a year ago [5][11] Financial Performance - The cost of sales in Q3 2025 was $6.43 billion, a 1.8% increase year over year, while gross profit rose 16% to $1.57 billion, resulting in a gross margin of 19.6%, up from 17.6% in the prior year [4] - Selling, general and administrative expenses decreased by 4.7% year over year to $960 million, and operating profit significantly improved to $526 million from $55 million in the year-ago quarter [4][11] - The company announced a quarterly dividend of 43.08 cents per share, payable on December 18, 2025 [9] Segment Performance - The Europe, MEA & APAC segment reported sales of $2.82 billion, a 6.5% increase year over year, with adjusted EBITDA rising 2% to $419 million [6] - The North America segment's sales were $4.6 billion, a 2% increase from the previous year, with adjusted EBITDA rising 4% to $810 million [7] - The LATAM segment achieved sales of $545 million, up 10% year over year, with adjusted EBITDA remaining stable at $116 million [8] Outlook - Smurfit Westrock has lowered its FY25 adjusted EBITDA outlook to $4.9-$5.1 billion, down from the previous estimate of $5-$5.2 billion, due to planned downtime in Q4 [12][11] - The company reported an adjusted EBITDA of $4.7 billion for 2024 [12] Stock Performance - Smurfit Westrock's shares have declined by 26.5% over the past year, compared to a 16.7% decline in the industry [13]

Core Insights - Smurfit Westrock reported $8 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 4.3% [1] - The earnings per share (EPS) for the same period was $0.58, compared to $0.48 a year ago, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $7.98 billion by 0.32%, while the EPS fell short of the consensus estimate of $0.68 by 14.71% [1] Revenue Performance - Net sales from unaffiliated customers in Europe, MEA, and APAC reached $2.82 billion, slightly above the two-analyst average estimate of $2.8 billion [4] - Net sales in LATAM were reported at $545 million, exceeding the two-analyst average estimate of $505.97 million [4] - North America net sales matched the analyst estimate at $4.64 billion [4] Stock Performance - Over the past month, Smurfit Westrock shares returned +1.2%, while the Zacks S&P 500 composite increased by +3.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Smurfit Westrock reported quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $0.68 per share, but showing an increase from $0.48 per share a year ago, resulting in an earnings surprise of -14.71% [1] - The company achieved revenues of $8 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.32% and increasing from $7.67 billion year-over-year [2] - Smurfit Westrock shares have declined approximately 20% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The earnings outlook for Smurfit Westrock is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.64 on revenues of $7.8 billion, and $2.25 on revenues of $31.66 billion for the current fiscal year [7] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Paper and Related Products industry, to which Smurfit Westrock belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, International Paper, is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year increase of 20.5%, with revenues anticipated to be $6.89 billion, up 47% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $1.3 billion for Q3 2025, with an adjusted EBITDA margin of 16.3% [4][14] - Operating cash flow was $1.1 billion, and adjusted free cash flow was approximately $850 million [7][14] - Net sales for the group reached $8 billion, with North America contributing $4.7 billion in net sales and an adjusted EBITDA of $810 million, reflecting a margin of 17.2% [14][15] Business Line Data and Key Metrics Changes - North America showed an adjusted EBITDA margin improvement to 17.2%, despite a 7.5% decline in box volumes [15] - EMEA and APAC reported an adjusted EBITDA margin of 14.8%, with net sales of $2.8 billion, demonstrating resilience in a challenging market [16][17] - Latin America achieved an adjusted EBITDA margin of over 21%, with net sales of $500 million, driven by strong market positions in Brazil and central clusters [18] Market Data and Key Metrics Changes - The North American market experienced a 3% to 4% decline in demand, while the company’s volume loss was approximately 5% due to strategic decisions [42] - In Latin America, demand showed marked improvement, with significant growth in Colombia (8%), Chile (15%), and Peru (25%) [11][18] - The European market remains challenging, particularly in Germany, which continues to lag behind other regions [62] Company Strategy and Development Direction - The company is focused on optimizing its asset base through the closure of inefficient operations and transitioning to a value-over-volume strategy [5][8] - A synergy program is in place, aiming for $400 million in full run-rate savings by the end of the year [21] - The company plans to maintain a flexible capital allocation framework, with a CapEx target of $2.4 billion to $2.5 billion for 2026 [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth despite a muted economic outlook [25] - The company anticipates that the current economic challenges will eventually lead to a sharp recovery in demand [31] - Management highlighted the importance of continuous cost reduction programs to mitigate wage inflation and operational challenges [32] Other Important Information - The company has initiated global and regional leadership programs for over 300 managers to enhance performance and accountability [12] - A significant headcount reduction of over 4,500 employees has been implemented to streamline operations [24] Q&A Session Summary Question: Can you expedite cost takeout in Europe given the current market weakness? - Management indicated that they have optimized capacity in Europe and are actively pursuing cost reduction programs, although the market remains challenging [30][32] Question: How did demand trend in September and October? - Management noted that they expected an uptick in October but did not see it, attributing some of the lost business to previous unprofitable contracts [36][37] Question: What is the expected EBITDA impact from the economic downtime in Q4? - The estimated EBITDA impact from the downtime is between $60 million and $70 million, primarily affecting North America [43] Question: How is the company addressing inventory levels in North America? - Management acknowledged that inventory levels are higher than desired but expect improvements as they optimize supply chains [45][46] Question: What factors are driving the shift from CRB to SBS? - The shift is driven by the competitive pricing of SBS and its superior qualities, such as brightness and printability [34][75] Question: What are the uncertainties affecting the revised guidance? - The uncertainties primarily revolve around demand trends and the performance in December, which is typically a swing factor for the quarter [92]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $1.3 billion with an adjusted EBITDA margin of 16.3% for Q3 2025, reflecting resilience in a challenging environment [4][14] - Operating cash flow was $1.1 billion, and adjusted free cash flow was approximately $850 million, indicating strong cash generation capabilities [7][14] - Net sales for the group reached $8 billion, with North America contributing $4.7 billion, EMEA and APAC $2.8 billion, and Latin America $500 million [14][16] Business Line Data and Key Metrics Changes - North America achieved an adjusted EBITDA of $810 million and an adjusted EBITDA margin of 17.2%, driven by higher selling prices and operational improvements despite lower volumes [14][15] - EMEA and APAC reported adjusted EBITDA of $419 million with a margin of 14.8%, demonstrating resilience amid market challenges [16][17] - Latin America maintained a strong performance with an adjusted EBITDA margin exceeding 21%, supported by robust market positions in Brazil and central clusters [6][18] Market Data and Key Metrics Changes - In North America, box volumes were down 7.5% year-over-year, while consumer packaging shipments decreased by 5.8% [15] - EMEA and APAC experienced flat corrugated box volumes, with pricing increases offsetting some cost pressures [17] - Latin America saw significant growth in demand, particularly in Colombia (8% growth), Chile (15%), and Peru (25%) during Q3 [11][18] Company Strategy and Development Direction - The company is focused on optimizing its asset base through facility closures and capacity rationalization, including the closure of a corrugated facility in California and 500,000 tons of capacity in paper grades [5][8] - The owner-operator model has been implemented to enhance local accountability and profitability, with a significant reduction in loss-making units [9][77] - The company plans to maintain a flexible capital allocation framework, with a CapEx target of $2.4 to $2.5 billion for 2026, aimed at supporting growth and efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging demand backdrop but expressed confidence in the company's positioning for future growth as economic conditions improve [25][26] - The company anticipates additional economic downtime in Q4 to optimize operations, with a revised full-year adjusted EBITDA guidance of $4.9 to $5.1 billion [22][24] - Management highlighted the importance of continuous cost reduction programs to mitigate wage inflation and improve profitability [32][60] Other Important Information - The synergy program is on track to deliver $400 million in full run-rate savings by the end of the year [21] - The company has initiated global and regional leadership programs to enhance management capabilities and drive performance [12] Q&A Session Summary Question: Can you expedite cost takeout in Europe given the market weakness? - Management indicated that they have optimized capacity in Europe and are continuously looking for cost reduction opportunities, although the system is running efficiently [30][32] Question: How did demand trend in North America and Europe in September and October? - Management noted that they expected an uptick in October but did not see it, attributing some of the lost business to previous unprofitable contracts [36][37] Question: What is the expected EBITDA impact from the economic downtime in Q4? - The estimated EBITDA impact from the downtime is between $60 million to $70 million, primarily affecting North America [42][43] Question: How is the company managing inventory levels in North America? - Management stated that inventory levels are improving but are not yet optimal, with ongoing efforts to rationalize supply chains [45][46] Question: What factors are driving the shift from CRB to SBS? - The shift is driven by SBS's competitive pricing and superior qualities such as brightness and printability, making it more appealing to customers [34][75] Question: What is the outlook for pricing in Europe? - Pricing in Europe has seen increases, but future trends will depend on demand recovery, with management optimistic about potential improvements [65][66]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $1.3 billion with an adjusted EBITDA margin of 16.3% for the quarter, reflecting resilience in a challenging environment [3][13] - Operating cash flow was $1.1 billion, and adjusted free cash flow was approximately $850 million, indicating strong cash generation capabilities [6][13] - The full-year adjusted EBITDA guidance has been adjusted to a range of $4.9 to $5.1 billion due to a challenging demand backdrop [21][24] Business Line Data and Key Metrics Changes - North America segment delivered net sales of $4.7 billion, adjusted EBITDA of $810 million, and an adjusted EBITDA margin of 17.2%, showing continued margin improvement [14][15] - EMEA and APAC segment achieved net sales of $2.8 billion, adjusted EBITDA of $419 million, and an adjusted EBITDA margin of 14.8%, demonstrating resilience despite market challenges [16][17] - Latin America segment reported net sales of $500 million, adjusted EBITDA of $116 million, and an adjusted EBITDA margin of over 21%, driven by strong market positions [17][18] Market Data and Key Metrics Changes - In North America, box volumes were down 7.5% year-over-year, while corrugated box pricing increased compared to the prior year [15] - EMEA and APAC experienced flat corrugated box volumes, with higher prices offsetting some cost pressures [17] - Latin America saw strong demand growth, particularly in Argentina, Colombia, and Chile, with volumes increasing by 8%, 15%, and 25% respectively [11][18] Company Strategy and Development Direction - The company is focused on optimizing its asset base by closing inefficient operations and transitioning to a value-over-volume strategy [4][8] - A synergy program is in place, expected to deliver $400 million in full run-rate savings by the end of the year [20][24] - The company aims to maintain a flexible capital allocation framework, with a CapEx target for 2026 set between $2.4 and $2.5 billion [19][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging demand backdrop but expressed confidence in the company's positioning for future growth as economies recover [22][24] - The company is actively addressing operational issues and optimizing its capacity to improve profitability [30][34] - Management remains optimistic about the potential for significant customer wins and the overall performance of the business [34][35] Other Important Information - The company has initiated global and regional leadership programs to enhance management capabilities and drive performance [12] - A significant headcount reduction of over 4,500 people has been implemented to streamline operations [23] - The company is committed to sustainability and innovation, which are seen as key drivers for future growth [5][10] Q&A Session Summary Question: Can you expedite cost takeout in Europe given the current market weakness? - Management indicated that they have optimized capacity in Europe and are continuously looking for cost reduction opportunities, although the system is running efficiently [27][30] Question: How did demand trend in September and October? - Demand did not see the expected uptick in October, with some business taken on previously being uneconomic [31][34] Question: What markets will experience economic downtime in Q4? - Economic downtime will primarily occur in North America, with an estimated EBITDA impact of $60 million to $70 million [39][40] Question: Can you elaborate on the revised guidance and uncertainties? - The guidance range reflects uncertainties around December demand, which is typically a swing factor for the quarter [74][75] Question: What are the returns targeted for investments? - The company aims for a return on capital employed in the range of 20% IRR for its investments [78]

Forward Looking Statements 2025 Third Quarter Results October 29, 2025 Paper | Packaging | Solutions Smurfit Westrock Q3 | 2025 Results | 2 The presentation includes certain "forward-looking statements" (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business and financial, of Smurfit Westrock, the expected b ...

Financial Performance - Net Sales for Q3 2025 reached $8,003 million, an increase of 4.3% compared to $7,671 million in Q3 2024[2] - Net Income for the quarter was $245 million, with a Net Income Margin of 3.1%, a significant recovery from a loss of $150 million in the same quarter last year[2][4] - Adjusted EBITDA was $1,302 million, with an Adjusted EBITDA Margin of 16.3%, slightly down from 16.5% in Q3 2024[2][4] - Gross profit for Q3 2025 was $1,569 million, up 16.3% from $1,350 million in Q3 2024[21] - Operating profit for Q3 2025 significantly increased to $526 million compared to $55 million in Q3 2024[21] - Net income attributable to common shareholders for Q3 2025 was $246 million, a turnaround from a net loss of $150 million in Q3 2024[21] - Adjusted EBITDA for Q3 2025 totaled $1,345 million, reflecting a 2.9% increase from $1,307 million in Q3 2024[24] - Net income for Q3 2025 was $245 million, compared to a loss of $150 million in Q3 2024, representing a significant turnaround[27] - Adjusted EBITDA for Q3 2025 was $1,302 million, up from $1,265 million in Q3 2024, indicating a year-over-year increase of 2.9%[34] Cash Flow and Capital Expenditures - Net Cash Provided by Operating Activities was $1,133 million, a substantial increase from $320 million in Q3 2024[2] - Adjusted Free Cash Flow for the quarter was $579 million, compared to $118 million in the same period last year[2] - Capital expenditures for Q3 2025 totaled $610 million, an increase from $512 million in Q3 2024[35] - Cash and cash equivalents at the end of Q3 2025 were $851 million, a decrease from $951 million at the end of Q3 2024[27] Regional Performance - North American operations delivered an Adjusted EBITDA of $810 million with a margin of 17.2%, reflecting strong operational performance[5] - EMEA and APAC regions generated Adjusted EBITDA of $419 million with a margin of 14.8%, demonstrating resilience despite market challenges[6] - Latin American operations achieved Adjusted EBITDA of $116 million with a margin of 21.3%, indicating continued operational improvement[10] - North America segment net sales for Q3 2025 were $4,721 million, a slight increase from $4,649 million in Q3 2024[24] - Europe, MEA, and APAC segment net sales rose to $2,831 million in Q3 2025, compared to $2,651 million in Q3 2024[24] Guidance and Dividends - Full year Adjusted EBITDA guidance is projected to be in the range of $4.9 to $5.1 billion[11] - A quarterly dividend of $0.4308 per ordinary share has been approved, payable on December 18, 2025[12] Balance Sheet - Total assets increased to $45,569 million as of September 30, 2025, up from $43,759 million at December 31, 2024[26] - Total liabilities stood at $27,110 million as of September 30, 2025, compared to $26,372 million at December 31, 2024[26] Earnings Per Share - The company reported a basic earnings per share of $0.47 for Q3 2025, compared to a loss of $0.30 per share in Q3 2024[21] - Adjusted Basic EPS for Q3 2025 was $0.58, compared to $0.53 in Q3 2024, showing a growth of 9.4%[37] Other Costs - The company incurred impairment and restructuring costs of $65 million in Q3 2025, compared to $21 million in Q3 2024[34]