Financial Performance - Net Sales for Q2 2024 were approximately $3.0 billion, a decrease of $107 million (3%) compared to Q2 2023[1][6] - Net Income for Q2 2024 was $132 million, a decrease of $135 million compared to Q2 2023[1][7] - Adjusted EBITDA for Q2 2024 was $480 million with a margin of 16.2%, compared to $556 million and 18.1% in Q2 2023[1][8] - Net sales for Q2 2024 were $2.969 billion, a decrease of 3.5% compared to $3.076 billion in Q2 2023[20] - Gross profit for Q2 2024 was $693 million, down 12.1% from $788 million in Q2 2023[20] - Net income attributable to common stockholders for Q2 2024 was $132 million, a 50.6% decrease from $267 million in Q2 2023[20] - Consolidated net income for the six months ended June 30, 2024, was $323 million, compared to $548 million in the same period in 2023[26] - Adjusted EBITDA for the six months ended June 30, 2024, was $955 million, compared to $1.157 billion in the same period in 2023[33] - Adjusted EBITDA margin for the six months ended June 30, 2024, was 16.2%, down from 18.3% in the same period in 2023[33] - Net income margin for the six months ended June 30, 2024, was 5.5%, compared to 8.7% in the same period in 2023[33] - Net income for the twelve months ended June 30, 2024, was $601 million, compared to $826 million for the twelve months ended December 31, 2023[34] - Adjusted EBITDA for the twelve months ended June 30, 2024, was $1,926 million, down from $2,128 million for the twelve months ended December 31, 2023[34] Segment Performance - Corrugated volume growth was 3.1% in Q2 2024, with 3.5% growth in Europe and 1.5% in the Americas year-on-year[4] - Europe segment net sales for Q2 2024 were $2.207 billion, a 6.1% decline from $2.350 billion in Q2 2023[22] - The Americas segment net sales for Q2 2024 increased 5.0% to $762 million from $726 million in Q2 2023[22] - Europe segment Adjusted EBITDA margin for Q2 2024 was 16.1%, down from 18.4% in Q2 2023[22] - The Americas segment Adjusted EBITDA margin for Q2 2024 was 19.2%, slightly lower than 19.3% in Q2 2023[22] Cash Flow and Liquidity - Net cash provided by operating activities increased by $33 million (11%) to $340 million in Q2 2024 compared to Q2 2023[13] - Adjusted Free Cash Flow for Q2 2024 was $186 million, compared to $83 million in Q2 2023[14] - Net cash provided by operating activities for the six months ended June 30, 2024, was $382 million, down from $570 million in the same period in 2023[26] - Free Cash Flow for the three months ended June 30, 2024, was $163 million, up from $83 million for the same period in 2023[36] - Adjusted Free Cash Flow for the three months ended June 30, 2024, was $186 million, compared to $83 million for the same period in 2023[36] - Net cash provided by operating activities for the three months ended June 30, 2024, was $340 million, compared to $307 million for the same period in 2023[36] Debt and Leverage - Total borrowings amounted to $6,432 million at June 30, 2024, compared to $3,747 million at December 31, 2023[15] - Net debt was $3,107 million at the end of June 2024, resulting in a net leverage ratio of 1.6x compared to 1.3x at the end of December 2023[15] - Additions to debt for the six months ended June 30, 2024, were $2.812 billion, significantly higher than $69 million in the same period in 2023[26] - Net Debt as of June 30, 2024, was $3,107 million, up from $2,747 million as of December 31, 2023[37] - Net Leverage Ratio as of June 30, 2024, was 1.6x, compared to 1.3x as of December 31, 2023[37] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, were $385 million, compared to $459 million in the same period in 2023[26] - Capital expenditures for the three months ended June 30, 2024, were $177 million, down from $224 million for the same period in 2023[36] Transaction and Corporate Updates - Smurfit Westrock completed its transaction with WestRock on July 5, 2024, and listed on the NYSE on July 8, 2024[5] - Smurfit Westrock's credit rating is BBB/BBB/Baa2 from S&P, Fitch, and Moody's respectively[1] - Transaction-related expenses associated with the Combination for the twelve months ended June 30, 2024, were $161 million, up from $78 million for the twelve months ended December 31, 2023[34] Balance Sheet and Assets - Cash and cash equivalents increased to $3.325 billion as of June 30, 2024, up from $1.000 billion at December 31, 2023[24] - Total assets grew to $16.232 billion as of June 30, 2024, compared to $14.051 billion at December 31, 2023[24] - Total liabilities increased to $10.291 billion as of June 30, 2024, from $7.877 billion at December 31, 2023[24] - Cash, cash equivalents, and restricted cash at the end of June 30, 2024, were $3.325 billion, up from $668 million at the end of June 30, 2023[26] Expenses and Other Financial Metrics - Cash paid for income taxes, net of refunds, for the six months ended June 30, 2024, was $79 million, compared to $187 million in the same period in 2023[26] - Share-based compensation expense for the six months ended June 30, 2024, was $31 million, compared to $36 million in the same period in 2023[26] - Pension expense (excluding current service cost) for the twelve months ended June 30, 2024, was $68 million, compared to $49 million for the twelve months ended December 31, 2023[34]
Smurfit WestRock plc(SW) - 2024 Q2 - Quarterly Results