Financial Performance - Net sales for Q1 2025 reached 7,656million,asignificantincreasefrom2,930 million in Q1 2024, representing a growth of approximately 161%[18] - Gross profit for the quarter was 1,577million,comparedto710 million in the same period last year, indicating a gross margin improvement[18] - Net income attributable to common shareholders was 384million,upfrom191 million in Q1 2024, reflecting a year-over-year increase of 101%[20] - Comprehensive income for Q1 2025 was 749million,asubstantialrisefrom88 million in Q1 2024, highlighting improved overall financial performance[22] - Net income for Q1 2025 was 382million,a100191 million in Q1 2024[9] - Basic earnings per share remained stable at 0.74forbothQ12025andQ12024,despitethesignificantincreaseinnetincome[20]−AdjustedEBITDAforthethreemonthsendedMarch31,2025,was1,252 million, compared to 475millionin2024,indicatingstrongoperationalperformance[195]AssetsandLiabilities−Totalassetsincreasedto44,649 million as of March 31, 2025, compared to 43,759millionattheendof2024,showingagrowthofapproximately226,760 million from 26,372million,indicatinganincreaseofabout1.517,889 million by March 31, 2025, up from 17,387millionattheendof2024[25]−Totaldebtincreasedto14,219 million as of March 31, 2025, compared to 13,595millionatDecember31,2024,representingariseof4.6389 million as of March 31, 2025, down from 450millionattheendof2024[36]CashFlowandInvestments−Cashprovidedbyoperatingactivitiesincreasedto235 million in Q1 2025 from 42millioninQ12024[9]−Capitalexpendituresrosesignificantlyto477 million in Q1 2025, compared to 208millioninQ12024[9]−Netcashusedforinvestingactivitieswas476 million in Q1 2025, primarily due to capital expenditures of 477million[186]−Netcashprovidedbyfinancingactivitieswas151 million in Q1 2025, driven by a net increase in debt of 444million[187]AcquisitionsandMergers−TheintegrationofSmurfitKappaandWestRockisexpectedtoyieldsignificantsynergies,althoughspecificfinancialbenefitswerenotquantifiedinthereport[8]−TheaggregatemergerconsiderationfortheacquisitionofSmurfitKappawas13,461 million, completed on July 5, 2024[42] - Net income attributable to common shareholders rose by 193millionto384 million in Q1 2025, up from 191millioninQ12024,primarilyduetotheacquisitionofWestRock[139]−Thecompanyanticipatescontinuedgrowthandoperationalimprovementsasitintegratesthetwobusinessesandleveragesitsexpandedscaleandgeographicreach[8]SegmentPerformance−ForthethreemonthsendedMarch31,2025,NorthAmericasegmentnetsaleswere4,578 million, Europe, MEA and APAC segment net sales were 2,576million,andLATAMsegmentnetsaleswere502 million[54] - Adjusted EBITDA for the North America segment increased by 726millionto785 million in Q1 2025, primarily due to the WestRock acquisition[168] - The LATAM segment's net sales increased by 172millionto513 million in Q1 2025, primarily due to the WestRock acquisition[172] - The Europe, MEA and APAC segment's net sales increased by 388millionto2,582 million in Q1 2025, with a 378millionimpactfromtheWestRockacquisition[169]OperationalChanges−ThecompanyplanstopermanentlycloseitscoatedrecycledboardmillinSt.Paul,Minnesota,anddiscontinueproductionatitscontainerboardmillinForney,Texas,impactingapproximately650employeesandreducingcapacitybyover500,000tonsannually[123][135]−SmurfitWestrockexpectstoincurapproximately287 million in pre-tax charges related to the closures, including 188millioninnon−cashassetimpairmentcharges[136][125]TaxandLegalMatters−TheeffectivetaxrateforthethreemonthsendedMarch31,2025,was2.172 million from the resolution of unrecognized tax benefits[91] - The total amount in dispute regarding tax claims in Brazil was R761million(132 million) as of March 31, 2025, which could materially affect cash flows depending on the resolution[100] - The company has estimated liabilities of 69millionrelatedtoasbestos−relatedlitigationasofMarch31,2025,withexpectedinsurancerecoveriesof45 million[102] - An international arbitration award granted the company compensation exceeding 469millionfromVenezuela,withlegalcostsof5 million, pending enforcement proceedings[108] Miscellaneous - The company is currently evaluating the impact of new accounting standards on its disclosures, including ASU 2023-09 and ASU 2024-03[39][40] - The company has no off-balance sheet arrangements as of March 31, 2025, ensuring transparency in its financial obligations[190] - There have been no material changes to the contractual obligations and commitments since the last fiscal year, maintaining consistency in financial planning[189]