Financial Performance - Net Sales for Q4 2025 reached $7,580 million, a slight increase from $7,539 million in Q4 2024[2] - Net Income for Q4 2025 was $98 million, down from $146 million in Q4 2024, resulting in a Net Income Margin of 1.3%[2] - Adjusted EBITDA for Q4 2025 was $1,172 million, with an Adjusted EBITDA Margin of 15.5%, consistent with Q4 2024[2] - Gross profit for Q4 2025 was $1,382 million, down from $1,442 million in Q4 2024, with a total gross profit for the year of $6,043 million, compared to $4,195 million in 2024, indicating a significant annual increase of 43.9%[20] - Operating profit for Q4 2025 was $389 million, down from $401 million in Q4 2024, while total operating profit for the year was $1,719 million, compared to $1,007 million in 2024, reflecting a significant annual increase of 70.7%[20] - Net income for Q4 2025 was $98 million, down from $146 million in Q4 2024, with total net income for the year reaching $699 million, compared to $319 million in 2024, representing a year-over-year growth of 118.8%[20] - Basic earnings per share for Q4 2025 were $0.19, down from $0.28 in Q4 2024, while total basic earnings per share for the year were $1.34, compared to $0.83 in 2024, indicating a significant annual increase of 61.5%[20] Cash Flow and Investments - Net Cash Provided by Operating Activities for Q4 2025 was $1,195 million, significantly higher than $781 million in Q4 2024[2] - Adjusted Free Cash Flow for Q4 2025 was $679 million, compared to $257 million in Q4 2024[2] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $3,392 million, compared to $1,483 million in 2024, representing a significant increase[34] - Capital expenditures for the twelve months ended December 31, 2025, totaled $2,192 million, compared to $1,466 million in 2024, reflecting increased investment in growth[34] - The company experienced a net cash used for investing activities of $579 million in Q4 2025, compared to $519 million in Q4 2024[26] - Cash and cash equivalents at the end of Q4 2025 were $892 million, up from $855 million at the end of Q4 2024[26] Future Outlook - For Q1 2026, the company expects Adjusted EBITDA to be between $1.1 billion and $1.2 billion, and for the full year 2026, between $5.0 billion and $5.3 billion[10] Operational Efficiency - The company exceeded its synergy target of $400 million and closed approximately 600,000 tons of high-cost capacity during 2025[4] - The company reduced headcount by over 3,000 while continuing to invest in customer-centric initiatives and operational efficiency[4] Regional Performance - North America segment net sales for Q4 2025 were $4,432 million, a decrease from $4,593 million in Q4 2024, while total net sales for the year were $18,577 million, up from $10,092 million in 2024, showing a substantial annual growth of 84.1%[23] - The Europe, MEA, and APAC segment reported net sales of $2,702 million in Q4 2025, an increase from $2,521 million in Q4 2024, with total annual sales of $10,893 million, compared to $9,577 million in 2024, marking a growth of 13.8%[23] - LATAM segment net sales for Q4 2025 were $537 million, slightly up from $524 million in Q4 2024, with total annual sales of $2,113 million, compared to $1,711 million in 2024, indicating a growth of 23.5%[23] - The LATAM region continues to show significant growth opportunities, supported by completed growth projects[9] Debt and Financial Position - Total debt additions for Q4 2025 amounted to $1,479 million, while debt repayments were $1,695 million, indicating a net cash outflow from financing activities[26] - The company reported impairment and restructuring costs of $25 million for Q4 2025, compared to $34 million in Q4 2024[33] - Total assets as of December 31, 2025, were $45,157 million, an increase from $43,759 million as of December 31, 2024, reflecting a growth of 3.2%[25]
Smurfit WestRock plc(SW) - 2025 Q4 - Annual Results