Core Insights - Smurfit Westrock Plc (SW) reported earnings of 45 cents per share in Q2 2025, missing the Zacks Consensus Estimate of 57 cents by 21% and down from 69 cents in the same quarter last year [1][10] - The company's net sales for Q2 2025 were $7.94 billion, exceeding the Zacks Consensus Estimate of $7.92 billion and significantly up from $2.97 billion in the prior year [3][10] - Adjusted EBITDA for Q2 2025 was $1.21 billion, compared to $0.48 billion in the year-ago quarter, with an adjusted EBITDA margin of 15.3% [4][10] Financial Performance - The cost of sales in Q2 2025 was $6.43 billion, up from $2.28 billion in the previous year, leading to a gross profit of $1.52 billion, which surged 118.6% year over year [4] - The gross margin decreased to 19.1% from 23.3% in the year-ago quarter [4] - Cash and cash equivalents at the end of Q2 2025 were $778 million, down from $855 million at the end of 2024, while net cash provided by operating activities increased to $829 million from $340 million in the prior year [8] Segment Performance - The Europe, MEA & APAC segment reported sales of $2.78 billion, a 25.6% increase year over year, with adjusted EBITDA rising 2.8% to $372 million [5] - The North America segment saw sales of $4.76 billion, a significant increase from $0.44 billion in the year-ago period, with adjusted EBITDA soaring to $752 million from $61 million [6] - The LATAM segment's sales were $518 million, up 52.4% year over year, with adjusted EBITDA increasing 41.4% to $123 million [7] Outlook - Smurfit Westrock expects Q3 2025 adjusted EBITDA to be $1.3 billion and projects FY 2025 adjusted EBITDA between $5 billion and $5.2 billion, indicating a year-over-year rise from $4.7 billion [11][10] Stock Performance - Shares of Smurfit Westrock have gained 6.3% over the past year, compared to the industry's growth of 29.4% [12]
Smurfit Westrock Q2 Earnings Fall Short of Estimates, Sales Surge Y/Y