Core Insights - Smurfit Westrock reported Q3 2025 earnings of 58 cents per share, missing the Zacks Consensus Estimate of 68 cents by 14.7% [2] - 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 [4] - Adjusted EBITDA for Q3 2025 was $1.3 billion, slightly higher than $1.26 billion in the previous year [6] 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% compared to 17.6% in the prior year [5] - Selling, general and administrative expenses decreased by 4.7% year over year to $960 million, with operating profit significantly improving to $526 million from $55 million in the year-ago quarter [5] - The adjusted EBITDA margin was 16.3%, slightly down from 16.5% in the year-ago quarter [6] 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 [7] - The North America segment's sales were $4.6 billion, a 2% increase from the previous year, with adjusted EBITDA increasing 4% to $810 million [8] - The LATAM segment achieved sales of $545 million, up 10% year over year, with adjusted EBITDA remaining stable at $116 million [9] Cash Position and Outlook - At the end of Q3 2025, Smurfit Westrock had cash and cash equivalents of $851 million, slightly down from $855 million at the end of 2024 [10] - The company announced a quarterly dividend of 43.08 cents per share, payable on December 18, 2025 [10] - Smurfit Westrock lowered its FY25 adjusted EBITDA outlook to $4.9-$5.1 billion from the previous estimate of $5-$5.2 billion, citing additional economic downtime [11] Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 28.65% [12] - The company currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [14]
Why Is Smurfit Westrock (SW) Down 0.7% Since Last Earnings Report?