Core Insights - Smurfit Westrock Plc reported earnings of 34 cents per share in Q4 2025, missing the Zacks Consensus Estimate of 46 cents, and down from 47 cents in the same quarter last year [1][9] - The company was formed by the merger of Smurfit Kappa and WestRock on July 5, 2024, and results are reported as a unified entity from Q3 2024 [1] Financial Performance - Net sales for Q4 2025 increased by 0.5% year over year to $7.58 billion, but fell short of the Zacks Consensus Estimate of $7.67 billion [2] - Cost of sales rose by 1.7% to $6.2 billion, leading to a gross profit decline of 4.2% to $1.38 billion [2] - Adjusted EBITDA for Q4 was $1.17 billion, up 0.5% year over year, with an adjusted EBITDA margin of 15.5%, remaining flat year over year [2] Segment Performance - Europe, MEA & APAC segment reported sales of $2.69 billion, up 7.1% year over year, with adjusted EBITDA increasing by 18.1% to $438 million [3] - North America segment sales decreased to $4.35 billion from $4.52 billion in the previous year, with adjusted EBITDA falling to $651 million from $710 million [4] - LATAM segment sales rose by 6.3% to $537 million, with adjusted EBITDA increasing by 8.3% to $131 million [5] Cash Position and Balance Sheet - Cash and cash equivalents at the end of 2025 were $892 million, up from $855 million at the end of 2024 [6] - Net cash provided by operating activities was $1.19 billion, compared to $0.78 billion in the same quarter last year [6] - Adjusted free cash flow at the end of 2025 was $679 million, significantly up from $257 million in the prior year [6] Annual Performance - For the full year 2025, adjusted earnings were reported at $2.05 per share, missing the Zacks Consensus Estimate of $2.20, and down from $2.34 in the previous year [8] - Net sales for 2025 improved by 47.7% year over year to $31.12 billion, but also lagged behind the Zacks Consensus Estimate of $31.26 billion [8] - Adjusted EBITDA for 2025 was $4.93 billion, aligning with the company's guidance [10] Future Guidance - The company anticipates adjusted EBITDA of $5-$5.3 billion for 2026 and $1.1-$1.2 billion for Q1 2026 [9][13] Stock Performance - Smurfit Westrock's shares have declined by 11.3% over the past year, compared to a 3.6% decline in the industry [11]
Smurfit Westrock Falls Short of Earnings & Sales Estimates in Q4