Core Insights - Smurfit Westrock reported Q4 net sales of $7.6 billion, a 0.5% increase year over year, and full-year net sales of $31.2 billion, up from $21.1 billion in 2024 following the acquisition of WestRock [1] - Q4 net income was $98 million, down from $146 million in Q4 2024, while full-year net income reached $699 million, compared to $319 million for the full year 2024 [1] Financial Performance - Q4 net sales: $7.6 billion, up 0.5% year over year [1] - Full-year net sales: $31.2 billion, compared to $21.1 billion in 2024 [1] - Q4 net income: $98 million, down from $146 million in Q4 2024 [1] - Full-year net income: $699 million, compared to $319 million for full-year 2024 [1] Company Overview - 2025 marked the first full year of operations for Smurfit Westrock as a combined entity after the acquisition of WestRock in July 2024 [1] - CEO Tony Smurfit expressed satisfaction with the company's performance despite challenging economic conditions [1] Medium-term Strategy - The company has released an updated medium-term plan targeting adjusted EBITDA of approximately $7 billion by the end of 2030 [1] - Projected market growth rates are 1.6% in North America, 1.7% in Europe, and 2.0% in Latin America [1] - The plan aims to generate $14 billion in cumulative discretionary free cash flow [1] Regional Focus - North America is identified as the largest value creation opportunity, contributing roughly 60% of the company's earnings [1] - The North American business unit has simplified operations and reduced its workforce by over 4,600 employees since the merger [1] Investment Plans - Smurfit Westrock anticipates annual capital expenditures between $2.4 billion and $2.8 billion, focusing on smaller projects averaging less than $4 million [1] - No single project will exceed $200 million [1] Innovation Initiatives - The company is investing in innovation, utilizing AI tools for efficient product development [1] - New customer experience centers are being established globally, with a focus on using AI and data applications [1] Operational Adjustments - The company announced closures of a machine at its La Tuque paper mill and an extrusion facility in Pointe-aux-Trembles, affecting approximately 90 employees [2] - These closures are part of a portfolio optimization strategy [2] Future Outlook - Executives project improved operating conditions in 2026, with first-quarter adjusted EBITDA expected between $1 billion and $1.2 billion [2] - Full-year adjusted EBITDA is anticipated to be between $5 billion and $5.3 billion [2] - Capital expenditures for 2026 are expected to range from $2.4 billion to $2.5 billion [2]