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]

Group 1 - Packaging Corporation of America (NYSE:PKG) is recognized as one of the top eight paper and plastic packaging stocks to buy according to hedge funds [1] - Michael Roxland from Truist Financial reduced his price target for PKG from $273 to $270 while maintaining a Buy rating despite the company missing its fourth-quarter earnings expectations [1][3] - Roxland noted that the bearish trend in share price following the earnings announcement presents a compelling buying opportunity, with a revised price target indicating a 13% upside potential [3] Group 2 - Citi analyst Anthony Pettinari raised his price target for PKG from $226 to $227, maintaining a Neutral rating due to the company's fourth-quarter results missing consensus estimates [3][4] - Pettinari expressed a cautious outlook for Q1 but anticipates positive indicators ahead of expected price hikes in March [4] Group 3 - Packaging Corporation of America specializes in selling containerboard, uncoated freesheet paper, and corrugated packaging products, serving both industrial and consumer sectors [5]

Company Overview - International Paper Company (IP) has a market capitalization of $21 billion and is a global leader in fiber-based packaging, pulp, and paper products, with operations in North America, Latin America, Europe, North Africa, and the Middle East [1] Upcoming Earnings - The company is set to release its fiscal Q4 2025 results on January 29, with analysts projecting an adjusted EPS of $0.35, a significant increase from a loss of $0.02 in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $0.28, which represents a decline of 75.2% from $1.13 in fiscal 2024, but a substantial increase of 746.4% to $2.37 is expected in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, shares of International Paper have decreased by 26%, underperforming the S&P 500 Index, which gained 16.8%, and the Materials Select Sector SPDR Fund, which rose by 9.1% [4] - Investor sentiment has been negatively impacted by sluggish long-term revenue growth, declining free cash flow margins, and reduced returns on invested capital, leading to a lack of confidence in the company's ability to achieve sustainable growth [5] Analyst Ratings - The consensus rating for IP stock is "Moderate Buy," with 13 analysts covering the stock: eight recommend a "Strong Buy," one a "Moderate Buy," three a "Hold," and one a "Strong Sell" [6] - The average analyst price target for International Paper is $48.07, indicating a potential upside of 21% from current levels [6]

Group 1: Boeing - Boeing shares surged 10.2%, making it the top performer in the S&P 500, following an optimistic outlook for 2026 provided by CFO Jay Malave [2][6] - The company expects to increase deliveries of its 737 and 787 jets next year and anticipates strong free cash flow growth in 2026 [2][6] Group 2: Intel - Intel shares rose 8.7%, continuing gains amid speculation that Apple could become a new customer, adding to a series of high-profile agreements this year, including a partnership with Nvidia [2][3] Group 3: Teradyne - Teradyne's stock was upgraded to "buy" from "hold" by Stifel, resulting in a 5.7% increase in shares, driven by a shift towards high-growth markets, particularly in AI applications [3] Group 4: Paper and Packaging Industry - Companies in the paper and packaging sector faced pressure due to sluggish consumer spending, elevated costs, and excess supply, with Packaging Corporation of America shares dropping 5.3% [4] - Competitors International Paper and Smurfit WestRock also saw declines of 3.4% each [4] Group 5: AutoZone - AutoZone shares fell 3.1% following cautious commentary from Morgan Stanley analysts regarding potential cost headwinds [5]

Core Insights - Smurfit Westrock Plc (SW) reported earnings of 58 cents per share in Q3 2025, missing the Zacks Consensus Estimate of 68 cents by 14.7% [1][11] - 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 [3][11] - The adjusted EBITDA for Q3 2025 was $1.3 billion, slightly up from $1.26 billion in the previous year, with an adjusted EBITDA margin of 16.3% compared to 16.5% a year ago [5][11] 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%, up from 17.6% in the prior year [4] - Selling, general and administrative expenses decreased by 4.7% year over year to $960 million, and operating profit significantly improved to $526 million from $55 million in the year-ago quarter [4][11] - The company announced a quarterly dividend of 43.08 cents per share, payable on December 18, 2025 [9] 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 [6] - The North America segment's sales were $4.6 billion, a 2% increase from the previous year, with adjusted EBITDA rising 4% to $810 million [7] - The LATAM segment achieved sales of $545 million, up 10% year over year, with adjusted EBITDA remaining stable at $116 million [8] Outlook - Smurfit Westrock has lowered its FY25 adjusted EBITDA outlook to $4.9-$5.1 billion, down from the previous estimate of $5-$5.2 billion, due to planned downtime in Q4 [12][11] - The company reported an adjusted EBITDA of $4.7 billion for 2024 [12] Stock Performance - Smurfit Westrock's shares have declined by 26.5% over the past year, compared to a 16.7% decline in the industry [13]

Forward Looking Statements 2025 Third Quarter Results October 29, 2025 Paper | Packaging | Solutions Smurfit Westrock Q3 | 2025 Results | 2 The presentation includes certain "forward-looking statements" (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business and financial, of Smurfit Westrock, the expected b ...

Core Insights - International Paper Company (IP) reported second-quarter 2025 adjusted earnings of 20 cents per share, missing the Zacks Consensus Estimate of 38 cents by 47% and reflecting a 64% year-over-year decline [1][10] - Net sales for the quarter reached $6.767 billion, a 42.9% increase from the previous year, but fell short of the Zacks Consensus Estimate of $6.770 billion [2][10] Financial Performance - The cost of sales was $4.88 billion, up 45.1% from $3.36 billion in the same quarter last year, while gross profit increased 37.6% year over year to $1.89 billion, resulting in a gross margin of 27.9%, down from 29% a year ago [3] - Selling and administrative costs rose to $578 million, a 27.6% increase from $453 million in the prior-year quarter, with adjusted operating profit at $105 million, down 45.6% from $193 million in Q2 2024 [4] Segment Performance - Packaging Solutions North America reported sales of $3.86 billion, a 6.4% increase year over year, but operating profit fell 1.4% to $277 million [6] - Packaging Solutions EMEA saw sales rise to $2.29 billion from $0.35 billion due to the integration of DS Smith, but reported an operating loss of $1 million compared to a profit of $10 million in the prior year [7] - Global Cellulose Fibers experienced a 12.4% decline in sales to $628 million, resulting in an operating loss of $4 million, down from a profit of $31 million in the same quarter last year [8] Cash and Debt Position - At the end of the second quarter, cash and temporary investments totaled $1.13 billion, slightly down from $1.17 billion at the end of 2024 [9] - Long-term debt increased to $9.69 billion from $5.34 billion as of the end of 2024, with cash flow from operating activities at $188 million in the first half of 2025, compared to $760 million in the same period of 2024 [11] Stock Performance - The company's shares have increased by 19.6% over the past year, while the industry has seen a rise of 28.5% [12]

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]

Financial Performance - Smurfit Westrock reported Net Sales of $7.940 billion[27] - Adjusted EBITDA reached $1.213 billion[9, 27] - Adjusted EBITDA Margin was 15.3%[9, 27] - Adjusted Free Cash Flow amounted to $387 million[27] Segment Performance - North America's Net Sales totaled $4.8 billion with an Adjusted EBITDA of $752 million and an Adjusted EBITDA Margin of 15.8%[29] - EMEA & APAC achieved Net Sales of $2.8 billion with an Adjusted EBITDA of $372 million and an Adjusted EBITDA Margin of 13.4%[29] - LATAM's Net Sales were $0.5 billion with an Adjusted EBITDA of $123 million and an outstanding Adjusted EBITDA Margin of 23.7%[29] Capital Allocation and Investments - Capital expenditure for 2025 is projected to be between $2.2 billion and $2.4 billion[30, 45] - Approximately $1 billion was spent across the system, including over $450 million invested in the paper system and over $450 million in the packaging business[23] Synergies and Outlook - The company anticipates a $400 million contribution to Adjusted EBITDA from synergies, with full run rate exiting 2025[37] - Approximately $350 million is expected to be captured in Adjusted EBITDA in 2025, with about $180 million already achieved in H1 2025[37] - Q3 2025 Adjusted EBITDA is guided to be approximately $1.3 billion, and FY 2025 Adjusted EBITDA is expected to be between $5.0 billion and $5.2 billion[37, 45]

Core Insights - International Paper Company (IP) is set to report its second-quarter 2025 results on July 31, with expected revenues of $6.8 billion, reflecting a 43% year-over-year growth [1][6] - The earnings estimate for IP has decreased by 2.6% over the past 60 days to 38 cents per share, indicating a 30% decline compared to the previous year [1][6] Revenue and Earnings Expectations - The projected revenue of $6.8 billion for Q2 is primarily driven by the acquisition of DS Smith [6] - The Packaging Solutions EMEA segment is expected to see net sales rise to $2.23 billion from $330 million year-over-year, with an anticipated operating profit of $72.9 million [6][9] - Packaging Solutions North America is projected to have net sales of $4.01 billion, a 10.4% increase year-over-year, with an operating profit of $309 million [10] - The Global Cellulose Fibers segment is expected to report a 9.1% decline in net sales to $652 million, with an operating loss of $4.1 million [10] Market Dynamics - The company has been facing weak packaging demand due to inflationary pressures affecting consumer priorities, leading to reduced demand for packaging [11] - However, stable demand in the e-commerce sector and strategic initiatives by the company may help mitigate some of these challenges [11] Earnings Surprise History - International Paper has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 39.5% [3][4] - The current Earnings ESP for IP stands at +1.31%, indicating a potential for an earnings beat [7] Stock Performance - Over the past year, IP shares have increased by 23.7%, compared to the industry's growth of 30.6% [12] Strategic Acquisition - The completion of the DS Smith acquisition on January 31, 2025, has positioned International Paper as a global leader in sustainable packaging solutions, impacting its financial reporting structure [8]