Performance in 2025 was defined by the successful integration of the Augusta Mill and the separation of the tissue business, both completed ahead of schedule. Management attributes current margin pressure to a significant supply-demand imbalance in Solid Bleached Sulfate (SBS), exacerbated by a competitor adding 500,000 tons of new capacity. The company achieved $50,000,000 in fixed cost reductions during 2025 and separately reduced its corporate SG&A headcount by 40% as part of broader workforce redu ...

Core Viewpoint - Smurfit Westrock Plc is facing ongoing margin pressures due to higher input costs and a challenging demand environment, leading to stock performance fluctuations [2][4]. Group 1: Company Overview - Smurfit Westrock Plc is a global leader in sustainable paper-based packaging, headquartered in Dublin, Ireland, with a market capitalization of $23.01 billion [1]. Group 2: Stock Performance - Over the past 52 weeks, Smurfit Westrock's stock has declined by 14.5%, but it has increased by 18.3% year-to-date (YTD) [2]. - The stock reached a 52-week low of $32.73 in November and has since risen by 39.8% from that level [2]. - In comparison, the S&P 500 Index has gained 14.4% over the past 52 weeks and 1.4% YTD, indicating that Smurfit Westrock has underperformed the broader market over the past year but outperformed year-to-date [3]. Group 3: Operational Changes - The company announced the permanent closure of a paper machine at its La Tuque, Quebec mill, which had an annual production capacity of 127,000 tons for solid bleached sulfate (SBS), due to ongoing scale and cost challenges [4]. - Additionally, the extrusion facility in Pointe-aux-Trembles, Quebec, will also be closed, aligning operations with market realities [4]. Group 4: Financial Performance - For the fourth quarter, Smurfit Westrock reported marginal growth in net sales to $7.58 billion, while adjusted EPS fell by 27.7% year-over-year (YOY) to $0.34 [4]. - Analysts expect the company's profit to increase by 36.4% YOY to $3 per share on a diluted basis for the current fiscal year [4].

Group 1 - Smurfit Westrock will permanently cease operations of a paper machine at its La Tuque mill in Quebec due to ongoing difficulties with scale and costs, producing 127,000 tons per annum of solid bleached sulfate (SBS) [1] - The company will also close its extrusion facility in Pointe-aux-Trembles, where material from the La Tuque machine is processed [1] - The closures are expected to result in the loss of approximately 30 jobs at La Tuque and 60 roles at Pointe-aux-Trembles, with support measures for affected staff [2] Group 2 - Smurfit Westrock North America CEO Laurent Sellier stated that the decision was necessary to align with market realities and strengthen the company's long-term position [3] - The company returned to profit in Q3 2025, reporting a net income of $245 million, a turnaround from a $150 million loss in the previous year [3] - Net sales for the quarter reached $8 billion, an increase from $7.67 billion in Q3 2024, although the full-year outlook was revised downward due to scheduled downtime [4]