Smurfit Westrock delivers strong Q1 2025 results with US$7.66B in sales

IRELAND – Smurfit Westrock, a leading sustainable paper and packaging company, has reported robust results for the first quarter of fiscal year 2025 (Q1 FY25), posting net sales of US$7.66 billion—more than double the US$2.93 billion recorded in the same period last year.

As of 31 March 2025, net income rose to US$382 million, up from US$191 million in Q1 FY24. However, despite the substantial increase in revenue and earnings, the company’s net income margin slightly declined to 5.0%, compared to 6.5% a year ago. Diluted earnings per share (EPS) held steady at US$0.73.

Smurfit Westrock reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$1.25 billion for the quarter, with an adjusted EBITDA margin of 16.4%.

This marks a modest improvement from US$475 million and a 16.2% margin in Q1 FY24.

Gross profit rose significantly to US$1.58 billion, up from US$710 million in the previous year, while operating profit increased to US$553 million, compared to US$307 million in Q1 FY24.

Tony Smurfit, President and CEO, commented, “This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year.

“I’m especially pleased with the strong operational and cultural integration across regions. With our geographic footprint and innovative, sustainable packaging portfolio, our customer-focused, performance-driven team continues to deliver for all stakeholders.”

Portfolio optimization and strategic investments

As part of its asset optimization strategy, Smurfit Westrock has shut down over 500,000 tonnes of paper capacity in North America and closed two converting facilities in the region.

The company is also in talks to potentially close two more converting sites across the EMEA and Asia-Pacific regions.

At the same time, Smurfit Westrock is advancing its growth agenda with two newly developed converting plants in Washington and Wisconsin, USA, and is nearing completion of a new Bag-in-Box (BiB) facility in South Carolina.

UFP Industries reports Q1 decline in packaging segment sales

In contrast, UFP Industries has reported a 3% year-on-year decrease in net sales in its packaging segment for Q1 2025, totalling US$410 million.

The decline was attributed to a 3% drop in organic unit sales and a 1% decrease in selling prices, partially offset by a 1% gain from a recent acquisition.

Organic unit sales declined 5% for Structural Packaging and 1% for PalletOne, while Protective Packaging saw a 13% increase due to expanded capacity.

Gross profit in the packaging segment dropped to US\$70 million (17% of sales), compared to US$85 million (20.1%) in Q1 FY24.

The decline was driven by lower demand, reduced unit sales, competitive pricing, and higher material costs, particularly in the PalletOne and Structural Packaging units.

Overall, UFP Industries posted net sales of US$1.60 billion for the quarter, down 2.7% due to pricing and sales volume declines.

Net earnings attributable to controlling interests fell 35% year-over-year to US$78.8 million.

Adjusted EBITDA dropped to US$142.2 million (8.9% of sales) from US$180.8 million (11%) in the same period last year.

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