Smurfit Westrock Q4 profit falls 33.6% as portfolio optimization continues

IRELAND – Smurfit Westrock reported attributable net income of US$97 million for the fourth quarter of 2025, representing a 33.6% decline from US$146 million recorded in the same period a year earlier.

Attributable diluted earnings per share fell to US$0.18 from US$0.28, while operating profit edged down 2% to US$389 million compared with US$401 million in Q4 2024. Quarterly net sales remained broadly flat at US$7.5 billion.

Regionally, North American sales declined to US$4.4 billion during the quarter. In contrast, Europe, the Middle East and Africa (MEA) and Asia-Pacific (APAC) recorded combined sales of US$2.7 billion, while Latin America contributed US$537 million.

Despite the softer fourth-quarter performance, full-year 2025 results reflected significant year-on-year growth following the integration of operations.

Attributable net income more than doubled to US$699 million from US$319 million in 2024.

Operating profit increased to US$1.7 billion, up from US$1 billion, while annual net sales rose sharply to US$31.1 billion compared with US$21.1 billion the previous year.

President and CEO Tony Smurfit said 2025 marked the establishment of a “strong foundation” for the group.

The company exceeded its US$400 million synergy target and implemented customer-focused commercial and operational initiatives.

During the year, Smurfit Westrock reduced loss-making operations and closed approximately 600,000 tonnes of high-cost or inefficient capacity as part of ongoing portfolio optimization.

Headcount was reduced by more than 3,000 employees, while investment continued in customer relationships, asset upgrades and operational efficiency.

For the full year, North American sales reached US$18.5 billion, Europe/MEA/APAC generated US$10.8 billion and Latin America delivered US$2.1 billion.

Looking ahead, Smurfit expects first-quarter adjusted EBITDA of between US$1.1 billion and US$1.2 billion, with full-year adjusted EBITDA forecast in the range of US$5 billion to US$5.3 billion.

In a related move, the company recently announced the permanent closure of a paper machine at its La Tuque mill in Quebec, Canada, with an annual capacity of approximately 127,000 tonnes of solid bleached sulfate (SBS).

An associated extrusion facility in Pointe-aux-Trembles will also shut down, impacting around 90 employees in total.

Management said the closures reflect a strategic reassessment aimed at aligning production capacity with market demand and improving operational efficiency across its SBS portfolio.

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