01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Smurfit Westrock plc's Form 10-Q for the quarter ended June 30, 2025 reports net sales of $7,940 milliona for the three months ended June 30, 2025, up from $2,969 million a year earlier, with the increase primarily driven by the acquisition of WestRock ($4,839 million contribution).
The company posted a net loss attributable to common shareholders of $28 millionb for the quarter, compared with net income of $132 million in the prior-year quarter, as impairment and restructuring costs of $280 million and higher interest expense of $182 million weighed on results. For the six months, net income attributable to common shareholders was $356 million, and Adjusted EBITDA was $2,465 million versus $955 million a year earlier, per the filing's non-GAAP reconciliation. Cash flow and balance sheet items show net cash provided by operating activities of $1,064 million for the six months, capital expenditures of $999 million, and dividends paid of $450 million.
Total debt, excluding debt issuance costs, was $14,425 millionc at June 30, 2025, and total available liquidity was $5,522 million. The company's disclosure controls were concluded to be not effective due to a previously reported material weakness in internal control over financial reporting tied to the Combination integration.
The filing also discloses the April 30, 2025 announced closure of a coated recycled board mill in St. Paul, Minnesota and a containerboard mill in Forney, Texas, with $280 milliond of impairment and restructuring costs in the quarter. A subsequent-event disclosure describes a July 29, 2025 class action antitrust lawsuit in the U.S. District Court for the Northern District of Illinois, which the company says it is unable to currently assess for outcome or loss range.
02—Key points
Key Highlights
- Net sales rose to $7,940 million in Q2 2025 from $2,969 million in Q2 2024, primarily due to $4,839 million from the WestRock acquisition.
- Net loss attributable to common shareholders was $28 million in Q2 2025, versus net income of $132 million in Q2 2024, driven mainly by $280 million of impairment and restructuring costs.
- Six-month net income attributable to common shareholders was $356 million, and Adjusted EBITDA was $2,465 million versus $955 million a year earlier.
- Interest expense, net increased to $182 million in Q2 2025 from $33 million, reflecting debt assumed and issued in connection with the Combination.
- Total debt excluding issuance costs was $14,425 million, with $5,522 million of available liquidity at June 30, 2025.
- Announced permanent closure of the St. Paul, Minnesota CRB mill and Forney, Texas containerboard mill; the filing states these reduced capacity by over 500,000 tons.
- Disclosure controls were concluded not effective due to a previously reported material weakness in internal control over financial reporting tied to integrating legacy frameworks after the Combination.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Smurfit Westrock lost $0.00.
- Revenue$7.94B100.0%
- Cost of revenue−$6.42B80.9%
- Gross profit$1.51B19.1%
- Operating costs−$1.26B15.9%
- Operating income$251.0M3.2%
- Interest, other & tax−$279.0M3.5%
- Net income−$28.0M0.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $7.94B$2.97B | +167.4% |
| Cost of Revenue | $6.42B$2.28B | +182.3% |
| Gross Profit | $1.51B$693.00M | +118.6% |
| SG&A Expenses | $963.00M$389.00M | +147.6% |
| Operating Income | $251.00M$244.00M | +2.9% |
| Net Income | -$28.00M$132.00M | −121.2% |
| EPS (Basic) | $-0.05$0.51 | −109.8% |
| EPS (Diluted) | $-0.05$0.51 | −109.8% |
| Shares Outstanding (Basic) | 522.00M259.00M | +101.5% |
| Shares Outstanding (Diluted) | 522.00M260.00M | +100.8% |
05—Questions
Frequently Asked Questions
Why did the company swing to a net loss in the second quarter?
The filing attributes the Q2 2025 net loss attributable to common shareholders of $28 million mainly to impairment and restructuring costs of $280 million, which include $184 million of impairment charges and $96 million of restructuring costs, alongside interest expense, net of $182 million.
How much did the WestRock acquisition contribute to sales growth?
The filing states the WestRock acquisition contributed $4,839 million of net sales in the three months ended June 30, 2025 and $9,575 million in the six months ended June 30, 2025. Excluding the acquisition, net sales increased by $132 million in the quarter.
What are the company's plans for its mill closures?
The company announced on April 30, 2025 that it would permanently close the St. Paul, Minnesota CRB mill and discontinue production at the Forney, Texas containerboard mill, and it has initiated consultations in Germany to close two converting facilities. The filing expects future additional restructuring charges of $45 million associated with these April 2025 announced closures through 2026.
What dividend did the board approve after the quarter ended?
On July 30, 2025, the Board approved a quarterly dividend of $0.4308 per ordinary share, payable September 18, 2025 to shareholders of record at the close of business on August 15, 2025.
What legal risks did the company disclose after the quarter ended?
On July 29, 2025, the company and seven other industry participants were named as defendants in a U.S. class action alleging violations of antitrust laws related to containerboard and linerboard pricing. The company believes it has substantial defenses but states that an adverse outcome could have a material impact on its financial condition, results of operations, or cash flows.
06—Continue