01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Smurfit Westrock plc reported net sales of $7,712 milliona for the three months ended March 31, 2026, up $56 million from $7,656 million a year earlier, driven primarily by a $316 million net positive foreign currency impact that was largely offset by a $256 million impact of lower volumes.
Net income attributable to common shareholders fell to $65 millionb from $384 million, mainly due to higher cost of goods sold, including $70 million of accelerated depreciation for machine closures, lower volumes, economic downtime, adverse weather and higher freight costs. Diluted earnings per share were $0.12 versus $0.73. Adjusted EBITDA, a non-GAAP measure, was $1,076 million compared with $1,252 million in the prior-year period.
Cash generation weakened modestly. Net cash provided by operating activities was $204 millionc, down $31 million, while capital expenditures were $624 million. Total debt rose to $14,255 million at March 31, 2026 from $13,773 million at December 31, 2025, and cash and cash equivalents were $674 million.
The company had $5,337 milliond of available liquidity, including undrawn committed facilities of $4,663 million. The company paid $237 million of cash dividends, and on April 30, 2026 its Board approved a quarterly dividend of $0.4523 per share payable June 10, 2026. Segment results were mixed.
North America Adjusted EBITDA fell $188 million to $597 million on higher costs and lower volumes, while Europe, MEA and APAC rose $32 million to $421 million and LATAM declined $6 million to $109 million. The filing also discloses ongoing litigation, including a U.S. antitrust class action filed July 29, 2025 in which the company's subsidiaries remain defendants, and an ICSID arbitration award against Venezuela, which is under annulment review.
02—Key points
Key Highlights
- Net sales rose $56 million to $7,712 million, with a $316 million net positive foreign currency impact largely offset by a $256 million volume impact.
- Net income attributable to common shareholders decreased to $65 million from $384 million; diluted EPS was $0.12 versus $0.73.
- Operating profit fell to $253 million from $553 million, reflecting higher cost of goods sold, $70 million of accelerated depreciation for machine closures, and $54 million of impairment and restructuring costs.
- Adjusted EBITDA was $1,076 million versus $1,252 million; North America segment Adjusted EBITDA fell $188 million to $597 million.
- Operating cash flow was $204 million, down $31 million, while capital expenditures were $624 million and total debt increased to $14,255 million.
- Available liquidity was $5,337 million at March 31, 2026, including $674 million of cash and $4,663 million of undrawn committed facilities.
- The Board approved a quarterly dividend of $0.4523 per share on April 30, 2026, payable June 10, 2026 to holders of record on May 15, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Smurfit Westrock kept $0.01.
- Revenue$7.71B100.0%
- Cost of revenue−$6.44B83.6%
- Gross profit$1.27B16.4%
- Operating costs−$1.01B13.2%
- Operating income$253.0M3.3%
- Interest, other & tax−$188.0M2.4%
- Net income$65.0M0.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.71B$7.66B | +0.7% |
| Cost of Revenue | $6.44B$6.08B | +6.0% |
| Gross Profit | $1.27B$1.58B | −19.6% |
| SG&A Expenses | $961.00M$973.00M | −1.2% |
| Operating Income | $253.00M$553.00M | −54.2% |
| Net Income | $65.00M$384.00M | −83.1% |
| EPS (Basic) | $0.12$0.74 | −83.8% |
| EPS (Diluted) | $0.12$0.73 | −83.6% |
| Shares Outstanding (Basic) | 523.00M521.00M | +0.4% |
| Shares Outstanding (Diluted) | 526.00M526.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did net income fall so sharply in the first quarter of 2026?
The filing attributes the decline primarily to higher cost of goods sold, including $70 million of accelerated depreciation for machine closures. Lower volumes, economic downtime, adverse weather and higher freight costs also weighed on results, and impairment and restructuring costs rose to $54 million from $15 million.
How is the company's debt position changing?
Total debt increased to $14,255 million at March 31, 2026 from $13,773 million at December 31, 2025, and current debt rose to $980 million. The increase was driven mainly by commercial paper, which rose to $662 million from $155 million. Management believes operating cash flows, cash on hand, commercial paper and committed credit lines will be adequate for the next 12 months.
What legal matters could affect the company's future results?
A U.S. antitrust class action filed July 29, 2025 alleges price-fixing for containerboard and packaging, and the company says it could have a material impact if adversely resolved; a ruling on the motion to dismiss is expected in 2026. The company also faces a Brazil tax dispute of R$800 million ($153 million), and an ICSID arbitration award of over $469 million against Venezuela is under annulment review.
Is the dividend being maintained?
Yes. Cash dividends paid were $237 million in the quarter, and on April 30, 2026 the Board approved a quarterly dividend of $0.4523 per share, payable June 10, 2026 to shareholders of record at the close of business on May 15, 2026.
Which segment performed best this quarter?
Europe, MEA and APAC was the strongest on an earnings trend basis, with Adjusted EBITDA rising $32 million to $421 million on lower costs and a $44 million net positive foreign currency impact. North America was the weakest, with Adjusted EBITDA falling $188 million to $597 million.
06—Continue