01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Smurfit Westrock plc reported net sales of $8,031 milliona for the three months ended June 30, 2026, up from $7,940 million a year earlier, primarily due to a net positive foreign currency impact partially offset by lower selling price mix.
Net income attributable to common shareholders was $89 millionb for the quarter, compared with a net loss of $28 million in the prior-year quarter. For the six months, net sales rose to $15,743 million from $15,596 million, while net income attributable to common shareholders fell to $154 million from $356 million, reflecting higher cost of goods sold including freight, depreciation, downtime and energy costs, and accelerated depreciation for machine closures. Adjusted EBITDA was $1,140 million for the quarter versus $1,213 million a year earlier, and $2,216 million for the six months versus $2,465 million.
Net cash provided by operating activities was $969 millionc for the six months, down from $1,064 million, while capital expenditures were $1,089 million. Total debt stood at $14,164 million at June 30, 2026, and the company reported $5,239 million of available liquidity. The Board approved a quarterly dividend of $0.4523 per share payable September 10, 2026.
The filing also discloses pending litigation, including a U.S. antitrust class action in which the company states an adverse outcome could have a material impact, and an ICSID annulment proceeding related to an award in favor of a subsidiary against Venezuela. Management concluded that disclosure controls and procedures were effective.
02—Key points
Key Highlights
- Q2 2026 net sales of $8,031 million, up $91 million from $7,940 million, driven mainly by a $146 million net positive foreign currency impact, partially offset by a $60 million lower selling price mix.
- Q2 2026 net income attributable to common shareholders of $89 million, versus a net loss of $28 million in Q2 2025, helped by lower impairment and restructuring costs ($119 million versus $280 million).
- Six-month net income attributable to common shareholders fell to $154 million from $356 million, with diluted EPS of $0.29 versus $0.68.
- Adjusted EBITDA was $1,140 million for Q2 2026 versus $1,213 million, and $2,216 million for the six months versus $2,465 million.
- Net cash provided by operating activities was $969 million for the six months, down from $1,064 million, while capital expenditures totaled $1,089 million.
- Total debt was $14,164 million at June 30, 2026, with $931 million classified as current, and available liquidity of $5,239 million including $677 million of cash.
- The Board approved a quarterly dividend of $0.4523 per share, payable September 10, 2026 to shareholders of record on August 14, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Smurfit Westrock kept $0.01.
- Revenue$8.03B100.0%
- Cost of revenue−$6.63B82.6%
- Gross profit$1.40B17.4%
- Operating costs−$1.09B13.6%
- Operating income$309.0M3.8%
- Interest, other & tax−$220.0M2.7%
- Net income$89.0M1.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $8.03B$7.94B | +1.1% |
| Cost of Revenue | $6.63B$6.42B | +3.2% |
| Gross Profit | $1.40B$1.51B | −7.7% |
| SG&A Expenses | $970.00M$963.00M | +0.7% |
| Operating Income | $309.00M$251.00M | +23.1% |
| Net Income | $89.00M-$28.00M | +417.9% |
| EPS (Basic) | $0.17$-0.05 | +440.0% |
| EPS (Diluted) | $0.17$-0.05 | +440.0% |
| Shares Outstanding (Basic) | 524.00M522.00M | +0.4% |
| Shares Outstanding (Diluted) | 526.00M522.00M | +0.8% |
05—Questions
Frequently Asked Questions
How did Smurfit Westrock's sales and profitability trend in the second quarter of 2026?
Net sales rose slightly to $8,031 million from $7,940 million, mainly due to favorable foreign currency effects. Net income attributable to common shareholders improved to $89 million from a loss of $28 million, largely because impairment and restructuring costs fell to $119 million from $280 million.
Why did six-month net income decline despite higher net sales?
Six-month net income attributable to common shareholders decreased to $154 million from $356 million. The filing attributes this mainly to higher cost of goods sold, including $138 million of higher freight costs, $78 million higher depreciation, depletion and amortization, $71 million of accelerated depreciation for machine closures, and $65 million impact of adverse weather.
How is the company's liquidity and debt position?
At June 30, 2026, total debt was $14,164 million, and the company held $677 million of cash plus $4,562 million of undrawn committed facilities, for $5,239 million of available liquidity. The revolving credit facility was extended to June 2031 and no amounts were drawn under it at period end.
What legal matters could affect the company's results?
The filing describes a U.S. antitrust class action against subsidiaries alleging price-fixing for containerboard and packaging, which the company says could have a material impact if adversely resolved. It also discusses a Brazil tax dispute of R$810 million ($156 million) in controversy, and an ICSID annulment proceeding regarding a $469 million-plus award against Venezuela.
Is the dividend being maintained?
Yes. The Board approved a quarterly dividend of $0.4523 per share, payable September 10, 2026. Cash dividends paid in the first six months of 2026 totaled $474 million.
06—Continue