Smurfit Westrock plc (NYSE:SW) reported a net loss for the second quarter on Wednesday, falling short of analyst earnings forecasts despite slightly outperforming on revenue. Following the announcement, shares declined 1.89% in premarket U.S. trading.
The global paper-based packaging firm posted a net loss of $26 million for the quarter, translating to a loss of $0.05 per share. This was well below Wall Street’s projected earnings of $0.59 per share. However, revenue reached $7.94 billion, narrowly beating consensus estimates of $7.9 billion. The year-over-year comparison reflects a significant boost from the company’s merger with WestRock (NYSE:WRK), which was finalized in July 2024. In the same period last year, revenue stood at $2.97 billion.
Adjusted EBITDA came in at $1.21 billion for the quarter, representing a margin of 15.3%. This marked a decline from the 16.2% margin posted in the prior-year period. Results were weighed down by $280 million in expenses tied to restructuring efforts and facility closures announced previously.
“I am pleased to report a strong second quarter performance as we continue to deliver in line with our Adjusted EBITDA guidance,” said Tony Smurfit, President and CEO. “This performance is driven by the significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our EMEA and APAC businesses.”
In regional breakdowns, the North American division delivered an Adjusted EBITDA of $752 million with a margin of 15.8%, while Latin America produced $123 million in Adjusted EBITDA with a standout margin of 23.7%.
Looking ahead, Smurfit Westrock expects Adjusted EBITDA of roughly $1.3 billion in the third quarter. It also reaffirmed its full-year outlook, targeting between $5.0 billion and $5.2 billion in Adjusted EBITDA.
The board approved a quarterly dividend of $0.4308 per ordinary share, set to be paid on September 18, 2025, to shareholders on record as of August 15, 2025.
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