Smurfit Westrock Tumbles 1.74% on 363rd Highest Volume Amid Restructuring Costs and Regional Gains

On July 30, 2025, Smurfit Westrock (SW) fell 1.74% despite a 134.38% surge in trading volume to $340 million, the 363rd highest on the day. The firm reported Q2 2025 results, posting $7.94 billion in net sales and $1.213 billion in adjusted EBITDA, though a $26 million net loss emerged due to $280 million in restructuring costs. Fitch upgraded its long-term rating to BBB+ with a stable outlook, signaling improved creditworthiness. CEO Tony Smurfit highlighted strong North American performance, with $752 million in adjusted EBITDA, and robust Latin American operations yielding a 23.7% margin. EMEA and APAC, while resilient, saw a decline in adjusted EBITDA margins to 13.4% amid challenging European conditions. The firm maintained its full-year adjusted EBITDA guidance of $5.0–5.2 billion, citing operational efficiencies and strategic restructuring.

The stock’s mixed performance reflects investor focus on near-term costs versus long-term operational improvements. While restructuring actions weigh on short-term profitability, regional strength in North and Latin America suggests capacity for recovery. The dividend of $0.4308 per share, payable in September, underscores confidence in cash flow stability. Analysts may weigh the balance between restructuring expenses and the firm’s ability to meet its EBITDA targets, particularly as global demand dynamics remain uncertain.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. The strategy's excess return was 137.53%, and it achieved a CAGR of 31.89%. This conclusion is based on the following points: the strategy's return from 2022 to the present was 166.71%, surpassing the benchmark return of 29.18% by a substantial margin. The strategy's excess return, calculated as the difference between the strategy's return and the benchmark return, was 137.53%. The strategy achieved a CAGR of 31.89% from 2022 to the present. The strategy recorded a maximum drawdown of 0.00% and a Sharpe ratio of 1.14.