Smurfit WestRock 2025 Q2 Earnings Misses Targets as Net Income Declines 119.7%

Smurfit WestRock (SW) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company’s earnings fell short of expectations, with a significant decline in net income. Despite this setback, guidance for the third quarter remains in line with previous expectations, with anticipated adjusted EBITDA of $1.3 billion. The company maintains its full-year adjusted EBITDA guidance between $5 billion and $5.2 billion, showcasing confidence in its strategic direction.

Revenue

The total revenue of Smurfit WestRock increased by 167.4% to $7.94 billion in 2025 Q2, up from $2.97 billion in 2024 Q2.

Earnings/Net Income

Smurfit WestRock swung to a loss of $0.05 per share in 2025 Q2 from a profit of $0.51 per share in 2024 Q2, representing a 109.8% negative change. Meanwhile, the company reported a net loss of $26 million in 2025 Q2, reflecting a 119.7% deterioration from the net income of $132 million achieved in 2024 Q2. The EPS decline indicates a challenging earnings period for the company.

Price Action

The stock price of Smurfit WestRock has climbed 3.81% during the latest trading day, edged down 0.94% during the most recent full trading week, and jumped 9.99% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Smurfit WestRock shares 30 days post-earnings release, despite a raised revenue forecast over the past three years, has not yielded favorable results. This approach resulted in a compound annual growth rate (CAGR) of -8.04%, with a total return of -7.91%, only slightly outperforming the benchmark by a margin of -19.50%. Despite no capital loss during this period, indicated by a maximum drawdown of 0.00%, the strategy carried significant risk, as shown by a Sharpe ratio of -0.75 and a volatility of 10.72%. These metrics suggest that while the strategy was able to avoid losses, it did not generate meaningful returns relative to the risk involved.

CEO Commentary

Anthony P. J. Smurfit, CEO of Smurfit WestRock, reported a strong second-quarter performance, achieving adjusted EBITDA of $1.213 million with a 15.3% margin. He noted significant improvement in North America due to operational focus and synergy benefits, while European performance remains resilient amid market challenges. Smurfit emphasized ongoing optimization efforts, including the recent closure of 600,000 tons of capacity to enhance margins. He expressed confidence in the company's foundation and culture, highlighting a commitment to innovation and sustainability as key growth drivers. The outlook remains optimistic, with plans to continue capitalizing on operational efficiencies and market opportunities.

Guidance

Smurfit WestRock expects third-quarter adjusted EBITDA of approximately $1.3 billion and maintains full-year adjusted EBITDA guidance between $5 billion and $5.2 billion. Synergy programs are on track to deliver $400 million in full-year run-rate synergies. The company plans capital expenditures ranging from $2.2 billion to $2.4 billion, focusing on high-return projects while continuing to assess market conditions for future investments.

Additional News

In recent weeks, Smurfit WestRock has made headlines with several notable announcements. On July 15, 2025, the company was awarded the prestigious Legrand innovation award, highlighting its commitment to pioneering advancements in the packaging industry. Additionally, the company announced capacity reductions and facility closures on April 30, reflecting its strategic focus on optimizing operations and enhancing profitability. Furthermore, Smurfit WestRock published its first Sustainability Report on May 7, underscoring its dedication to environmental responsibility and sustainable business practices. These initiatives demonstrate the company’s proactive approach in addressing industry challenges and positioning itself for future growth.