second quarter 2026
Filed Jul 29, 2026Second-quarter Net Sales were $8,031 million, Adjusted EBITDA was $1,140 million, and third-quarter Adjusted EBITDA is expected to be approximately $1.3 billion.
Net Sales and GAAP net income were higher than the prior-year period, while Adjusted EBITDA, Adjusted EBITDA Margin, operating cash flow, and Adjusted Basic EPS were lower amid significantly higher input costs, particularly freight.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net SalesGAAP | $8,031 million | – | – |
| Net Income (Loss)GAAP | $88 million | – | – |
| Net Income (Loss) MarginGAAP | 1.1% | – | – |
| Adjusted EBITDAnon-GAAP | $1,140 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 14.2% | – | – |
| Net Cash Provided by Operating ActivitiesGAAP | $765 million | – | – |
| Basic EPSGAAP | $0.17 | – | – |
| Adjusted Basic EPSnon-GAAP | $0.35 | – | – |
third quarter 2026 and full year 2026 outlook
- NoteThird quarter Adjusted EBITDA: approximately $1.3 billion
- NoteFull year Adjusted EBITDA: $4.9 billion to $5.1 billion
Capital returns
- Quarterly dividend of $0.4523 per ordinary share
- The quarterly dividend of $0.4523 per ordinary share is payable on September 10, 2026 to shareholders of record at the close of business on August 14, 2026.
What drove it
- Demand for paper remained strong throughout the quarter with a generally excellent supply/demand backdrop.
- North American pricing initiatives were implemented to recover increased input costs across practically all paper grades.
- The North American mill system was generally running full with strong order books and an improving outlook for converting operations.
- EMEA and APAC actions on productivity, service, and innovation were gaining significant new business.
- Latin America delivered another excellent performance, supported by strong market positions and investment programs.
Concerns
- The quarter was impacted by significantly higher input costs, particularly freight.
- Input costs remained elevated, especially freight.
- Certain EMEA and APAC input costs continued to rise and were being recovered with the customary lag.
- Adjusted EBITDA Margin was 14.2%, compared with 15.3% in the prior-year period.
- Net Cash Provided by Operating Activities was $765 million, compared with $829 million in the prior-year period.
- The company closed a mill in the UK and is in the process of closing a further 8 converting facilities in Europe and North America.
What to watch
- Recovery of input-cost inflation through the second half of the year and beyond.
- Execution of North American pricing initiatives and improvement in converting operations.
- Delivery of the closure plan, including the further 8 converting facilities in Europe and North America.
- Third-quarter Adjusted EBITDA expected to be approximately $1.3 billion.
- Full-year Adjusted EBITDA expected to be in the range of $4.9 billion to $5.1 billion.
Balance sheet and cash flow
- Net Cash Provided by Operating Activities of $765 million
Analysis
Smurfit Westrock reported second-quarter Net Sales of $8,031 million, compared with $7,940 million in the prior-year period. GAAP Net Income was $88 million, compared with a Net Income (Loss) of $(26) million, and Basic EPS was $0.17, compared with $(0.05). The reported GAAP net income margin was 1.1%, compared with (0.3)% in the prior-year period.
Underlying profitability was pressured relative to the prior-year comparison. Adjusted EBITDA was $1,140 million versus $1,213 million, while Adjusted EBITDA Margin was 14.2% versus 15.3%. Management identified significantly higher input costs, particularly freight, as the principal pressure, while stating that mitigation actions were taken and that input-cost inflation is expected to be recovered through the second half of the year and beyond.
Demand commentary was constructive. Management said paper demand remained strong with a generally excellent supply-demand backdrop. North American pricing initiatives have been implemented across practically all paper grades, the mill system was generally running full with strong order books, and the outlook for converting operations was improving. EMEA and APAC was described as outperforming, while Latin America delivered another excellent performance supported by market positions and investment programs.
Cash generation was $765 million of Net Cash Provided by Operating Activities, compared with $829 million in the prior-year period. Capital returns included a quarterly dividend of $0.4523 per ordinary share, payable September 10, 2026 to shareholders of record on August 14, 2026. Management also cited a mill closure in the UK and plans to close a further 8 converting facilities in Europe and North America as part of system optimization.
The outlook calls for third-quarter Adjusted EBITDA of approximately $1.3 billion and full-year Adjusted EBITDA of $4.9 billion to $5.1 billion. The guide is framed around good momentum through the latter half of 2026, but its execution depends on price recovery amid elevated input costs, especially freight, as well as realization of operational progress and closure-plan actions.
Management, verbatim
I am pleased to report a strong second quarter performance with Adjusted EBITDA¹ of $1,140 million and an Adjusted EBITDA Margin¹ of 14.2%.
Tony Smurfit, President and CEO
The quarter was impacted by significantly higher input costs, particularly freight, which we managed to mitigate through our actions.
Tony Smurfit, President and CEO
As always, we fully expect to recover input cost inflation through the second half of the year and beyond.
Tony Smurfit, President and CEO
Not in the filing
stated, not guessed- Segment revenue, segment profitability, and segment revenue comparisons
- Gross profit and gross margin
- Operating income and operating margin
- Diluted EPS
- Free cash flow
- Cash balance
- Debt balance
- Capital expenditures
- Share repurchases
- Tax rate
- Prior-quarter comparisons
- GAAP net income outlook and reconciliation of Adjusted EBITDA outlook to GAAP net income
- Prior outlook for comparison with actual reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.