Smurfit Westrock sees improvement in North American, European markets

In its first quarter 2025 earnings report, Smurfit Westrock posted what CEO Tony Smurfit says is “a strong first quarter performance,” with the packaging company seeing improvement in North America and Europe.

The company, with European headquarters in Dublin and North American headquarters in Atlanta, reported first quarter net sales of $7.6 billion, up from Smurfit Kappa’s $2.93 billion in net sales a year ago prior to its merger with then-WestRock. It also has reported $382 million in quarterly net income and $1.25 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

“This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year,” Tony Smurfit says.

“I am especially pleased with how well the combination has come together, with strong operational and cultural integration taking place across all three regions.”

The company reports year-on-year improvement in the North American market thanks to “sharper operating and commercial focus,” as well as improving market conditions in Europe.

“Our synergy program is on track to deliver $400 million, with approximately $350 million in the current year,” Smurfit says. “We believe there is substantial opportunity to continue to structurally improve the business through a sharper commercial and operational focus, at least equal to our synergy target.”

Along with its first quarter financial results, Smurfit Westrock also provided more insight into its ongoing system optimization strategy, which has included several notable closures as well as investments in converting equipment.

Mere hours before its earnings call May 1, the company announced plans to permanently close four facilities across the U.S. and Germany, impacting 650 employees and reducing its coated recycled paperboard (CRB) and containerboard capacity by more than 500,000 tons.

The closures include: a CRB mill in St. Paul, Minnesota; a recycled containerboard mill in Forney, Texas; a containerboard mill in Monterrey, Mexico; a containerboard mill in Roermond, Netherlands; and two converting facilities in Germany yet to be named.

Smurfit Westrock also has plans to streamline its packaging footprint and will close a converting facility in Portland, Oregon, as well as one in Chicago.

As part of its optimization strategy, the company also has invested in containerboard, corrugated and consumer systems in its three business regions—North America; Europe, Middle East and Africa and the Asia-Pacific region; and Latin America.

The investments include the expansion of Smurfit Westrock’s Bag-in-Box offering in Spain and the U.S. as well as efficiency, capacity and environmental upgrades to its mill systems in Brazil, Colombia, France, Germany, Italy, the Netherlands and the U.S. Updated converting equipment has been installed to “take out cost and strengthen our innovative offering,” according to Smurfit Westrock.

“Consistent with our disciplined operating approach and before we see the impact in our system of the announced closures, we expect to incur additional economic downtime in the second quarter costing approximately $100 million versus the first quarter,” Smurfit says. “While the demand outlook is uncertain, we expect second quarter adjusted EBITDA to be approximately $1.2 billion and our current estimate for a full year adjusted EBITDA is between $5 billion and $5.2 billion.

“Our progressive improvement together with a strong margin performance is a clear demonstration of the strength of Smurfit Westrock in a period characterized by significant volatility. As the global leader, with leading market positions across many of the 40 countries in which we operate, we continue to see significant opportunity for growth, development and cost take-out. We believe that the actions we have taken, and continue to take, will translate to superior operating and financial performance for Smurfit Westrock.”