Smurfit Westrock remains focused on portfolio optimization

Despite a difficult economic environment that has persisted into 2026 and continues challenge packaging companies, Smurfit Westrock CEO Tony Smurfit said the year has begin with a “generally better industry operating environment,” though the Dublin-based company remains focused on streamlining its network among continued uncertainty.

“In light of the current paper market situation, we are looking at our footprint with a continuing focus on portfolio optimization,” Smurfit said Feb. 11 during an earnings call to discuss the company’s fourth-quarter and full-year 2025 financial results.

“In the year gone by, we have significantly reduced the number of loss makers already within the organization. We have also optimized our footprint with some closures, which we will continue to proactively evaluate.”

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In its latest earnings report, Smurfit Westrock posted $7.6 billion in sales for the fourth quarter and $31.2 billion for the full year, up from $7.5 billion and $21.1 billion, respectively, compared with 2024, while its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.2 billion in the fourth quarter and nearly $5 billion for the full year.

The company’s North American results, however, reflect the impact of additional downtime taken to balance its system and manage working capital.

Net sales in North American region were $4.4 billion in the fourth quarter, down from $4.6 billion in the fourth quarter of 2024, while net sales for the full year were $18.6 billion, up from $10.1 billion in 2024. But the additional downtime taken at North American mills in the fourth quarter resulted in a loss of $85 million.

“When we arrived in the legacy WestRock organization, and following our first six months, we identified there was business in our portfolio that was heavily loss-making for the company and for the individual operating units,” Smurfit said.

“We have shed uneconomic business, which will be replaced. To give you and me confidence, half of the 1.2 billion square meters we have lost has already been replaced and is in the process of being implemented in our system. … The short-term effect of the low volume loss is the need for us to take additional downtime in the mill system. … This action has been necessary to make sure we optimize our system, reflecting our recent announcement and other closures during 2025.”

But in Smurfit Westrock’s Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions, margins reflect what Smurfit says is “very, very good business in this region.”

“If you consider how the rest of the whole industry is performing, and you see where we currently sit, I’m sure you’ll recognize that our positioning in this area is indeed very strong,” he said of the EMEA and APAC regions.

“Our first full year of operation, integration and development as Smurfit Westrock has been truly outstanding, notwithstanding that the general economic environment has been as difficult as I have seen in my lifetime for such an extended period of time.”

Smurfit Westrock’s complete fourth-quarter and full-year 2025 financial results can be found here.