Smurfit Westrock Q2 Earnings Call Highlights

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Thu, July 30, 2026 astatine 7:03 AM CDT 6 min read

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Smurfit Westrock (NYSE:SW) reported second-quarter adjusted EBITDA of $1.14 cardinal and an adjusted EBITDA borderline of 14.2%, arsenic higher freight costs weighed connected results and pricing actions had lone begun to travel done to customers.

Chief Executive Officer Tony Smurfit said the institution absorbed "very important input costs" during the quarter, peculiarly freight expenses, portion terms betterment remained successful its aboriginal stages. The institution has raised containerboard prices and expects those increases to beryllium reflected successful its converting operations implicit the remainder of 2026 and into 2027.

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Chief Financial Officer Ken Bowles said the institution present expects full-year adjusted EBITDA of $4.9 cardinal to $5.1 billion. The main alteration to its outlook was a higher freight-cost environment, which absorption attributed to accrued substance costs, shipping rates connected to the Middle East struggle and higher home proscription costs successful Europe and North America.

Bowles said freight is present expected to correspond astir a $300 cardinal year-over-year headwind, compared with an estimation of astir $50 cardinal astatine the extremity of April. Energy costs remained broadly accordant with the company's erstwhile assumptions, helium said, portion little economical downtime of astir $100 cardinal and continuing cost-reduction initiatives are helping offset immoderate inflation.

Pricing Actions Expected to Support 2027

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Management said terms increases volition necessitate clip to beryllium reflected successful net due to the fact that of declaration and index-related lags. Smurfit said the company's recently announced $100-per-ton North American containerboard summation is not included successful its 2026 guidance, describing it alternatively arsenic a instauration for 2027 results.

In Europe, the institution precocious announced an €80-per-ton summation for recycled board, which it expects to instrumentality done September. Smurfit said recycled-paper pricing actions successful Europe are chiefly cost-driven, portion kraftliner pricing reflects some supply-demand conditions and outgo inflation.

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The institution besides discussed pricing successful coagulated bleached sulfate, oregon SBS, wherever absorption said marketplace conditions person improved from a twelvemonth earlier. Smurfit said the company's SBS strategy is sold out, supported by caller applications and customers switching among grades including SBS, coated unbleached kraft and coated recycled board. A 2nd SBS summation announced successful July is not yet reflected successful manufacture publications and is expected to impact extremity customers chiefly opening adjacent year, absorption said.

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