Smurfit Westrock Q2 Earnings Fall Short of Estimates, Sales Surge Y/Y

Smurfit Westrock Plc SW reported earnings of 45 cents per share in second-quarter 2025, missing the Zacks Consensus Estimate of 57 cents by a 21% margin. The company posted earnings of 69 cents in the year-ago quarter.Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. Results for Smurfit Westrock are being reported from the third quarter of 2024 as a unified company. In the second-quarter 2025 earnings release, the figures for the second quarter of 2024 represent the historical financial results of Smurfit Kappa Group plc, which is being treated as the accounting acquirer in the combination.Smurfit Westrock’s net sales in the second quarter of 2025 were $7.94 billion, which beat the Zacks Consensus Estimate of $7.92 billion. The year-ago quarter’s sales were $2.97 billion.Smurfit Westrock PLC Price, Consensus and EPS Surprise  Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC QuoteSW Reports Q2 Adjusted EBITDA of $1.21BThe reported cost of sales was $6.43 billion in the second quarter of 2025. In the year-ago quarter, the cost of sales was $2.28 billion. The gross profit surged 118.6% year over year to $1.52 billion. The gross margin was 19.1% compared with 23.3% in the year-ago quarter.The adjusted EBITDA was $1.21 billion compared with $0.48 billion in the year-ago quarter. The adjusted EBITDA margin was 15.3% compared with 16.2% in the year-ago quarter.SW’s Segment Performances in Q2The company operates under three reportable segments.Europe, MEA & APAC: This segment includes operations in Europe, the Middle East and Africa, and the Asia Pacific. Sales for the Europe, MEA and APAC segment were $2.78 billion, up 25.6% year over year. The segment’s adjusted EBITDA was up 2.8% year over year to $372 million.North America: This segment includes operations in the United States, Canada and Mexico. Sales for the North America segment were $4.76 billion, a significant increase from the year-ago period’s $0.44 billion. The segment’s adjusted EBITDA surged to $752 million from the year-ago quarter’s $61 million.LATAM: This segment includes operations in Central America and the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. Sales for this segment were $518 million, up 52.4% year over year. The segment’s adjusted EBITDA soared 41.4% year over year to $123 million.Smurfit Westrock’s Cash Position & Balance Sheet UpdatesSW had cash and cash equivalents of $778 million at the end of the second quarter of 2025 compared with $855 million as of the end of 2024.Net cash provided by operating activities was $829 million compared with $340 million in the year-ago quarter. The company announced a quarterly dividend of 43.08 cents per share. It will be paid out on Sept. 18, 2025, to shareholders of record at the close of business on August 15, 2025.SW’s Q3 & FY25 OutlookSmurfit Westrock expects the third-quarter 2025 adjusted EBITDA to be $1.3 billion. For 2025, adjusted EBITDA is projected between $5 billion and $5.2 billion. The company had reported 2024 adjusted EBITDA of $4.7 billion.Smurfit Westrock Stock’s Price PerformanceShares of the company have gained 6.3% in the past year compared with the industry’s 29.4% growth. Image Source: Zacks Investment Research SW Stock’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Paper & Related Product Stocks Awaiting ResultsInternational Paper Company IP is scheduled to report second-quarter 2025 results on July 31. The Zacks Consensus Estimate for IP’s second-quarter revenues is pegged at $6.8 billion, indicating 43% growth from the year-ago reported figure. The Zacks Consensus Estimate for International Paper’s earnings has moved down 2.6% in the past 60 days to 38 cents per share. The estimate indicates a 30% year-over-year decrease.Rayonier Advanced Materials RYAM is set to release second-quarter 2025 results on August 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 20 cents per share. The company posted earnings of 19 cents per share in the year-ago quarter.The consensus estimate for the RYAM’s top line is pegged at $404 million, indicating a 3.5% decline from the prior-year reported figure.Performance of a Packaging StockPackaging Corporation of America PKG reported adjusted earnings per share (EPS) of $2.48 in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.44. The reported figure was higher than PKG’s guidance of $2.41 in the quarter under review. Moreover, the bottom line increased 13% year over year. The upside was driven by higher prices and mix in both segments.PKG’s sales in the second quarter grew 4.6% year over year to $2.17 billion. The top line beat the Zacks Consensus Estimate of $2.16 billion.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Paper Company (IP): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Rayonier Advanced Materials Inc. (RYAM): Free Stock Analysis Report Smurfit Westrock PLC (SW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks