Latest news with #SmurfitWestrock
Irish Examiner
a day ago
- Business
- Irish Examiner
Smurfit Westrock posts quarterly loss of more than €22m
Despite reporting a loss of $26m (€22.35m) for the second quarter of the year, the chief executive of packaging firm Smurfit Westrock said the company had a 'strong' performance in line with its guidance. The company reported a net loss for the period April to June as a result of costs associated with the previously announced plant closures and other restructuring actions, which cost the company $280m in total. In that time, it generated net sales of just under $8bn, and adjusted earnings before various deductions of $1.21bn. Smurfit Westrock chief executive Tony Smurfit said the company's performance was driven by the 'significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our European, Middle East, Africa, and Asia-Pacific businesses'. Mr Smurfit added they were 'increasingly excited about the performance and prospects of the business and assuming the current conditions prevail". 'We expect third-quarter adjusted earnings before interest, taxes, depreciation and amortisation [EBITDA] to be approximately $1.3bn and our current estimate for a full-year adjusted EBITDA3 remains between $5bn and $5.2bn,' he said. The company also announced a quarterly dividend of $0.43 a per share payable on September 18 to shareholders of record at the close of business on August 15. Smurfit Westrock was created last year following the merger of packaging giant Smurfit Kappa and US packaging firm WestRock in a deal reportedly worth $11.2bn. The deal will create a packaging company that provides everything from corrugated storage boxes to beer carriers and e-commerce shipping materials. Read More Kerry-based Fexco acquires Sainbury's Travel Money service
Irish Times
a day ago
- Business
- Irish Times
Smurfit Westrock still sees up to $5.2bn of 2025 earnings
Cardboard box-maker Smurfit Westrock still expects to post full-year earnings growth of as much as 11 per cent to $5.2 billion (€4.5 billion), after reporting a 'significant improvement' in its North American operations. The improvement essentially relates to legacy operations of the former Westrock company in the US, which Smurfit Kappa merged with last July to create the world's largest paper and packaging group. Earnings before interest, tax, depreciation and amortisation (Ebitda) amounted to $1.21 billion for the second quarter of this year, Smurfit Westrock said in a statement on Wednesday. That was marginally higher than its forecast for a figure of $1.2 billion. 'This performance is driven by the significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our Emea and Apac businesses,' chief executive Tony Smurfit said. READ MORE Emea stands for Europe, the Middle East and Africa, while Apac refers to the Asia-Pacific region. Smurfit Westrock reiterated that it expects full-year Ebitda to amount to between $5 billion and $5.2 billion. 'With our geographic reach, unrivalled product portfolio and most importantly our people, we see extensive opportunities across all our regions,' said Mr Smurfit. 'In North America, we believe the implementation of our operating model will drive continued significant improvement. In our EMEA and APAC region, we have a well invested asset base and strong market positions, primed to take advantage of an improved demand environment. Latin America remains a region of substantial growth opportunities, both organic and inorganic.' Inorganic growth typically refers to acquisitions. Last July, Smurfit Kappa merged with Atlanta-based cardboard box-making rival Westrock, and moved its listing to the US. The move effectively doubled the company size, with more than $30 billion of annual revenues.
Globe and Mail
a day ago
- Business
- Globe and Mail
Smurfit Westrock Reports Second Quarter 2025 Results
Smurfit Westrock plc (NYSE: SW, LSE: SWR) today announced the financial results for the second quarter ended June 30, 2025. Key points: Second quarter Net Sales of $7,940 million Second quarter Net Loss of $26 million, with a Net Income Margin of negative 0.3% Second quarter Adjusted EBITDA 1 of $1,213 million, with an Adjusted EBITDA Margin 1 of 15.3% Quarterly dividend of $0.4308 per ordinary share On July 2, Fitch upgraded our long-term issuer rating to BBB+ with stable outlook Smurfit Westrock plc's performance for the three months ended June 30, 2025 and 2024 (in millions, except margins): June 30, 2025 2024 2 Net Sales $ 7,940 $ 2,969 Net (Loss) Income $ (26) $ 132 Net (Loss) Income Margin (0.3%) 4.4% Adjusted EBITDA 1 $ 1,213 $ 480 Adjusted EBITDA Margin 1 15.3% 16.2% Net Cash Provided by Operating Activities $ 829 $ 340 Adjusted Free Cash Flow 1 $ 387 $ 189 Tony Smurfit, President and CEO, commented: 'I am pleased to report a strong second quarter performance as we continue to deliver in line with our Adjusted EBITDA guidance. This performance is driven by the significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our EMEA and APAC businesses. 'As a result of costs associated with the previously announced closures and other restructuring actions totaling $280 million, the Net Loss was $26 million for the quarter. Our Adjusted EBITDA was $1,213 million, with an Adjusted EBITDA margin of 15.3%. 'While at the early stages of our journey, I am pleased to deliver a significant improvement in our North American operations, with an Adjusted EBITDA of $752 million and an Adjusted EBITDA margin of 15.8% for the quarter, as a result of our sharper operating focus and the benefit of our synergy program. 'In our EMEA and APAC operations, Adjusted EBITDA was $372 million and Adjusted EBITDA margin was 13.4% for the quarter. Against a challenging European backdrop, we believe we continue to outperform the industry due to our customer centric approach and leadership in innovation and sustainability. 'Our Latin American operations, which reported an Adjusted EBITDA of $123 million and a 23.7% Adjusted EBITDA margin for the quarter, continue to benefit from strong market positions and improvement in our performance across the region. 'With our geographic reach, unrivalled product portfolio and most importantly our people, we see extensive opportunities across all our regions. In North America, we believe the implementation of our operating model will drive continued significant improvement. In our EMEA and APAC region, we have a well invested asset base and strong market positions, primed to take advantage of an improved demand environment. Latin America remains a region of substantial growth opportunities, both organic and inorganic. 'I am increasingly excited about the performance and prospects of the business and assuming the current conditions prevail, we expect third quarter Adjusted EBITDA 3 to be approximately $1.3 billion and our current estimate for a full year Adjusted EBITDA 3 remains between $5.0 billion and $5.2 billion." Dividend Smurfit Westrock plc announced today that its Board approved a quarterly dividend of $0.4308 per share on its ordinary shares. The quarterly dividend of $0.4308 per ordinary share is payable September 18, 2025 to shareholders of record at the close of business on August 15, 2025. The default payment currency is U.S. Dollar for shareholders who hold their ordinary shares through a Depository Trust Company participant. It is also U.S. Dollar for shareholders holding their ordinary shares in registered form, unless a currency election has been registered with the Company's Transfer Agent, Computershare Trust Company N.A. by 5:00 p.m. (New York) / 10:00 p.m. (Dublin) on August 14, 2025. The default payment currency for shareholders holding their ordinary shares in the form of Depository Interests is U.S. Dollar. Such shareholders can elect to receive the dividend in Pounds Sterling or Euro by providing their instructions to the Company's Depositary Interest provider, Computershare Investor Services plc, by 12:00 p.m. (New York) / 5:00 p.m. (Dublin) on August 27, 2025. 1 Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow are non-GAAP measures. See the 'Non-GAAP Financial Measures and Reconciliations' below for discussion and reconciliation of these measures to the most comparable GAAP measures. 2 All results reported for the three months ended June 30, 2024 reflect the historical financial results of legacy Smurfit Kappa Group plc, which is considered the accounting acquirer in the combination between Smurfit Kappa Group plc and WestRock Company, which closed on July 5, 2024. 3 Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled Adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net income). Earnings Call Management will host an earnings conference call today at 7:30 AM ET / 12:30 PM BST to discuss Smurfit Westrock's financial results. The conference call will be accessible through a live webcast. Interested investors and other individuals can access the webcast, earnings release, and earnings presentation via the Company's website at The webcast will be available at and a replay of the webcast will be available on the website shortly after the call. Forward Looking Statements This press release includes certain 'forward-looking statements' (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business and financial, of Smurfit Westrock, the expected benefits of the completed combination of Smurfit Kappa Group plc and WestRock Company (the 'Combination'), including, but not limited to, synergies as well as our scale, geographic reach and product portfolio, demand outlook, impact of announced closures, additional economic downtime and any other statements regarding the Company's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events, outlook or performance. Statements that are not historical facts, including statements about the beliefs and expectations of the management of the Company, are forward-looking statements. Words such as 'may', 'will', 'could', 'should', 'would', 'anticipate', 'intend', 'estimate', 'project', 'plan', 'believe', 'expect', 'target', 'prospects', 'potential', 'commit', 'forecasts', 'aims', 'considered', 'likely' and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from the current expectations of the Company depending upon a number of factors affecting its business, including risks associated with the integration and performance of the Company following the Combination. Important factors that could cause actual results to differ materially from plans, estimates or expectations include: changes in demand environment, our ability to deliver on our closure plan and associated efforts; our future cash payments associated with these initiatives; potential future cost savings associated with such initiatives; the amount of charges and the timing of such charges or actions described herein; potential future impairment charges; accuracy of assumptions associated with the charges; economic, competitive and market conditions generally, including macroeconomic uncertainty, customer inventory rebalancing, the impact of inflation and increases in energy, raw materials, shipping, labor and capital equipment costs; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency (including the implementation of tariffs by the US federal government and reciprocal tariffs and other protectionist or retaliatory measures governments in Europe, Asia, and other countries have taken or may take in response); the impact of public health crises, such as pandemics and epidemics and any related company or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets; reduced supply of raw materials, energy and transportation, including from supply chain disruptions and labor shortages; developments related to pricing cycles and volumes; intense competition; the ability of the Company to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made events, including the ability to function remotely during long-term disruptions; the Company's ability to respond to changing customer preferences and to protect intellectual property; the amount and timing of the Company's capital expenditures; risks related to international sales and operations; failures in the Company's quality control measures and systems resulting in faulty or contaminated products; cybersecurity risks, including threats to the confidentiality, integrity and availability of data in the Company's systems; works stoppages and other labor disputes; the Company's ability to establish and maintain effective internal controls over financial reporting in accordance with the Sarbanes Oxley Act of 2002, as amended, and remediate any weaknesses in controls and processes; the Company's ability to retain or hire key personnel; risks related to sustainability matters, including climate change and scarce resources, as well as the Company's ability to comply with changing environmental laws and regulations; the Company's ability to successfully implement strategic transformation initiatives; results and impacts of acquisitions by the Company; the Company's significant levels of indebtedness; the impact of the Combination on the Company's credit ratings; the potential impairment of assets and goodwill; the availability of sufficient cash to distribute dividends to the Company's shareholders in line with current expectations; the scope, costs, timing and impact of any restructuring of operations and corporate and tax structure; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions in Ireland, the United Kingdom, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent Irish, US or UK administrations; legal proceedings instituted against the Company; actions by third parties, including government agencies; the Company's ability to promptly and effectively integrate Smurfit Kappa's and WestRock's businesses; the Company's ability to achieve the synergies and value creation contemplated by the Combination; the Company's ability to meet expectations regarding the accounting and tax treatments of the Combination, including the risk that the Internal Revenue Service may assert that the Company should be treated as a US corporation or be subject to certain unfavorable US federal income tax rules under Section 7874 of the Internal Revenue Code of 1986, as amended, as a result of the Combination; other factors such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as changes in the political, social and regulatory framework in which the Company's group operates or in economic or technological trends or conditions, and other risk factors included in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Neither the Company nor any of its associates or directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any such forward-looking statements will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules, the Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation and other applicable regulations), the Company is under no obligation, and the Company expressly disclaims any intention or obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. About Smurfit Westrock Smurfit Westrock is a leading provider of paper-based packaging solutions in the world, with approximately 100,000 employees across 40 countries. (in $ millions, except per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net sales $ 7,940 $ 2,969 $ 15,596 $ 5,899 Cost of goods sold (6,425 ) (2,276 ) (12,504 ) (4,496 ) Gross profit 1,515 693 3,092 1,403 Selling, general and administrative expenses (963 ) (389 ) (1,936 ) (769 ) Impairment and restructuring costs (280 ) - (295 ) - Transaction and integration-related expenses associated with the Combination (21 ) (60 ) (57 ) (83 ) Operating profit 251 244 804 551 Pension and other postretirement non-service income (expense), net 7 (29 ) 16 (39 ) Interest expense, net (182 ) (33 ) (349 ) (58 ) Other (expense) income, net (18 ) 5 (23 ) - Income before income taxes 58 187 448 454 Income tax expense (84 ) (55 ) (92 ) (131 ) Net (loss) income (26 ) 132 356 323 Net income attributable to noncontrolling interests (2 ) - - - Net (loss) income attributable to common shareholders $ (28 ) $ 132 $ 356 $ 323 Basic (loss) earnings per share attributable to common shareholders $ (0.05 ) $ 0.51 $ 0.68 $ 1.25 Diluted (loss) earnings per share attributable to common shareholders $ (0.05 ) $ 0.51 $ 0.68 $ 1.24 Segment Information We report our financial results of operations in the following three reportable segments: North America, which includes operations in the U.S., Canada and Mexico. Europe, the Middle East and Africa ('MEA') and Asia-Pacific ('APAC'). Latin America ('LATAM'), which includes operations in Central America and Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. Segment profitability is measured based on Adjusted EBITDA, defined as income before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income (expense), net, share-based compensation expense, other (expense) income, net, amortization of fair value step up on inventory, transaction and integration-related expenses associated with the Combination, impairment and restructuring costs and other specific items that management believes are not indicative of the ongoing operating results of the business. The chief operating decision maker ('CODM') uses Adjusted EBITDA for each segment predominantly: to forecast and assess the performance of the segments, individually and comparatively; to set pricing strategies for the segments; and to make decisions about the allocation of operating and capital resources to each segment strategically, in the annual budget and in the quarterly forecasting process. The CODM considers budget, or forecast, -to-actual variances on a quarterly and annual basis for segment Adjusted EBITDA to inform these decisions. 2025 2024 2025 2024 Net sales (aggregate) North America $ 4,755 $ 438 $ 9,424 $ 850 Europe, MEA and APAC 2,778 2,211 5,360 4,405 LATAM 518 340 1,031 681 Total $ 8,051 $ 2,989 $ 15,815 $ 5,936 Less net sales (intersegment) North America $ 103 $ 1 $ 194 $ 1 Europe, MEA and APAC 5 4 11 8 LATAM 3 15 14 28 Total $ 111 $ 20 $ 219 $ 37 Net sales (unaffiliated customers) North America $ 4,652 $ 437 $ 9,230 $ 849 Europe, MEA and APAC 2,773 2,207 5,349 4,397 LATAM 515 325 1,017 653 Total $ 7,940 $ 2,969 $ 15,596 $ 5,899 Segment Adjusted EBITDA North America $ 752 $ 61 $ 1,537 $ 120 Europe, MEA and APAC 372 362 761 747 LATAM 123 87 238 141 Total $ 1,247 $ 510 $ 2,536 $ 1,008 Adjusted EBITDA Margin Adjusted EBITDA/Net sales (aggregate) North America 15.8% 13.9% 16.3% 14.1% Europe, MEA and APAC 13.4% 16.4% 14.2% 17.0% LATAM 23.7% 25.6% 23.1% 20.8% Condensed Consolidated Balance Sheets (Unaudited) (in $ millions, except share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents (amounts related to consolidated variable interest entities of $5 million and $2 million at June 30, 2025 and December 31, 2024, respectively) $ 778 $ 855 Accounts receivable, net (amounts related to consolidated variable interest entities of $893 million and $767 million at June 30, 2025 and December 31, 2024, respectively) 4,844 4,117 Inventories 3,774 3,550 Other current assets 1,583 1,533 Total current assets 10,979 10,055 Property, plant and equipment, net 23,097 22,675 Goodwill 7,207 6,822 Intangibles, net 1,107 1,117 Prepaid pension asset 677 635 Other non-current assets (amounts related to consolidated variable interest entities of $389 million and $389 million at June 30, 2025 and December 31, 2024, respectively) 2,679 2,455 Total assets $ 45,746 $ 43,759 Liabilities and Equity Current liabilities: Accounts payable $ 3,380 $ 3,290 Accrued compensation and benefits 872 882 Current portion of debt 1,034 1,053 Other current liabilities 2,305 2,108 Total current liabilities 7,591 7,333 Non-current debt due after one year (amounts related to consolidated variable interest entities of $296 million and $8 million at June 30, 2025 and December 31, 2024, respectively) 13,329 12,542 Deferred tax liabilities 3,482 3,600 Pension liabilities and other postretirement benefits, net of current portion 746 706 Other non-current liabilities (amounts related to consolidated variable interest entities of $334 million and $335 million at June 30, 2025 and December 31, 2024, respectively) 2,274 2,191 Total liabilities 27,422 26,372 Equity: Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 shares outstanding - - Common stock; $0.001 par value; 9,500,000,000 shares authorized; 522,058,394 and 520,444,261 shares outstanding at June 30, 2025 and December 31, 2024, respectively 1 1 Deferred shares; €1 par value; 25,000 shares authorized; Nil and 25,000 shares outstanding at June 30, 2025 and December 31, 2024, respectively - - Treasury stock; at cost; 1,459,832 and 2,037,589 common stock at June 30, 2025 and December 31, 2024, respectively (65) (93) Capital in excess of par value 16,018 15,948 Accumulated other comprehensive loss (428) (1,446) Retained earnings 2,771 2,950 Total shareholders' equity 18,297 17,360 Noncontrolling interests 27 27 Total equity 18,324 17,387 Total liabilities and equity $ 45,746 $ 43,759 Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Operating activities: Net (loss) income $ (26) $ 132 $ 356 $ 323 Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities: Depreciation, depletion and amortization 613 160 1,216 308 Impairment charges 184 - 184 - Cash surrender value increase in excess of premiums paid (15) - (20) - Share-based compensation expense 36 16 79 31 Deferred income tax benefit (98) (8) (127) (10) Pension and other postretirement funding more than cost (36) 4 (59) (4) Other 5 (2) 6 (1) Change in operating assets and liabilities, net of acquisitions and divestitures: Accounts receivable (92) (40) (434) (236) Inventories 7 (28) (55) (20) Other assets - (54) (47) (105) Accounts payable 82 90 (35) (12) Income taxes 79 3 9 63 Accrued liabilities and other 90 67 (9) 45 Net cash provided by operating activities 829 340 1,064 382 Investing activities: Capital expenditures (522) (177) (999) (385) Cash paid for purchase of businesses, net of cash acquired (1) (28) (5) (28) Proceeds from sale of property, plant and equipment - 3 - 3 Other 3 (1) 8 - Net cash used for investing activities (520) (203) (996) (410) Financing activities: Additions to debt 203 2,757 498 2,812 Repayments of debt (56) (6) (121) (33) Debt issuance costs (1) (29) (6) (29) Changes in commercial paper, net (264) - (18) - Other debt repayments, net (2) (4) (18) (4) Repayments of finance lease liabilities (7) - (23) (1) Tax paid in connection with shares withheld from employees (3) - (67) - Purchases of treasury stock - - - (27) Cash dividends paid to shareholders (225) (335) (450) (335) Other - (1) 1 (1) Net cash (used for) provided by financing activities (355) 2,382 (204) 2,382 Effect of exchange rate changes on cash and cash equivalents 27 (5) 59 (29) (Decrease) increase in cash and cash equivalents (19) 2,514 (77) 2,325 Cash and cash equivalents at beginning of period 797 811 855 1,000 Cash and cash equivalents at end of period $ 778 $ 3,325 $ 778 $ 3,325 Non-GAAP Financial Measures and Reconciliations Smurfit Westrock plc ('Smurfit Westrock') reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide Smurfit Westrock's Board of directors, investors, potential investors, securities analysts and others with additional meaningful financial information that should be considered when assessing its ongoing performance. Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative for, the GAAP results. The non‑GAAP financial measures we present may differ from similarly captioned measures presented by other companies. Smurfit Westrock uses the non-GAAP financial measures 'Adjusted EBITDA,' 'Adjusted EBITDA Margin,' and 'Adjusted Free Cash Flow.' We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non‑GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Definitions Smurfit Westrock uses the non-GAAP financial measures 'Adjusted EBITDA' and 'Adjusted EBITDA Margin' to evaluate its overall performance. The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net (loss) income before income tax expense, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income (expense), net, share‑based compensation expense, other (expense) income, net, amortization of fair value step up on inventory, transaction and integration-related expenses associated with the Combination, impairment and restructuring costs and other specific items that management believes are not indicative of the ongoing operating results of the business. Management believes Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock's management, Board of directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock's performance relative to other periods because it adjusts out non‑recurring items that management believes are not indicative of the ongoing results of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales. Smurfit Westrock uses the non-GAAP financial measure 'Adjusted Free Cash Flow'. Smurfit Westrock defines Adjusted Free Cash Flow as net cash provided by operating activities as adjusted for capital expenditures and to exclude certain costs not reflective of underlying ongoing operations. Management utilizes this measure in connection with managing Smurfit Westrock's business and believes that Adjusted Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are not indicative of Smurfit Westrock's underlying operational performance, Smurfit Westrock believes that Adjusted Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods. Reconciliations to Most Comparable GAAP Measure Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net (Loss) Income and Net (Loss) Income Margin, the most directly comparable GAAP measures, for the periods indicated (in millions, except margins). (1) Impairment and restructuring costs for the three months ended June 30, 2025, include impairment charges of $176 million, severance and other restructuring costs of $54 million associated with previously announced closures and costs associated with other individually immaterial restructuring plans totaling $50 million (three months ended June 30, 2024: $- million). Impairment and restructuring costs for the six months ended June 30, 2025, include impairment charges of $176 million, severance and other restructuring costs of $54 million associated with previously announced closures and costs associated with other individually immaterial restructuring plans totaling $65 million (six months ended June 30, 2024: $- million). (2) Other adjustments for the three months ended June 30, 2025, include losses at closed facilities of $12 million (three months ended June 30, 2024: $- million). Other adjustments for the six months ended June 30, 2025, include losses at closed facilities of $14 million (six months ended June 30, 2024: $- million). Other adjustments for the six months ended June 30, 2024, include a reimbursement of a fine from the Italian Competition Authority of $18 million. Set forth below is a reconciliation of the non-GAAP financial measure Adjusted Free Cash Flow to Net cash provided by operating activities, the most directly comparable GAAP measure, for the periods indicated (in millions). Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 829 $ 340 $ 1,064 $ 382 Capital expenditures (522) (177) (999) (385) Free Cash Flow $ 307 $ 163 $ 65 $ (3) Adjustments: Transaction and integration costs 21 23 97 57 Restructuring costs 68 4 112 7 Tax on above items (9) (1) (31) (2) Adjusted Free Cash Flow $ 387 $ 189 $ 243 $ 59
Yahoo
3 days ago
- Business
- Yahoo
Earnings Preview: What to Expect From Smurfit Westrock's Report
Dublin, Ireland-based Smurfit Westrock Plc (SW) manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products. Valued at a market cap of $25.5 billion, the company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Wednesday, July 30. Ahead of this event, analysts expect this packaging company to report a profit of $0.57 per share, down 17.4% from $0.69 per share in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters, while topping on another occasion. In Q1, SW's EPS of $0.73 outpaced the forecasted figure by 12.3%. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts expect SW to report a profit of $2.88 per share, up 38.5% from $2.08 per share in fiscal 2024. Furthermore, its EPS is expected to grow 22.6% year-over-year to $3.53 in fiscal 2026. SW stock has gained 2.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 18.3% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 24.5% return over the same time frame. On May 1, SW plummeted 3.7% after its Q1 earnings release. The company posted revenue of $7.7 billion, marking a significant 161.3% year-over-year (YoY) increase. Its adjusted EBITDA also rose sharply by 163.6% annually to $1.3 billion, with the adjusted EBITDA margin improving by 20 basis points to 16.4%. Good results across all three segments, with notable progress in North America, supported its results. Additionally, its EPS remained flat at $0.73 over the past year, but topped the analyst expectations of $0.73. Wall Street analysts are highly optimistic about SW's stock, with an overall "Strong Buy" rating. Among 14 analysts covering the stock, 10 recommend "Strong Buy," two indicate "Moderate Buy," and two advise 'Hold.' The mean price target for SW is $56.07, indicating a 14.8% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
7 days ago
- Business
- Irish Times
What do Ireland's best paid chief executives earn?
In terms of pay, 2024 was a bumper year for the 21 long-standing bosses of the largest Irish publicly quoted companies, driven by big bonuses paid by companies that exited the Dublin stock market and moved their primary listings to New York . Figures compiled by The Irish Times show that their average pay package rose by 31 per cent to €4.36 million last year. Peter Jackson , chief executive of New York-listed gambling giant Flutter Entertainment , led the way with a package worth the equivalent of €18.9 million. He is followed by Tony Smurfit , the head of packaging giant Smurfit Westrock , with remuneration of €12.7 million, and Albert Manifold , the former chief executive of building materials group CRH , with earnings of €11.6 million. Both of those companies are now listed in New York and have quit the Dublin stock market. All of the 21 top earners in our analysis for 2024 were men. Former Glanbia chief Siobhán Talbot and ex Ires Reit chief executive Margaret Sweeney fell out of this year's table, having stepped down from their respective posts. READ MORE The median chief executive compensation package, which gives a better picture of the pay landscape as it eliminates the distorting effects of outliers on the pay scales, rose by 16 per cent to €2.53 million. That's 56 times the median salary in Ireland, of about €45,000. Variable pay was fuelled across the board by rising share prices – in a year in which the Iseq All-Share Index rose 11.3 per cent and the FTSE All-World index soared 12.3 per cent – and corporate earnings. The figures include chief executives of Irish companies listed on the Iseq 20 index in Dublin with a market value of more than €100 million, the FTSE 350 in London, and groups that have moved their main listings to Wall Street in recent years – and saw their remuneration plans beefed up by their boards to fit in with the locals. Each chief executive had been in their role for at least two years at the end of their company's latest annual financial period. The pay outlook for top Irish executives for this year remains relatively positive – for now at least. The Iseq All-Share index has gained almost 19 per cent so far this year, having soared by more than a third since April 2nd when global markets baulked at US president Donald Trump's 'Liberation Day' tariffs announcement. The FTSE All-World is up almost 12.5 per cent. However, analysts have been busy taking red pens to their earnings growth estimates for companies globally in recent months as Trump's erratic trade policies and warnings on tariffs weigh on consumer and business confidence. The consensus for earnings per share (EPS) growth across companies listed on the pan-European Stoxx 600 index is currently about 2 per cent for 2025, according to London Stock Exchange Group (LSEG) data. That's down from 8 per cent pencilled in at the start of the year. US earnings growth projections have fallen back to about 9 per cent from 15 per cent. The result of EU trade talks with the US in the coming days, amid efforts to avert Trump's threatened 30 per cent charge on most European imports kicking in from August 1st and likely retaliatory action from Brussels , will play big role in the bonus packages of leaders of listed companies. [ ECB holds rates as Trump tariff talks go to the wire Opens in new window ] Peter Jackson , chief executive of Paddy Power's parent, Flutter Entertainment, was the best paid Irish boss last year on the most widely recognised remuneration measure that includes basic pay, cash bonuses, stock awards under long-term incentive plans (LTIPs), pension contributions and other benefits. Flutter's remuneration committee lowered Jackson's basic salary by 13.5 per cent to $1.39 million (€1.18 million). However, this was in order to significantly increase the chief executive's potential performance-related remuneration to, as Flutter said in its annual report, align with US market practices – after it moved its main listing in May 2024, ditching its Irish quotation in the process. The 49-year-old – who has seen Flutter's market value increase more than fourfold to over $53 billion under his leadership since early 2018, driven by the acquisition of sports betting company FanDuel in the US – saw his total remuneration soar 185 per cent last year to $22.2 million, or €18.9 million. It was turbocharged by $17 million of stock awards. Amy Howe, chief executive of FanDuel, received $11.5 million. The group's earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 26 per cent last year to $2.36 billion. Flutter's transfer of its main stock quotation to the US, home to the most liquid stock markets in the world, has left it contending with even more revealing pay disclosure rules brought in by the Securities and Exchange Commission in late 2022. They require listed companies to outline a new pay calculation, known as compensation actually paid (CAP), which includes the effect of recent changes in the value of current and potential stock holdings. Under that measure, Jackson's package came to an eye-watering $37.9 million. [ Smurfit Westrock merger: CEO Tony Smurfit's pay package recorded as €19.5m Opens in new window ] Smurfit Westrock's chief executive, Tony Smurfit , also benefited from a new and improved LTIP as he pushed through a deal to create the world's largest cardboard box-maker by merging Smurfit Kappa and US rival Westrock – and holding on to Westrock's New York listing. The group, which traces its roots back to Tony's grandfather, Jefferson Smurfit, buying a small box-making business in Rathmines in the 1930s, has a market capitalisation of almost $25 billion. Smurfit's pay jumped 134 per cent last year to $14.9 million (€12.7 million), fuelled by stock awards. The figure came to $21.3 million when the accounting treatment of existing stock options was tweaked after the July 2024 merger. Under the CAP metric, the Smurfit boss of a decade had a total remuneration package of $27.9 million last year. Albert Manifold , the usual top earner among Irish chief executives in recent times, dropped to third place in his final year in charge of CRH, the building materials and services giant that also delisted from Dublin in 2023 and chose the Big Apple for its main stock quotation. His remuneration dipped 1.3 per cent to $13.6 million . On a CAP basis, it amounted to $39.6 million – driven by the company's strong stock performance during the year. Manifold was named this week as incoming chairman of UK oil giant BP . His successor at CRH, Jim Mintern, could receive total remuneration of up to $14.8 million this year if the company hits various performance and share price targets set down by the board. Kerry Group, which agreed to sell its dairy processing business in two phases late last year, might have only delivered 3.4 per cent sales volume growth in its key taste and nutrition business in 2024. However, its chief executive, Edmond Scanlon , enjoyed a 32 per cent hike in his remuneration, to €6.04 million, helped by earnings per share rising almost 10 per cent and the company's stock price rallying 19 per cent. In fifth spot was Steve Cutler , the chief executive of Nasdaq-listed clinical trials company Icon. His remuneration declined by 34 per cent to the equivalent of €4.83 million in a year in which the group's stock lost more than a quarter of its value as the wider sector was hit by drugmakers dramatically cutting their research and development (R&D) budgets amid high interest rates. Eamonn Rothwell , head of Irish Ferries owner Irish Continental Group (ICG) and a 19 per cent shareholder in the business, saw his total remuneration jump 42 per cent to €4.47 million. Institutional Shareholder Services (ISS), which advises large investors on annual general meeting (AGM) votes, urged investors to reject the ICG's remuneration plan at the group's latest meeting in May. The recommendation was in line with its stance on a number of previous occasions and centres on the same argument: a lack of clarity from ICG over the targets on which the chief executive's bonus is based. Almost 15 per cent of shareholders voted against the remuneration policy at the meeting. The biggest decliner on the pay front was Kingspan chief executive Gene Murtagh , whose total package slid by 42 per cent to €2.53 million, mainly as a result of a drop in total shareholder returns as the insulation group's shares fell. ISS had something to say about Cavan-based Kingspan's new pay policy, which will mean future executive salaries increase by 9 per cent and maximum bonuses rise to 200 per cent of base pay from 150 per cent. The policy also raises maximum annual long-term incentive plan awards to the chief executive to 450 per cent of salary from 300 per cent. [ Markets climb on back of Japan-US trade deal signing Opens in new window ] Still, ISS said qualified support was warranted at Kingspan's AGM in May, given the company's growth since executive incentives were last subject to material changes six years ago. Revenue, earnings per share, employee numbers and scale have grown significantly since then. Some 97.5 per cent of shareholders supported the plan. Bank of Ireland chief executive Myles O'Grady secured a 28 per cent pay increase last year, to €1.37 million. This was driven by €238,000 of stock – the equivalent of 25 per cent of basic salary – being awarded to the banker by the board. This was the result of the last Government lifting pay restrictions at Bank of Ireland after the State sold its remaining shares in the group in late 2022. The fixed share allowance is not tied to any performance conditions and, therefore, gets around an ongoing Government ban on bonuses above €20,000. The allowance is set to rise to 50 per cent of O'Grady's €950,000 base salary this year, before doubling, again, to 100 per cent in 2026. AIB and PTSB are widely expected to introduce fixed-share allowance schemes for top executives in time, after Minister for Finance Paschal Donohoe removed restrictions on fixed pay in both banks last month. Ryanair boss Michael O'Leary qualified in May for share options worth more than a net €100 million to the businessman after shares in the carrier closed at over €21 for 28 consecutive days. However, the 64-year-old will have to stay at Ryanair until the end of July 2028 to collect what is on track to be one of the largest such payouts in European corporate history. [ Ryanair profits more than double to €820m as it threatens challenge to Dublin Airport night-flight limit Opens in new window ] O'Leary's reported annual remuneration in recent years has included accounting charges relating to the potential cost of the massive options plan. His package fell 18 per cent last year to €3.83 million as the company took a smaller charge. O'Leary has also taken some of his existing chips off the table in recent months, raising €45.5 million by selling shares in Ryanair in two transactions – one in early June and one this week. The stock sold accounted for just 4.3 per cent of the chief executive's stake in the Irish airline as of the end of March. The chief executive remuneration packages of Irish companies that have shifted their main listings to Wall Street may have become more like what you'd expect for US companies. The median total compensation of S&P 500 chief executives last year was $17.1 million, according to a study from the Harvard Law School Forum on Corporate Governance. However, the cream of the crop are in another league altogether when compared with their Irish counterparts. The top-earning chief executive globally last year was Jim Anderson , head of Pennsylvania-based Coherent Corp, the maker of high-precision lasers and light-based tools used in science, medicine and industry, according to executive intelligence company Equilar. His total package came to $101.5 million, almost entirely made up of stock awards. His basic salary was just $81,538. The new chief executive of out-of-sorts coffee chain Starbucks, Brian Niccol , hired in September in the hope he can replicate the turnarounds he led at Taco Bell and Chipotle, was given a stock-laden compensation package totalling $95.8 million, putting him in second position. Larry Culp , who became chief executive of General Electric (GE) in 2018 and went to split the former unwieldy conglomerate into three companies, secured an $87.4 million package in 2024 as chief executive of GE Aerospace, one of the three and legal successor to the original GE. The pot included a $50 million stock bonus that will be paid out if he hits certain financial targets through the end of 2027. Culp's CAP? A mere $285 million.
