Smurfit Westrock Q3 net income falls on cost inflation

Overview

• Global packaging provider's Q3 revenue rose slightly yr/yr, but net income and adjusted EPS declined

• Company cites cost inflation and weaker converting volumes as factors impacting quarterly results

• Quarterly dividend of $0.4523 per share approved, payable December 10, 2026

Outlook

• Company expects full-year 2026 adjusted EBITDA of approximately $4.7 bln

• Company anticipates absorbing about $700 mln in additional freight and energy costs in 2026

• Company expects full benefits of price increases to be realized into 2027

Result Drivers

• COST INFLATION - Co said unprecedented cost inflation, particularly in freight and energy, weighed on Q3 results

• WEAKER CONVERTING VOLUMES - Co said converting volumes were somewhat weaker than anticipated, affecting performance

• PRICING INITIATIVES - Co implemented significant price increases across most paper grades to offset higher input costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 27 - French glass packaging firm Verallia's Q3 revenue falls on lower volumes

• Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions

• Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)