Smurfit Westrock Q4 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SW?
Source: seekingalpha
- Earnings Miss: Smurfit Westrock reported a Q4 non-GAAP EPS of $0.34, missing expectations by $0.15, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $7.58 billion, reflecting a 0.5% year-over-year increase and beating market expectations by $40 million, suggesting it maintains a certain market share in a competitive packaging industry.
- Positive Pricing Signals: Price increases by Cascades are viewed as a positive sign for the packaging industry, potentially providing Smurfit Westrock with improved pricing power, which could enhance profitability in the future.
- Increased Market Attention: With rising market focus on containerboard price increases, Smurfit Westrock's stock is under close scrutiny by analysts, which may influence its future market performance and investor sentiment.
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Analyst Views on SW
Wall Street analysts forecast SW stock price to fall
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 51.420
Low
45.00
Averages
50.49
High
60.00
Current: 51.420
Low
45.00
Averages
50.49
High
60.00
About SW
Smurfit Westrock plc is a multinational provider of sustainable fiber-based paper and packaging solutions. Its segments include Europe, the Middle East and Africa (MEA) and Asia-Pacific (APAC); North America, and LATAM, which has a system of mills and plants that primarily produce a full line of containerboard that is converted into corrugated containers within each segment or is sold to third parties. Its North America segment offers linerboard, white-top linerboard and containerboard, and kraft paper and caters primarily to corrugated packaging markets. Its Europe, MEA and APAC segment primarily offer a full line of containerboard that is converted into corrugated containers. It is also engaged in packaging and paper market segments, such as sack kraft paper, machine glazed paper, graphic board, solid board, solid board packaging and boxboard. The LATAM segment is engaged in producing containerboard, consumer packaging board and sack kraft paper.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
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Smurfit Westrock Q4 Earnings Report Analysis
- Earnings Miss: Smurfit Westrock reported a Q4 non-GAAP EPS of $0.34, missing expectations by $0.15, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $7.58 billion, reflecting a 0.5% year-over-year increase and beating market expectations by $40 million, suggesting it maintains a certain market share in a competitive packaging industry.
- Positive Pricing Signals: Price increases by Cascades are viewed as a positive sign for the packaging industry, potentially providing Smurfit Westrock with improved pricing power, which could enhance profitability in the future.
- Increased Market Attention: With rising market focus on containerboard price increases, Smurfit Westrock's stock is under close scrutiny by analysts, which may influence its future market performance and investor sentiment.
See More
Smurfit Westrock Unveils Medium-Term Plan Update
- Financial Target Setting: At the investor update, Smurfit Westrock announced an expected adjusted EBITDA of approximately $7 billion by 2030, with a CAGR of about 7%, which will significantly enhance the company's profitability and market competitiveness.
- Free Cash Flow Outlook: The company anticipates cumulative discretionary free cash flow of around $14 billion from 2026 to 2030, with a CAGR of 17%, which will provide ongoing capital returns to shareholders and bolster investor confidence.
- Capital Return Policy: Smurfit Westrock plans to distribute approximately $5 billion in dividends to shareholders between 2026 and 2030, along with share buybacks starting in 2027, indicating strong confidence in future cash flows and commitment to shareholders.
- Market Growth Assumptions: The company expects market growth rates of 1.6% in North America, 1.7% in Europe, and 2.0% in Latin America, which will support the achievement of its medium-term plan while reflecting the company's strategic positioning in global markets.
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Smurfit Westrock to Permanently Close Quebec Paper Machine
- Production Capacity Adjustment: Smurfit Westrock announced the permanent closure of a paper machine at its La Tuque, Quebec mill, which has an annual production capacity of 127,000 tons of solid bleached sulfate (SBS), aimed at addressing ongoing scale and cost challenges to strengthen the company's SBS portfolio and ensure long-term competitiveness in its paperboard operations.
- Facility Closure Impact: In addition to the paper machine, the extrusion facility in Pointe-aux-Trembles will also close, which converts grades produced on the La Tuque machine, resulting in approximately 30 job losses at La Tuque and about 60 at Pointe-aux-Trembles.
- Employee Support Measures: The company is committed to providing career transition assistance and relocation opportunities for affected employees, along with local severance pay in accordance with company policy and labor union agreements, to mitigate the impact of the layoffs.
- Response to Market Realities: CEO Laurent Sellier stated that this decision, while difficult, is necessary to align with market realities and strengthen the company's long-term position, demonstrating a commitment to its operations in Canada and reliable service to customers.
See More
Smurfit Westrock Announces Quarterly Dividend
- Quarterly Dividend Announcement: Smurfit Westrock plc has declared a quarterly dividend of $0.4523 per ordinary share, payable on March 18, 2026, reflecting the company's ongoing cash flow and profitability.
- Dividend Payment Schedule: The ex-dividend and record dates are both set for February 17, 2026, ensuring that shareholders holding shares before this date will receive the dividend, thereby enhancing investor confidence.
- Currency Flexibility: For shareholders holding ordinary shares through a Depository Trust Company, the default payment currency is U.S. dollars, but they can elect to receive dividends in Pounds Sterling or Euros, demonstrating the company's attention to diverse investor needs.
- Company Background: Smurfit Westrock is a leading provider of paper-based packaging solutions globally, employing approximately 100,000 people across 40 countries, showcasing its strong influence and market position in the industry.
See More
Smurfit Westrock Announces Quarterly Dividend
- Quarterly Dividend Announcement: Smurfit Westrock plc has declared a quarterly dividend of $0.4523 per ordinary share, payable on March 18, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Dividend Payment Schedule: The ex-dividend and record dates are both set for February 17, 2026, ensuring that shareholders holding shares before this date will receive the dividend, thereby boosting investor confidence.
- Currency Payment Options: The default payment currency is U.S. dollars, with shareholders having the option to receive dividends in pounds sterling or euros by providing instructions within specified deadlines, demonstrating the company's flexibility to meet diverse investor needs.
- Company Background: Smurfit Westrock is a leading provider of paper-based packaging solutions globally, employing approximately 100,000 people across 40 countries, highlighting its significant position and market influence in the industry.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Smurfit Westrock Q4 Earnings Report Analysis
- Earnings Miss: Smurfit Westrock reported a Q4 non-GAAP EPS of $0.34, missing expectations by $0.15, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $7.58 billion, reflecting a 0.5% year-over-year increase and beating market expectations by $40 million, suggesting it maintains a certain market share in a competitive packaging industry.
- Positive Pricing Signals: Price increases by Cascades are viewed as a positive sign for the packaging industry, potentially providing Smurfit Westrock with improved pricing power, which could enhance profitability in the future.
- Increased Market Attention: With rising market focus on containerboard price increases, Smurfit Westrock's stock is under close scrutiny by analysts, which may influence its future market performance and investor sentiment.
See More
Smurfit Westrock Unveils Medium-Term Plan Update
- Financial Target Setting: At the investor update, Smurfit Westrock announced an expected adjusted EBITDA of approximately $7 billion by 2030, with a CAGR of about 7%, which will significantly enhance the company's profitability and market competitiveness.
- Free Cash Flow Outlook: The company anticipates cumulative discretionary free cash flow of around $14 billion from 2026 to 2030, with a CAGR of 17%, which will provide ongoing capital returns to shareholders and bolster investor confidence.
- Capital Return Policy: Smurfit Westrock plans to distribute approximately $5 billion in dividends to shareholders between 2026 and 2030, along with share buybacks starting in 2027, indicating strong confidence in future cash flows and commitment to shareholders.
- Market Growth Assumptions: The company expects market growth rates of 1.6% in North America, 1.7% in Europe, and 2.0% in Latin America, which will support the achievement of its medium-term plan while reflecting the company's strategic positioning in global markets.
See More
Smurfit Westrock to Permanently Close Quebec Paper Machine
- Production Capacity Adjustment: Smurfit Westrock announced the permanent closure of a paper machine at its La Tuque, Quebec mill, which has an annual production capacity of 127,000 tons of solid bleached sulfate (SBS), aimed at addressing ongoing scale and cost challenges to strengthen the company's SBS portfolio and ensure long-term competitiveness in its paperboard operations.
- Facility Closure Impact: In addition to the paper machine, the extrusion facility in Pointe-aux-Trembles will also close, which converts grades produced on the La Tuque machine, resulting in approximately 30 job losses at La Tuque and about 60 at Pointe-aux-Trembles.
- Employee Support Measures: The company is committed to providing career transition assistance and relocation opportunities for affected employees, along with local severance pay in accordance with company policy and labor union agreements, to mitigate the impact of the layoffs.
- Response to Market Realities: CEO Laurent Sellier stated that this decision, while difficult, is necessary to align with market realities and strengthen the company's long-term position, demonstrating a commitment to its operations in Canada and reliable service to customers.
See More
Smurfit Westrock Announces Quarterly Dividend
- Quarterly Dividend Announcement: Smurfit Westrock plc has declared a quarterly dividend of $0.4523 per ordinary share, payable on March 18, 2026, reflecting the company's ongoing cash flow and profitability.
- Dividend Payment Schedule: The ex-dividend and record dates are both set for February 17, 2026, ensuring that shareholders holding shares before this date will receive the dividend, thereby enhancing investor confidence.
- Currency Flexibility: For shareholders holding ordinary shares through a Depository Trust Company, the default payment currency is U.S. dollars, but they can elect to receive dividends in Pounds Sterling or Euros, demonstrating the company's attention to diverse investor needs.
- Company Background: Smurfit Westrock is a leading provider of paper-based packaging solutions globally, employing approximately 100,000 people across 40 countries, showcasing its strong influence and market position in the industry.
See More
Smurfit Westrock Announces Quarterly Dividend
- Quarterly Dividend Announcement: Smurfit Westrock plc has declared a quarterly dividend of $0.4523 per ordinary share, payable on March 18, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Dividend Payment Schedule: The ex-dividend and record dates are both set for February 17, 2026, ensuring that shareholders holding shares before this date will receive the dividend, thereby boosting investor confidence.
- Currency Payment Options: The default payment currency is U.S. dollars, with shareholders having the option to receive dividends in pounds sterling or euros by providing instructions within specified deadlines, demonstrating the company's flexibility to meet diverse investor needs.
- Company Background: Smurfit Westrock is a leading provider of paper-based packaging solutions globally, employing approximately 100,000 people across 40 countries, highlighting its significant position and market influence in the industry.
See More
