Smurfit Westrock cuts profit forecast in 'challenging' environment

Dublin-headquartered firm plans to implement additional downtime in its factories in the fourth quarter

The world's largest cardboard box maker Smurfit Westrock cuts its full-year core profit forecast on Wednesday as weak demand forces it to implement additional downtime in its factories in the fourth quarter.

The world's largest cardboard box maker Smurfit Westrock cuts its full-year core profit forecast on Wednesday as weak demand forces it to implement additional downtime in its factories in the fourth quarter.

The Dublin-headquartered company expects full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $4.9bn (€4.2bn) and $5.1bn (€4.3bn), versus the previous $5bn (€4.29bn) to $5.2 (€4.46bn) range that would have represented annual growth of 6% to 11%.

“The year to date has been characterized by a challenging demand backdrop and as a result we expect to take additional economic downtime in the fourth quarter to optimize our system," said chief executive Tony Smurift.

"Our 2026 capital spend is expected to be in a $2.4 to $2.5bn (€2.15bn) range. This level of spend allows us to continue optimising our asset base, accelerating cost take-out, and capitalizing high-growth areas.

“Our third quarter results reflect the significant progress we have made since the creation of Smurfit Westrock some 16 months ago. The steps we have taken, and continue to take, are building a better business and as we end 2025 and enter 2026 we are a much stronger company, increasingly excited about our future prospects.”

Smurfit reported third-quarter core profit of $1.3bn (€1.12bn), in line with its guidance but below the average 1.32 billion forecast of nine analysts cited by LSEG SmartEstimate.

In July 2024, Smurfit Kappa completed its merger with US packaging firm WestRock in a deal reportedly worth $11.2bn (€9.4bn).

Reuters