Group Adjusted EBITDA and Margin in Q1
Delivered adjusted EBITDA of $1,076 million with an adjusted EBITDA margin of 14% for Q1 2026, described as essentially in line with plan.
Smurfit Westrock
· SW
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +22.66%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
NeutralThe call presented a mix of solid operational and commercial progress — Q1 adj. EBITDA was in line with plan, regions EMEA/APAC and Latin America outperformed with healthy margins, the company secured significant new customers and reaffirmed full-year guidance while launching an ambitious medium-term plan. These positives were tempered by meaningful near-term cost headwinds (notably energy and freight), Q1 weather and downtime impacts, some lingering volume weakness earlier in the year, and targeted asset closures. Management emphasized improving demand trends entering Q2 and active commercial and cost actions to restore margins.
Company Guidance
Management guided Q2 adjusted EBITDA of $1.1–$1.2 billion and reaffirmed full‑year 2026 adjusted EBITDA of $5.0–$5.3 billion; they also reiterated the medium‑term targets of $7 billion adjusted EBITDA and a 19% group margin by 2030, ~7% adjusted EBITDA CAGR and >300 bps margin expansion, and $14 billion of discretionary free cash flow over the plan. Q1 results were adjusted EBITDA $1,076 million (14% margin), with regional Q1 results of North America $597 million (13.3% margin; ~ $55 million weather impact and $74 million downtime, ~half unplanned), EMEA/APAC $421 million (15.2% margin) and Latin America $109 million (>20% margin). Operational metrics and actions called out included ~600 new corrugated customers added in the quarter, >250 million consumer units converted/being converted to SBS/CUK, 34 innovation centers globally (200+ customers at the Amsterdam event), a planned recycled‑paper price increase of €100/ton and contemplated closure of four small converting sites and a ~200,000 tpy U.K. paper mill. On costs and hedging, management said Q2 gas hedges are ~50% (and ~1/3 each for Q3/Q4), energy headwind for the year is now estimated at roughly $270–$290 million (versus ~$80 million previously cited), recovered‑fiber headwind of ~ $20 million in Q2, and freight pressure of about a $50 million headwind for the year, while lower downtime is expected to benefit Q2 by roughly $40 million.
Regional Performance — North America
North America reported adjusted EBITDA of $597 million and an adjusted EBITDA margin of 13.3%. Management noted demand improvement entering Q2 and expects no material downtime in Q2 after weather and downtime disruption in Q1.
Regional Performance — EMEA & APAC
EMEA & APAC delivered adjusted EBITDA of $421 million with an adjusted EBITDA margin of 15.2%, with management noting significant outperformance versus peers and strong value from the innovation platform.
Regional Performance — Latin America
Latin America generated adjusted EBITDA of $109 million and an adjusted EBITDA margin above 20%, highlighting tightening markets, improved pricing and completion of a corrugated box plant acquisition in Ecuador.
Customer Wins and Commercial Momentum
Entered contracts with over 600 new corrugated customers in North America during the quarter; new-customer volume in April was ~30% higher than March. Management reported strengthening order books and said many paper grades are effectively sold out.
Commercial Price Actions
Announced and/or implemented a series of price increases: recycled paper price rises in Europe of EUR 100/ton, and recent North American containerboard/grade-specific increases (including a recently announced ~$50/ton action) with staged implementation expected through Q2–Q3.
Medium-Term Targets and Capital Allocation
Launched a medium-term plan targeting $7 billion adjusted EBITDA and a 19% group adjusted EBITDA margin by 2030, and $14 billion of discretionary free cash flow over the life of the plan. Management reaffirmed full-year 2026 adjusted EBITDA guidance of $5.0–$5.3 billion and Q2 adj. EBITDA guidance of $1.1–$1.2 billion.
Integration, Innovation and Talent
Management highlighted strong integration progress post-combination, a global network of 34 innovation centers, a recent innovation and sustainability event in Amsterdam attended by ~200 customers, and improved recruitment and cultural momentum.
Operator
Good day, and thank you for standing by. Welcome to the Smurfit Westrock 2026 Q1 Results Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Ciaran Potts, Smurfit Westrock Group VP, Investor Relations. Please go ahead.
Ciaran Potts
Thanks, Evan. As a reminder, statements in today's press release and presentation and the comments made by management during this call may be considered forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the earnings release and in our SEC filings as well as those discussed in our investor update presentation. The company undertakes no obligation to revise any forward-looking statements. Today's remarks will also refer to certain non-GAAP financial measures where applicable reconciliations to the most comparable GAAP measures are included in today's earnings release and in the appendix to the accompanying presentation, which are available at investors.smurfitwestrock.com. In addition, today's remarks include statements about Smurfit Westrock's medium-term financial goals and capital allocation priorities. These goals are aspirational and actual performance may differ, possibly materially, and no guarantees are made that these goals will be met.
To ensure that we have time to hear from as many of you as possible, given time constraints, w...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free