By the numbers: Q1 2026
Net sales: $7.71B
Up 0.7% year over year
Net income: $63M
Compared with $382M in Q1 2025
- Overview: “It was a challenging quarter” for Smurfit Westrock due to some weather and demand difficulties, said CEO Tony Smurfit during Thursday’s first-quarter earnings call. Severe weather in late January and early February added $65 million in costs, and consumer confidence remains muted. The company also noted logistical difficulties in Mexico due to national security issues. Executives said the company did not experience negative effects from rising energy costs related to conflict in the Middle East in Q1, but they expect to in coming quarters.
- Green shoots: Despite the Q1 challenges, “we're out of that now” and “we see very much stronger markets” across the board, Smurfit said. During Q1, Smurfit Westrock entered contracts with more than 600 new corrugated customers, and that momentum continued into April.
- Mill closure: The company has decided to close a mill in Birmingham, U.K., and four converting operations in the U.K. and the Netherlands. The Birmingham mill was among the company’s highest cost mills, if not the top, Smurfit said. “That mill always had a finite period it could last” due to its age and constraints, Smurfit said. “Clearly, we invest in mills that we believe have a long-term future and will be low cost,” but that wasn’t the case with Birmingham.
- Market dynamics: While it’s possible some recent sales might have been due to customers pre-buying ahead of price increases, “it’s not something that we see a lot of,” Smurfit said. “I think what we’re seeing right now, globally speaking, is strong demand.” He pointed to effects of the nearly 10% North American containerboard production capacity cuts that producers announced in 2025.
- Pricing: This week, Smurfit Westrock announced another North American containerboard price increase of $50 per ton to take effect June 1, building on the wave of $70 per ton hikes that containerboard producers announced earlier this year. It also had announced a 100 euros per ton increase in Europe. “Frankly speaking, we and the industry need it, so therefore it's going to happen,” Smurfit said. Executives expect the first round of hikes to be fully recognized by July and the second round to see recognition later in the year, perhaps by the end of September.
- LSE review: Executives discussed that Smurfit Westrock has decided to conduct a review of its listing on the London Stock Exchange, and the company might decide to delist from the LSE. “The review is focused on ensuring our listing structure reflects where our shares trade, while reducing complexity and ongoing costs,” Smurfit said. The review is slated for completion in May. The company’s primary listing on the New York Stock Exchange is not part of the review.
- Outlook: Despite the headwinds, Smurfit Westrock stuck with its guidance for the year of $5 billion to $5.3 billion of adjusted earnings before interest, taxes, depreciation and amortization. The company experienced improved demand to start Q2. “We see a lot more optimism than we've seen for a long period of time,” Smurfit said.
