Smurfit Westrock Reports Q2 Earnings Amid Rising Freight Costs and Pricing Adjustments
Smurfit Westrock (NYSE:SW) reported second-quarter adjusted EBITDA of $1.14 billion with a margin of 14.2%, impacted by rising freight costs that offset the early effects of pricing actions. CEO Tony Smurfit noted significant input cost pressures, particularly from higher freight expenses due to increased fuel prices and Middle East-related shipping disruptions. The company raised containerboard prices in North America and Europe as part of its strategy to recover costs over time. CFO Ken Bowles revised full-year adjusted EBITDA guidance upward to $4.9 billion–$5.1 billion, citing higher-than-expected freight cost impacts now estimated at around $300 million annually compared with earlier forecasts. Smurfit Westrock expects pricing increases in North America and Europe to begin reflecting in earnings during 2027 as contract lags delay their impact on current results. The company also noted improved market conditions for solid bleached sulfate (SBS) paper, which is now sold out due to new customer demand.
Tickers: $SW
Topics: earnings freight costs guidance update pricing actions